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Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
1.408.481.8000 phone
1.408.481.7781 fax

  NEWS RELEASE

 

Trimble Reports Third Quarter 2009 Revenue of $269.7 Million: Non-GAAP Earnings Per Share of $0.25

SUNNYVALE, Calif., Oct 27, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Trimble (Nasdaq: TRMB) today announced revenue of $269.7 million for its third quarter ended Oct. 2, 2009, down approximately 18 percent from revenue of $328.1 million in the third quarter of 2008.

Operating income for the third quarter of 2009 was $20.2 million, down approximately 63 percent from the third quarter of 2008. Operating margin in the third quarter of 2009 was 7.5 percent, as compared to an operating margin of 16.5 percent in the third quarter of 2008.

Amortization of intangibles was $13.6 million in the third quarter of 2009, as compared to $11.1 million in the third quarter of 2008. The impact of stock-based compensation expense was $4.5 million, as compared to $3.8 million in the third quarter of 2008. There was also $1.1 million in restructuring expense, no acquisition-related inventory step-up charge, and $0.6 million in non-recurring acquisition costs in the third quarter of 2009. This compares to $0.5 million in restructuring expense, $0.4 million in acquisition-related inventory step-up, and no non-recurring acquisition costs in the third quarter of 2008. Excluding these items, non-GAAP operating income of $40.0 million was down 43 percent, as compared to the third quarter of 2008. Non-GAAP operating margin was 14.8 percent in the third quarter of 2009, as compared to 21.3 percent in the third quarter of 2008.

Third quarter 2009 net income was $15.6 million, down 60 percent, as compared to the third quarter of 2008. Diluted earnings per share for the third quarter of 2009 was $0.13, as compared to diluted earnings per share of $0.31 in the third quarter of 2008.

Adjusting for the items noted above, non-GAAP net income of $30.2 million for the third quarter of 2009 was down 40 percent, as compared to the third quarter of 2008. Non-GAAP earnings per share for the third quarter of 2009 was $0.25, as compared to non-GAAP earnings per share of $0.40 in the third quarter of 2008.

Cash flow from operations for the first nine months of 2009 was $139.1 million, as compared to $141.9 million in the first nine months of 2008.

"During the third quarter we saw early signs of recovery in some elements of the Engineering and Construction segment in the U.S. Additionally, we had a number of large contractual wins in the Mobile Solutions segment, where the pipeline generally remains strong," said Steven W. Berglund, Trimble's president and chief executive officer. "We did see a year to year fall in Field Solutions revenue, reflecting the change in market sentiment within the agriculture market," Berglund continued. "Although economic conditions remain volatile and uncertain, we now believe we have the capability to provide double digit revenue growth in 2010 with significantly higher earnings growth."

Trimble Results by Business Segment

Segment operating income is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, restructuring expenses, amortization of intangibles, non-recurring acquisition costs, and the impact of stock-based compensation expense.

Engineering and Construction (E&C)

Third quarter 2009 E&C revenue was $149.4 million, down approximately 22 percent as compared to the third quarter of 2008, largely due to continued recessionary conditions in Europe and North America.

Operating income in E&C for the third quarter 2009 was $21.1 million, or 14.1 percent of revenue, as compared to $41.6 million, or 21.7 percent of revenue, in the third quarter of 2008.

In the third quarter of 2009, non-GAAP operating income in E&C was $22.7 million, or 15.2 percent of revenue, as compared to $42.7 million, or 22.3 percent of revenue, in the third quarter of 2008. The decline in non-GAAP operating margin was primarily due to lower revenue.

Field Solutions

Third quarter 2009 Field Solutions revenue was $55.7 million, down 14 percent as compared to the third quarter of 2008. The revenue decline was driven by lower agriculture product sales.

Operating income in Field Solutions for the third quarter 2009 was $16.3 million, or 29.3 percent of revenue, as compared to $22.1 million, or 34.3 percent of revenue, in the third quarter of 2008.

In the third quarter of 2009, non-GAAP operating income in Field Solutions was $16.6 million, or 29.8 percent of revenue, as compared to $22.3 million, or 34.6 percent of revenue, in the third quarter of 2008. The decrease in non-GAAP operating margin was due to lower revenue.

