TomTom (Amsterdam, Netherlands), the Dutch technology company known for personal navigation devices (PNDs) used by car and truck drivers, cut its 2011 outlook for the second time on Monday citing weak electronics markets.
TomTom, which competes in the PND market with Garmin (Olathe, Kan.) and in the commercial digital map market with Google (Mountain View, Calif.) and Navteq (Chicago, Ill.) has been struggling to cope in an ever-tougher market.
As more consumers use free or cheap navigation software on their smartphones and turn increasingly to newer gadgets including tablet computers, TomTom has seen its sales hit. It had already lowered its full-year revenue guidance in April.
In a statement after the market close on Monday, the company revised its guidance again, cutting its full-year revenue expectations to between $1.75 billion and $1.82 billion from its previous forecast range of $2.04 billion to $2.11 billion.
Whereas in April it had stuck with its 2011 earnings-per-share guidance, on Monday it revised this to a range of $0.35 and $0.42 from $0.67.
Second-quarter revenue was expected to be between $428 and $442 million, TomTom said. It posted $517 million in revenue in the second quarter of 2010.
TomTom warned that the North American PND market was experiencing a faster rate of decline than earlier in the year and said it expected it to be down by about 30 % for the year.
(Reporting by Greg Roumeliotis; Editing by David Holmes)