“We saw strengthening trends in both revenues and units during the fourth quarter and are pleased to deliver year-over-year revenue and earnings per share growth in the quarter. While revenues grew 1% year-over-year, our margin improvements allowed us to post 54% pro forma earnings per share growth. We are very pleased with these results and our execution in what is a traditionally tough quarter due to aggressive pricing.

Looking at the full year results, a significant highlight is the gross and operating margin expansion that was achieved in a period of declining revenues. Full year gross margins increased 450 basis points while operating margins increased 200 basis points. These results continue to demonstrate the agility of our vertically integrated organization and the determination of our associates to deliver the best possible results in spite of the challenging macroeconomic environment. We should also highlight the strong cash flow generation in 2009. The free cash flow generation of over $1 billion further strengthens our debt-free balance sheet and offers us more flexibility than many of our competitors.

The automotive/mobile segment continued to show improvement in the fourth quarter with revenues declining 2% on a year-over-year basis driven by slowing price declines offset by unit growth in North America and Asia. Margins improved in the segment allowing for a 16% increase in operating income from $162.9 million in the fourth quarter of 2008 to $188.4 million in the fourth quarter of 2009. We recognize that this is a competitive, maturing market segment and are therefore predicting flat to slightly declining revenues for the PND category in 2010. Going forward we will focus our efforts on market share retention in the North American market, gaining market share in Europe through ongoing product innovation, and taking advantage of emerging markets in Eastern Europe, Asia, and Latin America. In addition, we will continue to concentrate on profitability in the segment as shown in our 2009 results. Finally, while disappointed by sales of the nüvifone products to date, we are excited to be launching two next generation smartphones in the first half of 2010 and feel these devices will be well-positioned in this competitive market.

The outdoor/fitness segment continued to be strong, posting year-over-year revenue growth of 24% with exceptionally strong gross and operating margins. Because of the strong margin performance, the segment contributed 27% of our operating income in the quarter. We hope to build on the strength of the segment in 2010 by offering innovative new products with improved form factors, utility, and functionality, as well as additional points of distribution. Specifically in the fitness market, the growing international market offers ongoing opportunities for expanded distribution and penetration.

The aviation segment began to stabilize in the fourth quarter with a year-over-year revenue decline of 4%. Our retrofit business did show year-over-year improvement in the quarter but OEM recovery continues to lag overall macroeconomic improvements. In 2010, we plan to continue to expand our addressable market allowing us to grow revenues. One example is our recent product announcements targeting the helicopter market. We will also continue investing in advanced integrated cockpit systems which will enable us to serve additional aircraft categories in the future.

The marine segment posted fourth quarter revenue growth of 2% over the same quarter of last year. While the growth was small, we remain pleased with our relative performance against the overwhelming downturn experienced across the entire marine industry. As we look forward to 2010, we are excited to be offering the most innovative and advanced marine electronics. Our recently introduced 7-inch touchscreen chartplotters allow us to deliver technology to the entry-level boater that was previously reserved for the luxury market. Our new 6000 and 7000 series with G-Motion technology represents a breakthrough in marine mapping graphics and will appeal to larger boats and yachts. Throughout the coming year, we will continue to build our position in the segment through innovation and enhanced product utility.”

Financial overview from Kevin Rauckman, Chief Financial Officer:

“Our financial results for the fourth quarter highlight our commitment to a business plan focused on price discipline and profitability, which allowed us to deliver strong year-over-year earnings per share growth,” said Kevin Rauckman, Chief Financial Officer of Garmin Ltd. “As revenue stabilized on a year-over-year basis, we continued our strong operational performance and posted pro forma earnings per share growth of 54%.

Gross margin for the overall business in the fourth quarter was 46% with all segments posting year-over-year margin improvement. The automotive/mobile segment gross margin improved to 39%, a 290 basis point improvement from the fourth quarter of 2008. Improvement was driven by moderation in year-over-year average selling price decline and continued benefit from material cost reductions offset by a reserve associated with handset inventory. Gross margins for the outdoor/fitness and marine segments also improved materially when compared with the year-ago quarter from 56% to 69% and 52% to 65%, respectively. The gains were driven by product mix and material cost reductions.

Operating margin for the overall business increased to 28% in the current quarter from 23% in the year-ago quarter. The operating margin improvement occurred in all segments, excluding aviation, driven by the gross margin improvements and improved revenue leverage in automotive/mobile and outdoor/fitness. Total operating expenses were up slightly on a year-over-year basis with growth in research and development offset by lower advertising and other selling, general and administrative costs. We reduced advertising expenses by $9 million, or 14%, while other selling, general and administrative expenses decreased by $12 million, or 15%. Research and development costs increased by $21 million, or 43%, when compared to the year-ago quarter as we continue to hire engineers to support our accelerated investment in new product initiatives.