EXHIBIT 99.1
Trimble Reports Record First Fiscal Quarter Results
Company Reports Revenue and GAAP EPS Ahead of Previous Guidance
SUNNYVALE, Calif., Apr. 29, 2003 - Trimble (Nasdaq: TRMB) today announced
results for its first fiscal quarter ended April 4, 2003. The Company reported
first quarter revenues of $127.3 million, versus $104.0 million in the first
quarter of 2002. Earnings per share (EPS) for the first quarter on a Generally
Accepted Accounting Principles (GAAP) basis were $0.18, which included an
expense for approximately $1.8 million in amortization of intangibles under FAS
142 and an approximate $390,000 restructuring charge related to Trimble's
continued cost reduction activities. This compares to a loss per share of
($0.03), which included an expense for approximately $2.0 million in
amortization of intangibles and a $304,000 restructuring charge in the first
quarter of 2002. First quarter 2003 GAAP EPS were calculated on a diluted basis
using approximately 30.1 million shares.
"We continued to demonstrate the ability to execute in uncertain economic
times," said Steven W. Berglund, president and CEO of Trimble. "Our survey and
machine control products bring real productivity benefits and cost savings to
our customers, which has translated into increased sales and profits for the
Company. Additionally, our Component Technologies business remains robust with
favorable margin trends, and our Mobile Solutions business demonstrated tangible
progress on both increasing revenue and decreasing operating losses during the
quarter."
First Fiscal Quarter Business Segment Highlights
Engineering and Construction (E&C)
Total first quarter E&C (including Tripod Data Systems (TDS), previously
included in the Portfolio Technologies segment) revenues increased by 19 percent
on a comparable basis over the first quarter of 2002. All business areas within
E&C showed double-digit year over year growth in the quarter. GPS survey
products had record sales for the second consecutive quarter. E&C sales also
benefited from a positive reception to new products such as the recently
introduced LM80, which is a combination of the TDS Recon(TM), a moderately
priced, ruggedized handheld computer, and a new software package used to
increase productivity, accuracy and reliability for the construction layout
process.
Trimble Field Solutions (TFS) - Agriculture and Geographic Information Systems
(GIS) Trimble Field Solutions' first quarter revenue increased by approximately
15 percent over the first quarter of 2002. The GIS and Agriculture businesses
each demonstrated double-digit revenue growth over the first quarter of 2002,
with Agriculture benefiting from seasonal strength due to farmers preparing for
the planting season.
Component Technologies (CT)
CT first quarter revenues increased by approximately 58 percent over the first
quarter of 2002. Demand was strong across the board, especially for wireless
infrastructure products. Margins also demonstrated strong improvement due to
favorable product mix, increased volumes, and cost reductions related the
transfer of the business' manufacturing operations from California to China
during the second half of 2002.
Trimble Mobile Solutions (TMS)
TMS reported a 55 percent sequential increase in revenue during the first
quarter, as it continued to gain traction in the ready mix concrete market.
Revenue related to the Televisant(TM) Mobile Resource Management System and
associated hardware products increased by over 250 percent sequentially, and now
represent a majority of TMS' business. At the same time, divisional net loss
decreased by approximately 71 percent from the fourth quarter.
Guidance
For the second quarter ending July 4, 2003, the Company expects revenues will be
between $129.0 and $132.0 million. Gross margins are expected to be
approximately 50 percent. Operating expenses, including approximately $1.8
million of amortization of intangibles are expected to be approximately $51 to
$52 million. Net interest expense is expected to be approximately $2.6 million,
and the income tax provision should be approximately $1 million. The Company
anticipates other non-operating expense to be approximately $1.5 million. Within
these revenue guidelines, Trimble expects GAAP EPS to be between $0.25 and
$0.29, assuming 32.2 million shares outstanding.
Investor Conference Call / Webcast Details
The Company will hold a conference call on Wednesday, April 29, 2003 at 2:00 PM
Pacific Time to review its first quarter results. It will be broadcast live on
the web at http://www.trimble.com/investors.html. A replay of the call will be
available for 7 days beginning at 5:00 PM, Pacific Time. The replay number is
(800) 642-1687, and the passcode is 9749108.
