Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Reports Record Fiscal Fourth Quarter Results
Full-year 2002 Adjusted EPS increased by 100 percent to $0.72
LAS VEGAS, Feb. 4, 2003 -- Trimble (Nasdaq: TRMB) today announced results for the fiscal fourth quarter ended January 3, 2003. The Company reported fourth quarter revenues of $124.6 million, versus $106.4 million in the fourth quarter of 2001. Earnings per share (EPS) for the fourth quarter on a Generally Accepted Accounting Principles (GAAP) basis were $0.14, versus a loss per share of ($0.26) in fourth quarter of 2001.
Adjusted EPS for the fourth quarter of 2002 were $0.27, versus adjusted EPS of $0.02 in the fourth quarter of 2001. Adjusted EPS excludes any infrequent and acquisition related charges, being primarily $2.2 million in intangible amortization costs from acquisitions, $453,000 in restructuring charges related to the Company's cost-cutting measures, and a $1.45 million write down of a minority investment that are included when reporting on a GAAP basis. Fourth quarter adjusted and GAAP EPS were both calculated on a diluted basis using approximately 29.5 million shares.
For the full year 2002, Trimble reported revenues of $466.6 million versus $475.3 million in 2001. Full year 2002 GAAP EPS were $0.36 versus a loss per share of ($0.93) in 2001. Adjusted EPS for the full year 2002 were $0.72 versus $0.36 in 2001.
"We continued to see strengthening demand for our GPS products during the fourth quarter, especially in our Component Technologies and GPS survey businesses, which both reported record quarterly revenues," said Steven W. Berglund, president and CEO of Trimble. "The upside from the components business will probably not be repeated in the first quarter to the same magnitude. However, the continued strength we saw in GPS survey and machine control is encouraging, especially given the seasonal weakness that our core businesses typically experience during the fourth and first quarters. We remain optimistic about our growth prospects as customers continue to realize the benefits our solutions bring to their businesses."
Fourth Quarter Business Segment Highlights
Engineering and Construction (E&C)
Total fourth quarter E&C revenues increased by 13 percent over the fourth quarter of 2001. Sales momentum for GPS machine control and survey products from the third quarter continued into the fourth quarter, and accelerated through the month of December. Both businesses were key contributors to the Company's better than anticipated fourth quarter results and experienced double-digit revenue growth over the fourth quarter of 2001. Construction Instruments benefited from stronger original equipment manufacturer (OEM) sales during the quarter.
Trimble Field Solutions (TFS) - Agriculture and Geographic Information Systems (GIS)
Trimble Field Solutions' fourth quarter revenue increased by approximately 22 percent over the fourth quarter of 2001. Within the GIS business, shipments of the $2.4 million in deferred orders for the GeoExplorer® CE series GPS handhelds began in October and contributed to a double-digit revenue increase over the fourth quarter of 2001. Agriculture also showed double-digit revenue growth over the fourth quarter of 2001, reflecting continued penetration of the Company's manual guidance and auto-steer products for farm machinery.
Component Technologies (CT)
CT reported a record quarter for the business, as fourth quarter revenues increased by approximately 57 percent over the fourth quarter of 2001. This was the second consecutive quarter of year-over-year quarterly growth for CT. While in-vehicle navigation and embedded products continued to meet expectations, the fourth quarter's upside was primarily due to unexpected strong demand from three key wireless infrastructure customers.
Trimble Mobile Solutions (TMS)
TMS continued to gain traction during the fourth quarter, as revenue related to the TelevisantTM Mobile Resource Management System and associated hardware products increased by 125 percent sequentially. At the same time, divisional net loss decreased by approximately 26 percent from the third quarter. The Company noted several customers that had been piloting the solution during the third and fourth quarters have either begun full fleet implementations or are expected to do so in the first quarter of 2003.
Portfolio Technologies' results were mixed due to the deferral of an order until the first quarter in Trimble's military business. Tripod Data Systems (TDS) revenues were ahead of expectations due to strong sales of data collection hardware and software in the construction market.
Separately, Trimble noted that beginning in the first quarter of 2003, TDS' revenue would be reported as part of the Company's Engineering and Construction segment due to the similarities in market focus of the two business areas.
Trimble announced that it had reached an agreement with its commercial banks to extend the revolver portion of its senior bank credit facility until April of 2004 with a borrowing capacity of $86 million. The terms remain the same as in the current revolver, which was due to expire in July of 2003.
The Company also announced that on January 29, 2003, it settled the patent infringement lawsuit filed in January, 2001 by Philip M. Clegg in federal court in the state of Utah. Under the agreement, Trimble has purchased a fully paid up, non-exclusive license under U.S. Patent No. 4,807,131 from Mr. Clegg.
For the first quarter ending April 4, 2003, the Company expects revenues will be between $116.0 and $119.0 million. Gross margins are expected to be approximately 50 percent. Operating expenses, including approximately $1.8 million of amortization of intangibles and an expected restructuring charge of approximately $300,000, are expected to be approximately $50.0 million. Net interest expense is expected to be approximately $3.2 million, and the income tax provision should be approximately $1 million (the equivalent of $0.03 per share in incremental income tax provision over the fourth quarter income tax provision of $250,000). The Company anticipates other non-operating expense to be approximately $1.5 million. Within these revenue guidelines, Trimble expects GAAP EPS to be between $0.08 and $0.11, assuming 29.75 million shares outstanding.
Investor Conference Call / Webcast Details
The Company will hold a conference call on Wednesday, February 4, 2003 at 8:00 AM Pacific Time to review its fourth quarter and year-end results. It will be broadcast live on the web at http://www.trimble.com/investors.html. A replay of the call will be available for 7 days beginning at 11:00 AM, Pacific Time. The replay number is (800) 642-1687, and the passcode is 7668003.
Trimble is a leading innovator of Global Positioning System (GPS) technology. In addition to providing advanced GPS components, Trimble augments GPS with other positioning technologies as well as wireless communications and software to create complete customer solutions. Trimble's worldwide presence and unique capabilities position the Company for growth in emerging applications including surveying, automobile navigation, machine guidance, asset tracking, wireless platforms, and telecommunications infrastructure. Founded in 1978 and headquartered in Sunnyvale, Calif., Trimble has more than 2,000 employees in more than 20 countries worldwide.
Forward Looking Statement:
Certain statements made in this press release are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include the revenue and earnings per share estimates for the quarter ending April 4, 2003, the expected conversion of several customers who have been piloting Trimble Mobile Solutions into full fleet customers and the continued growth in sales of GPS component technologies and GPS survey and machine control products. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. For example, the Company's early success at converting customers who have been piloting Trimble Mobile Solutions into full fleet customers may not be predictive of the rates current customers in its pilot program convert. The overall health of the economy and the uncertainty over a potential war with Iraq may result in reduced capital spending which could impair the Company's ability to reach the forecasted growth in GPS component technologies and GPS survey and machine control products. Whether the Company achieves its guidance for the first quarter will depend on a number of factors, including: budget constraints on state and municipal governments, and the continued uncertain economic climate, as well as the other risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10-K. Undue reliance should not be placed on any forward-looking statement, contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.
Investor Relations Investor Relations of Trimble: 408-481-6914
Media Contact: LeaAnn McNabb of Trimble: 408-481-7808