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Technology Stocks : Trimble Navigation -- Ignore unavailable to you. Want to Upgrade?

To: SKIP PAUL who wrote (2038)	12/29/1997 5:41:00 PM
From: Todd N. Weisrock	Read Replies (3) \| Respond to of 3506

From the II Web Site (www.iionline.com) Q4 earnings to fall short on one-time margin problem; Buy (12/29) It appears that Trimble is going to miss its fourth-quarter (ending December 31) estimate. Instead of our estimate of $0.27 per share, Trimble could post earnings as low as $0.08 per share. There are a number of reasons for this sudden earnings shortfall. Trimble announced that it is shipping a significant portion of the $12 million contract for Cargo Utility GPS Receivers (CUGR) to the Army, estimated at around $7 to $8 million. After this announcement, we talked with Dennis Ing, Trimble's CFO. Mr. Ing tells us that in order to satisfy the Army, the company had to prioritize the CUGR over other contracts, pushing some of them into early 1998. 1997 revenue from CUGR will not therefore be in addition to other sales we had expected, but will instead substitute for them. Unfortunately CUGR has much lower margins (in the low 40s) compared to Trimble's commercial products (margins in the 50s). Thus the company's gross margins for the quarter will be about 51%, versus our expected 53%. Not only does Trimble have to temporarily push aside higher margin commercial products; CUGR has incurred some higher research and development costs than expected, so R&D expense will jump to close to $11 million. Trimble is shipping product of about $2.5 million per day and depending on the product mix it ships in the last couple of days, earnings could be much higher, though still not close to the $0.27 per share we were expecting. We estimate that Trimble's range for earnings is now $0.08 to $0.16 per share. Elsewhere, Trimble closed the books in the quarter on a number of lawsuits, which it basically won. Unfortunately general and administrative costs rose because of the increased lawyer costs. Based on our conversation with Mr. Ing, we are comfortable that this is just a one-quarter blip, not a long-term problem. So now the question is whether you focus on the short-term pain or long term gain. Since the long-term fundamentals are still intact and Mr. Ing was still comfortable with our 1998 earnings forecast of $0.95 per share, we reiterate our Buy recommendation, especially on any weakness in the stock that may result from these newly-discovered fourth-quarter problems. Looking forward, the first quarter could actually be very strong from an earnings standpoint, if Trimble has to push out its higher margin products from the fourth quarter. (Posted on 12/29/97 with TRMB trading at $23.63)

To: SKIP PAUL who wrote (2038)	12/30/1997 8:07:00 AM
From: SKIP PAUL	Respond to of 3506

LOS ANGELES, Dec. 29 /PRNewswire/ -- Philips Car Systems will demonstrate its CARiN navigation system at the Greater Los Angeles Auto Show in the Becker Automotive Design Booth No. K700 in Kentia Hall in the Los Angeles Convention Center. Philips Car Systems distributor Tec-Masters, Inc. will have an array of informational displays, hands-on CARiN demonstration systems, and even a demonstration vehicle available to members of the media for test runs. CARiN, now available nationwide for aftermarket installation, expands consumer access to digital vehicle navigation technology previously available only through luxury automobile accessory packages. The system includes a navigation computer, integrated CD-ROM drive, LCD color display, infrared remote control and GPS antenna array. CARiN is the only navigation system that employs dead reckoning as its primary navigational tool. Dead reckoning software uses an integrated gyroscope and Philips' patented CD-ROM database to pinpoint the vehicle's location, and then checks itself with Global Positioning System (GPS) satellites for accuracy. This differs from other units that use GPS as their sole basis for navigation. Through this leading technology, CARiN eliminates problems caused by interference in places such as urban canyons or when a user is caught between satellite links. About the size of a vehicle CD player, the navigation computer is sufficiently compact to mount under the rear deck, in the trunk, beneath the seat or on the floor of the cargo area. The computer features an eight- channel GPS receiver, a CD-ROM drive and an integrated gyroscope. A GPS sensor can be mounted inconspicuously in a number of locations within the vehicle to receive line-of-sight tracking information from at least three of 24 geosynchronous GPS satellites. The system offers drivers both a visual display and verbal directions with the option of a male or female voice in one of six languages including American English, and Spanish. Becker Automotive Design, a Los Angeles company that specializes in the selection and installation of world class electronics, exterior styling, high performance upgrades and custom interiors specifically suited to customers' wants and needs, has installed CARiN in several celebrity vehicles. Actor Wesley Snipes (White Men Can't Jump, One Night Stand) is awaiting Becker's installation of CARiN in his Acura NSX and Toyota Land Cruiser. Howard Becker, president and owner, Becker Automotive Design, prefers CARiN over other brands because, "It's about the only commercially available system that can audibly guide you to a destination without having to read a map or look at a screen." Gary Tuttle, a director for Tec-Masters, Inc. who will represent CARiN in Becker's booth, said, "We are fortunate to have an opportunity to do the L.A. Auto Show with someone like Howard Becker whose work is inspiring and exciting and whose client list reads like a Hollywood who's who." "CARiN's easy-to-use remote and route selection, automatic alternate routing, CD-ROM mapping and emergency features add up to an accessory that helps make driving both fun and safe," said Tuttle. Philips Car Systems has global headquarters in Wetzlar, Germany, and U.S. offices in Farmington Hills, Mich., Cheshire, Conn., and Atlanta, Ga. As a unit of Philips Electronics N.V., Philips Car Systems has access to the resources of one of the world's largest digital technology corporations with 262,500 employees in more than 60 countries and worldwide sales of approximately $41 billion in 1996.