Garmin Reports Record Third Quarter; Revises Annual Guidance Upward

Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment.

The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow.


                         Garmin Ltd. And Subsidiaries
                                Free Cash Flow
                                (in thousands)

                                 13-Weeks Ended            39-Weeks Ended
                              September  September     September    September
                                 30,         24,          30,          24,
                                2006        2005         2006         2005

    Net cash provided by
     operating activities     $116,749     $85,935     $249,125     $175,342
    Less: purchases of
     property and equipment   ($18,864)    ($4,731)    ($45,476)    ($20,510)
    Free Cash Flow             $97,885     $81,204     $203,649     $154,832


    Earnings Call Information

    The information for Garmin Ltd.'s earnings call is as follows:

    When:     Wednesday, November 1, 2006 at 11:00 a.m. Eastern
    Where:    
http://www.garmin.com/aboutGarmin/invRelations/irCalendar.html
    How:      Simply log on to the web at the address above or call to listen
              in at
              800-883-9537.
    Contact:  
Email Contact

A phone recording will be available for five business days following the earnings call and can be accessed by dialing 800-642-1687 or (706) 645-9291 and utilizing the access code 8043309. An archive of the live webcast will be available until November 30, 2006 on the Garmin website at http://www.garmin.com. To access the replay, click on the Investor Relations link and click over to the Events Calendar page.

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding the company's estimated earnings and revenue for fiscal 2006, the Company's expected segment revenue growth rate, margins, the number of new products to be introduced in 2006 and the company's plans and objectives are forward- looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 31, 2005 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin's 2005 Form 10- K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html.

Through its operating subsidiaries, Garmin Ltd. designs, manufactures, and markets navigation, communications and information devices, most of which are enabled by GPS technology. Garmin is a leader in the general aviation and consumer markets and its products serve aviation, marine, outdoor, fitness, automotive, mobile and OEM applications. Garmin Ltd. is incorporated in the Cayman Islands, and its principal subsidiaries are located in the United States, Taiwan and United Kingdom. For more information, visit the investor relations site of Garmin Ltd. at www.garmin.com or contact the Investor Relations department at 913-397-8200. Garmin and Forerunner are registered trademarks, and Edge is a trademark of Garmin Ltd. or its subsidiaries.



                         Garmin Ltd. And Subsidiaries
                    Condensed Consolidated Balance Sheets
                   (In thousands, except share information)

                                                   (Unaudited)
                                                  September 30,   December 31,
                                                      2006           2005
    Assets
    Current assets:
      Cash and cash equivalents                     $351,723       $334,352
      Marketable securities                          109,609         32,050
      Accounts receivable, net                       249,849        170,997
      Inventories, net                               333,471        199,841
      Deferred income taxes                           62,659         29,615
      Prepaid expenses and other current assets       25,034         34,312

    Total current assets                           1,132,345        801,167

    Property and equipment, net                       209,135                179,173

        Marketable  securities                                                        425,179                344,673
        Restricted  cash                                                                        1,461                    1,356
        Licensing  agreements,  net                                                    3,301                    6,517
        Other  intangible  assets,  net                                            28,116                  29,349

        Total  assets                                                                    $1,799,537          $1,362,235

        Liabilities  and  Stockholders'  Equity
        Current  liabilities:
            Accounts  payable                                                            $125,236                $76,516
            Salaries  and  benefits  payable                                      21,233                  13,005
            Warranty  reserve                                                                28,973                  18,817
            Other  accrued  expenses                                                    75,314                  23,993
            Income  taxes  payable                                                        86,020                  63,154
            Dividend  payable                                                              108,389                            0

        Total  current  liabilities                                                445,165                195,485

        Deferred  income  taxes                                                          13,000                    9,486

        Stockholders'  equity:
            Common  stock                                                                          1,080                    1,081
            Additional  paid-in  capital                                            71,666                  96,242
            Retained  earnings                                                        1,297,843            1,072,454
            Accumulated  other  comprehensive  loss                      (29,217)              (12,513)

        Total  stockholders'  equity                                          1,341,372            1,157,264
        Total  liabilities  and  stockholders'  equity        $1,799,537          $1,362,235



                                                  Garmin  Ltd.  And  Subsidiaries
                      Condensed  Consolidated  Statements  of  Income  (Unaudited)
                                  (In  thousands,  except  per  share  information)

                                                            13-Weeks  Ended                          39-Weeks  Ended
                                            September  30,  September  24,  September  30,  September  24,
                                                            2006                    2005                    2006                    2005

        Net  sales                          $407,997            $251,329        $1,162,776            $708,477

        Cost  of  goods  sold          209,137              121,877              584,843              335,846

        Gross  profit                      198,860              129,452              577,933              372,631

        Selling,  general  and
          administrative
          expenses                              47,489                24,180              140,167                77,790
        Research  and
          development  expense        30,399                20,116                82,105                54,862
                                                        77,888                44,296              222,272              132,652

        Operating  income              120,972                85,156              355,661              239,979

