Netherlands-based navigator maker TomTom has posted a loss of EUR11m (US$14m) before interest and taxes (EBIT), excluding extraordinary items, for the first quarter of 2009 compared with a EUR6m loss a year ago.

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But it beat the average forecast of a EUR25m in a Reuters poll of 11 analysts.


TomTom did not update its full-year outlook but said it was not abandoning it. In February it said it would sell 11 to 12m portable navigation device (PND) units this year, generating revenue of EUR1.4-1.6bn.


“We are not reiterating our outlook … what we see at the moment is we don’t see a reason to walk away from what we have said before,” financial executive Marina Wyatt told Reuters, adding that she needed more clarity to give a good update.


SNS Securities analyst Martijn den Drijver told the news agency the failure to reiterate the outlook clouded the quarterly results.

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“Given the first-quarter performance, the statements that market shares improved, that the US market still grew by 13% and that sell out was according to plan, we don’t understand why the guidance was not reiterated, ” den Drijver said.


TomTom said the continued macroeconomic uncertainty limited visibility in its business.


“Market conditions were challenging during the quarter, exacerbated by the de-stocking of the channel by distributors and retailers,” chief executive Harold Goddijn said in a statement.


Reuters noted that TomTom has net debt of EUR1.1bn after buying digital map maker Tele Atlas last summer. Analysts fear it may break its loan covenants.


It paid EUR2.9bn after a bidding war with US rival Garmin, forcing it to borrow EUR1.6bn to help fund the deal.


TomTom told Reuters it was still looking at all options to remain within its loan covenants, but declined to give any details.