MapInfo Fourth Quarter Operating Income Grew 34 Percent on Revenue Growth of 24 Percent; Full Year Operating Income Increased 47 Percent on Revenue Growth of 20 Percent

Business Wire, Nov 3, 2005

TROY, N.Y. -- MapInfo Corporation (Nasdaq: MAPS) today reported earnings per share of $0.18 for the fourth fiscal quarter ended September 30, 2005, representing the tenth consecutive quarter of year-over-year earnings per share growth for the company. Included in the results is an approximate $0.03 per share benefit due to a decrease in the effective tax rate. For the same period last year the company reported earnings per share of $0.09.

Revenues for the fourth quarter grew 24 percent to $40.3 million versus $32.5 million for the same quarter last year. Operating income grew 34 percent to $4.5 million, for an operating margin of 11.2 percent, compared to last year's operating income of $3.4 million. Net income was $3.9 million compared to net income of $1.8 million for the fourth quarter of fiscal 2004. The effective tax rate was 24 percent in the quarter compared to 34 percent in the third quarter. The decrease in the effective tax rate was primarily a result of increased earnings in lower tax jurisdictions and a non-taxable gain on the sale of a building in Australia.

Cash and investments stood at $73.8 million as of September 30, 2005; cash from operations grew by $5.5 million during the quarter and $15.9 million during fiscal 2005. Total deferred revenue grew to $20.9 million at the end of the fourth quarter.

"MapInfo's fourth quarter performance capped a year of consistent execution against our strategic plan and financial objectives during which we generated 11 percent organic growth and demonstrated the scalability of our business model," said Mark Cattini, president and chief executive officer. "We made major strides in fiscal 2005 toward achieving the transition of MapInfo to the broader location intelligence market by expanding our portfolio of vertical market solutions, forming revenue- generating partnerships with leading business intelligence companies and seeding the market for location intelligence to be delivered across the entire organization through implementations of our new enterprise-wide offerings, particularly MapInfo(R) Envinsa(TM) and MapInfo(R) MapXtreme(R) 2004."

Cattini concluded, "Our continued ambition is to establish MapInfo as the industry standard for mission-critical location intelligence solutions, building on the momentum we gained in 2005 in further differentiating MapInfo in our target vertical markets. During fiscal 2006, we will pursue this goal through strategic initiatives including capitalizing on opportunities to add a location intelligence dimension to business intelligence systems, continuing to expand our capabilities across the enterprise and supplementing organic growth with acquisitions that enhance our vertical market expertise. Although we plan to increase our marketing spend on creating awareness for MapInfo location intelligence solutions among a wider spectrum of prospective business users, we still expect to leverage the scale of our business model to deliver increasing operating margins."

Guidance

MapInfo's guidance beginning with the first fiscal 2006 quarter will include an estimate for options based compensation expense as a result of adopting SFAS 123R, Share-Based Payment, which requires companies to recognize equity-based compensation costs as a compensation expense.

The company anticipates first quarter revenue in the range of $38.0 million to $39.5 million and the full fiscal year revenue between $166 million and $172 million. In addition, the company anticipates first quarter earnings per share of $0.07 to $0.09 and the fiscal year earnings per share in the range of $0.44 to $0.51. Included in the company's earnings guidance is an estimate for options based compensation expense of approximately $0.03 and $0.12 per share for the first quarter and fiscal 2006, respectively. For the first quarter it is anticipated that increased costs related to Sarbanes-Oxley will negatively impact results by $0.02 per share as compared to the first quarter of the prior year.

Conference Call

The MapInfo Fourth Fiscal Quarter Earnings Conference Call will be held at 10:00AM (EST) on Thursday, November 3, 2005. The conference call will be Webcast live at www.vcall.com. An audio replay of the call will be available starting at 12:00N EST on November 3, 2005 through November 10, 2005. To access the recording, domestic callers may dial into 877-519-4471 and international callers into 973-341-3080 (passcode: 6588981). Replays of the Webcast are also available at www.vcall.com for 90 days following the call and at www.mapinfo.com/investors.> About MapInfo Corporation

MapInfo is a global company and the leading provider of location intelligence solutions, integrating software, data and services to provide greater value from location-based information and drive more insightful decisions for businesses and government organizations around the world. MapInfo solutions are available in 20 languages through a network of strategic partners and distribution channels in 60 countries. Headquartered in Troy, N.Y., MapInfo is on the World Wide Web at www.mapinfo.com.