AccuTerra app for Apple's 3.1 iPhone OS enables "in-app" purchasing
Monday, November 9, 2009
DENVER — Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the third quarter ended September 30, 2009. A conference call will be held today, November 9, at 4:30 p.m. Eastern Time to discuss the results.
All amounts in this news release are in United States dollars unless otherwise noted.
With NEXTMap Europe now available in its entirety, Intermap is focusing on the final processing phase of its NEXTMap USA dataset, which is scheduled to be commercially available in its entirety by mid-year 2010. Intermap believes its NEXTMap Europe dataset represents the most uniform, accurate and complete 3D maps of Western Europe in existence.
As part of its transformation to a sales- and market-driven organization, Intermap announced the appointment of David Cunningham, who has joined the Company as vice president of integrated sales. Mr. Cunningham will lead the Company's various business units in the development and implementation of strategic sales methodologies to drive revenue across the entire Company including North America, Europe, and Asia.
"David is ideally suited to take the organization to the next level necessary to maximize the value of our NEXTMap asset," stated Brian Bullock, Intermap's president and CEO. "His proven track record with leading international technology-based enterprise organizations will help lead us in our critical transition to an integrated sales- and market-driven company."
"Notwithstanding current challenging economic conditions, Intermap remains committed to delivering strong and consistent revenue growth," commented Brian Bullock, Intermap's president and CEO. "Although revenue was up quarter-over-quarter, our financial results fell short of our expectations. Contributing to the shortfall were two large contracts scheduled to close in the second half of 2009 that have yet to be finalized. Additionally, another transaction closed in October at a lower value than previously anticipated. Some customers have communicated to us that tightened budgets, coupled with a weak economic backdrop, have impacted their ability to readily issue new contracts. However, we remain optimistic that significant identified opportunities will close in 2010 and lead to improved financial performance during the coming year. Nevertheless, we continue to remind shareholders that quarterly revenues are and will continue to be lumpy until our scalable markets become the dominant source of revenue. For example, our analysis of underlying MCDL revenue trends, adjusted for one large sale that occurred in Q2 of 2008, shows that the underlying trend is an upward trend. As NEXTMap USA nears completion, we believe that a few large buyers are budgeting to purchase nationwide licenses, which could add significantly to our MCDL revenue in 2010 and beyond."
For the third quarter of 2009, Intermap reported total revenue of $10.4 million, a decrease from the $12.8 million reported for the same period in 2008. At quarter-end, there remained $6.6 million in revenue to be recognized on existing contracts in future periods.
Multi-client data library ("MCDL") license revenue increased 16% to $3.0 million during the third quarter of 2009, compared to $2.5 million for the same period in 2008. For the third quarter of 2009, approximately 24% of the MCDL license revenue was associated with the NEXTMap USA program, 16% was associated with the NEXTMap Europe program and 60% was associated with the Company's Asia dataset.
Contract services revenue in the third quarter of 2009 was $7.4 million, compared to $10.3 million for the same period in 2008. The decrease was primarily the result of a reduction in mapping projects in Asia where the Company had $10.0 million in revenue during the third quarter of 2008 compared to $6.6 million during the same period in 2009.
Operations expense in the third quarter totaled $2.8 million, as compared to $1.9 million for the same period in 2008. The increase is primarily the result of a reduction of capitalized costs due to the completion of NEXTMap Europe and the completion of airborne collection of the Company's NEXTMap USA program. Additionally, during the third quarter of 2009, expenses were incurred in relation to contract services revenue recognized during the period.
Sales, general and administrative ("SG&A") expense in the third quarter was $6.9 million, as compared to $6.8 million for the same period in 2008. SG&A includes costs associated with administration, database infrastructure, facilities, business development (including automotive, consumer electronics and insurance risk management), sales, and marketing.
Amortization expense of the MCDL database in the third quarter increased to $2.6 million from $1.3 million for the same period in 2008. The increase was primarily due to an increase in the size of the underlying NEXTMap datasets.
Adjusted EBITDA, a non-GAAP measure, for the quarter ended September 30, 2009 was $0.5 million, as compared to $3.7 million for the same period in 2008. The term EBITDA consists of net income (loss) and excludes interest, taxes, depreciation, and amortization. Adjusted EBITDA also excludes gain or loss on foreign currency translation, gain or loss related to the disposal of assets, and stock based compensation expense.
For the third quarter of 2009, Intermap reported a net loss of $4.3 million, or ($0.08) per share, compared to net income of $0.2 million, or $0.00 per share for the same period in 2008.
