Navtech, Inc.
OTC Bulletin Board : NAVH

Navtech, Inc.

September 13, 2007 17:00 ET

Navtech Reports Fiscal 2007 Third Quarter Results

WATERLOO, ONTARIO--(Marketwire - Sept. 13, 2007) -

Attention: Business Editors

Navtech, Inc. (OTCBB:NAVH), a leading international provider of flight operations software and services, today announced financial results for its third quarter ended July 31, 2007.



Financial Highlights (USD)

Three months ended July 31 Nine months ended July 31
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2007 2006 2007 2006
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Total revenue $ 10,564,000 $ 9,827,000 $ 31,236,000 $ 27,024,000
Total costs and
expenses 9,950,000 9,268,000 30,246,000 24,761,000
Income from operations 614,000 559,000 990,000 2,263,000
Net (loss) earnings (67,000) 131,000 (209,000) 616,000
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In the third quarter ended July 31, 2007, revenue increased by $737,000 or 7.5% to $10.6 million, up from the $9.8 million achieved in the third 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 nine month period ended July 31, 2007, revenue increased by $4.2 million or 15.6% to $31.2 million, up from the $27.0 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 nine month period in fiscal 2007. EAG was acquired on November 22, 2005, and as such, results for the nine month comparative period in fiscal 2006 reflect the operational results from this acquisition for approximately 8 1/3 months.

"We have been pleased with our continued success in driving revenue growth in Q3 as well as on a year to date basis. Our intention is to continue to drive revenue growth through focused research and development efforts, sales and marketing programs, and other initiatives 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 95% of total revenues in the first nine months of 2007, consistent with 94% in the first nine months of 2006.

The Income from operations in the third quarter of 2007 was $614,000, an increase of $55,000 from Income from operations of $559,000 in the same quarter last year. Income from operations for the nine months ended July 31, 2007 was $990,000, a decline of $1,273,000 from Income from operations of $2,263,000 in the same period in 2006.

For the three months ended July 31, 2007, (loss) earnings per common share declined to a loss of $0.03 per share, from earnings of $0.01 per common share in the third quarter of fiscal 2006. For the nine months ended July 31, 2007, earnings (loss) per common share was a loss of $0.08, up from a loss of $0.10 in 2006. Of note, the earnings (loss) per common share of $0.10 for the nine months ended July 31, 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 for the 9 months ended July 31, 2007 reflect our continued commitment to both investment spending for revenue growth as well as for the creation of long-term shareholder value." 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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