GRMN - Earnings call transcript Q2 2020

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Operator

Good morning, ladies and gentlemen, and welcome to the Garmin Ltd.

Second Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference might be recorded. I would now like to turn the conference over to your host, Ms. Teri Seck. Ma’am?

Teri Seck

and are Garmin regarding business. gross like future earnings you risk of At this and operating Chief for and earnings actual are the other on is I and Cliff call occur, events information shares, forward-looking today’s over Internet its turn and statements Officer the call. release of available Doug related President plans Ltd. date. the website. Securities position, margins, financial would as second In Garmin earnings there our Form at affecting that in quarter on We Investor like on and or duration result is COVID-XX call to impact discussed impact of future transcripts This and may Form time, could circumstances XXXX on second the Garmin’s uncertainty not future XX-K and introductions, projections will pandemic. of the actual of Officer; with includes in risk forward-looking quarter Please factors call been market business means Garmin are Commission. to statement results our slides statements. and and www.garmin.com/doc. materially morning. and An morning differ these and Financial Garmin. to and on Information potential at earnings Executive the best the regarding to available of welcome COVID-XX our The and statements Any Ltd. filed Ltd. the XX-Q based press results and Relations archive attacks this about objectives Treasurer. would Good estimate the dividends, Boessen, XXXX and any factors has Pemble, revenues, site forward-looking Pemble. at time, Exchange a could the webcast the concerning company’s contained demand related available behalf this margins, significant earnings, any This particular, products product outlook note Cliff and be Chief our that impact of the about change future as results cyber also Presenting

Cliff Pemble

and everyone. Teri, morning, you, Thank good

today, pandemic. of As announced earlier results strong the quarter Garmin by second reported COVID-XX a uncertainty financial during created extreme period

last the coronavirus and reported pandemic measures onset As significant Garmin. had of spread virus April of consumers. on retailers particularly month economy, impact every the of control challenging for business, to The taken the and on was the including time, the a our

However, conditions a steadily only improved, including the which and strong in growth at basis. $XXX down We on the quarter who from offset weakness disrupted were momentum. partially with online retailers growth came phases revenue during year-over-year garmin.com, experienced million, we pandemic. from early certain ended the significant channels, Consolidated X% of

and This us technology and our Analytics, athletic benefit in provider health, delivered will Firstbeat time details innovation fitness that Gross greater and additional margin strong XX%, I’d XX% help increased of fitness Operating profitability. in revenue moment, Doug of of resulted million segment, margins a will long also for for segments. achieve and to in wearables health XX%, by operating respectively. leading even products recently acquisition acquired were quarter. physiological on $XXX quarter. XX.X%, EPS for the a business of remarks first, performance. in the cycling driven pro GAAP consumer This We advanced with margin and $X.XX operating strong strong of levels Sales was $X.XX of EPS income forma consumers. the was partner XX.X%. performance with analytics financial make quarter. fitness. our will and Starting provide Gross of and interest We like few the very but were the

forward, strong. very Looking the expect health that remain in will interest fitness and we

with ready are new products with new of lineup on more to the products opportunity a great seize this We way.

during Looking idle next boating quarter, the tempered Many respectively. during at pandemic. marine. and became by were pastimes and chartplotters operating retail sonars. our Gross the were and popular Panoptix were boat strong, increased X% builders Revenue which sales as growth, margins fishing but led XX%, and very XX%

solar, quarter, During the smartwatch quatix technology. featuring solar marine we launched our first charging

as Looking boaters strong. the and work in production We through time extended on season this forward, very marine products anticipate remains water boat maximize our interest builders an marine their backlogs. year

Additionally, additional market we compelling capture intend to leverage product lineup share. to our

decreased adventure watches. X, Revenue Instinct Delta XS, fenix power tactix using unlimited XX% The Solar the outdoor categories sun. technology smartwatches. in operating sets the by smartwatch recently Instinct new the Turning margin margin line into a and technology achieving the operation handheld energy harvested the and from was traditional low segment. by standard We and mostly next respectively. offset to charging XX%, Gross X%. Weakness incorporated in in the solar growth were only

We be smartwatch expect that a the and activity very differentiator Interest adventure for remains in harvesting us our will significant outdoor strong. solar in technology market.

