Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Reports the First Quarter of Combined Trimble/Spectra Precision Results
Net income for the quarter, excluding acquisition related amortization, and a one time charge including costs associated with the early retirement of a subordinated note, was $5.5 million, or $0.21 per share, compared to net income of $5.1 million, or $0.22 per share, in the third quarter last year. Including all one time charges, net loss was $4.3 million, or $0.18 per share. For the nine months ended September 29, 2000, revenue increased to $245.6 million compared to $209.2 million, which included approximately 11 weeks of revenue associated with Spectra Precision Group. Excluding all one time and acquisition related charges, net income for the nine month period was $25.6 million, or $0.99 per share, diluted, versus a net income of $12.8 million, or $0.57 per share, in the corresponding period of 1999. Including charges, net income for the first nine months of 2000 was $16.8 million, or $0.65 per share. Steven W. Berglund, president and chief executive officer, commented, "With the acquisition of Spectra Precision, Trimble's revenue has grown 57% over the previous year quarter. The integration process remains on track, and we are focusing on synergies to enable cost reductions within the combined organization. The demand for our products continues to grow, and we ended the third quarter with a backlog of approximately $83 million."
"While demand remains strong, a number of outside factors influenced our financial results. Even though we made significant progress in resolving the component shortages, we realized the benefit too late in the quarter to affect revenue. We continue to give this issue the highest level of attention with a joint team consisting of senior level managers from both Trimble and Solectron. Revenue was also affected by unfavorable foreign currency translations in Europe. Trimble, however, is naturally hedged in Europe through our sales, services and manufacturing facilities located there, so very little impact flows through to net income. As announced previously, our contract with the military is on hold pending system acceptance for our prime contractor."
"We continue to focus on creating new opportunities. In September, we announced out intent to acquire Tripod Data Systems, strengthening our position in land survey, construction and Geographic Information System (GIS) markets. Together with our acquisition of Spectra Position, this transaction helps solidify Trimble's position as the leading provider of position-centric technology."
Trimble has scheduled a conference call for 8:00 a.m. pacific daylight time on Thursday, October 19, 2000. The dial-in number is 888-303-1413 and a replay will be available following the call for two business days. The replay number is 800-633-8284 and the code is 16509355. The conference call will also be carried live on the web at www.trimble.com, Investors Relations page. The replay of the call will be available on the web two hours following the scheduled call.
Statements made in this press release, including those related to the growth in demand for products and the impact of the Euro on net income, are forward-looking and 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 beyond the third quarter 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 from 1998 and 1999 and its 1999 annual report on Form 10-K.
Founded in 1978, Trimble is a recognized worldwide leader in the development of innovative Global Positioning System (GPS) technology-based products for a wide range of applications. Today, these advanced solutions combine GPS with wireless communications and sophisticated software to meet demanding applications in markets ranging from agriculture and construction to asset management, automotive and timing. Headquartered in Sunnyvale, Calif., Trimble provides end-users and OEMs with leading edge solutions backed by global leadership in innovation, exceptional experience and in depth applications knowledge as well as a reputation for excellence.
With its acquisition of Spectra Precision, a leading provider of construction lasers, machine control systems, optical surveying instruments and related software, Trimble now broadens its portfolio of positioning solutions for the engineering and construction and agriculture markets.
Contact: Lea Ann McNabb of Trimble: 408-481-7808