Rising expenses pull down AutoNavi 2Q earnings
Chinese digital mapping and auto navigation company AutoNavi Holdings Ltd. said Tuesday that its second-quarter profit fell 8 percent, pulled down by rising sales expenses and higher employee salaries and stock-based compensation.
The company made $8.8 million, or 4 cents per American depository share, from April through June, compared with $9.6 million, or 5 cents per share, a year earlier. Revenue after taxes rose 22 percent during the quarter to $40.2 million. Analysts polled by FactSet expected revenue of $40.6 million.
The company maintained its after-tax revenue estimate for this year in the range of $152 million to $159 million, up 20 percent to 25 percent from 2011. Analysts polled by FactSet expect full-year revenue of $157.6 million.
Shares of AutoNavi rose 23 cents, or 1.8 percent, to $12.75 in morning trading. They have traded from $8.87 to $16.90 in the past year.
The Beijing-based company said its operating expenses rose 56 percent to $20.6 million during the second quarter. The company spent more on share-based compensation, and research and development. Selling and marketing expenses nearly doubled. The company said it increased the number of sales employees and spent more on branding activity.