Tele Atlas Reports Second-Quarter $1.6 Million Loss
Digital mapping company Tele Atlas, in the process of being acquired by navigation device maker TomTom for 1.8 billion euros ($2.5 billion), Tuesday reported a second quarter net loss of 1.2 million euros ($1.6 million).
That compares to a profit of 4.5 million euros ($6.2 million) a year earlier, when the Den Bosch, Netherlands-based company received a one-time tax credit of 11.5 million euros.
Sales were up 21% from a year earlier to 72.8 million euros ($99.7 million).
Tele Atlas said that on an operating basis, its loss shrank to 1.4 million euros ($1.9 million) from 7.7 million euros. The company forecast an operating profit of 3 million euros ($4.1 million) for the full year.
"The sustained strong growth across personal navigation and automotive markets reflects the continuing emergence of a true mass market for digital maps," Tele Atlas Chief Executive Alain De Taeye said in a statement.
On July 23, TomTom said it will launch a 21.25 euro ($29.11) per share bid for Tele Atlas, a combination which would challenge the two larger players in their industries, Garmin in navigation devices and Navteq in mapping.