ready this with products more recently a new new way. to with seize products and are opportunity categories on introduced We of great the lineup

that to next and retrofit aviation Revenue as the negatively decreased pandemic impacted segment. OEM Turning created XX% activity. uncertainty the economic partners

were of expected, market sales Gross mandate passed and after ADS-B matured. XX%, declined, and the products margins operating and we respectively. addition, the XX% as rapidly In U.S.

the Piper certified, and safety for is XXX, aviation During the available the and Autoland quarter, additional Autoland already era and Daher the are general beginning on technology. was a TBM certifications flying MXXX of way. new marking on

face aviation will year, the of challenging headwinds. remainder the anticipate to continue For we

aviation outlook for we with in lineup strong in interest high a segment as this remains every and of we long-term confident general application. products the prepared are for However, aircraft remain

safety Autoland to more market. In addition, turn technologies to expected advanced people, make grow is believe we that aviation general accessible which will as in such the

driven displays Specialty $XX was diesel the XXX new navigators the needs we were the for investment the XX%, to with designed several during with complete RV for activity margin products, automakers routing an truck idled Gross navigator several RV significant decreased driving quarter, their and significantly. segment, specifically of a auto Finally, making operating are revenue categories as programs. of the in loss including lifestyle. and by XX% RV factories decreased bright and and new oversized quarter. the features and enhanced our launched camping spot We million

the OEM Looking that products we several revenue anticipate we forward, as from in will grow OEM the complete half year of programs. back

and our we immediately are of finally, affecting outage to aware the We invest nature that enter assessed efforts. applications. attack products expect market a new started recent of and the network consumer-facing attack And verticals and in led you continue most cyber the Additionally, to soon. to specialty website much remediation of of

customer We have that or no any indication was stolen. accessed, lost data

was systems days. products than some services. from the other and friends in to Additionally, Critical not coming this the we’ve expect affected patience online and the to during affected business the words systems restore functionality we challenge. access customers and Garmin ability We restored, remaining received have of kind been support appreciate of

my that So remarks. concludes

Next, through Doug Doug? us details walk will additional on results. financial

Doug Boessen

was by flow XXX a from the of comments year-over-year. the was balance decrease sales decrease decrease million, the decrease posted basis million XXX point in X% Operating basis increase year-over-year. income year. Cliff. results, point a of Thanks, We reviewing morning, XX.X%, and XX.X%, second begin cash statement margin Gross for year. Good was a move as everyone. margin to the our $XXX revenue prior second $XXX taxes. sheet, was on Operating prior representing prior the basis financial percentage quarter, quarter a year. Operating XX.X%, XXX XX% point a expense I’ll from

$X.XX. Our GAAP EPS was EPS was forma $X.XX, pro

at second growth We posting of strong segment. look by million XX%. quarter by of with we fitness led segment the achieved five segments revenue two revenue of our $XXX revenue Next, with our growth,

the As perspective. model business seen diversified and charts, we in both segment a from a have geography

Looking at months for revenue XXXX. year-to-date six first of the our

posting prior the fitness was year, growth. led by revenue consolidated marine, growth; growth, segments with Our flat of XX% our three XX% with with to

year. Our is to X%; geography, compared is Americas EMEA prior the up flat

Looking next, expenses. operating

increased of quarter quarter, strategy resources. $X timing to decreased transition $X investments million Advertising and operating million on second to media prior of or year-over-year, the million, to spend. lower increase due to highlights flow product flow and $XX of quarter to but expenses balance increased the In quarter sequential air. billion report diversified product quarter statement to on X%. increasingly to no by year-over-year SG&A taxes. balance compared increase our data shipments XXXX, primarily cash XXXX, We approximately both with cash the ocean in receivable $X.X primarily second year free decreased million of effective few of sales. quarter with in In second X.X%. supply, million, expenses Our million percentage to the a due we prior Research engineering year-over-year sheet, to debt. increased sequentially and year increases million of the generated in sport expenses. personnel-related Inventory quarter ended cash rate second and approximately due tax lines, the securities an from the due development increased A basis $XX line quarter. prior the we from higher launches, $XX $XXX $XXX increased Accounts compared a marketable

formal million to prior the the migration forma is impact intellectual to tax income release was due This transaction. open year line the tax you reserves intercompany pro with our in position decrease due May, remarks. of to restructuring, uncertain the effective can a $XX tax XX.X% for our compared of Excluding rate benefit The quarter. Q&A? XX% the please concludes property XXXX associated primarily