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, California, 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
Forward Looking Statement:
Certain statements made in this press release are forward looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
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 the revenue, gross margin, operating expenses,
net interest expense, non-operating expense and earnings per share estimates for
the quarter ending July 4, 2003. 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. For example, the Company's
early success at converting customers who have been piloting Trimble Mobile
Solutions into full fleet customers may not be predictive of the rates current
customers in its pilot program convert and any failure to achieve predicted
results could negatively impact the Company's revenues and gross margin. The
overall health of the economy and the uncertainty over SARs may result in
reduced capital spending which could impair the Company's ability to reach the
forecasted results. In addition, many of the Company's products are manufactured
in China and those operations could be harmed by the SARs outbreak in that
country. Whether the Company achieves its guidance for the second quarter 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. 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
<table>
<Caption>
Three Months Ended
------------------
April 4, Mar 29,
2003 2002
---- ----
<s> <c> <c>
Revenue $ 127,325 $ 104,029
Cost of revenue 65,570 49,696
------ ------
Gross Margin 61,755 54,333
------ ------
Gross Margin (%) 48.5% 52.2%
----- -----
Operating expenses:
Research and development 16,040 15,038
Sales and marketing 23,997 22,127
General and administrative 8,635 10,798
Restructuring charges 390 304
Amortization of goodwill & other purchased intangibles assets 1,795 1,978
----- -----
Total operating expenses 50,857 50,245
------ ------
Operating income from continuing operations 10,898 4,088
Non-operating income (expense), net:
Interest expense, net (3,375) (3,943)
Foreign exchange gain / (loss), net 92 (59)
Other income / (expense), net (47) 199
Expenses for affliated operations, net (1,215) -
------- ------
Total non-operating expense, net (4,545) (3,803)
======= =======
Income from continuing operations before income taxes 6,353 285
Income tax provision 1,000 1,000
----- -----
Net income (loss) 5,353 (715)
===== ====
Earnings per share :
Basic $ 0.18 $ (0.03)
Diluted $ 0.18 $ (0.03)
Shares used in calculating earnings per share :
Basic 29,360 27,959
====== ======
Diluted 30,092 27,959
====== ======
</table>
<page>
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
<table>
<caption>
April 4, Jan 3,
2003 2003
---- ----
<s> <c> <c>
Assets
Current assets:
Cash and cash equivalents $ 13,529 $ 28,679
Accounts and other receivables, net 94,214 79,645
Inventories, net 64,513 61,144
Other current assets 9,405 8,477
----- -----
Total current assets 181,661 177,945
Property and equipment, net 21,590 22,037
Goodwill and other purchased intangible assets, net 229,919 229,171
Deferred income taxes 417 417
Other assets 13,200 12,086
------ ------
Total assets $ 446,787 $ 441,656
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Bank and other short-term borrowings $ - $ 6,556
Current portion of long-term debt 24,085 24,104
Accounts payable 30,511 30,669
Accrued compensation and benefits 17,861 17,728
Accrued liabilities 27,206 27,394
Deferred income tax 342 -
Income taxes payable 7,135 6,450
----- -----
Total current liabilities 107,140 112,901
Non-current portion of long-term debt 107,265 107,865
Deferred gain on joint venture 10,571 10,792
Deferred income tax 2,651 2,561
Other non-current liabilities 6,517 6,186
----- -----
Total liabilities 234,144 240,305
------- -------
Shareholders' equity:
Common stock 227,583 225,872
Accumulated deficit (18,142) (23,495)
Accumulated other comprehensive income/(loss) 3,202 (1,026)
----- ------
Total shareholders' equity 212,643 201,351
------- -------
Total liabilities and shareholders' equity $ 446,787 $ 441,656
</table>
<page>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<table>
<caption>
Three Months Ended
April 4, Mar 29,
2003 2002
<s> <c> <c>
Cash flow from operating activities:
Net Income/( Loss) 5,353 (715)
