MapInfo Reports Fourth Quarter EPS of US$0.09 on Revenue of US$32.5 Million
- 29 October, 2004 11:21
<p>Fourth Quarter Operating Margin Grew to 10.3 per cent over Prior Year’s 6.3 per cent</p>
<p>TROY, NY— October 29, 2004—MapInfo Corporation (Nasdaq: MAPS) today reported earnings per share of US$0.09 for the fourth quarter of fiscal 2004 compared to earnings per share of US$0.07 for the same period last year, representing a 29 per cent increase on 4.7 million more average shares outstanding.</p>
<p>Financial highlights for the quarter and the full year include:</p>
<p>- For the fourth quarter, operating profit surged 77 per cent, resulting in a 400 basis point gain in operating margin to 10.3 per cent from the prior year operating margin of 6.3 per cent. This marked the sixth consecutive quarter in which the company reported year-over-year operating margin and operating income improvement. For the full year operating profit was US$10.7 million, representing an operating margin of 8.6 per cent.
- Diversification in vertical markets: retail accounted for 22 per cent of full year revenues, telecommunications 19 per cent and public sector 19 per cent. During the year, financial services, which includes insurance, grew from 5 per cent to 10 per cent of revenues.
- Cash from operations grew by US$3.3 million during the quarter and US$13.5 million for the fiscal year. As of September 30, 2004, cash and investments were US$72.8 million.
- Total deferred revenues were at a record US$17.8 million at the end of the quarter.</p>
<p>Revenues for the fourth quarter of fiscal 2004 were US$32.5 million compared to US$30.0 million for the prior year fourth quarter. Revenue was impacted by services resources being focused on a key customer project, which resulted in agreed-upon lengthened deadlines for other projects, and by softness in Germany where economic conditions are weakening. Net income for the fourth quarter grew 70 per cent to US$1.8 million from US$1.1 million in the same quarter last year.</p>
<p>For fiscal 2004, the company reported record revenues of US$124.7 million, a 17 per cent increase over the US$106.3 million reported in fiscal 2003. The company reported net income of US$5.1 million, or US$0.28 per share, compared to a net loss in fiscal 2003 of US$1.1 million, or US$0.07 per share.</p>
<p>“Overall, MapInfo performed extremely well during the fourth quarter and the entire year,” said Mark Cattini, president and chief executive officer. “Financially, we overachieved on our initial goals for the year to grow revenue by at least 15 per cent while increasing profitability and producing earnings per share of at least US$0.20. Strategically, we succeeded in deepening our presence in targeted vertical markets by achieving the objectives we set for ourselves at the beginning of the year: introducing vertical-specific solutions; cross-selling predictive analytics offerings to telecommunications, public sector and financial services customers; leveraging strategic relationships to expand our footprint with target vertical enterprise customers; and, completing a strategic acquisition in order to bolster our public sector capabilities.</p>
<p>“In addition, we made considerable progress in advancing our initiative to broaden usage of MapInfo location capabilities throughout an enterprise. Envinsa™, our location platform, gained momentum, opening doors to customers, new and existing, in all of our vertical markets globally as more and more of these organisations are recognising the benefits of combining location functionality with their existing applications. Likewise, MapXtreme® 2004, our .NET-based web mapping platform, is making location-based analysis available throughout an organisation.”</p>
<p>Concluded Cattini, “Since embarking on our vertical market strategy at the beginning of the year, we have established a unique position for MapInfo as a leading provider of location-intelligence solutions. In 2005 we plan to continue driving this strategy and enlarging our addressable market in order to generate increasing top-line growth and, through disciplined cost management, accelerate bottom-line performance.”</p>
<p>For fiscal 2005, MapInfo currently expects that IT spending will increase modestly over fiscal 2004 levels. Assuming favourable business conditions and taking into account the contribution of the recently-acquired Southbank Systems, the company anticipates revenues in the range of US$149 million to US$154 million, representing 20 to 24 per cent revenue growth, expanding the operating margin to approximately 12 per cent and growing earnings per share by at least 50 per cent to a range of US$0.42 to US$0.46.</p>
<p>For the first quarter of fiscal 2005, the company expects revenues between US$33.5 million and US$34.5 million and earnings per share of approximately US$0.08.</p>
<p>MapInfo Corporation is a global company that integrates software, data and services to help customers realise greater value from location-based information and drive more insightful decisions. MapInfo solutions are available in 20 languages through a network of strategic partners and distribution channels in 60 countries. Headquartered in Troy, NY, MapInfo Corporation is on the World Wide Web at www.mapinfo.com.</p>
<p>Statements in this press release regarding MapInfo’s future financial performance, including statements regarding future revenue and earnings per share, statements regarding the broadening of usage of MapInfo’s products in targeted vertical markets, statements regarding future trends in IT spending, statements regarding the prospects of favourable business conditions, and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. MapInfo’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in the Company’s quarterly report on Form 10-Q under the section "Risk Factors” as well as other documents that may be filed by MapInfo from time to time with the Securities and Exchange Commission. Forward-looking statements can be identified by forward-looking words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “should”, “will”, and “would” or similar words. MapInfo assumes no obligations to update the information included in this press release.</p>
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