Garmin Reports Best Quarter and Best Year in Company History, Announces Share Repurchase Program, Offers 2008 Guidance

"Our gross and operating margins held strong, exceeding our expectations, coming in at 46% and 29% respectively. We also generated $525 million of free cash flow in 2007, resulting in unrestricted cash and marketable securities balance of $1.1 billion at the end of the fiscal year. Our return on invested capital (ROIC) was 63% during fiscal 2007."

Fiscal 2008 Outlook

We remain optimistic about the future success of our business and our ability to serve customers and distributors around the world. General perspective on overall business expectations for 2008, including our four business segments are:

    -- We anticipate overall revenue to exceed $4.5 billion in 2008, and
       earnings per share to exceed $4.40 assuming an effective tax rate of
       approximately 12 percent.
    -- We anticipate automotive/mobile revenues to grow 45 percent in 2008,
       with declining gross and operating margins due to product mix and a
       continued transition toward mass market levels.
    -- We anticipate aviation revenues to grow 30 percent in 2008. Growth is
       expected to occur within both G1000 OEM and aviation aftermarket
       shipments.
    -- We anticipate marine revenues to grow 25 percent in 2008.  Growth will
       come from our innovative offshore and inland marine cartography and
       additional new product releases.
    -- We anticipate outdoor/fitness segment revenues to grow 25 percent in
       2008 led by new outdoor products with enhanced features, high
       sensitivity GPS receivers, built-in cartography and unique
       functionality.  Exciting new products for our fitness line and better
       penetration of targeted fitness markets are expected to drive revenue
       growth as well.
    -- We expect the recently announced nuvifone(TM) to be released during Q3
       2008 and will see initial unit shipments of this new category for
       Garmin during the second half of the year.
    -- We look forward to introducing many innovative product lines again this
       year.  2008 product introductions began with new auto, outdoor, fitness
       and wireless products introduced during January's Consumer Electronics
       Show in Las Vegas and our recent media event in New York City.
    -- We expect continued expansion of our LinKou, Taiwan manufacturing
       facility to meet growing demand for our products in 2008.
    -- We will maintain our focus on new opportunities and expansion of
       distribution throughout Europe; growth will be supported through the
       distributors we have acquired, continued improvement of our
       distribution systems within Europe, and continued emphasis on
       advertising to enhance awareness of the Garmin brand.

    Non-GAAP Measures

Net income (earnings) per share, excluding foreign currency

Management believes that net income per share before the impact of foreign currency translation gain or loss is an important measure because it removes the fluctuations attributable to the functional currency versus the transactional currencies of the non-U.S. subsidiaries. Accordingly, earnings per share before the impact of foreign currency translation gain or loss allows an assessment of the company's operating performance before the impact of the position of the U.S. dollar versus other currencies, which permits a consistent comparison of operating results between periods.

    The following table contains a reconciliation of GAAP net income per share
to net income per share excluding the impact of foreign currency translation
gain or loss.



                         Garmin Ltd. And Subsidiaries
                      Net income per share, excluding FX
                 (In thousands, except per share information)

                                         13-Weeks Ended      52-weeks Ended
                                       December  December  December   December
                                       29, 2007  30, 2006  29, 2007   30, 2006

    Net Income (GAAP)                  $307,267  $180,345  $855,011  $514,123
    Foreign currency (gain) / loss,
     net of tax effects                ($17,017)   $8,850  ($20,070)    ($516)
    Net income, excluding FX           $290,250  $189,195  $834,941  $513,607

    Net income per share (GAAP):
       Basic                              $1.42     $0.84     $3.95     $2.38
       Diluted                            $1.39     $0.82     $3.89     $2.35

    Net income per share, excluding
     FX:
       Basic                              $1.34     $0.88     $3.86     $2.37
       Diluted                            $1.31     $0.87     $3.80     $2.35

    Weighted average common shares
     outstanding:
       Basic                            216,859   215,857   216,524   216,340
       Diluted                          220,918   218,630   219,875   218,845


Free cash flow

Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment.

The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow.



                         Garmin Ltd. And Subsidiaries
                                                       Free  Cash  Flow
                                                                (In  thousands)

                                                                                                              52-Weeks  Ended
                                                                                                December  29,            December  30,
                                                                                                              2007                            2006

        Net  cash  provided  by  operating
          activities                                                                        $682,088                    $361,855
        Less:  purchases  of  property  and
          equipment                                                                        ($156,778)                  ($92,906)
        Free  Cash  Flow                                                                  $525,310                    $268,949


 


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