Garmin reports 29 percent growth in marine business

Garmin Ltd. this week announced results for the first quarter ended March 26, 2016.

Highlights in the quarter include:

  • Total revenue of $624 million, growing 7 percent over the prior year, with outdoor, fitness, aviation and marine collectively growing 17 percent over the year ago quarter and contributing 69 percent of total revenue
  • Gross and operating margins of 54.5 percent and 16.6 percent, respectively
  • GAAP EPS of $0.46 and Pro forma EPS of $0.49 for first quarter 2016
  • Completed the acquisition of DeLorme, the pioneer of the inReach series of two-way satellite communication devices for the consumer adding both device and recurring service revenue to its outdoor segment
  • Started shipments of recently announced activity trackers including the vívoactive HR with Garmin Elevate wrist heart rate technology and the vívofit 3 with an industry leading one year battery life

“We started out 2016 strong with total revenue growth of 7 percent led by robust double digit growth in our marine and outdoor segments, and high single digit growth in our fitness and aviation segments,” said Cliff Pemble, president and CEO of Garmin Ltd. “With the majority of the year still ahead of us, we recognize that there are many challenges and uncertainties yet to be encountered. We will continue to focus on innovation and execution to deliver compelling products to the markets we serve.”

The marine segment posted revenue growth of 29 percent on strong sales for the company’s chartplotter and fish finder product lines, Garmin said. Gross margins declined year-over-year to 53 percent while operating margin increased to 12 percent, resulting in operating income growth of 125 percent.

Click here for the full earnings release.

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