NEXTMap data collected in first half of 2007exceeds amount collected in all of 2006
Friday, August 3, 2007
CALGARY, Alberta: Intermap Technologies Corp. (the “Company”), today reported financial results for the second quarter ended June 30, 2007. A conference call will be held today at 10:00 am eastern time to discuss the results.
For the second quarter, Intermap reported an increase in total revenue to $7.1 million, as compared to total revenue of $3.7 million for the second quarter of 2006. The contract services revenue component grew 105% to $5.9M and multi-client data licenses (MCDL) grew 60% to $1.2M. Approximately 77% of the MCDL revenue was associated with the Company's NEXTMap USA program, primarily in the states of Texas and Arizona and also the Canadian border. “The market for Intermap's products continued on a strong uptrend in Q2.” stated Brian Bullock, president & CEO of Intermap.
Cost of services expense for the second quarter ended June 30, 2007 increased to $2.6 million, compared to $1.6 million for the second quarter of 2006, reflecting an increase in the costs associated with increased contract services work and preparation costs associated with future mapping activities.
The net proceeds from the financing will be utilized to fund the development of value-added products in the Company's three most active markets: flood risk modeling, 3D personal navigation devices (PND), and advanced driver assistance systems. “We've made a strategic decision to develop value-added applications enabled by our 3D geospatial database in response to market demand coming from our most active markets,” continued Mr. Bullock, “To enable automotive safety applications we are creating road centerlines for all classes of roads in the U.S. and Europe, whereas within the personal navigation device (PND) market we are now aggregating multiple recreational data sets for the U.S. Our flood modeling development is currently focused on full-country flood risk solutions for the insurance markets in Europe. The development of vertical market solution applications will increase the value of our NEXTMap datasets and can expedite market penetration — giving Intermap valuable first mover advantage. I am pleased to report positive progress on all fronts.”
The net proceeds from the financing will also support the accelerated development of the NEXTMap USA and NEXTMap Europe data sets with the data collected in the first half of the year exceeding the amount collected in any prior full year. Intermap is collecting a record amount of NEXTMap data in 2007 and has therefore increased its data processing resources. The Company now has over 200 employees dedicated to processing the collected data in its Denver, Jakarta, and Ottawa offices. In addition, we have a subcontractor in Thailand with 40 staff dedicated to processing NEXTMap data. Plans call for the staffs to grow in Jakarta to 240 and Thailand to 100 by year-end.
NEXTMap USA is the Company's largest project that includes terrain elevation and imagery data accurate to one-meter or better, covering nearly eight million square kilometers of the United States. During the second quarter, Intermap collected an additional 664,000 square kilometers of data for its NEXTMap USA project, bringing the total collected since the inception of the project to 3.2 million square kilometers, or 40% of the continental United States. The Company expects to have the collection portion of the NEXTMap USA project completed by the end of 2008.
Currently, Intermap has data available off-the-shelf for 659 counties in the US. The Company expects a continued increase in license revenues in 2007 as marketing activities generate interest from new NEXTMap USA customers. Through June 30, 2007, total cumulative license revenue to date for NEXTMap USA data has grown to approximately $10 million.
The NEXTMap Europe project is expected to be fully collected by the end of 2007. Acceleration of the data processing is being driven by demand within the European automotive, government, and insurance sectors. The final processing of the map data is expected to be complete and available for sale shortly thereafter in 2008.
Personal Navigation Devices (PNDs)
The state of California is now complete with all data layers required for effective recreational PND navigation and safety. Significant market interest has been generated by Intermap's marketing and business development efforts for this product.
Mr. Bullock commented, “We believe that adding 3D visualization and safety to the recreational market applications will drive consumer demand and exceed market expectations. Safety applications will also migrate to the on-road applications as well fueling the need for accurate 3D descriptions of the road, which we are pursuing through our Advanced Driver Assisted Systems (ADAS) initiative.”
Advanced Driver Assisted Systems (ADAS)
Other applications will deliver 3D maps and active safety within vehicles to reduce accidents and traffic fatalities. NEXTMap databases can help 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 is in discussions with other automotive suppliers and manufacturers in Europe and North America.
Web-based 3D Visualization
Intermap's precise and uniform 3D digital terrain model serves as the foundation for the placement and alignment of aerial photography and other geospatial images. These images are then layered upon this 3D foundation to better align and place objects without distortion or undulation, thus creating a superior end product. “Having Intermap's highly accurate and reliable foundation layer under our imagery and building models allows us to provide one of the most accurate viewing experiences on the Internet today,” said Aric Weiker, director of product management for the Virtual Earth platform at Microsoft.
“The market is quickly realizing there are a wide range of solutions that can be created through GIS applications,” said Mr. Bullock. “Having access to a high-quality and uniform set of 3D data is the key to properly modeling and running advanced technologies. Our shareholders recognize that Intermap is setting the stage for worldwide 3D geometries that can make this happen.”
Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR, at www.sedar.com.
Conference Call Today at 10am EDT (8:00am MDT)
To participate in the call, please dial 416-641-6125 or 1-866-542-4236 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through August 10, 2007. Please dial 416-695-5800 or 1-800-408-3053 and provide the password 3231005# to listen to the rebroadcast. An audio Webcast of the teleconference will also be available on Intermap's Website.
About Intermap Technologies
Headquartered in Denver, Colorado, Intermap employs more than 500 people worldwide, with additional offices in Calgary, Detroit, Jakarta, London, Munich, Ottawa, and Prague. For more information, visit www.intermap.com.
® NEXTMap is a registered trademark of Intermap Technologies CorporationFor a full copy of the Q2 press release and financial statements - click here for pdf.
For more information, please contact:
Canada — Financial
Corbet Pala, Investor Relations