Garmin Announces Record Fourth Quarter Revenues Above $611 Million; EPS Increases Over 100% to $0.82

A phone recording will be available for 24 hours following the earnings call and can be accessed by dialing 800-642-1687 utilizing the access code 5543997. An archive of the live webcast will be available until March 16, 2007 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 2007, the Company's expected segment revenue growth rate, margins, the number of new products to be introduced in 2007 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 25, 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, general recreation, automotive, wireless 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 http://www.garmin.com or contact the Investor Relations department at 913-397-8200.




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


                                   13-Weeks  14-Weeks   52-Weeks    53-Weeks
                                    Ended     Ended       Ended       Ended
                                   December  December    December    December
                                      30,       31,         30,         31,
                                     2006      2005        2006        2005

    Net sales                      $611,224  $319,296  $1,774,000  $1,027,773

    Cost of goods sold              306,771   156,857     891,614     492,703

    Gross profit                    304,453   162,439     882,386     535,070

    Selling, general and
         administrative expense      74,346    44,230     214,513     122,021

    Research and development
         expense                     31,209    20,017     113,314      74,879
    Operating expense               105,555    64,247     327,827     196,900

    Operating income                198,898    98,192     554,559     338,170

    Other income(expense)  (A)          653    (2,581)     39,995      34,430

    Income before income taxes      199,551    95,611     594,554     372,600

    Income tax provision             19,206     8,476      80,431      61,381

    Net income                     $180,345   $87,135    $514,123    $311,219

    Net income per share:
         Basic                        $0.84     $0.40       $2.38       $1.44
         Diluted                      $0.82     $0.40       $2.35       $1.43

    Weighted average common
     shares outstanding:
         Basic                      215,857   215,894     216,340     216,294
         Diluted                    218,630   218,304     218,845     218,236


    (A)  Includes $9.8 million of foreign currency losses in Q4 2006 and $8.5
         million of foreign currency losses in Q4 2005; includes $0.6 million
         of foreign currency gains in FY 2006 and $15.3 million of foreign
         currency gains in FY 2005.



                              Garmin Ltd. And Subsidiaries
                          Condensed Consolidated Balance Sheets
                                     (In thousands)


                                               December 30,      December 31,
                                                                                                      2006                            2005

                        Assets
                        Current  assets:
                                  Cash  and  cash  equivalents                $337,321                    $334,352
                                  Marketable  securities                            73,033                        32,050
                                  Accounts  receivable,  net                    403,524                      170,997
                                  Inventories                                              271,008                      199,841
                                  Deferred  income  taxes                            55,996                        29,615
                                  Prepaid  expenses  and
                                    other  current  assets                            28,202                        34,312

                        Total  current  assets                                  1,169,084                      801,167

                        Property  and  equipment,  net                        250,988                      179,173

                        Restricted  cash                                                    1,525                          1,356
                        Marketable  securities                                    407,843                      344,673
                        Other  assets,  net                                              67,580                        35,866

                        Total  assets                                                $1,897,020                $1,362,235

                        Liabilities  and  Stockholders'
                          Equity
                        Current  liabilities:
                                  Accounts  payable                                    $88,375                      $76,516
                                  Other  accrued  expenses                        154,639                        55,815
                                  Income  taxes  payable                              94,668                        63,154

                        Total  current  liabilities                            337,682                      195,485

                        Long-term  debt  (less  current
                          portion)                                                                    248                              -

                        Deferred  income  taxes                                        1,191                          9,486

                        Stockholders'  equity:
                                  Common  stock                                                1,082                          1,081
                                  Additional  paid-in  capital                  83,438                        96,242
                                  Retained  earnings                              1,478,655                  1,072,454
                                  Accumulated  other
                                    comprehensive  gain                                (5,276)                    (12,513)

                        Total  stockholders'  equity                      1,557,899                  1,157,264
                        Total  liabilities  and
                          stockholders'  equity                              $1,897,020                $1,362,235



                                                          Garmin  Ltd.  And  Subsidiaries
                                        Condensed  Consolidated  Statements  of  Cash  Flows
                                                                        (In  thousands)

                                                                                            52-Weeks  Ended        53-Weeks  Ended
                                                                                                December  30,            December  31,
                                                                                                              2006                            2005
                  Operating  activities:
                  Net  income                                                                $514,123                    $311,219
                  Adjustments  to  reconcile  net
                    income  to  net  cash  provided  by
                    operating  activities:
                          Depreciation                                                        21,535                        18,693
                          Amortization                                                        22,940                        24,903
                          Loss  on  sale  of  property  and
                            equipment                                                                    67                                37
                          Provision  for  doubtful
                            accounts                                                                    955                              445
                          Deferred  income  taxes                                    (35,060)                        8,833
                          Foreign  currency  translation
                            (gains)/losses                                                      (344)                    (13,957)
                          Purchase  of  licenses                                        (2,950)                      (4,192)
                          Provision  for  obsolete  and
                            slow-moving  inventories                                23,245                        14,755
                          Stock  compensation  expense                            11,913                              925
                          Realized  gains  on  marketable
                            securities                                                          (3,852)                            -
                  Changes  in  operating  assets  and
                    liabilities:
                          Accounts  receivable                                      (230,111)                    (61,607)
                          Inventories                                                        (92,708)                    (61,262)
                          Other  current  assets                                        (4,357)                    (16,021)
                          Accounts  payable                                                10,187                        24,127
                          Other  current  liabilities                              97,167                          4,283
                          Income  taxes  payable                                        29,105                        (4,176)
                  Net  cash  provided  by  operating
                    activities                                                                361,855                      247,005

                  Investing  activities:
                  Purchases  of  property  and
                    equipment                                                                  (92,906)                    (27,130)
                  Purchase  of  intangible  assets                              (3,115)                      (3,560)
                  Proceeds  from  sale  of  property
                    and  equipment                                                                    76                              -
                  Purchase  of  marketable  securities                  (453,085)                  (342,359)
                  Sale  of  marketable  securities                            359,313                      283,253
                  Change  in  restricted  cash                                          (169)                              98
                  Purchase  of
                    MotionBased/Dynastream                                        (36,499)                      (1,483)
                  Net  cash  used  in  investing
                    activities                                                              (226,385)                    (91,181)

                  Financing  activities:
                  Dividends                                                                  (107,923)                    (53,974)
                  Tax  benefit  related  to  stock
                    option  exercise                                                          9,660                              -
                  Payments  on  long-term  debt                                          (11)                            -
                  Proceeds  from  issuance  of  common
                    stock  through  stock  purchase  plan                      3,569                          2,824
                  Proceeds  from  issuance  of  common
                    stock  from  exercise  of  stock  options              12,505                          6,866
                  Purchase  of  common  stock                                      (50,450)                    (26,653)
                  Net  cash  used  in  financing
                    activities                                                              (132,650)                    (70,937)

                  Effect  of  exchange  rate  changes
                    on  cash  and  cash  equivalents                                    149                            (444)

                  Net  increase  in  cash  and  cash
                    equivalents                                                                  2,969                        84,443
                  Cash  and  cash  equivalents  at
                    beginning  of  period                                              334,352                      249,909
                  Cash  and  cash  equivalents  at  end
                    of  period                                                                $337,321                    $334,352
 

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



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