Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Announces Significantly Better than Expected Preliminary Fiscal
Third Quarter Earnings
Adjusted earnings per share will be $0.16 - $0.19 versus previous guidance of $0.04 - $0.06
SUNNYVALE, Calif., Oct. 11, 2001 - Trimble (Nasdaq: TRMB), a leading innovator of positioning and location-based solutions, today announced that it expects to report revenue of approximately $117 million and adjusted earnings per share (EPS) of $0.16 - $0.19 for its fiscal third quarter ended September 28, 2001. In Trimble's July 24, 2001 earnings release, the Company indicated revenue for the fiscal third quarter would be approximately $120 million, with adjusted EPS in the range of $0.04 - $0.06.
Trimble attributed its higher than anticipated adjusted EPS to greater than expected gross margins due to strong demand for the Company's land survey and Geographic Information Systems (GIS) products, the positive impact of the Company's successful and continuous efforts to reduce fixed costs, a foreign exchange gain of approximately $800,000, and lower than expected income tax expenses.
"Our continued profitability is the direct result of the aggressive cost reduction plan we implemented at the end of the first quarter," said Steven W. Berglund, president and CEO. "We accelerated our cost cutting program during the quarter and were able to reduce fixed costs to a level in-line with the type of recessionary economic environment that we are seeing today. By doing this, we have been able to significantly increase our profitability, while still making the investments that we believe will be essential to our growth once the economy begins to recover."
Berglund continued "In addition to the success we've demonstrated in reducing our fixed costs, we saw continued strong sales of our land survey products around the world. Our integrated GPS and optical land survey tools have been very well received in the market place and have enabled Trimble to increase its market share."
Due to the uncertainty in the current economic environment, and the nature of the Company's book and burn business, fourth fiscal quarter revenue is difficult to predict at this time. The Company's best estimate for the fourth fiscal quarter is for revenue in the range of $110 - $115 million.
The Company will hold a conference call Tuesday, October 23rd, 2001 at 8:00 A.M. Pacific Time to review its final third quarter results. The conference call will be broadcast live on the web at www.trimble.com, Investors Relations page. 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 1682777.
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 market acceptance of new product offerings and continued demand for existing products. 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.
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