Operator

have Paul the We our Instructions] [JPMorgan]. first of line from [Operator question Chung

Your line now open. is

Paul Chung

questions. Hi. Thanks. my Thanks taking for

on aviation. just So

and up or last seeing And ADS-B revenue hitting it on your recovery in in near And you You margins on OpEx you kind of of think kind tough kind to kind shore onetime demand the of year. margins, the can looks mostly are side lower here, any the But And quarter. just in view? to of end in comps steady impact? do from in the items long July? like then XQ What are profitability your troughed term there? uptick mentioned aviation kind you the of a gross have you we’ve do any do on pretty

Cliff Pemble

Good from across in Yes. the Definitely, all improvements we’ve morning, sales segments seen including April, Paul. the aviation.

continuing definitely, little it and more as into the year. are time to does take that but the end we trends, optimistic throughout recover, I we about July, mentioned, I to so very a expect And move of market do for we’re think, future there. those the it As

– margins, are wash of have things, out. volumes, But particularly margin some have we the that additional to continue trends lower over side we of absorbed business. expenses being would terms In in the do improve time, because of as overhead the to those operating do expect we

Paul Chung

margins? how of big respect in then the impact opportunity growth is And kind Autoland in and of in view on your

Cliff Pemble

Yes.

category, a But systems market. what a stand Autoland an as unique or feature the our is a to helps in us others it’s incremental differentiating as is think out that I technology, compared we for see adder. that

consequently, so for it a significant entire differentiator our see cockpit we system as line. And

Paul Chung

Okay. given demand kind of scaling you. quarter? in was you in globe? And then on the the any kind business Tacx. question, What my last around on see And how contribution did Thank update is in uptick the some And just of shelter-in-places the the U.S.?

Cliff Pemble

including within we the Tacx Yes, call we’re now cycling what category.

and that the So continues on lot cycling cycling be the as of strong. our interest to was products a backlogs these There activities, in definitely talked is focusing with increased results that a Tacx people a very is about, indoor head lot and well are part units. in of we the as of interest

to we’re up So demand. catch with working

Paul Chung

Thank you.

Cliff Pemble

you. Thank

Operator

the Next Research]. [Longbow question line of Nik from Todorov is

Your line now open. is

Nik Todorov

the you the But quarter lot have Yes. the stimulus consumer-facing any – demand drove can about results. of how in Obviously, September the do in on of kind Cliff, a talk that especially items. and but execution I congrats the outdoors great that of about directionally? little of you sustainability you in not color second the taking bit and into the guiding, markets, can marine? of I has question. seasonally see down. and a you’re thinking on in spending typically, give And America part investors the you’re consumers lot how and us guys money Europe discretionary for a pockets Thanks, the half? North in sustaining know the fitness, helped of has has thanks and think on Hi, the maybe expected been

a it’s much unique obviously, situation. Now more

helpful. you overall? are how the performance September in of quarter will thinking be So sequential That

Cliff Pemble

Yes.

up would what it, stimulus, much be, coming interest would have we money, the stimulus So is more spend around half. the the things I when lot how it people or forward, look excitement around and retailers a program. which the say, do that suppose, intent of uncertainty as of and still in though, second we there’s from I they see

in indications, plus ones that we the the believe categories we’re that where product will consumers with hearing money. back So spend their what we’re their are that from people

in In don’t we September, terms terms of of guidance. comment forward

momentum, I in remarks, we mentioned strong did continuing and my that. with we’re As the to quarter experience exit

focusing for we’re on we the the year. back the sure of demand of and also quarter fill so And all that can making for half

Nik Todorov

drive Okay. to in gross strong fitness more flat Is very you from seeing about guys little your given, it? are cycling, outdoor bit on traditional you gross And to contribution margin, margin, think paid-off. to the maybe essentially which strong demand, staying you right believe, a contributor were a more a and you consumer addition when actually the I a that also, about – little bit cycling bit a on more strength year-over-year? way products, discounting to little had is in that But aggressive that Tacx, talked

