CALGARY, Alberta—(BUSINESS WIRE)—August 3, 2007—
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.
Financial Review
All amounts in this news release are in U.S. dollars unless
otherwise noted.
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.
Sales, general, and administrative expenses for the second quarter
were $6.0 million, compared to $5.0 million for the second quarter of
2006. The increase was related to the overall expansion in the areas
of sales, marketing, and business development to support its NEXTMap
USA and NEXTMap Europe programs.
Amortization expense of the multi-client data library in the
second quarter increased to $1.0 million (year-to-date $1.9 million)
from $0.5 million (year-to-date $1.0 million) for the same period in
2006, as a result of the increase in amortization on the NEXTMap USA
dataset. Amortization of the NEXTMap USA dataset totaled $3.1 million
for the twelve month period ended December 31, 2006.
For the second quarter of 2007, Intermap reported a net loss of
$4.3 million, or ($0.12) per share, compared to a net loss of $3.3
million, or ($0.09) per share for the same period in 2006.
Cash and cash equivalents at June 30, 2007 were $33.7 million, as
compared with $48.2 million at December 31, 2006. The Company's
working capital was $35.5 million, compared with $51.0 million at
December 31, 2006. Following the close of the quarter, on July 12,
2007, Intermap completed a C$33 million common share financing issuing
5.5 million shares at C$6.00 per share. As of July 12, 2007, Intermap
held $62.3 million in cash.
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.
OPERATIONAL HIGHLIGHTS
NEXTMap USA
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.
NEXTMap Europe
NEXTMap Europe calls for the mapping of 17 European countries
including Austria, Belgium, Czech Republic, Denmark, England, France,
Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern
Ireland, Portugal, Scotland, Spain, Switzerland, and Wales. Once
completed, these datasets will be the most accurate 3D digital maps of
Europe in existence.
Fifty-percent of the NEXTMap Europe project has been collected, or
approximately 1.1 million square kilometers of data. NEXTMap Europe
now includes the entire countries of England, Scotland, Wales,
Germany, Denmark, and most of France. Final production of Germany is
currently being completed and the entire dataset will soon be
available. "As individual countries are completed in Europe, we expect
additional revenue opportunities to close," stated Mr. Bullock.
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.
Flood Modeling
Intermap is developing a version of its successful flood modeling
application pioneered in Great Britain for other European countries.
During the second quarter, Intermap reached an agreement with SwissRe
for use of their flood modeling algorithms within the application and
for SwissRe quality assurance support for all of Europe.
This year, Intermap acquired MultiMedia Computer (MMC), a Czech
Republic based company that provides Intermap with an easy-to-use 3D
visualization tool that's currently being used for flood risk
applications in the Czech and Slovak Republics. The Company is
completing a demo section of Germany for the German insurance market
and estimates that the German flood market is the largest in Europe,
potentially valued at tens of millions of dollars per annum.
Insurance companies can use NEXTMap's superior flood risk
information to better define possible risks, and thus can better
manage portfolios and their own purchase of reinsurance coverage. The
combined knowledge can result in a net reduction of annual costs and
much better management of risk. Intermap is also in discussions with
U.S. insurers for commercial insurance applications.
Personal Navigation Devices (PNDs)
During the quarter, Intermap developed successful demonstration
products incorporating its 3D maps into handheld GPS personal
navigation devices, or "PNDs". The target market for these devices
includes users of off-road vehicles, hikers, hunters, fisherman,
skiers, and mountaineers. Today's 2D maps generally end at the
pavement, leaving a large market demand served only by GPS devices
with digitized topographic maps. Intermap estimates that approximately
3 million 2D PND/GPS units were shipped to this recreational segment
in 2006, at a growth rate of more than 70%. Intermap has installed
portions of its 3D database of U.S. national parks onto handheld PND
devices from leading manufacturers for prototype trials. The results
have been impressive and the Company is working towards formalizing
agreements with a leading manufacturer for product development.
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)
In the last year, Intermap has announced agreements with
TeleAtlas, Harman Becker, and Siemens VDO to support emerging
Intelligent Transportation Systems (ITS) applications with Intermap's
3D road vector data. Subsequent to the close of the second quarter,
Intermap announced the signing of a joint development agreement with
Visteon Corporation, an internationally recognized automotive
technology developer, to provide Visteon with highly accurate 3D road
geometries for the entire country of Germany. The data will be
incorporated into the development of advanced applications of a 3D
road vector map database for use in future automotive systems. The
initial focus will be on predictive adaptive front lighting systems,
which offers enhanced visibility for drivers at night by directing the
headlamp light before the driver directs the vehicle into a curve, or
up or down a hill.