CAYMAN ISLANDS — (BUSINESS WIRE) — May 6, 2009
Garmin Ltd. (Nasdaq:
) today announced results for the quarter ended
March 28, 2009.
First Quarter 2009 Financial Summary:
Total revenue of $437 million, down 34% from $664 million in first
Automotive/Mobile segment revenue decreased 43% to $260 million in
first quarter 2009
Marine segment revenue decreased 32% to $38 million in first quarter
Aviation segment revenue decreased 31% to $59 million in first quarter
Outdoor/Fitness segment revenue increased 13% to $80 million in first
All geographic areas experienced a slowdown in revenues:
North America revenue was $265 million compared to $411 million,
Europe revenue was $144 million compared to $211 million, down 32%
Asia revenue was $28 million compared to $42 million, down 33%
Gross margin increased sequentially to 44.9% for the first quarter
2009 from 41.1% in fourth quarter 2008 and declined compared to 48.2%
in first quarter 2008
Operating margin decreased sequentially and year-over-year, with first
quarter 2009 at 13.3%, compared to 26.0% in first quarter 2008 and
22.6% in fourth quarter 2008
Earnings per share decreased 64% to $0.24 from $0.67 in first quarter
2008; excluding foreign exchange, EPS decreased 64% to $0.25 from
$0.69 in the same quarter in 2008
Generated $286 million of free cash flow in first quarter 2009 for a
cash and marketable securities balance of over $1.2 billion.
Continued to lead the PND industry with sustained market share on a
worldwide basis growing to 37% in the fourth quarter 2008 according to
third party research.
Posted strong growth in the outdoor/fitness category driven by further
penetration of our fitness products and market share gains across the
Showcased the Garmin-Asus nüvifone products, G60 and M20, at both
Mobile World Congress in Barcelona and CTIA Wireless in Las Vegas. The
products continue to receive favorable reviews as analysts and
customers experience the differentiation of the location-centric
Announced a number of marine OEM partnerships, including EdgeWater
Power Boats, Fairline Boats and Gulf Craft Inc., strengthening our
position in the marine industry.
Achieved supplemental type certification and began initial shipments
of the G1000 avionics suite on the King Air 200 and B200.
Announced our first major automotive navigation system to be
factory-installed on Chrysler‘s 2011 Grand Cherokee.
Continued to progress with development of nüvifones and to work with
carriers and retailers on distribution and pricing.
Executive overview from Dr. Min Kao, Chairman and Chief Executive
“The first quarter of 2009 represented Garmin’s most challenging quarter
since becoming a public company in December 2000. Macroeconomic factors
have contributed to a significant slowdown in consumer discretionary
spending which has been further exacerbated by ongoing channel inventory
reductions by our retail partners in the PND industry.
As we look specifically at the auto/mobile segment, we believe that
inventory levels have reached their low point and that sell-in to the
channel will begin to more closely follow sell-through trends in coming
quarters. This is a promising factor given that sell-through trends in
the United States have continued to show growth in the first quarter.
The same cannot be said of Europe where sell-through has declined on a
year-over-year basis. Our focus moving forward for this segment will be
on improving pricing trends and profitability, which were negatively
impacted in the first quarter due to price protection offered to our
major retailers and inventory reductions of older models, and
maintaining and growing market share where appropriate. We will leverage
the strength of our balance sheet to outperform competitors through
product innovation and customer service in this difficult market and be
better positioned when consumer confidence returns.