On a year-to-date basis, consolidated revenue decreased by $5.3 million from $27.4 million during the nine months ended September 30, 2008 to $22.1 million during the same period in 2009. Contract services revenue on a year-to-date basis was $15.3 million compared to $18.6 million for the same period in 2008. MCDL revenue for the nine months ended September 30, 2009 was $6.8 million, a decrease from the $8.7 million reported during the same period in 2008. Approximately 27% of the MCDL license revenue year-to-date was associated with the NEXTMap USA program, 31% was associated with the NEXTMap Europe program and 42% was associated with the Asia dataset.
Operations expense totaled $6.2 million during the first nine months in 2009 compared to $6.0 million for the same period in 2008. SG&A expense totaled $19.6 million during the first nine months in 2009 compared to $19.8 million for the same period in 2008. Adjusted EBITDA was a loss of $4.8 million during the first nine months in 2009 compared to positive earnings of $0.4 million for the same period in 2008. The net loss for the first nine months of 2009 was $18.1 million, or ($0.35) per share, as compared to a net loss of $10.2 million, or ($0.22) per share in the same period of 2008.
Cash expenditures have continued to decrease through 2009 as the airborne data collection portion of NEXTMap USA was completed in the early part of the year. Cash outflows relating to NEXTMap are expected to be lower by more than $15 million for all of 2009 when compared to 2008. Investment in the final processing of the NEXTMap USA dataset continues with an expected commercial availability in its entirety by mid-year 2010.
Net cash used in investing activities is down significantly as predicted, totaling $3.0 million (year-to-date $10.8 million) during the third quarter of 2009, compared to $9.4 million (year-to-date $27.6 million) during the same period in 2008. Cash used during the third quarter of 2009 in investing activities was primarily for investment in the MCDL of $2.7 million ($7.7 million in 2008).
The cash position of the Company at September 30, 2009 (cash and cash equivalents) was $16.5 million compared to $27.3 million at December 31, 2008. Working capital decreased to $22.6 million as of September 30, 2009 from $30.0 million as of December 31, 2008.
As of November 6, 2009, there were 52,432,037 common shares outstanding.
Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR at: www.sedar.com.
A PDF version of this release, including financials, can be found here.
Apple iPhone and AccuTerra by Intermap
In the second quarter, Intermap launched its AccuTerra GPS map product on the Apple iPhone. The new application was named winner of the Apple Design Award in the Best iPhone OS 3.0 Beta App category.
The iPhone and AccuTerra map content allows hikers and other outdoor recreational users to view their topographic surroundings with a high degree of detail, while accurately tracking their progress. The AccuTerra maps reside on the iPhone so people can use them even where there is no cellular coverage. Adventures can be tracked, saved and shared immediately via email. The application is also integrated with Google Earth™ and Google Maps™ to enable shared user experiences and the ability to build online communities. In addition, AccuTerra's unique â€²Walking Tourâ€² function lets the user's replay the entire adventure right from their iPhone.
Within the first three weeks, Intermap sold and downloaded over a terabyte of content to iPhone users from over 270 map bundles available on the Apple App Store. Downloads quickly climbed from hundreds to thousands and by the end of the third quarter total downloads have reached tens of thousands.
Intermap's iPhone application includes a sophisticated and flexible "In-App" purchasing capability. By fully leveraging Apple's iPhone OS v3.1, the iPhone user can purchase content within the AccuTerra application. As of September 30, 2009, there have been approximately 25,000 paid licenses specific to dedicated GPS and iPhone devices.
Intermap has an aggressive plan to pursue the rapidly growing Smartphone market with its AccuTerra GPS outdoor recreational maps. In the United States, Intermap has OEM agreements to supply its AccuTerra GPS recreational maps to Magellan, Bushnell Outdoor Products, Pronounced Technologies, and Navico/Lowrance. NEXTMap data can be used to power mobile recreation applications with nationwide mapping coverage available in the U.S. and Western Europe.
The AccuTerra applications are available from Apple's iTunes App Store at www.itunes.com/appstore. More information on AccuTerra for the iPhone can be found at: mobile.AccuTerra.com.
Automotive Market - Safety, Navigation and Fuel Efficiency
Intermap is creating highly accurate 3D road vectors from the NEXTMap database to enable the enhancement of and help improve fuel efficiency and vehicle safety in the transportation industry. From its Detroit and Munich offices, Intermap is supporting advanced automotive technologies in the industry.
Intermap recently completed its first agreement to supply 3D map content to the automotive market, supplying 3D terrain data to a leading automotive supplier to support terrain visualization.
