All Points Blog
Our Opinion, Your Views of All Things Location

  • HOME

    About Us

    Advertising

    Contact Us

    Follow Us



    Feed  Twitter 

  • RECENT COMMENTS
  • NEWSLETTER

    All Points Blog

    Catching geospatial news that others miss. Delivered daily.

    Preview Newsletter | Archive

  • ARCHIVE
    << October 2007 >>
    S M T W T F S
      1 2 3 4 5 6
    7 8 9 10 11 12 13
    14 15 16 17 18 19 20
    21 22 23 24 25 26 27
    28 29 30 31      
  • PUBLICATIONS

Wednesday, October 31, 2007

Garmin to Bid for Tele Atlas

——— update below; original post 7:30 am EDT————

The plan: a Dec 4 bid of 2.3 billion euros ($3.3 billion) in cash for Tele Atlas. That’s the day the TomTom bid expires. That’s 15% more than the Tele Atlas bid. European stocks loved the idea - sending TA up nearly 14% in morning trading. TomTom was down nearly 12%.
- MarketWatch

—- update 4:30 pm EDT————

With a few hours behind this announcement and Garmin’s earnings announcement this morning, we can get a bit of perspective.

First off, what did Garmin say in its earnings report?

- third-quarter profit rose 57 percent, beating estimates (88 cents actual vs. 82 from analysts)
- all sectors were up in sales, with automotive in the lead
- the future is bright, with new products coming out, but margins would drop a bit
- per share profit predictions for the year went up to $3.40 from last quarter’s prediction of more than $3.15
- Cliff Pemble has been appointed chief operating officer, freeing CEO Min Kao to work on other things like business development
- share rose to a near record of of $125.68 Wednesday afternoon

- AP and Garmin PR

What are analysts saying?

“Apple and Nokia’s pending entry into navigation has GPS giant Garmin plotting its own defensive move.” [Apple is moving in navigation: next iPhone will have Broadcom chips for “assisted GPS”]

“Garmin’s run as purely a GPS device maker may be headed in a new direction.”

- Scott Moritz at The Street

“Satnav-enabled devices are sometimes sold without any onboard map information initially, as its cost is typically more signifcant than that of the receiver hardware itself.”

- The Register

“In trying to snatch up Tele Atlas, however, the two market leaders appear to be bracing for the 100 original design manufacturers from Taiwan and Korea that are expected to try to grab a portion of the sales boom. The biggest threat comes from Mitac of Taiwan, which owns the Mio brand and recently bought Navman.”

- Antone Gonsalves at InformationWeek

“Digital map data, while important, is not the only element needed for success in the Location Aware future. What are the missed opportunities from using so much capital to wrestle over map data?”

- Mike Ippoliti in a ABI Research press release

by Adena Schutzberg on 10/31 at 03:39 PM | Comments | Bookmark and Share

All Points Blog Newsletter

Catching geospatial news that others miss. Delivered daily.

Preview Newsletter | Archive

Follow

Feed  Twitter 

Recent Comments

Publications: Directions Magazine | Directions Magazine India
Conferences: Location Intelligence Conference | .Map Conference | GEO Huntsville
© 2014 Directions Media. All Rights Reserved