Summary
Garmin Ltd. reported financial results for the third quarter and the first nine months of 2011. For the third quarter, net sales decreased by 4% year-over-year to $667.0 million, primarily driven by a 13% decline in the automotive/mobile segment, which was partially offset by growth in fitness, aviation, and outdoor segments. Net income for the quarter saw a significant decrease of 46% to $150.4 million. For the first nine months of 2011, net sales remained flat year-over-year at $1.85 billion, with a similar trend of declining automotive/mobile revenue offset by growth in other segments. However, net income for the year-to-date period decreased by 21% to $355.3 million. The company's balance sheet shows a healthy cash position and increased marketable securities. Despite the revenue and income declines in key segments, Garmin continues to invest in research and development and has completed several strategic acquisitions. The company anticipates its current cash and operational cash flow will be sufficient to meet its obligations through the end of fiscal 2011.
Financial Highlights
51 data points| Revenue | $666.99M |
| Cost of Revenue | $322.66M |
| Gross Profit | $344.33M |
| R&D Expenses | $72.94M |
| SG&A Expenses | $88.75M |
| Operating Expenses | $197.00M |
| Operating Income | $147.33M |
| Net Income | $150.38M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 194.11M |
| Shares Outstanding (Diluted) | 194.83M |
Key Highlights
- 1Total net sales for the third quarter of 2011 decreased by 4% to $667.0 million, largely due to a significant decline in the automotive/mobile segment (-13%).
- 2Net income for the third quarter of 2011 fell sharply by 46% to $150.4 million, compared to $279.6 million in the prior year period.
- 3For the first nine months of 2011, net sales were flat year-over-year at $1.85 billion, with the automotive/mobile segment's revenue decreasing by 9%.
- 4The fitness segment showed strong growth, with net sales increasing by 29% in the third quarter and 28% year-to-date.
- 5Garmin completed four strategic acquisitions in the third quarter of 2011, including Navigon AG, to expand its product offerings and market reach.
- 6The company's cash and cash equivalents increased to $1.39 billion as of September 24, 2011, and it reported strong operating cash flow of $597.5 million for the first nine months of the year.
- 7Despite a challenging automotive/mobile segment, the company has a robust balance sheet with total assets of $4.33 billion and positive outlook for meeting financial obligations.