Intermap actively collaborates with leading automobile manufacturers regarding the creation and development of what it believes is "cutting edge" ADAS and Energy Management centric automotive technology such as predictive adaptive front lighting and enhanced adaptive cruise control systems. Intermap recently completed 3D road vectors for all classes of roads in Germany.
Intermap licensed shaded terrain products which leverage the nationwide NEXTMap 3D mapping database for the U.S. and Europe to MapQuest, Inc. Additionally, Intermap will deliver shaded terrain products for Europe and the remainder of the world for subsequent releases on the MapQuest.com consumer Web site and Platform products. On October 29, MapQuest launched a major upgrade to their popular web site utilizing Intermap's data. A visible improvement to their on-line maps is the integration of Intermap's shaded terrain content based on Intermap's NEXTMap data. Further, Intermap receives attribution on the website which will increase corporate visibility by virtue of the 500 million page views recorded per month.
Geographic Information System (GIS) Applications
Intermap received a $1.8 million contract to supply elevation data to evaluate a comprehensive 3D basin model that shows water accumulation, flow, catchment and use potential. This 3D model is a key to the success of a large river restoration program. The area is experiencing its lowest in-flows on record, which, combined with a 7-year drought, has contributed to a severe water shortage throughout the region.
NEXTMap Distribution Partners/Resellers
Intermap has released the Company's new elevation shaded image (ESI) product for Germany and has partnered with GeoContent GmbH, a leading provider in Germany of aerial photography and geospatial information, to create the high-resolution ESI product. The result is a topographic visualization ideal for manufacturers of personal navigation devices, in-dash navigation systems and other applications benefiting from advanced visualization images.
Intermap believes that users of navigation devices and systems employing Intermap's ESI product will be able to identify their current location and how to get to their desired destination much more quickly, reliably and intuitively than with traditional maps or shaded relief products. The 1-meter vertical accuracy of Intermap's underlying NEXTMap elevation data can enhance an outdoor recreation user's experience — whether it's a hike in the Bavarian Alps or a drive on the Autobahn.
Intermap has distribution agreements with ESRI France and ESRI Portugal, some of the leading geographic information system (GIS) technology providers in their respective countries, to resell NEXTMap data. Intermap has also entered into a data distribution agreement with Digital Data Services, a provider of mapping products and GIS services, to offer NEXTMap data worldwide.
Recently, Intermap received recognition as one of 20 selected showcase companies for the 2009 DEMOgala technology conference in Denver. DEMOgala is the region's largest technology conference, with a showcase of demonstrations from innovative Colorado companies and more than 40 Founders and CEOs from around the nation.
NEXTMap data is available directly from Intermap, online at www.TerrainOnDemand.com, or through selected partners worldwide.
Conference Call November 9, 2009 at 4:30 p.m. EST (2:30 p.m. MST)
Intermap will host a conference call today, November 9, 2009, at 4:30 pm EST (2:30pm MST). To participate in the call, please dial +1-416-340-8018 or 1-866-223-7781 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through November 16, 2009. Please dial +1-416-695-5800 or +1-800-408-3053 and provide the password 8816154 to listen to the rebroadcast.
About Intermap Technologies
Intermap (TSX: IMP.TO) is a preeminent digital mapping company creating uniform high-resolution 3D digital models of the earth's surface. The Company has proactively remapped entire countries and is building uniform national datasets, called NEXTMap®, consisting of affordably priced elevation data and geometric images of unprecedented accuracy. Demand for NEXTMap data is continues to grow as new commercial applications emerge within the GIS, engineering, automotive, consumer electronics, insurance risk assessment, oil and gas, renewable energy, hydrology, environmental planning, wireless communications, transportation, aviation and 3D visualization markets.
Intermap is headquartered in Denver, Colorado, with additional offices in Calgary, Detroit, Jakarta, London, Madrid, Munich, Ottawa, Paris, Perth, Prague and Washington D.C. For more information, visitwww.Intermap.com or www.AccuTerra.com.
NEXTMap® is a registered trademark of Intermap Technologies Corporation
For more information, please contact:
Richard Mohr, Senior Vice President & Chief Financial Officer
+1 (303) 708-0955
Canada — Financial
Corbet Pala, Investor Relations
E-vestor Communications Inc.
+1 (416) 657-2400
United States — Financial
Budd Zuckerman, Investor Relations
Genesis Select Corporation
+1 (303) 415-0200
Intermap Reader Advisory
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. You can find a discussion of such risks and uncertainties in our Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. 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 that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.