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Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
1.408.481.8000 phone
1.408.481.7781 fax

  NEWS RELEASE

 
Trimble Announces Fiscal First Quarter Results
Adjusted EPS Comes in Ahead of Previous Guidance

SUNNYVALE, Calif., April 24, 2002 - Trimble (Nasdaq: TRMB) today announced results for the fiscal first quarter ended March 29, 2002. The Company reported first quarter revenues of $104.0 million, versus $117.9 million in the year ago quarter and $106.4 million in the fourth quarter of 2001.
 
Earnings (loss) per share (EPS) for the first quarter on a Generally Accepted Accounting Principles (GAAP) basis were ($0.03) versus ($0.48) in the year ago quarter and ($0.26) in the fourth quarter of 2001. The adoption of FAS 142 concerning the non-amortization of goodwill and intangibles assets accounted for approximately $0.19 per share of additional earnings in the first quarter of 2002.
 
Adjusted EPS for the first quarter of 2002 was $0.06 versus an adjusted loss of ($0.09) per share in the year ago quarter and adjusted EPS of $0.02 in the fourth quarter of 2001. Company guidance was for adjusted EPS between breakeven and $0.03. Adjusted EPS excludes any infrequent and acquisition related charges, being primarily goodwill and intangible amortization costs from acquisitions, and restructuring charges related to the Company's cost-cutting measures that are included when reporting on a GAAP basis. Adjusted EPS numbers were calculated on a diluted basis using 28.5 million shares.
 
The Company anticipates it will continue to amortize intangible assets with definite lives at a rate of approximately $2 million per quarter when reporting on a GAAP basis. The effect of the goodwill non-amortization provisions of FAS 142 is expected to result in a substantial reduction in the difference between the Company's adjusted earnings and earnings on a GAAP basis. Trimble expects to continue to report adjusted earnings excluding acquisition-related costs to provide a consistent basis for financial comparisons.
 
"Trimble continues to demonstrate the ability to maneuver through a challenging economic environment," said Steven W. Berglund, Trimble's president and CEO. "We lowered our revenue break-even point for the fourth consecutive quarter, and improved financial flexibility through a private equity offering and restructuring of the Company's subordinated debt."
 
Berglund continued, "Trimble also launched new products targeted at emerging markets, including a miniature GPS board with advanced capabilities for wireless applications, and an Internet-based platform that will allow Trimble to sell commercial location-based services. Additionally, we teamed with other industry leaders to develop new products, distribution and market extensions in our construction, mobile solutions and geographic information systems businesses. We believe these developments will help position Trimble to build on its leadership position in current and emerging markets."
 
Business Segment Highlights from the Fiscal First Quarter of 2002
 
Engineering and Construction (E&C)
 
E&C profits increased by 19 percent over the year ago quarter and 16 percent over the fourth quarter of 2001. The increase was mainly due to higher gross margins generated from an increase in Global Positioning System (GPS) Virtual Reference Station (VRSTM) software sales.
 
On March 15, Trimble and Caterpillar (NYSE: CAT) announced the signing of a definitive agreement to form Caterpillar Trimble Control Technologies LLC, a 50-50 joint venture for the development of next generation 3D control systems for the automation of heavy construction equipment. As part of the agreement, Trimble received an $11 million cash payment in connection with the transfer of certain technologies to the joint venture. The joint venture began operation on April 1.
 
Trimble Mobile Solutions (TMS)
 
TMS' revenue was down, reflecting the discontinuation of its satellite communications products and continued economic weakness in the U.S. and Latin America. Additionally, market demand has been trending towards a complete hardware and services solution utilizing wireless communications, GPS, applications software and the Internet. In anticipation of this trend, Trimble announced several important strategic initiatives relating to the emerging services part of its business.
 
On March 7, Trimble launched the TelvisantTM Mobile Resource Management System, signaling the Company's entry into the wireless location-based services market and intent to begin actively marketing the solution.
 
On March 19, Trimble announced an agreement with McNeilus Companies Inc., a subsidiary of OshKosh Truck Corporation (NASDAQ: OTRKB) and a leading manufacturer of ready-mix and refuse trucks in the U.S. Under the agreement, McNeilus will offer the Telvisant fleet management solution as a factory-installed or aftermarket option on McNeilus' ready-mix concrete trucks.
 
Simultaneously, Trimble announced an agreement with Systech Inc., a leading enterprise software provider to the concrete and aggregate market, to integrate its Telvisant fleet management solution with Systech's ready-mix dispatch software to create an advanced automated truck tracking and dispatch solution for the ready-mix concrete industry.
 
