Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Reports Record First Fiscal Quarter Results
Company Reports Revenue and GAAP EPS Ahead of Previous Guidance
SUNNYVALE, Calif., Apr. 29, 2003 -- Trimble (Nasdaq: TRMB) today announced results for its first fiscal quarter ended April 4, 2003. The Company reported first quarter revenues of $127.3 million, versus $104.0 million in the first quarter of 2002. Earnings per share (EPS) for the first quarter on a Generally Accepted Accounting Principles (GAAP) basis were $0.18, which included an expense for approximately $1.8 million in amortization of intangibles under FAS 142 and an approximate $390,000 restructuring charge related to Trimble's continued cost reduction activities. This compares to a loss per share of ($0.03), which included an expense for approximately $2.0 million in amortization of intangibles and a $304,000 restructuring charge in the first quarter of 2002. First quarter 2003 GAAP EPS were calculated on a diluted basis using approximately 30.1 million shares.
"We continued to demonstrate the ability to execute in uncertain economic times," said Steven W. Berglund, president and CEO of Trimble. "Our survey and machine control products bring real productivity benefits and cost savings to our customers, which has translated into increased sales and profits for the Company. Additionally, our Component Technologies business remains robust with favorable margin trends, and our Mobile Solutions business demonstrated tangible progress on both increasing revenue and decreasing operating losses during the quarter."
First Fiscal Quarter Business Segment Highlights
Engineering and Construction (E&C)
Total first quarter E&C (including Tripod Data Systems (TDS), previously included in the Portfolio Technologies segment) revenues increased by 19 percent on a comparable basis over the first quarter of 2002. All business areas within E&C showed double-digit year over year growth in the quarter. GPS survey products had record sales for the second consecutive quarter. E&C sales also benefited from a positive reception to new products such as the recently introduced LM80, which is a combination of the TDS ReconTM, a moderately priced, ruggedized handheld computer, and a new software package used to increase productivity, accuracy and reliability for the construction layout process.
Trimble Field Solutions (TFS) - Agriculture and Geographic Information Systems (GIS)
Trimble Field Solutions' first quarter revenue increased by approximately 15 percent over the first quarter of 2002. The GIS and Agriculture businesses each demonstrated double-digit revenue growth over the first quarter of 2002, with Agriculture benefiting from seasonal strength due to farmers preparing for the planting season.
Component Technologies (CT)
CT first quarter revenues increased by approximately 58 percent over the first quarter of 2002. Demand was strong across the board, especially for wireless infrastructure products. Margins also demonstrated strong improvement due to favorable product mix, increased volumes, and cost reductions related the transfer of the business' manufacturing operations from California to China during the second half of 2002.
Trimble Mobile Solutions (TMS)
TMS reported a 55 percent sequential increase in revenue during the first quarter, as it continued to gain traction in the ready mix concrete market. Revenue related to the TelevisantTM Mobile Resource Management System and associated hardware products increased by over 250 percent sequentially, and now represent a majority of TMS' business. At the same time, divisional net loss decreased by approximately 71 percent from the fourth quarter.
For the second quarter ending July 4, 2003, the Company expects revenues will be between $129.0 and $132.0 million. Gross margins are expected to be approximately 50 percent. Operating expenses, including approximately $1.8 million of amortization of intangibles are expected to be approximately $51 to $52 million. Net interest expense is expected to be approximately $2.6 million, and the income tax provision should be approximately $1 million. The Company anticipates other non-operating expense to be approximately $1.5 million. Within these revenue guidelines, Trimble expects GAAP EPS to be between $0.25 and $0.29, assuming 32.2 million shares outstanding.
Investor Conference Call / Webcast Details
The Company will hold a conference call on Wednesday, April 29, 2003 at 2:00 PM Pacific Time to review its first quarter 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 5:00 PM, Pacific Time. The replay number is (800) 642-1687, and the passcode is 9749108.
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, California, 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, 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, gross margin, operating expenses, net interest expense, non-operating expense and earnings per share estimates for the quarter ending July 4, 2003. 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 and any failure to achieve predicted results could negatively impact the Company's revenues and gross margin. The overall health of the economy and the uncertainty over SARs may result in reduced capital spending which could impair the Company's ability to reach the forecasted results. . In addition, many of the Company's products are manufactured in China and those operations could be harmed by the SARs outbreak in that country. Whether the Company achieves its guidance for the second quarter will also depend on a number of other factors, including the 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 Contact: Investor Relations of Trimble: (408) 481-6914
Media Contact: LeaAnn McNabb of Trimble: 408-481-7808