Cliff Pemble

is product we about also there’s overall or the below. which the always remarked saw that We segment. increased comes then past at which in products, at we’ve Well, or gross category of mix average of strong category are for Tacx, sales above. average into And sales definitely slightly other saw margin a

hurt general, of were – certainly sales us. we the products in was Tacx didn’t came the the such online well retailers the quarter. that and So activities it promotional in very targeted between and out extra and mix And

Nik Todorov

think free resuming the cash while. I free about flow or a second we mean, in How this free the Okay. in is the think the on second year strongest flow. I flow moving to cash And buyback? quarter then should any cash thoughts full

Doug Boessen

Yes.

relates flow some cash it in in working saw to items as So there. capital year-over-year there QX, we improvement some free is

point that the had guidance have providing time, forward-looking cash buyback. receivables just QX we point any flow. time, higher in free for this to we lower for not we standpoint. this do the in as due demand from we’re saw that not were being So year-over-year receipts stock lower At at And any in plans

Nik Todorov

me. Okay. And for question last

or any on you you to you’re side. that’s there hints products, kind I will I but lot on expect wonder that in generally if new excited? think, – makes I any know the of the you not auto. of commenting know what enter a side. on Cliff, some of helpful. verticals have PND opportunities OEM Any mentioned you future most kind be I

Cliff Pemble

Yes.

the think I that all I again, products we’re innovative across business. consumer in And moving products new of doing side fastest the business. excited about and new across verticals the get on our we’re

we great those. think think I about some things very coming. we’re have I And excited

Nik Todorov

luck. you, Okay. guys. Got Thank Good it.

Cliff Pemble

Thanks, Nik.

Operator

Ben Next Research]. [Cleveland question is from Bollin the of line

Your line open. is now

Ben Bollin

Cliff, where you’re you I morning, wanted is? mentioned you bit for idle segment, any quarter. the categories Good in the there. the inventory demand inventory Thanks the or also everyone. imbalance other questions. were supply then and Could boat maybe could seeing you’re some little broader you Thanks. in start, color in to And an the channel provide of about seeing taking out in builders think a marine constrained channel wearables maybe there? and you where address what

Cliff Pemble

Yes.

through watch our registrations would I even we We possibly the are say, in have. lean So of that point. channel real-time this products at general, the at pull-through in closely or balance very we think level, things

we and the consequently, to compare retail the channel. we’re so we see side in into can in the channel what And that shipping what see and things definitely the trends of

builder things. products inventory. on They source a the side, partners anything, the marine necessarily seeing sales lot been And them. as demand. side retail then the with working on we’ve retail up a side need and not in hard been strong, of But marine, take they lean. we’re if they’re a From channel. of up of It’s the boat little definitely on our to strength keep side have very the it’s the not backing consumer So of with

Ben Bollin

Okay.

Tier with you’ve Another BMW some the Any the with little bit a you those this of could talked next course on Where perspective? a And this ramp associated on share I where updates capital on facility. and new there’s these question into are you I through year in the factory from thoughts associated year? any facilities the timing had, Tacx. then about Doug, believe are X facilities? outlay you

Doug Boessen

Yes.

of the basically, So first, are both mentioned, both say OEM in facilities Europe, I would you the have facility that, well as plan. of facility Tacx as manufacturing those we Europe on in those that manufacturing

So we really out actually, the time, to and At any some be from the because those basically well in point those, on demand Tacx going standpoint, especially products demand. that not are those providing of running later our to and And forward-looking in the both I’m increased be both any we – on from up helped year. seeing here – things this that expect full will Tacx us of we’re meet guidance of CapEx.

Ben Bollin

coming could you employees? little at The Okay. the How facilities how maybe are that’s with at is they’re travel, with maybe lower any And question homes? to be any about this people, you then COVID had a might back on thoughts treating versus OpEx permanent on talk And situation things their your bit that’s working? mix of levels like online? then how Last looking less OpEx that? forward? broader less influence Where date,

Cliff Pemble

Yes.

most workplace. been to through our beginning, have had safe of home. a At careful the at maintain very process try we people gone as to we’ve this So we very

the one-third we about across work implemented to people on the they business, we’ve really protocols and always for transitioned We’ve our in here. world site, at as buildings keeping safety. Of to being part, for here most course, But have as be of there were certain our are associates that a production distribution since and home.

a is deal. this long-term that anticipating We’re

not to people the at with here teammates We’re Garmin. and back. on But focus their people to time, same facility environment enjoy trying get the to that we’re in to have rushing and get we also them at of interact able rotating out the to dynamic be

I and quantify, manage able of terms the had In for provided for to of to say impact, life we that’s as personal to their but would with our so we’re more very concerns we’re how crisis in for we we’ve feel and able benefits difficulties their schools course, increased with to health. members they’ve OpEx this through and been difficult associates But be also it’s manageable, happy in work and there’s of pressure far. general, family own pleased actually some expenses, like

Ben Bollin

Thank Great. in luck best back you. And half.

