Trimble Reports First Quarter Results
SUNNYVALE, Calif., April 16 /PRNewswire/ -- Trimble Navigation Limited (Nasdaq: TRMB) today reported results for the first quarter ended April 3, 1998.
Revenues for the first quarter of fiscal 1998 increased approximately 27% to $76,608,000 from $60,551,000 in the comparable period of 1997. Net income for the period grew 34% to $1,915,000, or $0.08 earnings per share (diluted), compared to $1,429,000, or $0.06 per share (diluted) in the first quarter last year.
Charles R. Trimble, Chairman and Chief Executive Officer, commented, "We are pleased to report that demand for our GPS products is very strong, particularly in the aerospace and commercial systems markets. During the first quarter, we experienced solid growth in both the Americas and Europe. Growth in Asia remained relatively flat and we will continue to be conservative in our expectations from this region."
Mr. Trimble continued, "Manufacturing costs in this quarter remained high due to overtime costs, expediting fees for materials and the use of outsource manufacturing. We anticipate improvement in these numbers going forward as we move beyond the start-up phase for important new products. Additionally, we plan to invest funds over the next nine months to significantly expand our manufacturing capabilities, with new capacity set to come on line in
May and October. In taking these steps, we expect to increase manufacturing capacity by over 35% by the end of the year, enabling Trimble to meet the increased demand in a more efficient manner."
"Even though gross margins were negatively effected by high manufacturing costs in the quarter, they improved in the first quarter to 49.6% from 48.4% in the previous quarter, but decreased as compared to gross margins of 52% for the first quarter last year," commented Dennis Ing, Executive Vice President and Chief Financial Officer. "We are continuing to focus on improvements in our operating model going forward," concluded Mr. Ing.
To the extent that the matters discussed in this news release are forward looking statements, they involve risks and uncertainties detailed from time to time in the Company's SEC reports, including Quarterly Reports on Form 10-Q and the Annual Report on Form 10-K.
Trimble is a world leader in the emerging commercial markets for GPS satellite-based navigation, positioning and communication data products. The Company holds more U.S. patents on GPS and related technology than any other organization. Trimble products are sold worldwide for diverse applications including land and hydrographic surveying; mapping/GIS data acquisition; military; agriculture; general, corporate and commercial aviation; marine
navigation; vehicle tracking and communications; and mobile GPS. The Company also manufactures and sells GPS engines for the OEM market. Founded in 1978 and located in Sunnyvale, California, Trimble has been a leader in providing GPS solutions since 1984. Company news and product information is available on Trimble's World Wide Web site at trimble.com.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
April 3,
1998 1997*
Total revenue $76,608 $60,551
Cost of sales 38,644 29,045
Gross margin 37,964 31,506
Gross margin (%) 49.6% 52.0%
Operating expenses:
Research and development 11,827 9,001
Sales and marketing 16,458 14,348
General and administrative 7,484 6,406
Total operating expenses 35,769 29,755
Operating income 2,195 1,751
Non-operating income (expense):
Interest income 1,043 1,053
Interest and other expenses (858) (966)
Foreign exchange gain 35 91
Total non-operating income 220 178
Income before taxes 2,415 1,929
Income tax provision 500 500
Net income $1,915 $1,429
Basic net income per share $0.08 $0.06
Shares used in calculating basic
net income per share 22,780 22,066
Diluted net income per share $0.08 $0.06
Shares used in calculating diluted
net income per share 23,620 22,434
* Actual quarter end for 1997 is March 31, 1997
Trimble
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
April 3, December 31,
1998 1997*
Assets
Current assets
Cash and cash equivalents $16,931 $19,951
Short term investments 53,524 53,171
Accounts and other receivable, net 48,986 49,101
Inventories 52,887 47,773
Other current assets 4,002 4,195
Total current assets 176,330 174,191
Net property and equipment 21,629 21,965
Intangible assets 3,563 3,725
Deferred income taxes 335 356
Other assets 7,161 7,426
Total assets $209,018 $207,663
Liabilities and Shareholders' Equity
Current liabilities
Current portion of long-term debt $166 $44
Accounts payable 16,748 18,724
Accrued compensation and benefits 7,509 5,830
Customer advances 823 830
Accrued liabilities 10,261 9,391
Income taxes payable 2,466 2,664
Total current liabilities 37,973 37,483
Non-current portion of long-term
debt and other liabilities 30,607 30,697
Total liabilities 68,580 68,180
Shareholders' equity
Common stock 131,894 132,655
Common stock warrants 700 700
Retained earnings 8,591 6,676
Unrealized gain on investments 13 8
Cumulative translation adjustment (760) (556)
Total shareholders' equity 140,438 139,483
Total liabilities and
shareholders' equity $209,018 $207,663
* Actual year end for 1997 is January 2, 1998
SOURCE Trimble Navigation Limited
CO: Trimble Navigation Limited
ST: California
IN: CPR ARO
SU: ERN
04/16/98 06:30 EDT prnewswire.com
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