Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Announces Third Quarter Results
Earnings per Share of $0.22 for Third Quarter 1999
SUNNYVALE, Oct. 21, 1999 -- Trimble Navigation Limited (Nasdaq: TRMB) today reported results for the third quarter ended October 1, 1999, for continuing operations.
Revenue for the third quarter of fiscal 1999 was $69,636,000 compared to revenue from continuing operations of $59,973,000 reported in the corresponding period in 1998. Net income from continuing operations was $5,124,000, or $0.22 per share, diluted, compared with a net loss from continuing operations of $15,536,000, or ($0.70) per share, diluted, in the third quarter last year.
For the nine months ended October 1, 1999, revenue increased to $209,245,000 compared to revenue from continuing operations of $207,670,000 in the first nine months of 1998. The net income from continuing operations for the nine month period was $12,794,000, or $0.57 per share, diluted, versus a net loss from continuing operations of $9,642,000, or ($0.43) per share, diluted, from the corresponding period in 1998.
Steven W. Berglund, president and chief executive officer, commented, "I am pleased to report a third consecutive quarter of improving financial performance and profitability for Trimble. Over the last nine months, our cost control programs have allowed us to bring more of the revenue to our bottom line. During the quarter, we finalized our agreement with Solectron and transitioned our manufacturing to them. We expect this strategy will increase manufacturing efficiency thereby reducing costs in the future."
"During the quarter we introduced several new products including optical survey instruments for the land survey market, highly accurate receivers for military applications and more rugged, hand-held devices for Geographic Information Systems (GIS) data collection and maintenance," continued Mr. Berglund. "In addition to our hardware offerings, we released several powerful software applications for the land survey, construction, mapping and GIS markets."
"We continue to strengthen our senior management team with the appointment of both John Zimmerman as senior vice president and chief financial officer, and Michael Lesyna as vice president of strategic marketing. John brings significant business experience to the team and Michael's appointment adds important strategic marketing focus. Both appointments will help us position the Company for continued growth and increased profitability. We believe that the combination of improving operating efficiencies, additions to the management team and our new products in the marketplace strategically positions Trimble for 2000 and beyond," Mr. Berglund concluded.
Statements made in this press release, including those related to cost control programs bringing more revenue to the bottom line, increasing of manufacturing efficiency in the future and positioning the Company for continued growth and increased profitability, 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 1998 annual report on Form 10-K.
Trimble is a world leader in designing and developing innovative products enabled by GPS technology. The company provides end-user and OEM solutions for diverse applications including surveying, mapping/GIS, agriculture, construction, mining, military, commercial aviation, automotive, vehicle tracking and timing. Founded in 1978, Trimble now holds more than 200 U.S. patents on GPS and related technology, with over 180 additional patents pending. Located in Sunnyvale, Calif., Trimble has been adding value to GPS since 1984.
Media Contact: Investor Relations of Trimble: 408-481-6914