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

CAYMAN ISLANDS, Feb. 14 /PRNewswire-FirstCall/ -- Garmin Ltd. (NASDAQ: GRMN) today announced a record fourth quarter and fiscal year ended December 30, 2006. Highlights of the quarter and full year include:

    (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.

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