Mobile Solutions

Third quarter 2009 Mobile Solutions revenue was $39.6 million, down approximately 3 percent as compared to the third quarter of 2008. The decline in revenue was primarily attributable to lower sales of ready mix hardware.

Operating income in Mobile Solutions for the third quarter 2009 was $3.4 million, or 8.5 percent of revenue, as compared to $3.6 million, or 8.8 percent of revenue, in the third quarter of 2008.

In the third quarter of 2009, non-GAAP operating income in Mobile Solutions was $4.3 million, or 10.9 percent of revenue, down from 11.2 percent of revenue in the third quarter of 2008.

Advanced Devices

Third quarter 2009 Advanced Devices revenue was $25.1 million, down approximately 19 percent as compared to the third quarter of 2008. The decline in third quarter revenue was due to lower sales of embedded, timing and Applanix products.

Operating income in Advanced Devices for the third quarter 2009 was $4.5 million, or 17.9 percent of revenue, as compared to $6.8 million, or 22.0 percent of revenue, in the third quarter of 2008.

In the third quarter of 2009, non-GAAP operating income in Advanced Devices was $4.9 million, or 19.5 percent of revenue, as compared to 23.1 percent of revenue in the third quarter of 2008. The reduction in non-GAAP operating margin was due to product mix.

Use of Non-GAAP Financial Information

To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The specific non-GAAP measures which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why management chose to exclude selected items and the additional purposes for which these non-GAAP measures are used can be found at the end of this release. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, and to make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Management generally compensates for the limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure or measures. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to this earnings release. Additional financial information about our use of non-GAAP results can be found on the investor relations page of our Web site at http://investor.trimble.com.

Forward Looking Guidance

For the fourth quarter of 2009 Trimble expects revenue between $265 million and $270 million, with GAAP earnings per share of $0.08 to $0.10 and non-GAAP earnings per share of $0.19 to $0.21. Non-GAAP guidance for the fourth quarter of 2009 excludes the amortization of intangibles of $14.8 million related to previous acquisitions and the anticipated impact of stock-based compensation expense of $5.0 million. Both GAAP and non-GAAP earnings per share assume a 30 percent to 32 percent tax rate and 123 million shares outstanding.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on Oct. 27, 2009 at 1:30 p.m. PT to review its third quarter 2009 results. It will be broadcast live on the Web at http://investor.trimble.com. Investors without Internet access may dial into the call at (800) 528-9198 (U.S.) or (706) 634-6089 (international). A replay of the call will be available for seven days at (800) 642-1687 (U.S.) or (706) 645-9291 (international) and the pass code is 35065165. The replay will also be available on the Web at the address above.

About Trimble

Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location--including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies, such as GPS, lasers and optics, Trimble solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1978, Trimble is headquartered in Sunnyvale, Calif.

For more information visit Trimble's Web site at www.trimble.com.

Safe Harbor

Certain statements made in this press release are forward-looking statements within the meaning of 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 expectations for future financial market and economic conditions, the ability to deliver the operating margins, revenue, and earnings per share that Trimble has guided for fourth quarter 2009, changes in tax-rate, estimated restructuring costs, the anticipated impact of stock-based compensation expense and the amortization of intangibles related to previous acquisitions and when we can return to year-over-year revenue growth. 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. If the current global recessionary conditions in the U.S. and Europe worsen or do not improve it may negatively impact our customers' purchasing decisions worldwide, including in emerging markets. In addition, the Company's results may be adversely affected if the Company is unable to market, manufacture, and ship new products. Any weakening of our accounts receivable or write-off of goodwill could also impair our financial results. Any failure to achieve predicted results could negatively impact the Company's revenues, cash flow from operations, and other financial results. The Company's financial results 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, especially in light of greater uncertainty than normal in the economy in general. 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.

