Monday, November 6, 2006
72% Increase in Third Quarter Revenue over Prior Year
171% Increase in NEXTMap Multi-client Data License Revenue
CALGARY, Alberta (November 6, 2006): Intermap Technologies Corporation (the "Company") (TSX: IMP.TO, AIM: IMAP.L), today reported third quarter results for the period ended September 30, 2006. All amounts in this news release are in U.S. dollars unless otherwise noted.
A slide presentation accompanies Intermap's conference call on Tuesday, November 7, 2006 at 2:00 p.m. EST (12:00 p.m. MST, 7:00 p.m. GMT). Please download the presentation "IMP_Q3_Quarterly_Call_Nov7_06" to your computer in advance of the call from ftp1.intermaptechnologies.com (copy and paste the file into your browser).
Username: Client 27
Password: RMmap339 (Password is case sensitive)
For security reasons this FTP site will be active until November 10, 2006.
To participate in the call, please dial 416-644-3430 or 1-866-250-4892 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through November 14, 2006. Please dial 416-640-1917 or 1-877-289-8525 and provide the password 21208201# to listen to the rebroadcast. An audio webcast of the teleconference will also be available on Intermap's website.
Intermap's NEXTMap business model is based on building 3D digital maps of entire countries, generating comprehensive, current, accurate and affordable digital elevation and image datasets, which are then licensed to multiple customers for varied applications. Currently, Intermap's NEXTMap coverage includes Great Britain, areas of Indonesia, Jamaica, Puerto Rico, Solomon Islands and Vanuatu with the United States and Europe programs well underway.
Total revenues for Intermap's third quarter ended September 30, 2006 were $9.4 million, up 72% from revenues of $5.4 million reported in the third quarter of 2005. Revenue from the Company's NEXTMap Multi-client Data Licenses (MCDL) increased by 171% to $3.2 million for the third quarter of 2006, up from $1.2 million for the same period in 2005. This represents the highest MCDL revenue quarter since the inception of the Company's NEXTMap initiative.
During the third quarter of 2006, 89% of the MCDL revenues were associated with NEXTMap USA and 11% were associated with NEXTMap Britain. This is compared to 83% and 17%, respectively, for the same period in 2005.
Following the completion of NEXTMap California in July of 2005, an increasing amount of MCDL revenues are being derived from NEXTMap USA license sales. In the third quarter Intermap announced its largest MCDL sale ever, a $3.2 million contract to provide imagery and elevation data, which included the entire state of California. In addition, previously announced orders for contract services work, combined with a strong list of near-term opportunities indicates revenue strength in the coming quarters, helping to fund the Company's NEXTMap initiatives.
Intermap reported a net loss for the third quarter of $1.3 million, or ($0.03) per share, as compared to a net loss of $0.9 million, or ($0.05) per share for the same period in 2005. The loss for the quarter includes $0.6 million of non-cash compensation expense related to restricted stock and the issuance of stock options.
For the first nine months of 2006, Intermap reported total revenues of $15.2 million, a 41% increase from revenues of $10.8 million for the first nine months of 2005. Total MCDL revenue in the first nine months now exceeds MCDL revenues for all of 2005. Intermap's nine-month net loss was $7.2 million, or ($0.20) per share, compared to a net loss of $5.4 million, or ($0.31) per share for the same period in 2005.
Cash and cash equivalents at September 30, 2006 were $54.0 million, as compared with $63.5 million at December 31, 2005. The Company's working capital was $57.9 million, compared with $64.7 million at December 31, 2005.
"During the third quarter we continued to process NEXTMap USA data that was collected in the first half of the year, while our fleet was deployed overseas performing substantial contract services work, including an international project valued at $7 million," said Brian Bullock, president and CEO of Intermap Technologies. "In addition, we completed the data collection of approximately 70% of the country of Germany during the quarter, with 100% completion realized during October. We expect to have NEXTMap Deutschland available for sale during the first half of 2007."