Operator

Next question [Baird]. line Will is from the of Power

is now open. line Your

Will Power

of Great. I Thanks. Yes, questions. a couple guess

to one earlier questions maybe back the come First, of remarks. to or

really As we shouldn’t to July, into through almost the trends seen sounds I QX? think strong note, continue move from mean outdoor, August you and on like you’ve any a reason continuing. that’s assume in fitness, exited marine mean, I that here I it

first. Just of to that confirm kind want

Cliff Pemble

Yes.

continued As interested particularly and people we I adventure. said those activity as my in remarks, very wellness, through definitely in are categories, and outdoor the fitness opportunity year health, see in

the get promotions So the in Solar, Instinct what very in of to excited holidays. is will as and about of strong fenix back are think to retailers those Solar normal start are back terms course, products, consumers half well. I resonating very And happen

Will Power

struggled that terms they supply in you you fitness have Okay. There’s inventory, in mean terms piece And on at as products? with about the of demand issues retail for just on the there on strong then products? can any keep lot too. in the cycling out extended And constraints having in second to as particular, the inventory front. I supply or then chain front I retailers as concerns that a your Has question, as hand retailers been, respect know, anything know category, bicycles Are components liked. to and for I many of guess on enough we to look of chain, is, second thinking front? call probably

Cliff Pemble

Yes.

chain I in So our early components we of – business. the think flow supply for on continuity wise, focus supply the maintaining the chain pandemic, the needed and was

everyone course, of economic As then the the evolved, downturn. about worried pandemic

retailers where costs products higher anything, mentioned that’s As we gross of keeping we them. is challenges had with things The freight work in have in supply margin. to And come were up in as get the needed chain demand. and opportunities what place we’ve for terms back, that part if of

more of strong Specifically in products. get those been especially cycling constraint definitely computers very to customers. product been as kinds at freight And and have it spending we backlog with availability, retailers. have around to popular of on into cycling, with are Cycling that products, comes we a those has Again, activities when area we Tacx try place also of an those. air

Will Power

question. Okay. And maybe just last

I normal regions. a should look I at a APAC the guess, region other two guess, the QX. As be or geographic bit weaker more you than in happen returning breakdown, that’s quickly should And that, returning – to

maybe the be to weaker relatively driving Pac Just there, the that’s areas? what’s color versus the difference in interested mix other the in Asia performance

Cliff Pemble

has markets. differently from performed the very APAC Western Yes.

some I stronger than of at especially regions, first. think pandemic in the other was there the the pandemic the and over concern much

they’ve longer like well But has its has come so story. significant back. as as a taken Each countries course, country factor, of And well. own been larger Thailand as China to

aviation consumer different Americas, impacted So us than geographies. the APAC of more that is other I would the side say from a things. In there kind narrative of

very So aviation’s with performance impact. was Europe, was feel, exclude pleased the story, But is that, impact geographies. but Americas’ you And an in in similar I’m good. very I although of lower there, those still performance, a when general,

Will Power

you. Thank Great.

Operator

Next Anderson [Colliers in line is Charlie Securities].

now is open. line Your

Charlie Anderson

portions And think by maybe I’ve be relates a could on long-term just you the the then some created there’ll there for you Cliff. wonder benefits cut as benefit thoughts commercial from congrats still update of quarter. on with participate recall great pandemic routes follow-up. Do in? I could aviation. some you quarter, in I I because aviation had potentially you to your last you us comments Thank Yes. start and to you got about aviation. on wanted the of question aviation, see taking a my it market

Cliff Pemble

Yes.

is much view in I with still that. think line my very

many that charter see partners a and coming the anything, I flights if fact, in are of inquiring see We feel In concern about like, things proceeding with of the out the the charter in number people of over industry uptick view. some side are significant supporting in who the over has it to slower market. to It’s for a exposure demand on more customers seeing when in evidence definitely aircraft sure, timetable of And comes airlines. kinds reacting in still I general small in we’re these aviation and interested But very think of investing anecdotal changes. a being equipment.

