Forward Looking Guidance
For the third quarter of 2009 Trimble expects revenue in the range of $275 million plus or minus five percent. At a point estimate of $275 million in revenue, Trimble expects third quarter 2009 GAAP earnings per share of $0.13 and non-GAAP earnings per share of $0.25. Non-GAAP guidance for the third quarter of 2009 excludes the amortization of intangibles of $13.3 million related to previous acquisitions, the anticipated impact of stock-based compensation expense of $4.5 million and $1.3 million in anticipated restructuring charges. Both GAAP and non-GAAP earnings per share assume a 28 percent tax rate and 122.5 million shares outstanding.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on July 28, 2009 at 1:30 p.m. PT to review its second quarter 2009 results. It will be broadcast live on the Web at 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 20081931. 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, our ability to maintain operating margins, revenue and earnings per share that Trimble expects to report in the third quarter 2009, changes in tax-rate, estimated restructuring costs 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 economic crisis and 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
TRIMBLE
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
Jul-3, Jun-27, Jul-3, Jun-27,
2009 2008 2009 2008
---- ---- ---- ----
Revenue $290,063 $377,767 $579,017 $733,063
Cost of sales 147,263 190,668 292,259 371,588
------- ------- ------- -------
Gross margin 142,800 187,099 286,758 361,475
------- ------- ------- -------
Gross margin (%) 49.2% 49.5% 49.5% 49.3%
Operating expenses
Research and development 33,457 39,405 67,594 76,750
Sales and marketing 45,163 51,904 94,098 103,062
General and administrative 26,622 25,289 52,664 47,979
Restructuring 1,302 2,414 4,925 2,414
Amortization of purchased
intangible assets 7,530 5,163 14,499 10,306
----- ----- ------ ------
Total operating expenses 114,074 124,175 233,780 240,511
------- ------- ------- -------
Operating income 28,726 62,924 52,978 120,964
Non-operating income, net
Interest income 223 508 422 965
Interest expense (465) (413) (958) (1,175)
Foreign currency transaction
gain (loss), net (216) 1,253 (32) 2,221
Income from joint ventures,
net 352 2,618 520 4,633
Other income (expense), net 1,161 153 447 (754)
----- --- --- ----
Total non-operating income,
net 1,055 4,119 399 5,890
----- ----- --- -----
Income before taxes 29,781 67,043 53,377 126,854
Income tax provision 8,631 18,444 14,530 38,188
----- ------ ------ ------
Net income 21,150 48,599 38,847 88,666
Less: Net income attributable
to
noncontrolling interests 293 - 525 -
--- --- --- ---
Net income attributable to
Trimble Navigation Ltd. $20,857 $48,599 $38,322 $88,666
======= ======= ======= =======
Earnings per share attributable
to Trimble Navigation Ltd.
Basic $0.17 $0.40 $0.32 $0.73
----- ----- ----- -----
Diluted $0.17 $0.39 $0.32 $0.71
----- ----- ----- -----
Shares used in calculating
earnings per share:
Basic 119,551 121,523 119,406 121,495
------- ------- ------- -------
Diluted 121,897 125,712 121,411 125,435
------- ------- ------- -------
