GPS manufacturer Garmin Ltd. (Nasdaq: GRMN) reported record revenue and earnings for its fourth fiscal quarter ended December 28 in a Wednesday, February 12 statement.
"Fiscal 2002 has been a remarkable year for us. We are pleased to report that, in the face of weak overall consumer spending, demand for our products remains strong," said Dr. Min Kao, CEO of Garmin Ltd. "Overall revenue grew 26 percent, primarily spurred by growth in our consumer segment. This segment recorded a 46 percent growth in revenues during this quarter, and 33.2 percent during 2002, with strength across all of our consumer product lines."
The company also said that new products have been "enthusiastically received across the board."
"Consumer awareness of the utility of GPS navigation continues to grow, we have experienced continued growth in our core markets as a result," said Kao.
Fourth quarter revenue up
Revenue for the quarter increased 43.7 percent to $133.7 million from $93.0 million in the year-ago quarter, in line with guidance given of $132-$135 million, the company reported. Net income increased to $45.5 million, or $0.42 diluted earnings per share, compared to $28 million or $0.26 diluted earnings per share in the year-ago quarter.
Consumer revenue for the fourth quarter totaled $102 million -- a 46-percent growth compared to the fourth quarter of 2001, according to Garmin. Total units sold for the quarter increased to 478,000 from 338,000 -- representing an increase of 41.4 percent.
Revenue increased across all geographic regions during the fourth quarter of fiscal 2002 when compared to the year-ago quarter, the company reported.
"We are pleased with our financial performance during the fourth quarter," said Kevin Rauckman, chief financial officer of Garmin Ltd. "Our consumer business has now logged its fifth consecutive quarter of year-over-year revenue growth in excess of 20 percent. Gross margins strengthened to 55.2 percent compared to 53.2 percent in the prior year's fourth quarter. We also generated $39.2 million of free cash flow for the quarter, resulting in a cash and marketable securities balance of $462.5 million at the end of fiscal 2002."
Fiscal 2002 revenue also up
Revenue for the fiscal year ending December 28 was $465.1 million -- up 26 percent from the $369.1 million generated in the year-ago period, in line with guidance given of $464-$467 million, the company reported.
Net income increased to $142.8 million, or $1.32 diluted earnings per share, compared to $104.8 million or $0.97 diluted earnings per share in the year-ago period, excluding the effects of foreign currency. On a year-to-date basis, foreign currency fluctuations were an insignificant dollar amount and did not impact the EPS calculation, the company stated.
Consumer revenue for the fiscal year totaled $350.6 million -- a 33.2 percent growth compared to the year-ago period. Total units sold for the period increased to 1,557,000 from 1,331,000 -- representing an increase of 17 percent, Garmin reported.
Company looks forward to innovation and growth
Garmin said it believes innovations and ongoing growth are in its future in 2003 and beyond.
The company estimates that its diluted EPS for the first fiscal quarter of 2003, excluding effects for foreign currency, will be in the range of $0.29 to $0.32 on revenues of $113 million to $117 million. Diluted EPS estimates for fiscal year 2003, excluding effects of foreign currency, will be in the range of $1.45 to $1.54 on revenues of $515 million to $540 million, the company projected.