Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Announces Fiscal Third Quarter Results
Company Reports Adjusted 3Q EPS at High End of Upwardly Revised Range
SUNNYVALE, Calif., Oct. 23, 2001 - Trimble (Nasdaq: TRMB), a leading innovator of positioning and location-based solutions, today announced results for the fiscal third quarter ended September 28, 2001. The Company reported revenues of $117.4 million, with adjusted earnings per share (EPS) of $0.19. Revenues were slightly higher than revised guidance of $117 million provided on October 11, 2001, while adjusted EPS came in at the high end of the upwardly revised range of $0.16 - $0.19. Adjusted EPS excludes amortization costs from acquisitions, and a restructuring charge related to the Company's cost-cutting measures.
"In spite of a difficult economic environment, we saw relative strength in several areas of our business, particularly land survey, " said Steven W. Berglund, president and CEO. "The Company's ability to accelerate the implementation of cost-cutting initiatives identified earlier this year enhances our ability to offset potential further weakness resulting from economic conditions."
"We continue to take strategic actions to improve our market position. For example, we announced our intention to extend our long-term relationship with Caterpillar through a new joint venture to develop machine control technology for construction equipment. We believe this relationship will place both companies at the leading edge of next generation 3D machine control products and will accelerate the acceptance of the technology in the construction marketplace."
Business Segment Detail for Fiscal Third Quarter
Engineering and Construction revenues were $74.2 million versus $72.1 million on a pro forma basis for the third quarter of 2000. This represented 63 percent of total revenues for the quarter. The Company's land survey products continued to experience strong demand. During the quarter the Japanese Geographical Survey Institute awarded Trimble its second contract for 2001. This latest contract was for the purchase of 360 Trimble 5700 CORS receivers, in addition to the 100 that it bought earlier in the year.
Fleet and Asset Management revenues were $16.9 million compared to $16.0 million in the year ago quarter and $15.2 million in the fiscal second quarter of 2001. This represented 14 percent of total revenues for the quarter. Geographic Information Systems (GIS) sales were relatively strong due to seasonal demand from local, state and federal governments. Additionally, Fleet Management was able to show some degree of recovery during the quarter after a weak first half of the year. The Company attributed this strength to an improvement in sales for its wireless products, as well as end-of-life orders for some of its satellite communications products.
Revenues from the Components Technologies segment were $12.6 million compared to $12.8 million in the year ago quarter and $16.6 million in the fiscal second quarter. This business represented 11 percent of total revenues for the quarter. As expected, sales in the timing market were down sequentially following strong sales in the second quarter.
Agriculture sales remained weak during the third quarter due to a weak agricultural economy, with revenues of $5.5 million. This was approximately 5 percent of revenue.
Revenues from Portfolio Technologies were $8.2 million, or 7 percent of total revenues. Tripod Data Systems (TDS) remained a bright spot, showing sequential revenue growth of 26 percent.
Berglund concluded, "We expect business conditions will remain challenging for at least the next few quarters, with continued cautious buying behavior in certain end-markets. Due to this uncertainty and the nature of the Company's book and bill business, fourth fiscal quarter revenue is difficult to predict at this time. Our 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 AM Pacific Time to review its third quarter results. The conference call will also 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.
Click here to see financial tables.
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
The Ruth Group: David Pasquale: (646) 536-7006