Don't you get the impression that for the stockholders, somehow, this time it is different? We've been very patient, long-term investors but this is the year that we were expecting the beginning of reliable and rising earnings. Instead, we are treated to another example of inattentive or poor management -- this time in Austin. Inadequate execution.
I do believe Charlie Trimble when he says the company has beaten back competitors and in that way is in the best shape ever. Rockwell going, Sony out of the US market, Motorola hurting, Ashtech and NovAtel merged defensively but still not thriving, Garmin a niche player, and no big corporate gorilla looming on the GPS horizon. So Trimble has succeeded strategically in defending market share across a broad range of submarkets, and has built up considerable entry barriers in the form of intellectual property while it's at it.
Meanwhile, the exchange rate of the Yen, which is well beyond the company's control, has hurt major markets in surveying and car navigation.
The suggestion made on the conference call that Trimble enlarge its board to include some representation from a strategic partner or two, such as Microsoft or Caterpillar, is a good one that can work to restore some investor confidence. At this point, I think the company owes us that much. Meanwhile, it is not unfair at this stage for the stockholders in Trimble to demand that these assembly line surprises stop. We do appreciate the long term game plan, but we are really tired of fumbles near the goal line.
Good quarterly reports will follow good business execution -- management of inventory, capacity, and other overhead. It is not too much to ask. |
