By Anthony O. Goriainoff
TomTom NV said Thursday that its third quarter net loss narrowed, and that it was lowering its free cashflow guidance for the year due to supply-chain issues.
The Dutch navigational-technologies company said that although it backed its revenue guidance, car-production volumes would be affected due to these issues, and that will have a direct effect on operational revenue and on its cash flow.
The company said free cashflow as a percentage of revenue was being lowered to around 2% from a previous 5%.
TomTom posted a net loss of 20.8 million euros ($24.1 million) compared with a net loss of EUR67.0 million euros for the third quarter of 2020, while revenue fell to EUR127.5 million from EUR147.9 million.
The company guided for 2021 revenue in the EUR500 million to EUR530 million range.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
Gloss