Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
SUNNYVALE, Calif., Jan. 21, 1999 -- Trimble (NASDAQ: TRMB) announced today that it expects to report fourth quarter revenues from continuing operations of approximately $58 million. The Company anticipates a fourth quarter net loss per share, including restructuring costs and charges to operations, of approximately $0.89 to $0.91.
"Sales during the period were affected by FCC licensing authorization delays for survey products and softness in military sales," commented Dr. Bradford W. Parkinson, president and chief executive officer. "During the fourth quarter, we continued to make significant progress in our cost savings programs and we are pleased to announce that we have completed virtually all of the steps to reduce our annualized expenses. From the actions taken to date, the Company expects to realize cost reductions of approximately $19 million annually."
Dr. Parkinson added, "We are working closely with the FCC to resolve the authorization delay on our RTK survey products. Additionally, we are moving forward with the last major step of our restructuring program, a move to contract manufacturing, and expect to begin implementing this change in the first half of 1999. Management believes this will have a positive impact on bottom line results."
The Company incurred restructuring costs during the fourth quarter associated with its previously announced cost savings programs. Included in this loss for the fourth quarter will be approximately $7.8 million in restructuring charges relating to the cancellation of the enterprise software system, consolidation of facilities and the previously announced workforce reduction. Additionally, a charge to operations of approximately $7.7 million will be taken relating to inventory write-offs due to the streamlining of certain product lines, minority investments and increases in other reserves.
Trimble will announce fourth quarter and year-end results on January 28, 1999.
To the extent that the matters discussed in this news release contain forward-looking statements, they involve risks and uncertainties detailed from time to time in the company's SEC reports, including its quarterly reports on Form 10-Q and its Annual Report on Form 10-K.
Trimble is a world leader in the emerging commercial markets for GPS satellite-based navigation, positioning, and communications data products. The company holds more patents on GPS and related technology than any other organization. These products are sold worldwide for diverse applications including: land and hydrographic surveying; mapping/GIS data acquisition; agriculture; military; commercial aviation; marine navigation; vehicle tracking and communications; and mobile GPS. The company also supplies GPS engines for the OEM market. Founded in 1978 and located in Sunnyvale, Calif., Trimble has been a leader in adding value to GPS since 1984.
Consolidated Balance Sheet (PDF)
Consolidated Statement of Operations (PDF)