Components Technologies (CT)
 
The weak economic environment and the lack of infrastructure spending by telecommunications companies continued to impact Trimble's CT business during the first quarter. However, results were stronger than anticipated as the group's efforts to further diversify and expand its customer base helped offset this weakness.
 
On March 18, the Company announced that Grayson Wireless, a subsidiary of Allen Telecom (NYSE: ALN), selected Trimble's GPS time and frequency products for Grayson's Geometrix® wireless 911 caller location systems.
 
Trimble Field Solutions (TFS) - Agriculture and Geographic Information Systems (GIS)
 
Higher sales and profits were a result of seasonal strength in the Company's agriculture business, as well as strong demand for the recently introduced AgGPS® EZ-GuideTM system, an entry-level product that provides simple manual guidance to drivers of farm equipment. Also contributing to these results were increased sales of the AgGPS® Autopilot, which allows for hands-free guidance and control of tractors; and the GL700, a laser product used for land leveling and irrigation.
 
On February 7, Trimble announced that Grimmway Farms, the world's largest carrot producer, awarded the Company a contract for its AgGPS Autopilot, a high-end system that uses GPS to automatically steer tractors in precise rows.
 
On February 20, Trimble and ESRI, the leading developer of GIS software, announced a strategic alliance to develop "Mobile GIS" applications. On February 22, Trimble subsequently announced the first software product for the alliance, Trimble GPScorrectTM, a software extension for ESRI's Arcpad 6.0 Mobile GIS software.
 
Portfolio Technologies
 
Portfolio Technologies revenue was softer than anticipated due to the postponement of a military order until the second quarter.
 
Other Highlights
 
On January 15, 2002 Trimble announced a second closing of its December 21, 2001 private equity placement, raising an additional $19.2 million under the original terms.
 
On March 20, the Company announced the revision of its $84 million subordinated note with Thermo Electron Corporation (NYSE: TMO). As part of this agreement, Trimble immediately paid off accrued interest and debt of $21.2 million owed to Thermo Electron and issued it a warrant to purchase a maximum of 376,233 shares of common stock over a period of time, including the right to immediately exercise 200,000 shares at $15.11. In return, the note was extended until July 14, 2004 at a fixed interest rate of 10.4 percent.
 
Berglund concluded, "During the quarter, we began to see some signs of market stabilization and encouraging customer activity. However, it is still early, and we believe the business environment remains challenging. We remain fiscally diligent and continue to pursue the initiatives designed to further improve our revenue and profitability this year, regardless of the economy."
 
Guidance
 
For the second quarter ending June 28, 2002, which is typically Trimble's strongest due to seasonal buying in the Engineering and Construction market, the Company expects revenues will be between $119 and $121 million. Gross margins are expected to be between 51 and 52 percent. Operating expenses, including approximately $2 million of amortization of goodwill, are expected to be approximately $50 million. Net interest expense is expected to be approximately $3.6 million, and income tax provision should be approximately $2 million. We anticipate other non-operating expense to be approximately $1.3 million. Within these guidelines, Trimble expects adjusted EPS to be between $0.22 and $0.28, assuming 29 million shares outstanding.
 
Investor Conference Call / Webcast Details
 
The Company will hold a conference call on Wednesday, April 24, 2002 at 8:00 AM Pacific Time to review its first quarter results. The conference call dial in number is (800) 528-9198 and the passcode is 971075. It will also be broadcast live on the web at
http://www.trimble.com/investors.html. A replay of the call will be available for 48 hours beginning at 11:00 AM, Pacific Time. The replay number is (800) 642-1687, and the passcode is 971075.
 
About Trimble
 
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.
 
Certain statements made in this press release are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward looking statements are subject to change, and actual results may differ from those set forth in this press release due to certain risks and uncertainties, including successful development and market acceptance of new product offerings, continued demand for existing products, continued integration of acquired companies, and successful collaborations with leading companies in key markets. Among other things, these results may not continue beyond the current quarter due to seasonal and economic trends and additional competitive issues that may have an adverse effect on the ongoing positioning and growth of the Company. These and other risks are 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.
 
Financial Tables

Investor Relations:    Investor Relations of Trimble: 408-481-6914

Media Contact:    LeaAnn McNabb of Trimble: 408-481-7808

Contact:    David Pasquale of The Ruth Group: 646-536-7006



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