 

FTRMB

                    
				CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                       (In thousands, except per share data)
                                    (Unaudited)

                                     Three Months Ended    Nine Months Ended
                                     ------------------    -----------------

                                      Oct-2,    Sep-26,   Oct-2,     Sep-26,
                                       2009      2008      2009        2008
                                       ----      ----      ----        ----

    Revenue                          $269,713  $328,087  $848,730  $1,061,150
    Cost of sales                     137,255   162,464   429,514     534,052
                                      -------   -------   -------     -------
    Gross margin                      132,458   165,623   419,216     527,098
                                      -------   -------   -------     -------
    Gross margin (%)                     49.1%     50.5%     49.4%       49.7%

    Operating expenses
        Research and development       33,250    35,348   100,844     112,097
        Sales and marketing            47,022    48,664   141,120     151,727
        General and administrative     23,237    22,072    75,901      70,051
        Restructuring                     872        21     5,797       2,435
        Amortization of purchased
         intangible assets              7,912     5,462    22,411      15,768
                                        -----     -----    ------      ------
           Total operating expenses   112,293   111,567   346,073     352,078
                                      -------   -------   -------     -------


    Operating income                   20,165    54,056    73,143     175,020

    Non-operating income, net
        Interest income                   124       404       546       1,369
        Interest expense                 (450)     (214)   (1,408)     (1,389)
        Foreign currency transaction
         gain, net                        792       117       760       2,338
        Income (loss) from joint
         ventures, net                   (151)    2,163       369       6,796
        Other income (expense), net     1,081      (907)    1,528      (1,661)
                                        -----      ----     -----      ------
           Total non-operating income,
            net                         1,396     1,563     1,795       7,453
                                        -----     -----     -----       -----

    Income before taxes                21,561    55,619    74,938     182,473

    Income tax provision                5,714    16,552    20,244      54,740
                                        -----    ------    ------      ------
    Net income                         15,847    39,067    54,694     127,733
      Less: Net income attributable
       to noncontrolling interests        270         -       795           -
                                          ---         -       ---           -
    Net income attributable
     to Trimble Navigation Ltd.       $15,577   $39,067   $53,899    $127,733
                                      =======   =======   =======    ========

    Earnings per share
     attributable to
     Trimble Navigation Ltd.
         Basic                          $0.13     $0.32     $0.45       $1.05
                                        -----     -----     -----       -----
         Diluted                        $0.13     $0.31     $0.44       $1.02
                                        -----     -----     -----       -----

    Shares used in calculating
     earnings per share:
        Basic                         120,047   120,603   119,620     121,171
                                      -------   -------   -------     -------
        Diluted                       122,854   124,423   121,893     125,071
                                      -------   -------   -------     -------



                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
                                   (Unaudited)


                                                          Oct-2,      Jan-2,
                                                           2009       2009
                                                           ----       ----
    Assets

    Current assets:
       Cash and cash equivalents                         $222,099   $147,531
       Accounts receivables, net                          202,453    204,269
       Other receivables                                   10,350     17,540
       Inventories, net                                   160,420    160,893
       Deferred income taxes                               41,720     41,810
       Other current assets                                19,854     16,404
                                                           ------     ------
          Total current assets                            656,896    588,447

    Property and equipment, net                            46,903     50,175
    Goodwill                                              765,484    715,571
    Other purchased intangible assets, net                216,619    228,901
    Other non-current assets                               45,739     51,922
                                                           ------     ------

          Total assets                                 $1,731,641 $1,635,016
                                                       ========== ==========

    Liabilities

    Current liabilities:
       Current portion of long-term debt                      $49       $124
       Accounts payable                                    50,256     49,611
       Accrued compensation and benefits                   45,526     41,291
       Deferred revenue                                    69,946     55,241
       Accrued warranty expense                            14,081     13,332
       Other accrued liabilities                           36,099     63,719
                                                           ------     ------
          Total current liabilities                       215,957    223,318

    Non-current portion of long-term debt                 151,455    151,464
    Non-current deferred revenue                            8,034     12,418
    Deferred income taxes                                  39,830     42,207
    Other non-current liabilities                          64,754     61,553
                                                           ------     ------
          Total liabilities                               480,030    490,960
                                                          -------    -------

