Garmin Reports Record Second Quarter; Announces Increased Dividend, Raises Guidance

CAYMAN ISLANDS, Aug. 1 /PRNewswire-FirstCall/ -- Garmin Ltd. (NASDAQ: GRMN) today announced a record quarter ended June 30, 2007.

 

 

    (Logo: 
http://www.newscom.com/cgi-bin/prnh/20061026/CGTH082LOGO)


Second Quarter 2007 Financial highlights:

-- Total revenue of $742 million, up 72% from $433 million in second
quarter 2006

-- Automotive/Mobile segment revenue increased 99% to $508 million in
second quarter 2007

-- Aviation segment revenue increased 39% to $78 million in second quarter
2007

-- Outdoor/Fitness segment revenue increased 9% to $77 million in second
quarter 2007

-- Marine segment revenue increased 59% to $80 million in second quarter
2007

-- All geographic areas experienced significant growth:

-- North America revenue was $455 million compared to $233 million,
up 95%
-- 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
2006

-- Automotive/Mobile segment revenue increased 103% to $825 million in
year-to-date 2007

-- Aviation segment revenue increased 32% to $150 million in year-to-date
2007

-- Outdoor/Fitness segment revenue increased 2% to $138 million in
year-to-date 2007

-- Marine segment revenue increased 22% to $123 million in year-to-date
2007

-- All geographic areas experienced significant growth:

-- North America revenue was $777 million compared to $435 million,
up 79%
-- 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.


Business highlights:

-- Strong sales in our automotive/mobile, aviation, and marine segments
put them on track to meet or exceed earlier full year guidance for
these segments.

-- 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
units annually.

-- 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
in Europe.

 

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 nüvi(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 nüvi(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."

1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article

Airbus

Featured Video
Jobs
GIS Analyst II for Air Worldwide at Boston, MA
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Upcoming Events
RoboUniverse San Diego at San Diego CA - Dec 14 - 15, 2016
DGI 2017 at QEII Centre London United Kingdom - Jan 23 - 25, 2017
Geospatial World Forum 2017 Hyderabad at Hyderabad International Convention Center P.O Bag 1101, Cyberabad Post Office Hyderabad Telangana India - Jan 23 - 25, 2017
GMP Compliance for Quality Control Laboratories 2016 at Andheri Kurla Road, Sahar Village, Andheri-Kurla Road, Mumbai, Maharashtra 40005 Mumbai, Maharashtra India - Jan 23 - 24, 2017
Trimble
CADalog.com - Countless CAD add-ons, plug-ins and more.



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy