Navtech, Inc.
OTC Bulletin Board : NAVH

Navtech, Inc.

September 08, 2005 09:30 ET

Navtech, Inc. Reports 15th Consecutive Quarter of Profitability and 25% Revenue Growth For Third Quarter Ended July 31st, 2005

WATERLOO, ONTARIO--(CCNMatthews - Sept. 8, 2005) - Navtech, Inc. (OTCBB:NAVH), a leading international provider of flight operations software, announced its results for its third quarter ended July 31st, 2005.

Financial Highlights (USD)

Three Months Ended Nine Months Ended
July 31, July 31,
2005 2004 2005 2004
Revenue $2,516,000 $2,012,000 $7,664,000 $5,885,000

Operating expenses 2,382,000 1,897,000 7,353,000 5,678,000

Income from
operations 134,000 115,000 311,000 207,000

Net earnings 127,000 140,000 294,000 234,000

EPS - Basic 0.03 0.03 0.06 0.06
End of period
stock price $2.80 $1.10

Total revenue for the nine months ended July 31st, 2005 increased by 30% to $7.7 million from $5.9 million in the same period last year. Subscription-based recurring revenues accounted for 78% of revenues in the first nine months of the fiscal year. Revenue for the third fiscal quarter of 2005 was $2.5 million, an increase of 25% from $2.0 million in the same quarter last year.

"2005 has been an important year for Navtech in terms of product and market development", said Derek Dawson, Navtech's Vice President, Sales and Business Development. "We have made significant enhancements in the functionality of our crew scheduling products and have successfully implemented our newly developed industry-leading Weight and Balance software."

"The addition of regionally specific functionality to our signature flight planning software has also enabled us to continue the expansion of our customer base in Europe and Asia Pac," added Mr. Dawson.

Income from operations has increased 50% to $311,000 for the nine months ended July 31st, 2005 compared to $207,000 in the same period last year. Income from operations for the third fiscal quarter of 2005 increased to $134,000 from $115,000 in the same quarter last year.

Net earnings in the previous year included corporate income tax recoveries related to prior fiscal years of $35,000 in the third quarter of fiscal 2004 and $55,000 for the nine months ended July 31st, 2004.

Third Quarter Operational Highlights:

- EVA Airways (Taiwan) signed a long-term contract for the use of Navtech's DispatchPro™ flight planning software for its worldwide operations.

- Spirit Airlines (Florida) received FAA approval for the production use of Navtech's new C.G.Pro™ software for load planning procedures (Weight and Balance).

- Navtech's outsourced dispatch operations were expanded with the initiation of service for Royal Air Maroc (Morocco) and Cargo360 (Washington, D.C.).

- Successful implementations of flight planning software in the quarter included Air Asia (Malaysia), Qantas subsidiary Jetstar (Australia), Orient Thai (Thailand), SpiceJet (India) and Sterling European (Denmark).

About Navtech:

Navtech creates and supports superior flight operations software for airlines. Navtech's software provides a competitive edge to airlines by facilitating significant costs savings in fuel consumption and crew planning, two areas that represent a majority of an airline's variable operating expenditures. With over 100 customers spanning more than 25 countries, Navtech's software directly supports millions of flights around the globe each year. Navtech and its employees understand the importance of creating solid partnerships between the company and its customers. Navtech has approximately 100 employees with offices in the United States, Canada, Singapore and the United Kingdom.

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, 2004.

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