Navtech, Inc.
OTC Bulletin Board : NAVH

Navtech, Inc.

June 08, 2007 15:06 ET

Navtech Reports Fiscal 2007 Second Quarter Results

WATERLOO, ONTARIO--(Marketwire - June 8, 2007) - Navtech, Inc. (OTCBB:NAVH), a leading international provider of flight operations software and services, today announced financial results for its second quarter ended April 30, 2007.

Financial Highlights (USD)



Three months ended April 30 Six months ended April 30
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2007 2006 2007 2006
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Total revenue $ 10,413,000 $ 9,288,000 $ 20,672,000 $ 17,197,000
Total costs and
expenses 10,645,000 8,599,000 20,294,000 15,494,000
(Loss) income from
operations (232,000) 689,000 378,000 1,703,000
Net (loss) earnings (397,000) 103,000 (139,000) 484,000
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In the second quarter ended April 30, 2007, revenue increased by $1.1 million or 12% to $10.4 million, up from the $9.3 million achieved in the second quarter of fiscal 2006. This increase is from internal growth in sales of our flight operations software and services to both new and existing customers around the world.

In the six month period ended April 30, 2007, revenue increased by $3.5 million or 20% to $20.7 million, up from the $17.2 million achieved in the same period in fiscal 2006. This increase is as a result of internal growth in sales to new and existing customers, as well as from the inclusion of the operating results of the European Aeronautical Group AB ("EAG") for the entire six month period in fiscal 2007. EAG was acquired on November 22, 2005, and as such, results for the six month comparative period in fiscal 2006 reflect the operational results from this acquisition for approximately 5 1/3 months.

"We have been very pleased with our success in driving revenue growth. Our intention is to continue to invest in our business through product development, sales, and marketing initiatives in order to take advantage of the significant opportunities we see in the marketplace today," said David Strucke, President and CEO of Navtech, Inc.

Subscription-based recurring revenues accounted for approximately 93% of total revenues in the first half of 2007, consistent with 93% in the first half of 2006.

The Loss from operations in the second quarter of 2007 was $232,000, a decline of $921,000 from Income from operations of $689,000 in the same quarter last year. Income from operations for the six months ended April 30, 2007 was $378,000, a decline of $1,325,000 from Income from operations of $1,703,000 in the same period in 2006.

For the three months ended April 30, 2007, earnings (loss) per common share declined to a loss of $0.10 per share, from earnings of $0.01 per common share in the second quarter of fiscal 2007. For the six months ended April 30, 2007, earnings (loss) per common share was a loss of $0.06, up from a loss of $0.11 in 2006. Of note, the earnings (loss) per common share of $0.11 for the six months ended April 30, 2006 was impacted significantly by a non-cash deemed preferred stock dividend of $0.9 million in the first quarter of 2006.

"The financial results in the second quarter reflect both our continuing commitment to investment spending for growth as well as some increases in the costs to deliver services to our customers," said David Strucke, President and CEO of Navtech, Inc.

About Navtech, Inc.

Navtech creates and supports superior flight operations software and services for airlines. With more than 300 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" section of the Company's Annual Report on Form 10-KSB for the year ended October 31, 2006.

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