CAYMAN ISLANDS – Garmin Ltd. (Nasdaq: GRMN) had a record third quarter, due in part to a 17-percent increase in marine segment revenue to $48 million, it reported in a recent statement.
The company’s total revenue for the quarter was $729 million, up 79 percent from $408 million in the third quarter of 2006. Diluted earnings per share increased 57 percent to $0.88 from $0.56 in third quarter 2006; excluding foreign exchange, EPS increased 78 percent to $0.89 from $0.50 in the same quarter in 2006.
Year-to date, marine segment revenue increased 21 percent to $170 million. The company’s total revenue was $1.96 billion, up 69 percent from $1.16 billion year-to-date in 2006.
“Our marine segment … showed steady growth, as customer interest in our revolutionary new marine products and cartography continued to drive revenues for the quarter,” commented Dr. Min Kao, Garmin chairman and CEO. “While typical marine segment revenues decline sequentially in third and fourth quarter each year, results remain seasonally strong. We continue to believe the marine segment is positioned to meet our 2007 guidance.”
However, Garmin CFO Kevin Rauckman pointed out that "gross margin for the marine segment declined 50 basis points during the quarter when compared to the year-ago quarter as a function of product mix.”
In the company’s fiscal 2007 outlook, Garmin said it anticipates that its marine segment revenue growth rate will be 20 percent.
The company also noted that Cliff Pemble will be assuming the new positions of COO and president of Garmin Ltd. In addition, he will assume direct supervision of all North American Garmin subsidiaries, including Garmin AT, Dynastream, and Digital Cyclone. Dr. Kao will continue in his role as chairman and CEO but will now be able to devote more time to business development, strategic planning, and the development of our Asia-Pacific business initiatives, according to the company,
- For more of the latest news, click here.