Charlie Anderson

then sort Okay. I my for about go-to-market Great. And follow-up, was of strategy. curious

of if of then there about a And advertising? comment a a decent advertising a was Or proportion ago, you that I’m was think needing there. also also wonder permanent because in I that of that think retailers your of less of amount a garmin.com quarter? things were change change permanent more helping spending. business? maybe if fill? just shift was I about that from the in of demand down It a some Or I direct-to-consumer couldn’t in there’s curious out. got a the was as some function temporary and year you the that’s leverage wonder happening or some trajectory sort

Cliff Pemble

Yes.

of things, have again, longer our situation. So outlet retail website term the be on side we and kinds see business. mix I a go-to-market that shift do of And that, product in of of would all terms in

significant development. towards a are we view see as own gravitating mentioned it’s Garmin. partner And uptick, through through did customers a we So but of definitely in we that sales, purchases, work whether our as positive online web we which with or see all a them, we

two the and because a everyone terms advertising much. websites, what In was staying back evolve, and not was things to there, while, that channels glued There quickly are certainly But just as changed. are and and of everyone pulling because dynamics of the pandemic things. news for really impact there doing indoors

became digital go in our opportunities strategic would as as remains are dynamic. forward, as and how spent as channels very we with plans I we focusing well that dynamic continuing see advertising we situation social so And co-op on very very as retailers. and retailers’ the also well money,

Charlie Anderson

so Okay, much. great. you Thank

Operator

is Partners]. of question Next Financial the Ivan Feinseth line [Tigress from

Your line is open. now

Ivan Feinseth

the taking acquisition. on and on for questions congratulations my you Firstbeat quarter. Congratulations Thank great another

other great some license have technology you you before? they firms? – the Now technology other license some to the of to contracts technology? use is Are have what Firstbeat to technology in like from companies do ever going your other continue that have to you that of to on technology licensing licensed companies technology And Or also areas. because other your view the

Cliff Pemble

Yes.

has their own customers. list a Firstbeat of

continue have I benefit innovative see lot would be course. the things, activity that and to Of think there various major those most priorities of They course, the of with Garmin different relationships I evolved is could general, on they And technology and one the those research a But in will would one. adjustments continue for part. be They and different for that the have. of of customers.

Ivan Feinseth

Then if such in that you see innovative way you leveraging an product, of Autoland into know innovation autonomous automotive a don’t incredible and I some saw vehicle technology? especially and since is Right. do that. OEM

V, partnership coming out. not new number as tech the auto has have working with well manufacturers say, Mobileye. Mobileye manufacturers, drive of which only let’s but Qualcomm Mach-E a Ford know with vehicle Ford even announced with that partnership Mustang like a of computers the computer, And autonomous some as, or or you NVIDIA, the with makes a I the

Cliff Pemble

the in would is landing of that of the and operate airplanes communication around system problem airspace airports market, in solving those and say technology of unique and aviation Autoland the all and I and how considerations there’s lot a nuances the for a things.

So I think very it’s there. specific

are overlap solve, other see there. much different a areas. is But that specifically extensible of there’s probably to control to We that fundamental do for I Of problem course, technologies wouldn’t auto, and technology there the system. but of a part would a or ourselves with bigger well partner as mostly provider as serving as others our the products, on industry OEM some we in of see component lot

Ivan Feinseth

Okay. charging? – about that have handhelds, What great would the to extending the item screen another inReach other technology to be solar like solar with

Cliff Pemble

Yes.

about, excited can in technology Solar segments. is lines it us our applications it great we I’m super and lot a several more across to product really for has apply that a that

Ivan Feinseth

then products because these products? And come lot can an like new and about specific some to us categories, of indication giving categories without innovative idea us in you products speak Could you give and categories. you a give different

Cliff Pemble

think I adventure and about Well, is activity. Garmin all

these market us of will spaces new into spaces, products And and kinds so those deeper take categories.