    Commitments and contingencies

    Equity

    Shareholders' equity:
       Common stock                                       713,593    684,831
       Retained earnings                                  481,820    427,921
       Accumulated other comprehensive income              51,454     27,649
                                                           ------     ------
    Total Trimble Navigation Ltd.
     shareholders' equity                               1,246,867  1,140,401
    Noncontrolling interests                                4,744      3,655
                                                            -----      -----
          Total equity                                  1,251,611  1,144,056

          Total liabilities and equity                 $1,731,641 $1,635,016
                                                       ========== ==========



                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (In thousands)
                                   (Unaudited)

                                                            Oct-2,    Sep-26,
                                                             2009      2008
                                                             ----      ----

    Cash flow from operating activities:
        Net Income                                         $54,694  $127,733

        Adjustments to reconcile net income
         to net cash provided by
           operating activities:
             Depreciation expense                           13,941    14,287
             Amortization expense                           38,968    32,999
             Provision for doubtful accounts                 2,933       597
             Amortization of debt issuance cost                169       169
             Deferred income taxes                          (9,268)  (14,235)
             Stock-based compensation                       13,321    11,603
             Equity gain from joint ventures                  (369)   (6,796)
             Gain on bargain purchase                         (386)        -
             Excess tax benefit for stock-based
              compensation                                  (1,304)   (5,847)
             Provision for excess and obsolete
              inventories                                    2,943     2,672
             Other non-cash items                           (2,542)      179

        Add decrease (increase) in assets:
             Accounts receivables                            2,613   (16,230)
             Other receivables                               6,288     1,598
             Inventories                                     1,300   (16,165)
             Other current and non-current assets            1,915      (201)

        Add increase (decrease) in liabilities:
             Accounts payable                               (1,068)   (1,859)
             Accrued compensation and benefits               2,273    (7,426)
             Accrued liabilities                             1,947       725
             Deferred revenue                               10,753     2,862
             Income taxes payable                                -    15,280
                                                                 -    ------
     Net cash provided by operating activities             139,121   141,945
                                                           -------   -------

     Cash flow from investing activities:
          Acquisitions of businesses, net of cash
           acquired                                        (50,824)  (69,310)
          Acquisition of property and equipment             (9,541)  (11,293)
          Acquisitions of intangible assets                (26,839)     (349)
          Dividends received                                 2,896     3,148
          Other                                               (379)      195
                                                              ----       ---
     Net cash used in investing activities                 (84,687)  (77,609)
                                                           -------   -------

     Cash flow from financing activities:
          Issuance of common stock                          13,673    22,119
          Excess tax benefit for stock-based
           compensation                                      1,304     5,847
          Repurchase and retirement of common stock              -  (115,851)
          Proceeds from long-term debt and revolving
          credit lines                                                51,000
          Payments on long-term debt and revolving
          credit lines                                        (168)  (60,316)
                                                              ----   -------
     Net cash provided by (used in) financing activities    14,809   (97,201)
                                                            ------   -------

     Effect of exchange rate changes on cash and cash
      equivalents                                            5,325       142
                                                             -----       ---

     Net decrease in cash and cash equivalents              74,568   (32,723)
     Cash and cash equivalents - beginning of period       147,531   103,202
                                                           -------   -------

     Cash and cash equivalents - end of period            $222,099   $70,479
                                                          ========   =======



                               REPORTING SEGMENTS
                             (Dollars in thousands)
                                   (Unaudited)


                                            Reporting Segments
                                            ------------------
                                Engineering
                                    and        Field      Mobile   Advanced
                               Construction  Solutions  Solutions   Devices
                               ------------  ---------  ---------   -------

    THREE MONTHS ENDED
     OCTOBER 2, 2009:
      Revenue                      $149,384    $55,654    $39,572   $25,103

      Operating income before
       corporate allocations:       $21,131    $16,286     $3,367    $4,488
        Operating margin (%
         of segment
         external net
         revenues)                     14.1%      29.3%       8.5%     17.9%

