Garmin Reports Strong Third Quarter Results on Sequential Growth in Revenues and Operating Margin Resulting in Year-over-Year EPS Growth
CAYMAN ISLANDS — (BUSINESS WIRE) — November 4, 2009 —
Garmin Ltd. (Nasdaq:
GRMN) today announced third quarter results for the
period ended September 26, 2009.
Third Quarter 2009 Financial highlights:
Total revenue of $781 million, down 10% from $870 million in third
Automotive/Mobile segment revenue decreased 13% to $546 million
Outdoor/Fitness segment revenue increased 11% to $132 million
Aviation segment revenue decreased 29% to $58 million
Marine segment revenue increased 3% to $45 million
North America and Europe continued to experience year-over-year
revenue declines while Asia improved:
North America revenue was $503 million compared to $585 million,
Europe revenue was $237 million compared to $247 million, down 4%
Asia revenue was $41 million compared to $38 million, up 8%
Gross margin improved to 52.4% compared to 44.3% in third quarter 2008
and declined slightly from 52.6% in second quarter 2009
Operating margin improved to 30.3% compared to 24.6% in third quarter
2008 and 29.8% in second quarter of 2009
Diluted earnings per share increased 30% to $1.07 from $0.82 in third
quarter 2008; pro forma earnings per share increased 17% to $1.02 from
$0.87 in the same quarter in 2008. (Pro forma earnings per share
excludes the impact of foreign currency translation gain or loss.)
Generated $281 million of free cash flow in third quarter 2009 for a
cash and marketable securities balance of just over $1.8 billion.
Year-to-Date 2009 Financial highlights:
Total revenue of $1.89 billion, down 23% from $2.45 billion
Automotive/Mobile segment revenue decreased 27% to $1.24 billion
Outdoor/Fitness segment revenue increased 4% to $320 million
Aviation segment revenue decreased 29% to $181 million
Marine segment revenue decreased 16% to $144 million
All geographic areas experienced a year-to-date slowdown in revenues:
North America revenue was $1.20 billion compared to $1.57 billion,
Europe revenue was $577 million compared to $764 million, down 24%
Asia revenue was $105 million compared to $109 million, down 4%
Diluted earnings per share decreased 21% to $2.12 from $2.68 in
year-to-date 2008; pro forma EPS decreased 15% to $2.10 from $2.47 in
year-to-date 2008. (Pro forma earnings per share excludes the impact
of foreign currency translation gain or loss and the 2008 gain on sale
of TeleAtlas N.V. shares.)
Generated $813 million of free cash flow year-to-date.
Posted sequential revenue growth of 17% with both automotive/mobile
and outdoor/fitness showing increased revenues.
Reported 25% sequential revenue growth in the automotive/mobile
segment with sequential gross margin and operating margin improvement
of 360 and 490 basis points, respectively, as pricing, cost, and
Resumed revenue growth in the outdoor/fitness segment due to growing
worldwide interest in the product category and a strong reception to
our latest fitness watches, the Forerunner ® 310XT and FR 60.
Reported 3% revenue growth in the marine segment as market share gains
offset the ongoing weakness within the marine industry.
Sold 3.9 million units in the third quarter of 2009 driven by PND unit
growth in both North America and Asia and strong outdoor/fitness unit
Continued to lead in world-wide PND market share. Independent market
share research indicates that we have expanded our leadership position
in the North American PND market with approximately a 60% share, which
is up sequentially from 57% in second quarter. We maintained a market
share of approximately 20% in Europe.
Finalized nüvifone launch initiatives with G60 availability in the
U.S. (AT&T), Switzerland (Sunrise), and France (unlocked) and Asus
leading efforts to launch the G60 and M20 in various Asian markets
including Taiwan, Singapore and Malaysia.
Introduced the nüvi® 1690T, a connected PND featuring rich, real-time
content delivered wirelessly with product offerings in both the United
States and Western Europe, for delivery in the fourth quarter.