EXHIBIT 99.2
AMENDMENT TO THE COMPANY'S PRESS RELEASE DATED JANUARY 30, 2002
Trimble Announces Fiscal Fourth Quarter and Year-End Results
SUNNYVALE, Calif., Jan. 30, 2002 - Trimble (Nasdaq: TRMB) today announced
results for the fiscal fourth quarter and year ended December 28, 2001. The
Company reported fourth quarter revenues of $106.4 million, with a loss of
($0.26) per share on a Generally Accepted Accounting Principles (GAAP) basis.
Adjusted earnings per share for the quarter (EPS) was $0.02. Adjusted EPS
excludes any infrequent and acquisition related charges, being primarily
goodwill and intangible amortization costs from acquisitions, and restructuring
charges related to the Company's cost-cutting measures that would be included
when reporting on a Generally Accepted Accounting Principles (GAAP) basis.
For fiscal year 2001, revenue was $475.3 million with a loss of ($0.93) per
share. Adjusted EPS for the year was $0.36. This compares to pro-forma
(reflecting the acquisition of Spectra Precision Group and Tripod Data Systems,
and the sales of the Company's commercial and business airline operations)
revenue of $498.2 and adjusted EPS of $1.22 in fiscal 2000.
The Company reported earnings before interest, tax, depreciation and
amortization (EBITDA), before restructuring charges, of $10.1 million in the
fourth fiscal quarter, and $45.2 million for fiscal 2001.
"Within a challenging economy, Trimble continued to strengthen its
competitive and financial position in 2001," said Steven W. Berglund, president
and CEO of Trimble. "Early in 2001, we saw signs of an economic downturn and
implemented new cost cutting initiatives in addition to those already in place
as part of the Spectra Precision acquisition. These early actions helped bring
our fixed cost structure in line with what we believed to be recessionary
conditions and allowed us to remain profitable on an adjusted basis, as the
economy further declined. We took further actions over the past 6 weeks by
raising approximately $46 million in a private equity placement. The proceeds
were used to reduce our overall debt level and
future interest expense. In addition to paying down debt with the proceeds of
the private equity deal, during the fourth quarter, we also paid an additional
$29 million using cash from operations. The result of these actions was the
lowering of our break-even point."
"At the same time we were cutting costs, we selectively invested in
initiatives that we believe will create growth including the introduction of new
products, the expansion of our distribution channels and new alliances. Of
significance was the creation of Trimble Mobile Solutions (TMS). TMS is intended
to enable us to build upon our existing fleet management hardware offerings to
offer fully bundled solutions to the mobile security, telematics, workforce
management and targeted fleet management markets. We are currently adding
capabilities in this market and expect to begin to see tangible results in the
second half of 2002."
Business Segment Detail for Fiscal Fourth Quarter and Year End 2001
Engineering and Construction revenues were $69.1 million versus $74.5
million in the year ago quarter. For the year, Engineering and Construction
revenues were $303.9 million, or 64 percent of consolidated revenue, versus
$310.4 million, or 62 percent of revenue in fiscal 2000, on a pro forma basis.
Fleet and Asset Management revenues were $13.7 million as compared to $16.9
million in the year ago quarter. For the year, revenues were $57.7 million, or
12 percent of consolidated revenue, as compared to $65.1 million, or 13 percent
of revenue in 2000.
Revenues from the Components Technologies segment were $12.7 million as
compared to $18.4 million in the year ago quarter. For the year, revenues were
$58.1 million, or 12 percent of consolidated revenue versus $60.2 million or 12
percent of revenue in 2000.
Agriculture revenues for the fourth quarter were $4.3 million versus $7.9
million in the year ago quarter. For the year, revenues were $24.6 million or 5
percent of consolidated revenue, versus $34.1 million or 7 percent of revenue in
2000, on a pro forma basis.
Revenues from Portfolio Technologies were $6.6 million for the fourth
quarter versus $6.4m in the year ago quarter. For the year, revenues were $31
million or 7% of consolidated revenue, versus $28.4 million or 6% of revenue in
2000, on a pro forma basis.
