TomTom, the Dutch technology company best known for personal navigation devices (PNDs) used by car and truck drivers, cut its 2011 outlook for the second time on Monday citing weak electronics markets.
TomTom, which competes in the PND market with Garmin and in the commercial digital map market with Google and Navteq, which is owned by Nokia Oyj, has been struggling to cope in an ever-tougher market.
As more consumers use free or cheap navigation software on their smartphones and turn increasingly to newer gadgets including tablet computers, TomTom has seen its sales hit. It had already lowered its full-year revenue guidance in April.
In a statement after the market close on Monday, the company revised its guidance again, cutting its full-year revenue expectations to between 1.23 billion euros and 1.28 billion from its previous forecast range of 1.43 billion to 1.48 billion.
Whereas in April it had stuck with its 2011 earnings-per-share guidance, on Monday it revised this to a range of 0.25 and 0.30 euros from 0.47 euros.
Second-quarter revenue was expected to be between 300 and 310 million euros, TomTom said. It posted 362 million euros in revenue in the second quarter of 2010.
TomTom warned that the North American PND market was experiencing a faster rate of decline than earlier in the year and said it expected it to be down by about 30 percent for the year.
(Reporting by Greg Roumeliotis; Editing by David Holmes)