TomTom posts $4 million profit in Q1, reversing year-ago loss

TomTom ekes out tiny profit in Q1

AMSTERDAM — TomTom NV reported a small profit for the first quarter as more drivers bought its personal navigation devices, but selling prices continued to fall.

Net profit was €3 million ($4 million) or €0.01 per share in what is usually its weakest quarter, from a loss of €37 million in the same period a year ago. Revenues rose 26 percent to €268 million.

The company has forecast sales for 2010 at about the same level as 2009, €1.48 billion. It says it expects earnings per share of €0.47.

TomTom said it sold 1.6 million devices, up 15 percent from a year ago. Its average selling price was €89, down 10 percent from a year ago. It said in future quarters it won’t reveal selling prices.

The company is gradually recovering from its ill-fated purchase of digital mapmaker Tele Atlas, which it bought for €2.9 billion in the fourth quarter of 2008.

TomTom was caught with high debt levels when economic recession set in, and it was forced to issue shares to pay down debt and avoid bankruptcy.

Net debt was €492 million at the end of the quarter. Interest payments are still an important influence on the company’s bottom line, but TomTom noted payments have fallen to €5.9 million for first quarter from €31 million a year ago.