Adjustment to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation expense 2,217 2,671
Amortization expense 1,977 2,186
Provision for doubtful accounts 449 1,232
Amortization of deferred gain - (398)
Amortization of debt issuance cost 513 -
Deferred income taxes 461 -
Other 272 803
Add decrease (increase) in assets:
Accounts receivables, net (15,114) (2,357)
Inventories (3,370) (1,677)
Other current and non-current assets (1,359) (980)
Effect of foreign currency translation adjustment 2,008 (1,284)
Add increase (decrease) in liabilities:
Accounts payable (158) (448)
Accrued compensation and benefits 133 2,901
Accrued liabilities 426 (4,540)
Deferred gain - short term - 345
Deferred gain on joint venture (221) 11,000
Income taxes payable 685 508
Net cash provided by (used in) operating activities (5,728) 9,247
Cash flows from investing activities:
Acquisitions, net of cash acquired (397) (2,158)
Acquisition of property and equipment (1,485) (1,783)
Proceeds from disposal of property and equipment 56 -
Cost of capitalized patents (4) (48)
Net cash used in investing activities (1,830) (3,989)
Cash flow from financing activities:
Issuance of common stock 540 17,433
Collections (Payments) of notes receivable (188) 80
Proceeds from (Payments on) long-term debt and revolving
credit lines (7,944) (20,828)
Net cash used in financing activities (7,592) (3,315)
Net increase (decrease) in cash and cash equivalents (15,150) 1,943
Cash and cash equivalents - beginning of period 28,679 31,078
Cash and cash equivalents - end of period $ 13,529 $ 33,021
Supplemental disclosures of cash flow information:
Cash paid (refunded) during the period for:
Interest $ 876 $ 7,287
Income taxes, net of refunds $ (69) $ 1,222
</table>
TRIMBLE NAVIGATION LIMITED
FINANCIAL DASHBOARD
(Dollars in thousands, except EPS)
<table>
<caption>
Q1'02 Q4'02 Q1'03
Actual Actual Actual
------ ------ ------
<s> <c> <c> <c>
Income Statement Metrics
Total Revenue $ 104,029 $124,569 $127,325
Engineering & Construction 72,049 81,673 85,663
Trimble Field Solutions 18,031 17,764 20,681
Component Technologies 10,025 19,948 15,866
Trimble Mobile Solutions 2,352 2,050 3,168
Portfolio Technologies 1,572 3,134 1,947
Gross Margin 52.2% 49.4% 48.5%
---- ---- ----
Total Segment Income $ 12,779 $ 17,002 $ 17,970
--------- -------- --------
Engineering & Construction 12,195 11,544 12,240
Trimble Field Solutions 3,862 1,955 3,314
Component Technologies 1,042 4,934 3,855
Trimble Mobile Solutions (3,323) (2,405) (687)
Portfolio Businesses (997) 974 (752)
Corporate and Other Charges $ (8,691) $(7,159) $(7,073)
Non-operating expense and income taxes $ (4,803) $(5,838) $(5,544)
--------- -------- -------
Net Income (loss) $ (715) $ 4,005 $ 5,353
========= ======== ========
Amortization of Goodwill and Intangibles 1,978 2,166 1,795
Depreciation 2,671 2,046 2,217
GAAP EPS $ (0.03) $ 0.14 $ 0.18
Balance Sheet and Liquidity Metrics
Cash & Cash Equivalents $ 33,021 $ 28,679 $ 13,529
Accounts Receivables, Net $ 71,430 $ 77,618 $ 92,187
Inventories, Net $ 53,487 $ 61,144 $ 64,513
Total Debt $ 169,737 $138,525 $131,350
--------- -------- --------
Total Short Term Debt 72,670 30,660 24,085
------ ------ ------
Current Portion of Term Loan 21,000 24,000 24,000
Revolving Credit Facility 48,000 6,550 0
Other 3,670 110 85
----- --- --
Total Long Term Debt 97,067 107,865 107,265
------ ------- -------
Term Loan 26,600 8,600 2,600
Thermo Electron note 10.4% 68,670 69,136 69,136
Revolving Credit Facility 0 28,450 33,850
Other 1,797 1,679 1,679
Equity $ 155,195 $201,351 $212,643
Working Capital $ 17,428 $ 65,044 $ 74,521
Capital Expenditures $ 1,783 $ 1,683 $1,485
Cash Flow from Operations* $ 9,247 $ 10,032 $(5,728)
Financial Ratios
Days Sales Outstanding 50 58 56
Days Sales in Inventory 98 89 90
Current ratio 1.1 1.6 1.7
Debt to Equity 1.1 0.7 0.6
--- --- ---
Other
Headcount
2,051 2,050 2,004
</table>
Notes:
1) Engineering & Construction consists of Construction Instruments (CI), Machine
Control, Survey and Tripod Data Systems (TDS).
2) Trimble Field Solutions consists of Geographic Information
Systems (GIS) and Agriculture.
3) Portfolio Technologies consists of Military and Advanced Systems (MAS).
* Cash Flow from Operations includes impact of exchange rate changes on cash.
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