Garmin Ltd. announced results for the fourth quarter and fiscal year ended Dec. 29, 2018.
“2018 was another remarkable year of revenue and operating income growth driven by strong performance in our aviation, marine, outdoor and fitness segments,” said Cliff Pemble, president and chief executive officer of Garmin Ltd. “Entering 2019, we see many opportunities ahead and believe that we are well positioned to seize these opportunities with a strong lineup of products across all of our segments.”
Revenue from Garmin’s marine segment grew 13 percent in the quarter driven by new lineup of chartplotters, advanced sonars, and cartography offerings that combine the best of both Garmin and Navionics content. Gross and operating margins improved to 58 percent and 9 percent, respectively.
Total operating expenses in the quarter were $326 million, a 2 percent increase from the prior year. Research and development increased 10 percent, primarily due to engineering personnel costs. Selling, general and administrative expenses decreased 2 percent, due primarily to reduced litigation related costs. Advertising decreased 6 percent, primarily due to lower media spend.
Garmin currently expects 2019 revenue of approximately $3.5 billion as growth in fitness, aviation, outdoor and marine is partially offset by declines in the auto segment. This includes an estimated 10 percent growth in its marine segment.