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.