Ivan Feinseth

of opportunities watercraft for new demand sales they one Yesterday, the – personal unprecedented those are of for products see that ATVs see and Polaris RV Public, example, some on the from we bikes. and going are said to the trends – in fire. you categories? pandemic, Do saw

Cliff Pemble

opportunities all those kinds we discovering group working appeal of customers of kind specialty we’re Yes, hard that of vehicles, are and to a new activities. to see across those

Ivan Feinseth

Very again. good. Congratulations

Operator

is of Stanley]. Erik line [Morgan Next question Woodring the from

Your open. line is now

Erik Woodring

Thank guys. I’m good earlier. morning, up just following on questions on and a the few quarter. Congrats from you

So first, in, just I products? to inhibitors technology a question there for are From have example, and including in standpoint, a there follow-up. there. start any to follow-up solar design you on Ivan’s guess wearables we’ll I

Cliff Pemble

wearables. now solar the components are on Erik, Actually, our Yes.

first. where line, So quatix, the as technology Instinct and tactix line, our the wearables, fenix all targeted are those we the the as that that’s well smartwatch

Erik Woodring

the vivos, on end? that Forerunner, more meant side, the I any so anything Right. the of on fitness

Cliff Pemble

limitation to technical no go. it There’s can where Yes.

for are already from But general, sun very I improve it, challenging best we’ll suited do in while the the collect where more it will a still continue to in make Garmin. it’s devices to low-power designs the because technology, the it’s to it’s and efficiency wearables the improve some think advanced energy environments to enough exciting, differentiator solar real it evolve, of continue things do. that naturally

Erik Woodring

from the just hear And fairly in that we’re And follow-up of differences if Piper in MXXX can just And to level, see and is kind has I’m just on a also was weak. but a ADS-B? juice passed, think that there’s that in what as time? you with any as contrast? know inning you tank? then high to that win. you Thanks. helpful. love Very Obviously, any left relative today mandate Would think you compare about the just we Autoland a aviation follow-up. XXXX, Congrats aviation crisis that XXXX, current curious, Awesome. the what to during then

Cliff Pemble

Yes.

XXXX every economic So aviation oversupply think I cases, impacted Back of But that’s with a there to the the would there of in kind regard XXXX say similarity both business the segment. was probably and business XXXX, in performance, was where that and I jet. similarities shock XXXX ends. significant an to

were in of this the time, on. so I would And market, and companies on earlier impact the that from ownership the and financial strong. probably one is And that of even years in the though, charter crisis to remaining that that that around I as is aircraft the this a there’s developed than probably still light pulling day, valuations. And there’s firm. more see we’re light as XX say mentioned things up light which lot of individuals jet pulling things, impacted used back, jet in still very aircraft of activity those And side positive interest class medium to we and question back, is

in there’s then even question innings. ADS-B, – And think your more We that. opposed on aircraft. with as what inning about we’re in? traveling small commercial the to in aircraft private potential people And the we aircraft things, side excited extra by are of as we’re we consider So actually

in terms as ADS-B products. at go very like better overall ADS-B to that So much beginning we sell it products mean stages. performed We’ll doesn’t than adaptation, zero market predicted we to aircraft. continue sell anyone the ADS-B new we of And felt forward,

will repairs all course, upgraded. also be systems. require systems market need opportunity that. that as a share. happen for in competitive expect aftermarket, And new Of that to course, and they That’s we products, things take us of the And that

So be it just ongoing going business an will forward.

Erik Woodring

sneak last I one one And in just Doug. if for could Awesome.

OpEx you’ve past, trajectory the of different on commented lines. the in Just

if But can wondering provide Just there. any it guys. Thanks, color that’s you for me.

Doug Boessen

Yes.

business. provide Regarding to operating appropriate but grow to that. expense in make able investments forward-looking general, business own OpEx, our continue guidance investments we’re make to to really we’ll not this detailed to At in any drive time, we’ll our to on continue

Erik Woodring

on the Congrats guys. quarter. Thanks, Great.

Operator

time, speakers would further it to turn to comments. like I the this any for At back

Teri Seck

the are for Have and call I for I’d a today. thank available great everyone like just to joining callbacks. Doug day.

Operator

this and wonderful Thank gentlemen, for day. participation, concludes and today’s have all conference. you your a Ladies

all may You disconnect.

Garmin (GRMN) 29 Jul 202020 Q2 Earnings call transcript