TomTom lowered its outlook for revenue for the full calendar year due to 2 reasons:
- Sales of consumer electronics in general “have been weak over recent weeks and this trend is ongoing”
- Sales of portable navigation devices (PNDs) are falling faster than expected, it said.
Total PND sales in North America are now expected to close out the year down 30 percent below last year.
TomTom also reports that more consumers are opting for entry level PNDs and retailers are keeping their inventory levels down.
As a result, TomTom lowered its full year revenue outlook by about 16 percent to between the equivalent of $1,747 – $1,818 million, down from $2,033 – $2,104 million announced in April.
Revenue for Q2 should fall in the $428 – $442 million range. Q2 results will be announced on July 22.