- First Quarter 2016 Revenue $583.0 Million

(PRNewswire) —  Trimble (NASDAQ: TRMB) today announced financial results for the first quarter of 2016.

First Quarter 2016 Financial Summary

First quarter 2016 revenue of $583.0 million was flat as compared to the first quarter of 2015. Engineering and Construction revenue was $309.8 million, up 4 percent. Field Solutions revenue was $106.0 million, down 8 percent. Mobile Solutions revenue was $136.3 million, up 6 percent. Advanced Devices revenue was $30.9 million, down 22 percent. Foreign currency translation unfavorably impacted company revenue by approximately 1 percent as compared to the first quarter of 2015. 

GAAP operating income was $29.9 million, down 24 percent as compared to the first quarter of 2015. GAAP operating margin was 5.1 percent of revenue as compared to 6.8 percent of revenue in the first quarter of 2015.   

GAAP net income was $19.8 million, down 42 percent as compared to the first quarter of 2015. Diluted GAAP earnings per share were $0.08 as compared to diluted GAAP earnings per share of $0.13 in the first quarter of 2015.

Non-GAAP operating income of $88.5 million was down 9 percent as compared to the first quarter of 2015. Non-GAAP operating margin was 15.1 percent of revenue as compared to 16.6 percent of revenue in the first quarter of 2015.

Non-GAAP net income of $64.5 million was down 11 percent as compared to the first quarter of 2015. Diluted non-GAAP earnings per share were $0.25 as compared to diluted non-GAAP earnings per share of $0.28 in the first quarter of 2015.

The GAAP tax rate for the quarter was 33 percent as compared to 23 percent in the first quarter of 2015, and the non-GAAP tax rate was 24 percent, unchanged from the first quarter of 2015. 

Operating cash flow for the first quarter of 2016 was $113.2 million, up 6 percent as compared to the first quarter of 2015. Deferred revenue for the first quarter of 2016 was $319.5 million, up 13 percent as compared to the first quarter of 2015.

"Revenue for all segments in the quarter came within expectations and deferred revenue grew to a record level," said Steven W. Berglund, Trimble's president and chief executive officer. "Earnings were impacted by product and geographic mix as well as operating expenses associated with recent acquisitions. We remain on track for revenue growth for the full year, with particular strength in the Mobile Solutions segment and from the heavy civil and buildings businesses in the Engineering and Construction segment. We anticipate achieving our operating margin goals during the year due to gross margin improvement and cost containment initiatives."

Forward Looking Guidance

For the second quarter of 2016 Trimble expects revenue to be between $595 million and $625 million with GAAP earnings per share of $0.08 to $0.13 and non-GAAP earnings per share of $0.26 to $0.31. Non-GAAP guidance excludes the amortization of intangibles of $40 million related to previous acquisitions, anticipated acquisition costs of $2 million, the anticipated impact of stock-based compensation expense of $14 million, and $4 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 27 percent and non-GAAP guidance assumes a tax rate of 24 percent. Both GAAP and non-GAAP earnings per share assume approximately 255 million shares outstanding.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on April 28 at 1:30 p.m. PT to review its first quarter 2016 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 (702) 928-6633 (international). The pass code is 93054609. The replay will also be available on the Web at the address above.

Use of Non-GAAP Financial Information

To help our investors understand our past financial performance and our future results, as well as our performance relative to competitors, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. These non-GAAP measures can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors. 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. Further, we believe some of our investors track our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Core operating performance excludes items that are non-cash, not expected to recur or not reflective of ongoing financial results. Management also believes that looking at our core operating performance provides a supplemental way to provide consistency in period to period comparisons.

The specific non-GAAP measures, which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why these non-GAAP measures provide useful information to investors regarding our financial condition and results of operations and why management chose to exclude selected items 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. 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.

About Trimble

Trimble is transforming the way the world works by delivering products and services that connect the physical and digital worlds. Core technologies in positioning, modeling, connectivity and data analytics enable customers to improve productivity, quality, safety and sustainability. From purpose built products to enterprise lifecycle solutions, Trimble software, hardware and services are transforming a broad range of industries such as agriculture, construction, geospatial and transportation and logistics. For more information about Trimble (NASDAQ: TRMB ), visit:   www.trimble.com .