        Other  income  (expense):
          Interest  income                  9,622                  4,726                25,464                13,115
          Interest  expense                      (2)                      (3)                    (14)                    (46)
          Foreign  currency              14,874                36,388                10,386                23,784
          Other                                            70                    (140)                3,507                      158
                                                        24,564                40,971                39,343                37,011

        Income  before
          income  taxes                    145,536              126,127              395,004              276,990

        Income  tax  provision        22,558                23,637                61,226                52,905

        Net  income                        $122,978            $102,490            $333,778            $224,085

        Net  income  per  share:
          Basic                                      $0.57                  $0.48                  $1.54                  $1.04
          Diluted                                  $0.56                  $0.47                  $1.52                  $1.03

        Weighted  average  common
          shares  outstanding:
          Basic                                  216,317              215,690              216,502              216,428
          Diluted                              218,866              217,860              218,878              218,318


                                                Garmin  Ltd.  And  Subsidiaries
                    Condensed  Consolidated  Statements  of  Cash  Flows  (Unaudited)
                                                                (In  thousands)
                                                                                                      39-Weeks  Ended
                                                                                          September  30,        September  24,
                                                                                                            2006                          2005
        Operating  Activities:
        Net  income                                                                      $333,778                  $224,085
        Adjustments  to  reconcile  net  income
          to  net  cash
        provided  by  operating  activities:
                  Depreciation                                                            15,447                      13,703
                  Amortization                                                            19,844                      20,435
                  Loss  (gain)  on  sale  of  property
                    and  equipment                                                                (8)                              8
                  Provision  for  doubtful  accounts                            796                              18
                  Deferred  income  taxes                                        (29,867)                        (372)
                  Foreign  currency  transaction
                    gains/losses                                                        (19,724)                  (13,503)
                  Provision  for  obsolete  and  slow
                    moving  inventories                                              15,260                      10,830
                  Stock  compensation  expense                                  8,378                            363
                  Realized  gains  on  marketable
                    securities                                                              (3,852)                            -
        Changes  in  operating  assets  and
          liabilities:
                  Accounts  receivable                                            (79,648)                  (42,015)
                  Inventories                                                          (148,891)                  (30,818)
                  Other  current  assets                                            (1,192)                          473
                  Accounts  payable                                                    48,720                      (2,173)
                  Other  current  liabilities                                  69,704                        2,683
                  Income  taxes                                                            22,866                      (4,581)
                  Purchase  of  licenses                                            (2,486)                    (3,794)
        Net  cash  provided  by  operating
          activities                                                                      249,125                    175,342

        Investing  activities:
        Purchases  of  property  and  equipment                      (45,476)                  (20,510)
        Purchase  of  intangible  assets                                    (1,513)                        (404)
        Purchase  of  marketable  securities                        (348,621)                (270,580)
        Redemption  of  marketable  securities                      197,008                    220,494
        Change  in  restricted  cash                                                (104)                            42
        Proceeds  from  asset  sale                                                      75                              -
        Net  cash  used  in  investing  activities                (198,631)                  (70,958)

        Financing  activities:
        Proceeds  from  issuance  of  common
          stock                                                                                  10,042                        4,238
        Stock  repurchase                                                            (50,451)                  (26,654)
        Tax  benefit  related  to  stock  option
          exercise                                                                              7,453                              -
        Net  cash  used  in  financing  activities                  (32,956)                  (22,416)

        Effect  of  exchange  rate  changes  on
          cash  and  cash  equivalents                                              (167)                        (633)

        Net  increase  in  cash  and  cash
          equivalents                                                                      17,371                      81,336
        Cash  and  cash  equivalents  at
          beginning  of  period                                                    334,352                    249,909
        Cash  and  cash  equivalents  at  end  of
          period                                                                            $351,723                  $331,245



                                                  Garmin  Ltd.  And  Subsidiaries
                        Revenue,  Gross  Profit,  and  Operating  Income  by  Segment

                                                                                  Reporting  Segments

                                                  Outdoor/                              Auto/
                                                  Fitness        Marine            Mobile          Aviation        Total
        13-Weeks  Ended
        September  30,  2006

            Net  sales                    $70,651        $40,588        $237,981        $58,777        $407,997
            Gross  profit              $39,803        $21,645          $99,708        $37,704        $198,860
            Operating  income      $28,817        $13,659          $59,517        $18,979        $120,972

        13-Weeks  Ended
        September  24,  2005

            Net  sales                    $58,014        $36,389          $96,289        $60,637        $251,329
            Gross  profit              $31,633        $18,927          $38,548        $40,344        $129,452
            Operating  income      $22,458        $13,023          $23,496        $26,179          $85,156


        39-Weeks  Ended
        September  30,  2006

            Net  sales                  $205,412      $141,406        $644,097      $171,861    $1,162,776
            Gross  profit            $118,615        $79,484        $269,855      $109,979        $577,933
            Operating  income      $85,116        $53,718        $155,782        $61,045        $355,661

        39-Weeks  Ended
        September  24,  2005

            Net  sales                  $168,051      $130,276        $240,106      $170,044        $708,477
            Gross  profit              $89,355        $66,174        $103,657      $113,445        $372,631
            Operating  income      $62,603        $43,957          $61,746        $71,673        $239,979
 

Web site: http://www.garmin.com/



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