    THREE MONTHS ENDED
     SEPTEMBER 26, 2008:
      Revenue                      $191,858    $64,354    $40,822   $31,053

      Operating income before
       corporate allocations:       $41,560    $22,058     $3,602    $6,835
        Operating margin (%
         of segment
         external net
         revenues)                     21.7%      34.3%       8.8%     22.0%

    NINE MONTHS ENDED
     OCTOBER 2, 2009:
      Revenue                      $424,275   $234,598   $116,925   $72,932

      Operating income before
       corporate allocations:       $42,800    $88,637    $10,163   $13,633
        Operating margin (%
         of segment
         external net
         revenues)                     10.1%      37.8%       8.7%     18.7%

    NINE MONTHS ENDED
     SEPTEMBER 26, 2008:
      Revenue                      $599,057   $242,461   $127,118   $92,514

      Operating income before
       corporate allocations:      $123,675    $91,961     $7,997   $18,105
        Operating margin (%
         of segment
         external net
         revenues)                     20.6%      37.9%       6.3%     19.6%





                             GAAP TO NON-GAAP RECONCILIATION
                      (Dollars in thousands, except per share data)
                                       (Unaudited)

                                                Three Months Ended
                                                ------------------
                                            Oct-2,              Sep-26,
                                             2009                 2008
                                             ----                 ----
                                      Dollar      % of      Dollar    % of
                                      Amount     Revenue    Amount   Revenue
                                      ------     -------    ------   -------
    GROSS MARGIN:
      GAAP gross margin:             $132,458      49.1%   $165,623    50.5%
        Restructuring         ( A )       270       0.1%        430     0.1%
        Amortization of
         purchased
         intangibles          ( B )     5,661       2.1%      5,681     1.7%
        Stock-based
         compensation         ( C )       453       0.2%        453     0.2%
        Amortization of
         acquisition-related
         inventory step-up    ( D )         -       0.0%        418     0.1%
                                            -       ---         ---     ---
      Non-GAAP gross margin:         $138,842      51.5%   $172,605    52.6%
                                     --------      ----    --------    ----

    OPERATING EXPENSES:
      GAAP operating expenses:       $112,293              $111,567
        Restructuring         ( A )      (872)                  (21)
        Amortization of
         purchased
         intangibles          ( B )    (7,912)               (5,462)
        Stock-based
         compensation         ( C )    (4,088)               (3,373)
        Non-recurring
         acquisition costs    ( E )      (577)                    -
                                         ----                     -
      Non-GAAP operating expenses:    $98,844              $102,711
                                      -------              --------

    OPERATING INCOME:
      GAAP operating income:          $20,165       7.5%    $54,056    16.5%
        Restructuring         ( A )     1,142       0.4%        451     0.1%
        Amortization of
         purchased
         intangibles          ( B )    13,573       5.0%     11,143     3.4%
        Stock-based
         compensation         ( C )     4,541       1.7%      3,826     1.2%
        Amortization of
         acquisition-related
         inventory step-up    ( D )         -       0.0%        418     0.1%
        Non-recurring
         acquisition costs    ( E )       577       0.2%          -     0.0%
                                          ---       ---           -     ---
      Non-GAAP operating income:      $39,998      14.8%    $69,894    21.3%
                                      -------      ----     -------    ----

    NET INCOME:
      GAAP net income attributable
       to Trimble Navigation Ltd.     $15,577               $39,067
        Restructuring         ( A )     1,142                   451
        Amortization of
         purchased
         intangibles          ( B )    13,573                11,143
        Stock-based
         compensation         ( C )     4,541                 3,826
        Amortization of
         acquisition-related
         inventory step-up    ( D )         -                   418
        Non-recurring
         acquisition costs    ( E )       577                     -
        Income tax effect on
         non-GAAP adjustments ( F )    (5,256)               (4,713)
                                       ------                ------
      Non-GAAP net income
       attributable to Trimble
       Navigation Ltd.                $30,154               $50,192
                                      -------               -------

