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Results include recently acquired European Aeronautical Group
Waterloo, ON June 14, 2006:
Navtech, Inc. (OTCBB: NAVH), a leading international provider of flight operations software and services, today announced its financial results for its second quarter ended April 30, 2006.
Financial Highlights (USD)
Financial results include the operating results of the recently acquired European Aeronautical Group AB (“EAG”) from November 22, 2005, the date of acquisition, to April 30, 2006 (approximately 5 1/3 months).
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Three Months Ended Apr. 30, |
Six Months Ended April 30, |
| 2006 |
2005 |
2006 |
2005 |
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Revenue |
$9,288,000 |
$2,725,000 |
$17,197,000 |
$5,148,000 |
Operating expenses |
$8,599,000 |
$2,613,000 |
$15,494,000 |
$4,971,000 |
Income from operations |
$689,000 |
$112,000 |
$1,703,000 |
$177,000 |
Net earnings |
$103,000 |
$108,000 |
$484,000 |
$167,000 |
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End of period stock price |
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$3.20 |
$2.30 |
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Total revenue increased to $9.3 million for the second quarter of fiscal 2006, compared to $2.7 million in the second quarter of 2005, primarily as a result of the inclusion of results from EAG. Revenue for the six months ended April 30, 2006 increased to $17.2 million compared to $5.1 million in the same period last year. Subscription-based recurring revenues accounted for over 90% of total revenues in the fist half of 2006, compared with 79% in the first half of 2005.
Income from operations increased to $689,000 for the second quarter of fiscal 2006, compared to $112,000 in the same quarter last year. Income from operations for the six months ended April 30, 2006 increased to $1,703,000 compared to $177,000 in the same period last year.
Cash flow from operating activities for the six months ended April 30, 2006 was $2.6 million, resulting in a cash balance of $6.5 million and working capital of $2.6 million.
“We have been receiving a very positive response from the market to our newly broadened product offering”, said David Strucke, Navtech’s President and CEO. “We will be making investments in the coming quarters to capitalize on this response and leverage the strength provided by the acquisition of EAG.”
Earnings per share for the six months ended April 30, 2006 was a loss of $0.11 as a result of the inclusion of a non-cash one-time deemed preferred stock dividend ($0.9 million) in the first quarter of 2006. The deemed dividend represents a calculated beneficial conversion feature on the convertible preferred stock issued in conjunction with the acquisition of EAG. The non-cash preferred stock deemed dividend did not have an effect on net earnings or cash flows for the six months ended April 30, 2006 and did not have an impact on total stockholders’ equity as of that date. No additional non-cash deemed dividend will be recorded as part of the Series A Convertible Preferred Stock issuance.
About Navtech Inc.
Navtech creates and supports superior flight operations software and services for airlines. With more than 250 airline customers around the world, Navtech's products directly support millions of flights around the globe each year. Navtech’s product portfolio includes aeronautical charts, navigation data, flight planning, crew planning, runway analysis, and weight & balance systems. Navtech has more than 250 employees with offices in the United States, Canada, Sweden, the United Kingdom and Singapore. For more information, please go to www.navtechinc.com.
FORWARD-LOOKING STATEMENTS
This release may include forward-looking statements concerning the Company's intent, belief or current expectations with respect to, among other things, trends affecting its financial condition or results of operations and its business and growth strategies. Such forward-looking statements are based upon assumptions that may not be correct, are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. The Company does not undertake any obligation to update or revise any forward-looking statements. All forward-looking statements are subject to the risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including those set forth under "Other Considerations" in the "Management's Discussion and Analysis or Plan of Operation" section of the Company's Annual Report on Form 10-KSB for the year ended October 31, 2005.
For further information please contact:
Navtech, Inc.
Gordon Heard
Chief Financial Officer
Tel: +1 519 747 1170 x288
Fax: +1 519 747 5282
gheard@navtechinc.com
www.navtechinc.com
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