From the AFR3 hrs ago–10.47AMNearmap ‘unlikely ever to be profitable in the US’
Alex Gluyas
The damage from Nearmap’s patent infringement suit unleashed by Eagleview means it will likely never be profitable in the US again, according to research firm J Capital Research. 
“Nearmap has now been locked out of 65 per cent of its US sales by an ironclad patent challenge. After paying heavy damages, Nearmap is unlikely ever to be profitable in the US,” the report said.
“It will mean losing 39 per cent of total revenue and all of the company’s growth. If Nearmap survives, it will return to the small Australian market, where it is losing share.”
While Nearmap has claimed that business will be unaffected by the lawsuit, J Capital pointed to the market’s response asNeapmap’s share price fell over 20 per centon Thursday.
The research firm is expecting Eagleview to “easily defeat” Nearmap in court and will therefore be shut out of the $120 million roof-measurement market and segments of the government sector.
“Without those sectors, Nearmap will struggle ever to make a profit in the US,” the report said. “We believe Nearmap failed to disclose its patent-infringement risk.”
J Capital also noted that it is short Nearmap.
Nearmap believes the allegations are without merit and will defend the action.
