AutoNavi Profit Misses Estimates, Stock Down - Update

(RTTNews) - Chinese digital map content and navigation solutions provider AutoNavi Holdings Ltd. (AMAP), Wednesday reported a lower second-quarter profit, hurt mostly by weaker sales and margins. Both earnings sales for the quarter came in short of Wall Street estimates.

Moving forward, AutoNavi said that while it focuses on its strategic initiatives regarding the mobile Internet, its previous guidance is no longer a good indicator of its long-term value.

Investors were dismayed with the results, sending AutoNavi shares down 13 percent on the Nasdaq.

AutoNavi also announced the appointment of Ji Ma as its chief financial officer, replacing Catherine Zhang who has been promoted as director, president, and chief operating officer. Previously, Ma served as vice president of finance at Vancl Corp., an e-commerce company.

AutoNavi, based in Beijing, China, posted quarterly net income to common stock of $3.8 million or $0.06 per American depositary share or ADS, compared with $8.8 million or $0.17 per ADS last year.

Excluding items, adjusted earnings for the quarter were $6.2 million or $0.10 per ADS, compared with $13 million or $0.26 per ADS in the prior year.

Net revenues for the period slid to $38 million from $40 million in the prior year. Three analysts estimated revenue of $42.89 million for the quarter.

While its automotive navigation business was hurt by a decline in licenses of digital map data, this was partly offset by growth at its mobile and Internet location-based solutions business.

Operating expenses for the quarter increased to $26 million from $20.6 million a year ago, due mainly to increased research and selling costs.

AutoNavi shares are trading at $12.73, down $1.92 or 13.11%, on a volume of 1.3 million shares on the Nasdaq.