Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Reports First Quarter Results
SUNNYVALE, Calif., Apr. 24, 2001 - Trimble's (NASDAQ:TRMB) a leading innovator of positioning and location-based solutions, today reported financial results for its first quarter ended March 30, 2001. These results were slightly above the guidance provided on April 5th.
Revenue for the first quarter of 2001 was $117.9 million, a 3 percent decrease from the $121.6 million based on pro-forma results for the year ago quarter, and a 5 percent decrease from $124.2 million in the fourth quarter.
Adjusted net loss for the quarter was $2.3 million or ($0.10) per share. Adjusted net loss for the quarter includes a $3 million charge primarily associated with the write-down of inventory related to the consolidation of product lines. Adjusted net loss does not include amortization from acquisitions or a charge for the combined sale on March 6th of the Company's Air Transport business and subsequent closure of its Austin, Texas facility. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter remained positive at approximately $7 million.
"We had several positive developments since the first of the year," commented Steven W. Berglund, president and CEO. "Business within our Components Technology segment, GPS machine guidance products, and our TDS-subsidiary has been particularly strong. The Trimble/Spectra Precision merger produced tangible results with the introduction of the first combined Trimble/Spectra Precision product line for land survey, which experienced greater than anticipated demand. More recently, we announced two strategic business moves. On Friday, we announced the hiring of Joe Denniston as our new vice president of operations, and yesterday, we announced the formation of Trimble Information Services, Inc. We believe both will be positive contributors to the Trimble organization and will further enable us to achieve our goals."
The Company has taken actions during, and subsequent to, the first quarter to reduce costs to a level consistent with its revised revenue picture. These include a six percent, or approximately 130 employee, reduction in the global workforce, facilities closure and consolidations, a compulsory shutdown which is currently scheduled for early July, and general reductions in discretionary spending.
"Although we continue to make strategic progress, I am not satisfied with our performance," said Berglund. "We have therefore taken these additional measures to improve our operating results, and we trust these actions will improve our financial position in the near future. We believe we have a strong competitive position in our markets and expect that a return to a more stable economic environment should result in a rapid improvement in our results."
The Company will provide forward-looking guidance for its second fiscal quarter as well as for fiscal 2001 on its earnings conference call scheduled for later this morning.
The Company will be holding a conference call Tuesday, April 24, 2001 at 8:00 A.M. Pacific Time. The dial in number is 800-937-4598, or 415-904-2476 for international callers. A replay of the call will be available for 48 hours. The replay number is 800-633-8284, and the pass code is 18596750. The conference call will also be broadcast live on the web at www.trimble.com, Investors Relations page.
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 2,000 employees in more than 20 countries worldwide.
Investor Relations: Investor Relations of Trimble: 408-481-6914
Media Contact: LeaAnn McNabb of Trimble: 408-481-7808