Looking Ahead
Berglund concluded, "We remain cautious and still believe the economy will
continue to be a challenge in 2002. However, we continue to build capabilities
that will serve our customers and to take strategic actions designed to further
strengthen Trimble's market position. These actions include new products,
alliances with industry leaders, improved systems and development of our
distribution channels. When customer buying behavior and the overall economy
improve, we believe that these actions, combined with our cost cutting, will
position Trimble to demonstrate improved financial performance."
The Company expects revenues for its first fiscal quarter ending March 29,
2002 to be approximately $104 to $106 million, with adjusted EPS in a range from
breakeven to $0.03. While the Company has limited visibility into the entire
fiscal year 2002, it expects to achieve an increase in revenue and adjusted EPS
for the second fiscal quarter due to the normal seasonality of the engineering
and construction market.
The Company will hold a conference call on Wednesday, January 30, 2002 at
8:00 AM Pacific Time to review its fourth quarter results. The conference call
will also be broadcast live on the web at www.trimble.com, on the Investors
Relations page. A replay of the call will be available for 48 hours beginning at
11:00 AM, Pacific Time. The replay number is (800) 642-1687, and the passcode is
2897303.
About Trimble
Trimble is a leading innovator of Global Positioning System (GPS)
technology. In addition to providing advanced GPS components, Trimble augments
GPS with other positioning technologies, as well as wireless communications and
software, to create complete customer solutions. Trimble's worldwide presence
and unique capabilities position the Company for growth in emerging applications
including surveying, automobile navigation, machine guidance, asset
tracking, wireless platforms, and telecommunications infrastructure. Founded in
1978 and headquartered in Sunnyvale, Calif., Trimble has more than 2,000
employees in more than 20 countries worldwide. For an interactive look at
Company news and products, visit Trimble's Web site at http://www.trimble.com
Certain statements made in this press release are forward looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, and are made pursuant to the
safe harbor provisions of the Securities Litigation Reform Act of 1995. These
forward looking statements are subject to change, and actual results may differ
from those set forth in this press release due to certain risks and
uncertainties, including successful development and market acceptance of new
product offerings and continued demand for existing products and continued
integration of acquired companies. Among other things, these results may not
continue beyond the current quarter due to seasonal and economic trends and
additional competitive issues that may have an adverse effect on the ongoing
positioning and growth of the Company. These and other risks are 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.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
Dec 28, 2001 Dec 29, 2000
Assets ------------ ------------
Current assets
Cash and cash equivalents.................. $ 31,078 $ 40,876
Accounts and other receivable, net......... 71,680 83,600
Inventories................................ 51,810 58,970
Other current assets....................... 6,536 8,017
---------- ----------
Total current assets.................... 161,104 191,463
Net property and equipment................. 27,542 34,059
Intangible assets.......................... 220,304 249,832
Deferred tax assets........................ 383 531
Other assets............................... 10,062 12,743
---------- ----------
Total Assets............................ $ 419,395 $ 488,628
========== ==========
Liabilities and Shareholders' Equity
Current liabilities
Bank & other short-term borrowings......... $ 40,025 $ 62,000
Current portion of long-term debt.......... 107,443 51,721
Accounts payable........................... 21,494 26,448
Accrued compensation and benefits.......... 13,786 16,771
Accrued liabilities........................ 35,649 39,957
Income taxes payable....................... 7,403 5,005
---------- ----------
Total current liabilities............... 225,800 201,902
Noncurrent portion of long-term debt.......... 43,097 137,341
Deferred tax liabilities...................... 7,347 8,230
Other noncurrent liabilities.................. 4,662 6,212
---------- ----------
Total liabilities....................... 280,906 353,685
---------- ----------
Shareholders' equity
Common stock............................... 191,224 154,846
Retained earnings (deficit)................ (33,819) (10,940)
Accumulated other comprehensive loss....... (187) 0
Cumulative translation adjustment.......... (18,729) (8,963)
---------- ----------
Total shareholders' equity.................... 138,489 134,943
---------- ----------
Total liabilities and shareholders' equity.... $ 419,395 $ 488,628
