Development of the nüvifone is on target for a first half of 2009 launch. We have signed letters of intent or agreements with certain carriers which we expect will lead to carrier lab entry in early 2009. We do not plan any specific announcements until closer to the launch date.
Share Repurchase Program
During the third quarter, Garmin was able to repurchase 8.2 million shares. The shares represented those authorized by the board of directors in June 2008. This leaves an additional 0.2 million shares of the 10 million approved in June 2008 to be repurchased. In addition, on October 22, the board of directors’ authorized the Company to repurchase up to $300M of the company’s shares as market and business conditions warrant through December 31, 2009. The repurchases may be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, or pursuant to a Rule 10b5-1 plan adopted by the Company which permits the Company to repurchase its shares during periods in which the Company may be in possession of material non-public information or self-imposed insider trading blackout periods. The company continues to view the stock repurchase as an appropriate use of cash given the long-term growth prospects of the company, ongoing free cash flow generation and the need to maintain adequate cash reserves for strategic acquisitions.
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||39-weeks Ended|
|September 27,||September 29,||September 27,||September 29,|
|Net Income (GAAP)||$171,244||$193,507||$575,115||$547,744|
|Foreign currency (gain) / loss, net of tax effects (1)||$10,322||$3,151||$12,653||($3,036||)|
|Net income, excluding FX||$181,566||$196,658||$587,768||$544,708|
|Net income per share (GAAP):|
|Net income per share, excluding FX:|
|Weighted average common shares outstanding:|
|(1) Excludes the FX related to the tender of our Tele Atlas N.V. shares|