Equipment Type

Trimble Revenues up 20%, Profits up 21%

Trimble announced first quarter 2011 revenue of $384.3 million, up 20 percent as compared to the first quarter of 2010.

May 13, 2011

Trimble announced first quarter 2011 revenue of $384.3 million, up 20 percent as compared to the first quarter of 2010.

Operating income for the first quarter of 2011 was $43.7 million, up 21 percent as compared to the first quarter of 2010. Operating margin in the first quarter of 2011 was 11.4 percent, approximately flat compared to the first quarter of 2010.

First quarter 2011 non-GAAP operating income of $70.1 million was up 23 percent as compared to the first quarter of 2010. Non-GAAP operating margin was 18.2 percent compared to 17.9 percent in the first quarter of 2010.

First quarter 2011 net income was $39.7 million, up 42 percent as compared to the first quarter of 2010. Diluted earnings per share in the first quarter of 2011 were $0.32 as compared to diluted earnings per share of $0.23 in the first quarter of 2010.

Non-GAAP net income of $62.5 million for the first quarter of 2011 was up 47 percent as compared to the first quarter of 2010. Diluted non-GAAP earnings per share in the first quarter of 2011 were $0.50 as compared to diluted non-GAAP earnings per share of $0.34 in the first quarter of 2010.

First quarter 2011 non-GAAP results exclude:

Restructuring expense of $866 thousand as compared to $674 thousand in the first quarter of 2010;
Amortization of intangibles of $16.1 million as compared to $13.8 million in the first quarter of 2010;
Stock-based compensation expense of $6.8 million as compared to $5.6 million in the first quarter of 2010;
Acquisition-related inventory step-up charge of $508 thousand as compared to $71 thousand in the first quarter of 2010 and;
Non-recurring acquisition-related cost of $3.0 million as compared to $538 thousand in the first quarter of 2010.

"We continued to track against expectations in the first quarter," commented Steven W. Berglund, Trimble's president and chief executive officer. "Engineering and Construction segment results reflected growth in all regions driven by increasing demand for survey and heavy and highway products as well as the increasing number of SITECH dealerships. Field Solutions results reflected growth in both agricultural and GIS product sales. Although Mobile Solutions showed higher revenue it did not produce operating margins consistent with our expectations," Berglund continued. "At this point, we remain comfortable with our original outlook for the full year."

Trimble Results by Business Segment

Segment operating income is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, restructuring expenses, amortization of intangibles, amortization of acquisition-related inventory step-up charges and non-recurring acquisition costs. Non-GAAP segment operating income also excludes the impact of stock-based compensation expense.

Engineering and Construction (E&C)

First quarter 2011 E&C revenue was $190.0 million, up 21 percent as compared to the first quarter of 2010, with growth across geographies and product lines.

Operating income in E&C for the first quarter 2011 was $22.8 million, or 12.0 percent of revenue, as compared to $18.8 million or 11.9 percent of revenue in the first quarter of 2010. Non-GAAP operating income was $25.1 million, or 13.2 percent of revenue, as compared to $20.5 million, or 13.0 percent of revenue, in the first quarter of 2010. Non-GAAP operating margin was up slightly due to increased leverage, offset by higher investment in the VirtualSite Solutions joint venture with Caterpillar, increased marketing expenditures related to tradeshows and the impact of foreign exchange.

Field Solutions

First quarter 2011 Field Solutions revenue was $123.1 million, up 28 percent as compared to the first quarter of 2010 due to strength in both GIS and agricultural product sales.

First quarter 2010 Field Solutions operating income was $52.5 million, or 42.7 percent of revenue, as compared to $39.3 million, or 41.0 percent of revenue, in the first quarter of 2010. Non-GAAP operating income was $53.0, or 43.1 percent of revenue, as compared to $39.8 million, or 41.5 percent of revenue, in the first quarter of 2010. The increase in non-GAAP operating margin was due to higher revenue.

Mobile Solutions

First quarter 2011 Mobile Solutions revenue was $44.4 million, up 17 percent as compared to the first quarter of 2010 due primarily to acquisitions.

The operating loss in Mobile Solutions in the first quarter 2011 was $1.3 million, or negative 3.0 percent of revenue, as compared to operating income of $1.9 million, or 5.0 percent of revenue, in the first quarter of 2010. Non-GAAP operating loss was $338 thousand, or approximately break-even, as compared to a profit of $3.1 million, or 8.2 percent of revenue, in the first quarter of 2010. The decline in non-GAAP operating margin was due to the mix of hardware and subscription services revenue, including the loss of a large high-margin customer in the second quarter of 2010, and the impact of acquisitions.

Advanced Devices

First quarter 2011 Advanced Devices revenue was $26.8 million, down 3 percent as compared to the first quarter of 2010 due to slower sales of timing products.

The operating income in Advanced Devices for the first quarter 2011 was $3.9 million, or 14.4 percent of revenue, as compared to $5.6 million, or 20.4 percent of revenue, in the first quarter of 2010. Non-GAAP operating income in Advanced Devices was $4.5 million, or 16.9 percent of revenue, as compared to $6.1 million, or 22.0 percent of revenue, in the first quarter of 2010. The decline in non-GAAP operating margin was due to product mix.

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