========== ==========
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
----------------------------- -----------------------------
Dec. 28, 2001 Dec. 29, 2000 Dec. 28, 2001 Dec. 29, 2000
------------- ------------- ------------- -------------
Total revenue........................................... $ 106,405 $ 124,167 $ 475,292 $ 369,798
Cost of sales........................................... 52,516 62,468 238,057 173,237
---------- ---------- ---------- ----------
Gross margin......................................... 53,889 61,699 237,235 196,561
---------- ---------- ---------- ----------
Gross margin (%)..................................... 50.6% 49.7% 49.9% 53.2%
---------- ---------- ---------- ----------
Operating expenses:
Research and development............................. 15,600 14,621 62,881 46,520
Sales and marketing.................................. 22,762 28,143 103,778 79,901
General and administrative........................... 8,309 7,982 37,407 30,514
Restructuring charges................................ 602 -- 1,875 --
Amortization of goodwill & other purchased
intangibles....................................... 7,301 7,485 29,389 13,407
---------- ---------- ---------- ----------
Total operating expenses.......................... 54,574 58,231 235,330 170,342
---------- ---------- ---------- ----------
Operating income (loss)................................. (685) 3,468 1,905 26,219
---------- ---------- ---------- ----------
Non-operating income (expense):
Interest expense, net................................ (5,191) 409 (21,106) 4,478
Other expense, net................................... (383) (6,571) (2,154) (14,561)
Foreign exchange loss, net........................... (786) (214) (237) (376)
---------- ---------- ---------- ----------
Total non-operating expense....................... (6,360) (6,376) (23,497) (10,459)
---------- ---------- ---------- ----------
Income (loss) before taxes.............................. (7,045) (2,908) (21,592) 15,760
---------- ---------- ---------- ----------
Income tax provision (benefit).......................... 200 (292) 1,900 1,575
---------- ---------- ---------- ----------
Net income (loss) from Continuing Operations............ (7,245) (2,616) (23,492) 14,185
---------- ---------- ---------- ----------
Gain from Discontinued Operations....................... $ 613 $ -- $ 613 $ --
---------- ---------- ---------- ----------
Net Income (loss)....................................... $ (6,632) $ (2,616) $ (22,879) $ 14,185
========== ========== ========== ==========
Basic net income(loss) per share........................ $ (0.26) $ (0.11) $ (0.93) $ 0.60
========== ========== ========== ==========
Shares used in calculating basicnet income (loss) per
share................................................ 25,273 23,792 24,727 23,601
========== ========== ========== ==========
Diluted net income (loss) per share..................... $ (0.26) $ (0.11) $ (0.93) $ 0.55
========== ========== ========== ==========
Shares used in calculating dilutednet income (loss) per
share................................................ 25,273 23,792 24,727 25,976
========== ========== ========== ==========
Supplemental data:
Income (loss) before taxes.............................. $ (7,045) $ (2,908) $ (21,592) $ 15,760
Infrequent & acquisition related charges:
Inventory purchase accounting adjustment (Cost of
sales)............................................ -- 1,692 -- 4,600
Amortization of goodwill & other purchased
intangibles....................................... 7,301 7,485 29,389 13,407
Debt extinguishment costs (Interest expense)......... -- -- -- 1,185
Restructuring charges................................ 602 -- 1,875 --
Gain on sale of minority investment (Other expense).. -- (250) (270) (1,274)
Loss on sale of business (Other expense)............. (127) -- 1,837 --
Write-down of investment (Other expense)............. 136 -- 136 --
Boulder relocation costs (General and administrative) -- 117 -- 917
---------- ---------- ---------- ----------
Total infrequent and acquisition related charges.. 7,912 9,044 32,967 18,835
---------- ---------- ---------- ----------
Adjusted net income before taxes (1).................... 867 6,136 11,375 34,595
Income tax provision.................................... 475 614 1,900 3,460
---------- ---------- ---------- ----------
Adjusted net income (1)................................. $ 392 $ 5,522 $ 9,475 $ 31,136
========== ========== ========== ==========
Shares used in calculating diluted adjusted net income
per share............................................ 25,985 25,474 25,987 25,976
========== ========== ========== ==========
Diluted adjusted net income per share (1)............... $ 0.02 $ 0.22 $ 0.36 $ 1.20
========== ========== ========== ==========
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(1) Trimble's adjusted EPS may not be comparable to similarly titled measures as
defined by other companies.