原文：Garmin's Q4 Outdoor/Fitness Revs Rise 43%
SportsOneSource Media Posted: 2/20/2008
Garmin Ltd. reported the highest quarterly and annual revenue and earnings in its history for the fourth quarter and year ending Dec. 29.
The maker of GPS devices and other eleCTRonics said total revenue rose to $1.217 billion for the quarter, up 99% from $611 million in the same period a year ago. The company said:
●AUTOmotive/Mobile segment revenue increased 124% to $999 million
●Aviation segment revenue increased 16% to $71 million
●Outdoor/Fitness segment revenue increased 43% to $114 million
●Marine segment revenue increased 31% to $33 million
All geographic areas experienced significant growth:
●North America revenue was $836 million compared to $393 million, up 113%
●Europe revenue was $338 million compared to $194 million, up 74%
●ASIa revenue was $43 million compared to $24 million, up 79%
Diluted earnings per share increased 70% to $1.39 from $0.82 in fourth quarter 2006. Excluding foREIgn exchange, EPS increased 51% to $1.31 from $0.87 in the same quarter in 2006.
Fiscal Year 2007 Financial highlights:
Total revenue reached $3.18 billion, up 79% from $1.77 billion in 2006, with the folloWING segment breakout:
●AuTOMOtive/Mobile segment revenue increased 115% to $2.34 billion
●Aviation segment revenue increased 27% to $295 million
●Marine segment revenue increased 22% to $203 million
●Outdoor/Fitness segment revenue increased 19% to $340 million in 2007
Revenue from the automotive/mobile segment continued to become a larger portion of total company revenues when compared with 2006, at 74% of total revenues.
Growth was strong across all geographies:
●North America revenue was $2.067 billion compared to $1.094 billion, up 89%
●Europe revenue was $969 million compared to $593 million, up 63%
●Asia revenue was $144 million compared to $87 million, up 66%
Diluted earnings per share increased 66% to $3.89 from $2.35 in 2006. Excluding foreign exchange, EPS increased 62% to $3.80 from $2.35 in 2006.
The company sold more than 12 million units during the year, setting a record that raised total Garmin units sold worldwide to over
31 million units.
The company said its automotive/mobile segment sales continued to exceed expectations and are expected to drive much of its growth during 2008.
Strong holiday sales drove unit sales in the fourth quarter to over 5.5
million units -- just slightly less than the total number of units sold in all of 2006. These unit sales reflect an increase of 177% from the same quarter in 2006.
The company is building out its third Taiwan manufacturing facility, increasing the number of production lines to 36 and production capacity
at the end of the fourth quarter to an annual run rate of nearly 20 million units. Expansion of our engineering and office space in Taiwan continues.
Garmin is also expanding its North American warehouse in Olathe, Kansas, with expected completion in March 2008. The company has begun planning an expansion of its headquarters and research and development facilities in Olathe.
Garmin acquired distributors in France, Germany, Spain, and Italy in 2007 and Denmark early this year as part of ongoing efforts to increase market share in Europe.
Comments from management
"Garmin experienced an exciting fourth quarter, which brought a strong finish to fiscal 2007," said Dr. Min Kao, Chairman and Chief Executive Officer. "The strong holiday season demand we experienced clearly demonstrated that our products are well-positioned to take advantage of the growing interest in portable navigation devices. Independent market research indiCATes we have maintained a strong leadership position in North America, and our market position in Europe continues to improve as well.
"We were prepared to meet the strong demand for our automotive/mobile products," Kao continued. "We effectively managed inventory to meet holiday demand. As anticipated, we ended 2007 with appropriate inventory levels in our retail channels. We remain committed to proper inventory planning as we enter 2008.
"As the automotive/mobile segment continues to become a larger portion of our business, we expect our business to experience even stronger seasonality for 2008 and beyond. As such, we intend to more effectively level our production requirements and our inventory levels throughout the year. We believe our strategy of extensive market segmentation using our popular nuvi product offerings will continue to drive positive results. Given growth in our existing markets and opportunities we see in new markets during 2008, we anticipate automotive/mobile segment revenues will grow 45% in 2008.
"Holiday season demand for our outdoor/fitness products was strong, as we posted over 40% revenue growth for this segment when compared with the same quarter in 2006. Increased sales generated by the new Astro(TM) dog tracking product, as well as new products with high-sensitivity GPS drove growth in the latter part of 2007. We see continued growth opportunities for this segment and anticipate that outdoor/fitness segment revenue is positioned to grow 25% in 2008."
"We are clearly very pleased with our financial results for the fourth quarter and fiscal year 2007," said Kevin Rauckman, chief financial officer of Garmin Ltd. "Our revenue and earnings per share during 2007 grew 79% and 66% respectively, exceeding our expectations. Garmin has now completed seven years as a public company and has consistently generated top line and bottom line growth, with a 7-year compounded annual growth rate of revenue and earnings per share of 37% and 33%, respectively.
"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
Garmin anticipates 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.
The company said it anticipates 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.
Garmin expects it expects to begin shipping its recently announced nuvifone(TM) during the second half of the year.
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.