Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Announces Preliminary
First Quarter Results
SUNNYVALE, Calif., April 5, 2001 - Trimble Navigation Limited (Nasdaq: TRMB) today announced that revenue and earnings for its first fiscal quarter ended March 30, 2001 are expected to be below the Company's previous expectations.
Trimble anticipates reporting first quarter 2001 revenues between $115 million and $117 million, a shortfall of approximately 6-8 percent from previous expectations. Due to Trimble's fixed cost operating model, the Company anticipates the revenue shortfall to result in an adjusted net loss per share of $(0.11) to $(0.14). These expected results do not include goodwill and other purchased intangibles, amortization from acquisitions, or a charge for the combined sale of the Company's Air Transport business and the closure of its Austin, Texas facility. These expectations are preliminary and subject to change. Trimble will report actual results for the first fiscal quarter on April 24, 2001.
"We are clearly disappointed with our first quarter's results," commented Steven W. Berglund, president and CEO. "Consistent with other companies, we are feeling the slowdown in capital spending. Our anticipated strong demand that we have historically seen during the last two weeks in March did not materialize due to this slowdown. While we believe that we have improved our relative competitive position through the release of significant new products, spending decisions have been delayed as customers re-evaluate their budgets in light of economic uncertainty."
"As a result of the current economic conditions, the Company has put into action an aggressive cost reduction program to realign its expense structure in accordance with current product demand," continued Berglund. "To date, we have implemented approximately $11 million in annualized cost synergies from the Spectra Precision acquisition."
"Our Components Technology segment, which sells chipsets, boards, and licenses to the communications infrastructure, fleet management and in-vehicle navigation markets, grew by approximately 21 percent on a year-over-year basis. Although both general economic conditions and downturns in specific industries could impact this segment, we have not yet seen a slow down. We believe our technology is well positioned to continue to gain acceptance throughout the remainder of the year and into 2002."
Trimble's Fleet and Asset Management segment was most severely impacted during the quarter. In particular demand for the Company's GalaxyTM Inmarsat-C line of fleet management solutions was less than expected in Mexico due to the capacity limitations of the satellite communications system's Earth Station, while deliveries to Brazil and Argentina were down due to economic uncertainty.
Trimble's Agriculture segment, and more specifically the Company's laser-based water management product line, was negatively impacted by both delays in the planting season due to poor weather conditions in certain areas of the U.S., as well as cautious buying behavior in general. However, Trimble's GPS machine guidance products did grow by approximately 25 percent on a year-over-year basis.
The Company fell short of its expectations in the Engineering and Construction (E&C) segment due to generally more conservative buying patterns by surveyors and contractors. In addition, customers were reluctant to commit in the short-term to established products during a period of unprecedented technology crossover in this segment.
"Despite the first quarter's results we continue to make progress towards achieving our operational goals," said Berglund. "During the quarter, we announced several new products in our E&C segment that combine Trimble and Spectra Precision technology. In February, we released the first integrated Trimble/Spectra Precision surveying product line. Customer acceptance of these products was stronger than expected, and we were unable to ramp up production quickly enough to meet this excess demand prior to quarter's end. Additionally, we announced two other products for this market, our LaserStationTM 3D, which is based on a new positioning technology, as well as our enhanced SiteVision GPS machine control system, both of which will be available for delivery in the second quarter. These announcements have demonstrated our ability to leverage the core expertise of Trimble and the former Spectra Precision."
"Tripod Data Systems (TDS), our wholly owned subsidiary that we purchased in November 2000, also posted solid growth during the quarter, increasing revenues by approximately 45 percent over the prior year quarter."
"Manufacturing issues were not a significant factor in the quarter, as we continued to make progress in our manufacturing processes. Also, component shortages were not an issue in the quarter, and Solectron was able to meet most of our expectations on a linear basis. We remain committed to working with Solectron to further improve our performance, " concluded Berglund.
The Company will be holding a conference call Friday, April 6, 2001 at 8:00 A.M. Pacific Time. The dial in number is (800) 215-4603 and (303) 534-1146 for international callers. A replay of the call will be available for 48 hours. The replay number is (800) 633-8284, and the passcode is 18548936. The conference call will also be broadcast live on the web at www.trimble.com, Investors Relations page, with an archive of the conference call kept available until April 23, 2001.
Statements made in this press release that are forward looking, are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Among other things, these results may not continue and economic trends and additional competitive issues may have an adverse effect on the ongoing positioning and growth of the Company. These risks are 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 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 2,200 employees in more than 20 countries worldwide.
Media Contact: LeaAnn McNabb of Trimble: 408-481-7808
Investors Contact: Investor Relations of Trimble: (408) 481-6914
Investors Contact: Brian Siegle of Trimble: (408) 481-7838