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MapInfo Reports 50 Percent EPS Gain on US$34.7 Million First Quarter Revenue

  • 21 January, 2005 17:15

<p>Operating Income Nearly Triples to US$3.1 Million; Operating Margin Expands to 9 Per cent</p>
<p>TROY, NY—January 20, 2005—MapInfo Corporation (Nasdaq: MAPS) today reported that net income for the first quarter of fiscal 2005 nearly doubled to US$1.2 million, or US$0.06 per share, versus US$637,000, or US$0.04 per share in the same quarter last year. Earnings for the quarter included US$0.05 per share in net charges, as announced on January 11, related to the write-off of the remaining value of the company’s equity investment in Alps Mapping, Co., Ltd. partially offset by a benefit resulting from recent changes in the United States tax laws. Revenue for the first quarter of 2005 reached US$34.7 million, the highest quarterly revenue in the history of the company, and representing a 21 per cent increase over the prior year’s US$28.6 million.</p>
<p>Financial highlights for the quarter include:</p>
<p>For the seventh consecutive quarter, MapInfo reported a year-over-year gain in both operating income and operating margin. Operating income nearly tripled to US$3.1 million, resulting in an operating margin of 9.0 per cent, more than double the prior year operating margin.
Cash and investments as of December 31, 2004 were US$67.3 million and cash from operations grew by US$1.9 million during the quarter.
Total deferred revenues were US$17.3 million at the end of the quarter.</p>
<p>“In the first quarter MapInfo demonstrated its consistent execution capability, as we continued to penetrate our target vertical markets and advance our 2005 growth initiatives,” said Mark Cattini, president and chief executive officer. “We are satisfied with our performance in all of our target vertical markets, however, the public sector stood out on the strength of customer wins and the addition of Southbank Systems, a company specialising in infrastructure management software. The integration of Southbank Systems is progressing well and we already have several cross-selling engagements underway. In addition, the offerings we introduced last year – Envinsa™, MapXtreme® 2004 and Exponare™ – are gaining traction with additional implementations that extend the use of location-based solutions across an organisation. Most importantly, revenue growth this quarter was well in excess of the operating expense additions associated with the Southbank acquisition, which, together with our commitment to cost discipline, pushed our operational return to its highest first quarter level.”</p>
<p>Added Cattini, “Today, MapInfo is a much stronger company than a year ago. Our vertical market strategy is succeeding in solidifying our competitive position, the pipeline for Envinsa continues to grow and we are responding to an increasing number of Request For Product (RFP). Building on the headway we made in the first quarter toward achieving our objectives, we plan to deliver increasingly profitable growth in 2005.”</p>
<p>Guidance</p>
<p>MapInfo reaffirms its guidance for fiscal 2005 that anticipates revenues in the range of US$149 million to US$154 million, a full-year operating margin of approximately 12 per cent and earnings per share in the range of US$0.42 to US$0.46. Full year EPS guidance includes US$0.05 per share related to the write-off of the remaining value of the company’s equity investment in Alps Mapping, Co., Ltd. partially offset by a benefit resulting from recent changes in the United States tax laws.</p>
<p>For the second quarter of fiscal 2005, the company expects earnings per share of approximately US$0.12 on revenue between US$36 million and US$37 million. For the second quarter of fiscal 2004, the company reported earnings per share of US$0.07 on revenue of US$31.4 million.</p>
<p>Conference Call</p>
<p>To access a recording of the MapInfo First Fiscal Quarter Earnings Conference Call , domestic callers may dial into 877-519-4471 and international callers into 973-341-3080 (passcode: 5564518). Replays of the Webcast are also available at www.vcall.com for 90 days following the call and at www.mapinfo.com/investors.</p>
<p>About MapInfo</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>Of Note</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 about the integration of Southbank Systems, 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 annual report on Form 10-K 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>
<p>For further information please contact:</p>
<p>Kristy Bryan
MapInfo Corporation
Tel: +617 3226 4550
kristy.bryan@mapinfo.com</p>
<p>Debbie Sassine/ Daniel Fitzpatrick
Spectrum Communications
Tel: +612 9954 3299
debbies@spectrumcomms.com.au</p>

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