Garmin reports record fourth quarter

CAYMAN ISLANDS – Marine navigation, communication and information products manufacturer Garmin Ltd., posted a record fourth quarter and fiscal year ended Dec. 25, the company reported in a release Wednesday.

Revenue and net income both exceeded the guidance previously given by the company. The company’s consumer segment experienced 27-percent revenue growth during the fourth quarter and 31 percent during 2004. The aviation segment also contributed revenue growth of 42 percent for the quarter and for the full year, which led to overall revenue growth of 33 percent for the year.

“2004 was another good year for Garmin,” said Dr. Min Kao, CEO of Garmin Ltd. “We introduced a record number (50) of new products in 2004. These products, which include a marine network system, which integrated our chart plotters, sounders, XM satellite weather receivers and radar, have all been very well received by the market. We experienced strong demand across all product lines.”

More than 2.3 million Garmin products were shipped in 2004, raising the company’s total to over 10 million shipped to date, which is an important benchmark of the strength of the Garmin brand.

“I am pleased to report that we have overcome most of the component shortage and product delivery challenges that were experienced during 2004,” Kao said. “We were able to meet most of the product demands in the fourth quarter and have additionally replenished our inventory to meet the anticipated demands for the coming marine and spring seasons.”

Fourth Quarter 2004
Revenue for the quarter increased 30 percent to $220.9 million from $170.1 million in the year-ago quarter, above guidance given of $200-$204 million. Net income decreased to $47.6 million, or $0.44 diluted earnings per share, compared to $54.6 million or $0.50 diluted earnings per share in the year-ago quarter. Fourth quarter net income included a $25.3 million foreign currency loss as a result of a weaker U.S. dollar compared to the New Taiwan dollar. Excluding the effects of foreign currency, diluted EPS for the quarter was $0.63 compared to $0.47 in the year-ago quarter, exceeding quarterly guidance of $0.50 – $0.54.

Consumer revenue for the fourth quarter totaled $173.7 million — a 27 percent growth compared to the fourth quarter of 2003. Total units sold for the quarter increased to 718,000 from 591,000 — representing an increase of 21 percent.

Fiscal 2004
Revenue for the fiscal year ending December 25, 2004 was $762.5 million — up 33 percent from the $573 million generated in the year-ago period, above guidance given of $742 – $746 million. Net income increased to $205.7 million, or $1.89 diluted earnings per share, compared to $178.6 million or $1.64 diluted earnings per share in the year-ago period. On a year-to-date basis, foreign currency fluctuations in 2004 resulted in a $24.8 million currency loss. Excluding the effects of foreign currency, diluted EPS for 2004 was $2.07, which exceeded annual guidance of $1.95-$1.98.

Consumer revenue for the fiscal year totaled $591.0 million — a 31 percent growth compared to fiscal 2003. Aviation revenue totaled $171.5 million — a 42 percent increase compared to fiscal 2003. Total units sold for the period increased to 2,306,000 from 2,066,000 — representing an increase of 12 percent.

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