    DILUTED NET INCOME PER SHARE:
      GAAP diluted net income per
       share attributable to
       Trimble Navigation Ltd.          $0.13                 $0.31
        Restructuring         ( A )      0.01                  0.01
        Amortization of
         purchased
         intangibles          ( B )      0.11                  0.09
        Stock-based
         compensation         ( C )      0.04                  0.03
        Amortization of
         acquisition-related
         inventory step-up    ( D )         -                     -
        Non-recurring
         acquisition costs    ( E )         -                     -
        Income tax effect on
         non-GAAP adjustments ( F )     (0.04)                (0.04)
                                        -----                 -----
      Non-GAAP diluted net income
       per share attributable to
       Trimble Navigation Ltd.          $0.25                 $0.40
                                        -----                 -----

    OPERATING LEVERAGE:
      Increase (decrease) in non-
       GAAP operating income         $(29,896)
      Increase (decrease) in
       revenue                       $(58,374)
      Operating leverage (increase
       in non-GAAP operating
       income as a % of increase
       in revenue)                        N/A

                                              % of Segment       % of Segment
    SEGMENT OPERATING INCOME:                    Revenue            Revenue
                                                 -------            -------
      Engineering and Construction
        GAAP operating income
         before corporate
         allocations:                 $21,131      14.1%    $41,560    21.7%
          Stock-based
           compensation       ( G )     1,563       1.1%      1,146     0.6%
                                        -----       ---       -----     ---
        Non-GAAP operating income
         before corporate
         allocations:                 $22,694      15.2%    $42,706    22.3%
                                      -------      ----     -------    ----

      Field Solutions
        GAAP operating income
         before corporate
         allocations:                 $16,286      29.3%    $22,058    34.3%
          Stock-based
           compensation       ( G )       293       0.5%        203     0.3%
                                          ---       ---         ---     ---
        Non-GAAP operating income
         before corporate
         allocations:                 $16,579      29.8%    $22,261    34.6%
                                      -------      ----     -------    ----

      Mobile Solutions
        GAAP operating income
         before corporate
         allocations:                  $3,367       8.5%     $3,602     8.8%
          Stock-based
           compensation       ( G )       958       2.4%        987     2.4%
                                          ---       ---         ---     ---
        Non-GAAP operating income
         before corporate
         allocations:                  $4,325      10.9%     $4,589    11.2%
                                       ------      ----      ------    ----

      Advanced Devices
        GAAP operating income
         before corporate
         allocations:                  $4,488      17.9%     $6,835    22.0%
          Stock-based
           compensation       ( G )       397       1.6%        337     1.1%
                                          ---       ---         ---     ---
        Non-GAAP operating income
         before corporate
         allocations:                  $4,885      19.5%     $7,172    23.1%
                                       ------      ----      ------    ----



                                                 Nine Months Ended
                                                 -----------------
                                           Oct-2,               Sep-26,
                                            2009                 2008
                                            ----                 ----
                                                   % of               % of
                                                  Revenue            Revenue
                                                  -------            -------
    GROSS MARGIN:
      GAAP gross margin:             $419,216      49.4%   $527,098    49.7%
        Restructuring         ( A )     3,333       0.4%      1,360     0.1%
        Amortization of
         purchased
         intangibles          ( B )    16,421       1.9%     17,097     1.6%
        Stock-based
         compensation         ( C )     1,368       0.2%      1,433     0.1%
        Amortization of
         acquisition-related
         inventory step-up    ( D )       470       0.0%        601     0.1%
                                          ---       ---         ---     ---
      Non-GAAP gross margin:         $440,808      51.9%   $547,589    51.6%
                                     --------      ----    --------    ----

    OPERATING EXPENSES:
      GAAP operating expenses:       $346,073              $352,078
        Restructuring         ( A )    (5,797)               (2,435)
        Amortization of
         purchased
         intangibles          ( B )   (22,411)              (15,768)
        Stock-based
         compensation         ( C )   (11,953)              (10,170)
        Non-recurring
         acquisition costs    ( E )    (3,382)                    -
                                       ------                     -
      Non-GAAP operating expenses:   $302,530              $323,705
                                     --------              --------

