Weakness in Asia, problems with aerospace, here it is:
UNNYVALE, Calif., July 23 /PRNewswire/ -- Trimble Navigation Limited (Nasdaq: TRMB) today reported results for the second quarter ended July 3, 1998.
Revenues for the second quarter of fiscal 1998 increased 10% to $75,850,000, compared to revenues of $68,944,000 reported in the corresponding period last year. Net income for the period was $255,000, or $0.01 per share, diluted, compared with a net income of $3,865,000, or $0.17 per share, diluted, in the second quarter last year.
For the six months ended July 3, 1998, revenues increased 17.7% to $152,458,000 from $129,495,000 million in the first half of 1997. Net income for the six months was $2,170,000 or $0.09 per share, diluted, versus a net income of $5,294,000, or $0.24 per share, diluted, from the corresponding period in 1997.
"Our results are in line with our announcement of July 10, 1998," stated Charles R. Trimble, Chairman and Chief Executive Officer. "While the Asia/Pacific region has been soft, demand, especially for
commercial systems and timing products, remains strong in the Americas."
Mr. Trimble added, "During the quarter, we made improvements in manufacturing efficiencies at our Sunnyvale corporate facility. However, gross margins decreased to 47.8% as a result of inefficiencies in our aerospace operations. We will continue to focus on improving our operating results and believe we identified a number of steps during the quarter to accomplish this goal."
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 Six Months Ended
July 3, June 30, July 3, June 30,
1998 1997 1998 1997
Total revenue $75,850 $68,944 $152,458 $129,495
Cost of sales 39,556 32,255 78,200 61,300
Gross margin 36,294 36,689 74,258 68,195
Gross margin (%) 47.8% 53.2% 48.7% 52.7%
Operating expenses:
Research and development 11,842 10,113 23,669 19,114
Sales and marketing 16,457 14,916 32,915 29,264
General and administrative 7,937 7,306 15,421 13,712
Total operating expenses 36,236 32,335 72,005 62,090
Operating income 58 4,354 2,253 6,105
Non-operating income (expense):
Interest income 971 1,089 2,014 2,142
Interest and other expenses (819) (818) (1,677) (1,784)
Foreign exchange gain 245 63 280 154
Total non-operating income 397 334 617 512
Income before taxes 455 4,688 2,870 6,617
Income tax provision 200 823 700 1,323
Net income $255 $3,865 $2,170 $5,294
Basic net income per share $0.01 $0.18 $0.10 $0.24
Shares used in calculating basic
net income per share 22,693 22,081 22,737 22,073
Diluted net income per share $0.01 $0.17 $0.09 $0.24
Shares used in calculating
diluted net income per share 23,300 22,544 23,458 22,484
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
July 3, January 2,
1998 1998
Assets
Current assets
Cash and cash equivalents $23,180 $19,951
Short term investments 43,492 53,171
Accounts and other receivable, net 45,874 49,101
Inventories 55,563 47,773
Other current assets 4,508 4,195
Total current assets 172,617 174,191
Net property and equipment 21,507 21,965
Intangible assets 3,407 3,725
Deferred income taxes 316 356
Other assets 7,015 7,426
Total assets $204,862 $207,663
Liabilities and Shareholders' Equity
Current liabilities
Current portion of long-term debt $1,262 $44
Accounts payable 15,600 18,724
Accrued compensation and benefits 6,073 5,830
Customer advances 379 830
Accrued liabilities 11,656 9,391
Income taxes payable 2,344 2,664
Total current liabilities 37,314 37,483
Non-current portion of long-term
debt and other liabilities 31,920 30,697
Total liabilities 69,234 68,180
Shareholders' equity
Common stock 127,104 132,655
Common stock warrants 700 700
Retained earnings 8,846 6,676
Unrealized gain on investments (4) 8
Cumulative translation adjustment (1,018) (556)
Total shareholders' equity 135,628 139,483
Total liabilities and shareholders' equity $204,862 $207,663
SOURCE Trimble
/CONTACT: Barbara Hall of Trimble, 408-481-6914; or Chris Danne, or
Jeannine LaPietra, 415-296-7383, or Sandra Badurina, or Karen Amlong,
212-850-5600, all of Morgen-Walke Associates, for Trimble/ |
