Netherlands-based TomTom said its revenues fell 10.8% to 264 million ($395.5mm) in the first quarter, compared to 296 million ($387.8mm) in the same period a year ago.
The maker of GPS devices said US revenue increased 133% year on year to 85 million ($127.3mm), while other revenue increased 45% year on year to 25 million ($37.5mm).
Portable navigation device (PND) volume reached 2.0 million; up 50% year on year.
Gross margins declined 500 basis points to 35% compared to 40% last year.
Net profit were 7.3 million ($10.9mm), or 0.06 (9 cents) in fully diluted earnings per share.
The company said the PND market continued to grow at a pace of more than 40% in Europe and 100% in North America.
The company now has more than 5 million registered users.
The company said it expects Europe and North American PND markets will grow by more than 50% to 38 million units in 2008. It expects revenue of between 1.8 billion and 2.0 billion for the year and expects to sell between 14 million and 15 million units.
Targets for gross margin and operating margin for 2008 of close to 40% and 20% of revenue respectively.
