Second Quarter 2007 Financial highlights:
-- Total revenue of $742 million, up 72% from $433 million in second
-- Automotive/Mobile segment revenue increased 99% to $508 million in
second quarter 2007
-- Aviation segment revenue increased 39% to $78 million in second quarter
-- Outdoor/Fitness segment revenue increased 9% to $77 million in second
-- Marine segment revenue increased 59% to $80 million in second quarter
-- All geographic areas experienced significant growth:
-- North America revenue was $455 million compared to $233 million,
-- Europe revenue was $257 million compared to $178 million, up 44%
-- Asia revenue was $31 million compared to $22 million, up 41%
-- Mix of revenue by region reflected the strong growth of the
Automotive/Mobile segment in North American with a higher percentage of
North American revenue relative to the year-ago quarter. Revenue from
our automotive/mobile segment continued to become a larger portion of
total company revenues when compared with the same quarter in 2006, at
68% of total revenues.
-- Diluted earnings per share increased 75% to $0.98 from $0.56 in second
quarter 2006; excluding foreign exchange, EPS increased 82% to $1.00
from $0.55 in the same quarter in 2006.
Year-to-Date 2007 Financial highlights:
-- Total revenue of $1.23 billion, up 64% from $755 million year-to-date
-- Automotive/Mobile segment revenue increased 103% to $825 million in
-- Aviation segment revenue increased 32% to $150 million in year-to-date
-- Outdoor/Fitness segment revenue increased 2% to $138 million in
-- Marine segment revenue increased 22% to $123 million in year-to-date
-- All geographic areas experienced significant growth:
-- North America revenue was $777 million compared to $435 million,
-- Europe revenue was $405 million compared to $280 million, up 45%
-- Asia revenue was $53 million compared to $40 million, up 33%
-- Diluted earnings per share increased 69% to $1.62 from $0.96 in
year-to-date 2006; excluding foreign exchange, EPS increased 62% to
$1.59 from $0.98 in the same quarter in 2006.
-- Strong sales in our automotive/mobile, aviation, and marine segments
put them on track to meet or exceed earlier full year guidance for
-- 2.54 million units sold in the second quarter of 2007, up 99% from the
same quarter in 2006; year-to-date units sold increased 85% from the
same period in 2006.
-- Completed the build-out of our second Taiwan manufacturing facility,
increasing the number of production lines from 21 to 31, and production
capacity at the end of the second quarter to approximately 12 million
-- Purchased and began build-out of our third Taiwan facility in Linkou.
Because of the significant increase in demand for PNDs, new production
lines are being installed now, with initial production runs scheduled
to begin in August. Expansion of our R&D and other office space in
Taiwan is also in progress.
-- We have begun work to expand our North American warehouse in Olathe,
Kansas with expected completion of Q1 2008.
-- Targeted advertising and promotional programs for the spring season
drove solid second quarter sales. We continue to work to increase our
retail penetration and broaden our distribution as retailers lay the
groundwork for the upcoming holiday selling season.
-- Completed the acquisition of our German distributor on July 2nd, and
announced our intent to acquire our distributor in Spain. These
activities are part of our ongoing efforts to improve our market share
Executive overview from Dr. Min Kao, Chairman and Chief Executive Officer:
"Garmin experienced a very exciting second quarter. Our strong growth in the automotive/mobile segment demonstrated that our products continue to be well-positioned to take advantage of the growing demand for portable navigation devices. We are pleased that, according to independent market research, we have maintained a strong leadership position in North America with approximately fifty percent PND market share. The nÃ¼vi(TM) 200W and 250W products delivered during the second quarter will provide an attractive option for cost-conscious consumers who prefer a wide-screen display. Our popular nÃ¼vi(TM) and c-series product offerings support our strategy of extensive market segmentation, drawing in customers with compelling, competitive features, and useful content integrated into easy-to-use products at many attractive price points. We believe this approach should drive strong results in the holiday season and push revenue growth beyond our earlier expectations.
Our aviation segment continued to grow faster than expected during the quarter, as positive response to our WAAS and GMX200 product offerings and growth in the sale of our G1000 cockpit continued. We are pleased to report we have begun shipment of our G1000 cockpit to Piper Aircraft, Inc. for their Piper Saratoga II TC and Piper 6X aircraft. We believe our aviation segment will exceed our earlier revenue growth expectations.
Response to our revolutionary new marine products and cartography has been very positive. Sell-through and backlogs for our new products including our 4000- and 5000-series have been strong. We believe the marine segment is positioned to meet our 2007 guidance for this segment.
Revenue in our outdoor/fitness segment increased when compared to the year ago quarter. We look forward to increased sales generated by the newly released Astro dog tracking product, as well as new eTrex and Rino products which provide high-sensitivity GPS performance. We still see good growth opportunities for this segment, however we believe revenue growth for this segment will be lower than earlier anticipated due to the timing of our new product introductions."