(Logo: http://www.newscom.com/cgi-bin/prnh/20061026/CGTH082LOGO ) Fourth Quarter 2006 Financial Highlights: -- Total revenue of $611 million, up 92% from $319 million in fourth quarter 2005 -- Auto/mobile segment revenue increased 173% to $445 million in fourth quarter 2006 -- Outdoor/fitness segment revenue increased 16% to $80 million in fourth quarter 2006 -- Marine segment revenue declined 10% to $25 million in fourth quarter 2006 -- Aviation segment revenue increased 3% to $61 million in fourth quarter 2006 -- All geographic areas experienced solid growth: -- North America revenue was $393 million compared to $211 million, up 86 percent -- Europe revenue was $194 million compared to $93 million, up 109 percent -- Asia revenue was $24 million compared to $15 million, up 60 percent -- Earnings per share increased 105% to $0.82 from $0.40 in 2005; excluding foreign exchange, EPS increased 102% to $0.87 from $0.43 in 2005 -- Fourth quarter 2006 results include a $0.07 favorable impact to earnings per share due to credits achieved by reaching higher unit volume levels during the period Business Highlights: -- Strong holiday season, solid sell-through, leaving channel inventories clean -- Inventory drawn down significantly, as anticipated -- Margins improved through contributions from increased production volumes and operating leverage across the business -- Manufacturing facilities fulfilled strong holiday demand for product effectively and efficiently, with no component shortages -- Two million units sold in the fourth quarter of 2006, up 100% from the same quarter in 2005 -- Seasonal promotion campaigns and product displays, multi-media advertising, and cooperative advertising activities stimulated sales solidified our leadership position in the U.S. and increased our brand awareness in Europe FY 2006 Financial Highlights: -- Total revenue of $1.77 billion, up 73% from $1.03 billion in fiscal 2005 -- Auto/mobile segment revenue increased 170% to $1.1 billion in 2006 -- Outdoor/fitness segment revenue increased 20% to $285 million in 2006 -- Marine segment revenue increased 5% to $167 million in 2006 -- Aviation segment revenue increased 2% to $233 million in 2006 -- All geographic areas experienced solid growth: -- North America revenue was $1.1 billion compared to $661 million, up 66 percent -- Europe revenue was $593 million compared to $316 million, up 88 percent -- Asia revenue was $87 million compared to $50 million, up 74 percent -- Earnings per share increased 64% to $2.35 from $1.43 in 2005; excluding foreign exchange, EPS increased 72% to $2.35 from $1.37 in 2005 Business Highlights: -- Introduced over 70 new products in 2006, expanding our portable automotive product line and refreshing a number of product categories across all of our business segments -- 5.4 million units sold in 2006, up 80% from 2005, raising the Company's total to over nineteen million units shipped to date, an important benchmark of the strength of the Garmin brand -- Created innovative and exciting portable automotive navigation products which drove triple-digit growth in this segment, allowing Garmin to command a #1 market share position in the U.S. and a solid #2 market share position in Europe -- Expanded relationships with car rental companies to seven of the eight major rental car companies in the U.S., increasing brand awareness and creating important product trial opportunities among prospective customers -- Expanded leadership role as a partner with motorcycle manufacturers and enthusiasts, providing both custom solutions and full-featured off-the-shelf products for the aftermarket -- Solidified our position as the leader in GPS-enabled fitness devices with the introduction of the Edge bicycle product and the updated ForeRunner product -- Completed our first very light jet certification, the Cessna Mustang, and continued to expand technologies like WAAS, RADAR, and digital autopilot, further increasing our leadership position in the integrated cockpit market for general aviation -- Expanded advertising campaigns and better product positioning in U.S. retailers strengthened our leadership position in the face of growing competition -- Expansion of sales and marketing resources and aggressive advertising campaigns resulted in greater brand awareness, improving market share, and broader distribution in Europe -- Opened our first retail store in Chicago's premier shopping district, the Magnificent Mile, in time to participate in the holiday shopping season Executive Overview from Dr. Min Kao, Chairman and Chief Executive Officer:
"2006 was truly a remarkable year for Garmin. We are delighted to have introduced over 70 innovative new products. These products -- which include many automotive, recreational, fitness, marine, and aviation products -- have been enthusiastically received by the market. We also look forward to our customers' reactions to exciting products we have scheduled for delivery in early 2007.
"We experienced triple digit growth in our automotive product line, clearly demonstrating that our strategy effectively positions us to take advantage of the growing demand for portable navigation devices both in the U.S. and in Europe. We look forward to ongoing success from our broad portfolio of automotive products. Through continuous innovation, we will provide compelling, competitive and creative products like the highly acclaimed nuvi(TM), which provide high-quality navigation coupled with features like traffic, Bluetooth hands-free calling, real-time gas prices, weather, movie times, and more. We have the focus, drive, and commitment to continue our leadership position in the rapidly expanding automotive market through 2007 and beyond.