TomTom NV (38705.AE) Tuesday reported a fourth-quarter net loss on lower sales and a TeleAtlas impairment charge, announced further cost cuts and cautioned that under certain conditions it could breach its loan covenants.

"Based upon the group's plans for 2009, management expects to comply with the loan covenants. However, given the uncertainties in the wider macro-economic environment and their knock-on effect on consumer spending, scenarios can be envisaged where the loan covenants could be breached," said TomTom Chief Executive Harold Goddijn in a statement.

"As a result, the company continues to evaluate options aimed at remaining within its loan covenants under a variety of possible scenarios, which could include renegotiating the terms of the facility in isolation or in combination with other actions," he said.

The navigation solutions provider posted a net loss of EUR989 million for the three months to Dec. 31 compared to a net profit of EUR107 million in the same period a year earlier.

Fourth-quarter sales fell 17% year-on-year to EUR528 million but were in line with analysts' forecasts. Sales fell 23% from the third-quarter when sales were EUR429 million.

Earnings before interest and tax, or Ebit, swung to a loss of EUR994 million from a profit of EUR144 million, missing analysts' expectations for an Ebit profit of EUR65 million.

TomTom booked a EUR1.1 billion impairment charge for TeleAtlas, the digital-map maker it bought last year for EUR2.9 billion.

The company in January warned that it wouldn't make its 2008 revenue target and said it would take an impairment charge for TeleAtlas.

TomTom competes in the portable navigation device market with Cayman Islands-based Garmin Ltd. (GRMN), which Monday reported a 49% fall fourth-quarter net profit on falling sales. It also warned of the extremely volatile environment and declined to give a 2009 outlook.

TomTom shares Monday closed at EUR3.45 and have shed 91% of their value in the past 12 months.

 
   Company Web site: www.tomtom.com 
 
   -By Roberta B. Cowan; Dow Jones Newswires; +3120-571-5200; roberta.cowan@dowjones.com