NEXTMap California Return on Investment
MCDL sales for NEXTMap California have reached $3.8 million. The total investment required to complete NEXTMap California was $8.2 million. A strong sales pipeline indicates that the Company will begin to generate a return on this investment within 18 to 24 months after completion as predicted by the Company's business plan.
NEXTMap USA Progress
During the third quarter, Intermap's NEXTMap USA program focused on the processing of data collected during the first half of the year as the Company's aircraft were deployed on contract service work and on NEXTMap Europe data collection. The Company intends to have 25% of the NEXTMap USA project completed by the end of 2006, with the entire project completed by the end of 2008. As of September 30, 2006, Intermap had invested approximately $27.6 million into the NEXTMap USA program.
At the beginning of the third quarter, Intermap was awarded a $3.2 million contract for 773,889 square kilometers of data in the United States, which included the first purchase of a data license for the entire state of California. This contract represents the largest purchase order for NEXTMap USA received to date. A portion of the revenue related to the contract will not be recognized until next year when the data is collected.
Currently, the company has data available off-the-shelf for 505 counties in the U.S. The Company expects a continued increase in license revenues in 2006 as marketing activities of the Company generate interest from new NEXTMap USA customers. To date, total license revenue for NEXTMap USA data totals approximately $9.7 million.
NEXTMap Europe Progress
Intermap completed the data collection of Germany in October of 2006. A total of 487,000 square kilometers were collected, which included the entire country of Germany and portions of the surrounding countries. The data will be available for customer purchase during the first half of 2007. This will mark the fourth country mapped in its entirety under the Company's NEXTMap Europe program.
During the third quarter, the Company announced that it would accelerate the completion of mapping all of Western Europe with a targeted completion by the end of 2007. Driven by demand within the European automotive, government, and insurance sectors, the Company's plans include the mapping of thirteen European countries in their entirety by the end of 2007. Once completed, these datasets will be the most accurate 3D digital maps of Europe in existence.
Intelligent Transportations Systems (ITS)
Intermap is creating 3D road vector data products to improve Intelligent Transportation System (ITS) applications that will drive active safety devices, improve fuel performance and enhance in-car navigation. Market interest for ITS applications using Intermap's 3D map data have been increasing as active safety, advanced car navigation and related applications are developing a larger worldwide focus.
During the quarter Intermap signed an agreement with Siemens VDO to jointly develop products to support emerging ITS applications by integrating Intermap's 3-D road vector data into Siemens VDO's map-based predictive automotive applications. These applications will deliver functionality and on-board sensors that provide active safety within vehicles to reduce accidents and traffic fatalities.
As one of the world's leading international automotive electronics and mechatronic suppliers, Siemens VDO is an ideal partner for introducing this highly innovative technology. NEXTMap databases will enable automotive electronics to predict what lies ahead and alert drivers of impending hazards. Advance predictions of road geometries will also be an invaluable component of visualization devices, vehicle fuel performance enhancement systems and advanced driver assistance systems.
Intermap also announced a Joint Development Agreement with Harman Becker earlier this year. In their most recent call with investors, Harman Becker confirmed their intention to pursue ITS applications that includes putting 3D maps into vehicles.
Service Contract Revenues
Intermap has announced over $20 million of contract services work so far in 2006. This strong performance highlights the strength of the Company's underlying global contract services business, which helps to finance the creation of Intermap's NEXTMap database. Cash flow from these contract services projects helps support NEXTMap database builds and reduces the draw on Intermap's cash.
Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR, at www.sedar.com.
The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Intermap's control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Intermap's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceed, that Intermap will derive therefrom.
For more information, please contact:
Richard Mohr, Chief Financial Officer
Canada - Financial
Corbet Pala, Investor Relations
E-vestor Communications Inc.
United States - Financial
Budd Zuckerman, Investor Relations
Genesis Select Corporation
United Kingdom - AIM, Nominated Advisor
Canaccord Adams Limited
+(44) (0) 207 518 2777
INTERMAP TECHNOLOGIES CORPORATION
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