MapInfo's Financial Earnings Strong With Operating Income Growing 34 Percent
Revenues for the Fourth Quarter Grew 24 Percent to $40.3 Million
Nov. 8, 2005 07:00 PM
MapInfo has reported earnings per share of $0.18 for the fourth fiscal quarter ended September 30, 2005, representing the tenth consecutive quarter of year-over-year earnings per share growth for the company. Included in the results is an approximate $0.03 per share benefit due to a decrease in the effective tax rate. For the same period last year the company reported earnings per share of $0.09.
Revenues for the fourth quarter grew 24 percent to $40.3 million versus $32.5 million for the same quarter last year. Operating income grew 34 percent to $4.5 million, for an operating margin of 11.2 percent, compared to last year's operating income of $3.4 million. Net income was $3.9 million compared to net income of $1.8 million for the fourth quarter of fiscal 2004. The effective tax rate was 24 percent in the quarter compared to 34 percent in the third quarter. The decrease in the effective tax rate was primarily a result of increased earnings in lower tax jurisdictions and a non-taxable gain on the sale of a building in Australia.
Cash and investments stood at $73.8 million as of September 30, 2005; cash from operations grew by $5.5 million during the quarter and $15.9 million during fiscal 2005. Total deferred revenue grew to $20.9 million at the end of the fourth quarter.
"MapInfo's fourth quarter performance capped a year of consistent execution against our strategic plan and financial objectives during which we generated 11 percent organic growth and demonstrated the scalability of our business model," said Mark Cattini, president and chief executive officer. We made major strides in fiscal 2005 toward achieving the transition of MapInfo to the broader location intelligence market by expanding our portfolio of vertical market solutions, forming revenue- generating partnerships with leading business intelligence companies and seeding the market for location intelligence to be delivered across the entire organization through implementations of our new enterprise-wide offerings, particularly MapInfo Envinsa and MapInfo MapXtreme 2004."
Cattini concluded, "Our continued ambition is to establish MapInfo as the industry standard for mission-critical location intelligence solutions, building on the momentum we gained in 2005 in further differentiating MapInfo in our target vertical markets. During fiscal 2006, we will pursue this goal through strategic initiatives including capitalizing on opportunities to add a location intelligence dimension to business intelligence systems, continuing to expand our capabilities across the enterprise and supplementing organic growth with acquisitions that enhance our vertical market expertise. Although we plan to increase our marketing spend on creating awareness for MapInfo location intelligence solutions among a wider spectrum of prospective business users, we still expect to leverage the scale of our business model to deliver increasing operating margins."