    OPERATING INCOME:
      GAAP operating income:          $73,143       8.6%   $175,020    16.5%
        Restructuring         ( A )     9,130       1.1%      3,795     0.4%
        Amortization of
         purchased
         intangibles          ( B )    38,832       4.6%     32,865     3.1%
        Stock-based
         compensation         ( C )    13,321       1.6%     11,603     1.1%
        Amortization of
         acquisition-related
         inventory step-up    ( D )       470       0.0%        601     0.0%
        Non-recurring
         acquisition costs    ( E )     3,382       0.4%          -     0.0%
                                        -----       ---           -     ---
      Non-GAAP operating income:     $138,278      16.3%   $223,884    21.1%
                                     --------      ----    --------    ----

    NET INCOME:
      GAAP net income
       attributable to
       Trimble Navigation
       Ltd.                           $53,899              $127,733
        Restructuring         ( A )     9,130                 3,795
        Amortization of
         purchased
         intangibles          ( B )    38,832                32,865
        Stock-based
         compensation         ( C )    13,321                11,603
        Amortization of
         acquisition-related
         inventory step-up    ( D )       470                   601
        Non-recurring
         acquisition costs    ( E )     2,996                     -
        Income tax effect on
         non-GAAP adjustments ( F )   (17,411)              (14,620)
                                      -------               -------
      Non-GAAP net income
       attributable to Trimble
       Navigation Ltd.               $101,237              $161,977
                                     --------              --------

    DILUTED NET INCOME PER SHARE:
      GAAP diluted net income per
       share attributable to
       Trimble Navigation Ltd.          $0.44                 $1.02
        Restructuring         ( A )      0.07                  0.03
        Amortization of
         purchased
         intangibles          ( B )      0.32                  0.26
        Stock-based
         compensation         ( C )      0.11                  0.09
        Amortization of
         acquisition-related
         inventory step-up    ( D )         -                  0.01
        Non-recurring
         acquisition costs    ( E )      0.03                     -
        Income tax effect on
         non-GAAP adjustments ( F )     (0.14)                (0.11)
                                        -----                 -----
      Non-GAAP diluted net income
       per share attributable to
       Trimble Navigation Ltd.          $0.83                 $1.30
                                        -----                 -----

    OPERATING LEVERAGE:
      Increase (decrease) in non-
       GAAP operating income         $(85,606)
      Increase (decrease) in
       revenue                      $(212,420)
      Operating leverage (increase
       in non-GAAP operating
       income as a % of increase
       in revenue)                       N/A

                                             % of Segment         % of Segment
    SEGMENT OPERATING INCOME:                    Revenue             Revenue
                                                 -------             -------
      Engineering and Construction
        GAAP operating income
         before corporate
         allocations:                 $42,800      10.1%   $123,675    20.6%
          Stock-based
           compensation       ( G )     4,302       1.0%      3,193     0.6%
                                        -----       ---       -----     ---
        Non-GAAP operating income
         before corporate
         allocations:                 $47,102      11.1%   $126,868    21.2%
                                      -------      ----    --------    ----

      Field Solutions
        GAAP operating income
         before corporate
         allocations:                 $88,637      37.8%    $91,961    37.9%
          Stock-based
           compensation       ( G )       775       0.3%        600     0.3%
                                          ---       ---         ---     ---
        Non-GAAP operating income
         before corporate
         allocations:                 $89,412      38.1%    $92,561    38.2%
                                      -------      ----     -------    ----

      Mobile Solutions
        GAAP operating income
         before corporate
         allocations:                 $10,163       8.7%     $7,997     6.3%
          Stock-based
           compensation       ( G )     3,205       2.7%      3,582     2.8%
                                        -----       ---       -----     ---
        Non-GAAP operating income
         before corporate
         allocations:                 $13,368      11.4%    $11,579     9.1%
                                      -------      ----     -------     ---

      Advanced Devices
        GAAP operating income
         before corporate
         allocations:                 $13,633      18.7%    $18,105    19.6%
          Stock-based
           compensation       ( G )     1,068       1.5%        979     1.0%
                                        -----       ---         ---     ---
        Non-GAAP operating income
         before corporate
         allocations:                 $14,701      20.2%    $19,084    20.6%
                                      -------      ----     -------    ----



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