By: Joe Francica
(Jan 21, 2005

MapInfo Corporation reported first quarter results yesterday and indicated that its services division revenue declined because staffing requirements did not meet demands for retail service accounts. Mark Cattini, president and CEO, said that steps were being taken to add staff in retail modeling services, but noted that a long training period would be necessary before the new hires could contribute to the bottom line. At the end of 2004, MapInfo employed 792 people worldwide, a nearly 100 person jump in headcount from last January. Seventy-one of those employees came with the acquisition of Southbank, a UK firm focused on providing solutions to the public sector.

MapInfo is looking at continuing their growth strategy, mostly through opportunities to acquire other companies. "MapInfo is looking at acquisition strategies to give us scale," said Cattini. MapInfo will look at certain acquisitions in vertical markets to acquire specific expertise.

In general, MapInfo's profits were up 21% over the first quarter of 2004 to $34.7 million. Operating income tripled and operating margins increased 9% over the prior year. Service revenue was down 6% due to the previously mentioned resource constraints. Outside the Americas, revenue increased 48% and the Asia/Pacific marketplace saw an increase of 27% due to success in Australia with the Envinsa and Exponare solutions.

MapInfo's strategic partnerships are paying off as well. The company indicated they had three wins with IBM this quarter and have successfully deployed Envinsa within a Websphere portal server. Working with IBM in both the telecommunications and fleet management markets, as well as insurance, which remains their primary target market for partner engagements. MicroStrategy is another key partner where they have leveraged the relationship to make inroads in the business intelligence sector. The stock was off $.01 in trading on Thursday and closed at $12.65 per share.

The Huntsville Times reported yesterday that Intergraph has laid off fifty employees, with twenty from their headquarters in Huntsville, Alabama, mostly in the Mapping and Geospatial Solutions (IMGS) division. IMGS saw their earnings decline 10% in the third quarter from the prior year's quarter, reported last October. Intergraph's fourth quarter and year end results conference call will be held on January 26. Intergraph closed down $.28 to $27.54 per share on Thursday.