Garmin Reports Record First Quarter; Strong Margins and Increased Market Share

We experienced an increase in the effective tax rate to 19 percent for the first quarter and we now expect this rate for fiscal 2008. The primary reason for the increase was a change in tax law related to the repatriation of earnings from our Taiwan subsidiary."

Fiscal 2008 Outlook

We remain optimistic about the long-term success of our business and our ability to serve customers and distributors around the world. While we are pleased with our strong performance in the first quarter, it is important to note that the global economic slowdown has impacted companies across the board. We will continue to monitor the economic climate closely. As in previous years, we intend to provide a formal update to our fiscal 2008 financial expectations during the second quarter 2008 earnings conference call.

Non-GAAP Measures

Net income (earnings) per share, excluding foreign currency

Management believes that net income per share before the impact of foreign currency translation gain or loss is an important measure. The majority of the company's consolidated foreign currency translation gain or loss results from translation into New Taiwan dollars at the end of each reporting period of the significant cash and marketable securities, receivables and payables held in U.S. dollars by the company's Taiwan subsidiary. Such translation is required under GAAP because the functional currency of this subsidiary is New Taiwan dollars. However, there is minimal cash impact from such foreign currency translation and management expects that the Taiwan subsidiary will continue to hold the majority of its cash, cash equivalents and marketable securities in U.S. dollars. Accordingly, earnings per share before the impact of foreign currency translation gain or loss allows an assessment of the company's operating performance before the non-cash impact of the position of the U.S. dollar versus the New Taiwan dollar, which permits a consistent comparison of results between periods.

    The following table contains a reconciliation of GAAP net income per share
to net income per share excluding the impact of foreign currency translation
gain or loss.

                         Garmin Ltd. And Subsidiaries
                      Net income per share, excluding FX
                 (in thousands, except per share information)

                                                        13-Weeks Ended
                                                    March 29,      March 31,
                                                      2008           2007

    Net Income (GAAP)                               $147,779        $139,860
    Foreign currency (gain) / loss, net of
     tax effects                                      $3,239        ($11,478)
    Net income, excluding FX                        $151,018        $128,382

    Net income per share (GAAP):
      Basic                                            $0.68           $0.65
      Diluted                                          $0.67           $0.64

    Net income per share, excluding FX:
      Basic                                            $0.70           $0.59
      Diluted                                          $0.69           $0.59

    Weighted average common shares outstanding:
      Basic                                          216,505         216,215
      Diluted                                        218,979         218,704

Free cash flow

Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment.

The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow.

                         Garmin Ltd. And Subsidiaries
                                Free Cash flow
                                (in thousands)
                                                        13-Weeks Ended
                                                     March 29      March 31
                                                                           2008                      2007

        Net  cash  provided  by  operating  activities                $192,465            $168,670
        Less:  purchases  of  property  and  equipment                ($26,690)          ($12,399)
        Free  Cash  Flow                                                                      $165,775            $156,721

        Earnings  Call  Information
        The  information  for  Garmin  Ltd.'s  earnings  call  is  as  follows:

        When:        Wednesday,  April  30,  2008  at  11:00  a.m.  Eastern
        How:          Simply  log  on  to  the  web  at  the  address  above  or  call  to  listen
                          in  at  (800)  891-6383  in  the  U.S.  and  Canada,  or  (706)  643-9558
                          for  international  participants;  conference  ID  #42452953


Review Article Be the first to review this article
Harris: ENVI OneButton


Featured Video
Currently No Featured Jobs
Upcoming Events
Commercial UAV Expo 2016 at MGM Grand Hotel Conference Center Las Vegas NV - Oct 31 - 2, 2016
GIS-Pro 2016: URISA's 54th Annual Conference at Toronto Canada - Oct 31 - 3, 2016
24th ACM SIGSPATIAL International Conference at San Francisco Bay Area, California, USA San Francisco - Oct 31 - 3, 2016
Teledyne: - 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