- Fourth Quarter 2018 GAAP Revenue $785.5 million; Non-GAAP Revenue $792.9 million; GAAP Diluted Earnings Per Share $0.34; Non-GAAP Diluted Earnings Per Share $0.48

SUNNYVALE, Calif., Feb. 6, 2019 — (PRNewswire) —  Trimble Inc. (NASDAQ: TRMB) today announced fourth quarter and fiscal year 2018 financial results.

Fourth Quarter 2018 Financial Summary

Fourth quarter 2018 GAAP revenue of $785.5 million was up 12 percent as compared to the fourth quarter of 2017. Fourth quarter 2018 non-GAAP revenue of $792.9 million was up 13 percent as compared to the fourth quarter of 2017.

Buildings and Infrastructure revenue was $287.0 million, up 40 percent. Geospatial revenue was $178.8 million, up 2 percent. Resources and Utilities revenue was $130.1 million, down 2 percent. Transportation revenue was $197.0 million, up 4 percent. Segment revenues reflect the results of Trimble's reportable segments under its management reporting system and are non-GAAP measures.

GAAP operating income was $89.6 million, up 61 percent as compared to the fourth quarter of 2017. GAAP operating margin was 11.4 percent of revenue as compared to 8.0 percent of revenue in the fourth quarter of 2017.

GAAP net income was $86.5 million, up 341 percent as compared to the fourth quarter of 2017. GAAP diluted earnings per share was $0.34 as compared to GAAP diluted loss per share of $(0.14) in the fourth quarter of 2017.

Non-GAAP operating income of $171.9 million was up 43 percent as compared to the fourth quarter of 2017. Non-GAAP operating margin was 21.7 percent of revenue as compared to 17.1 percent of revenue in the fourth quarter of 2017.

Non-GAAP net income of $122.3 million was up 31 percent as compared to the fourth quarter of 2017. Non-GAAP diluted earnings per share were $0.48 as compared to non-GAAP diluted earnings per share of $0.37 in the fourth quarter of 2017.

The GAAP tax rate for the quarter resulted in a benefit of 28 percent as compared to an expense of 174 percent in the fourth quarter of 2017, and the non-GAAP tax rate was 19 percent as compared to 23 percent in the fourth quarter of 2017.  GAAP tax rates for the fourth quarter and full year of 2018 were impacted by substantial changes in tax laws on a year-over-year basis.

During the fourth quarter, Trimble repurchased approximately 1.1 million shares of its common stock for $40 million.

"Our robust quarterly results closed a record year for Trimble. Revenue growth was aided by the strong performance of recent acquisitions, which are outperforming expectations," said Steven W. Berglund, Trimble's president and chief executive officer. "Operating margins reflected notable expansion, driven by high operating leverage. Despite the potential effects of trade conflicts and some regional concerns, we remain confident about the potential for 2019 and beyond."

Fiscal 2018 Financial Summary

Fiscal 2018 GAAP revenue of $3,108.4 million was up 17 percent as compared to fiscal 2017. Fiscal 2018 non-GAAP revenue of $3,132.0 million was up 18 percent as compared to fiscal 2017.

Buildings and Infrastructure revenue was $1,087.7 million, up 31 percent. Geospatial revenue was $723.1 million, up 10 percent. Resources and Utilities revenue was $568.1 million, up 18 percent. Transportation revenue was $753.1 million, up 11 percent. Segment revenues reflect the results of Trimble's reportable segments under its management reporting system and are non-GAAP measures.

GAAP operating income was $320.7 million, up 36 percent as compared to fiscal 2017. GAAP operating margin was 10.3 percent of revenue as compared to 8.9 percent of revenue in fiscal 2017.

GAAP net income was $282.8 million, up 139 percent as compared to fiscal 2017. GAAP diluted earnings per share were $1.12 as compared to GAAP diluted earnings per share of $0.46 in fiscal 2017.

Non-GAAP operating income of $643.9 million was up 37 percent as compared to fiscal 2017. Non-GAAP operating margin was 20.6 percent of revenue as compared to 17.8 percent of revenue in fiscal 2017.

Non-GAAP net income of $491.7 million was up 32 percent as compared to fiscal 2017. Non-GAAP diluted earnings per share were $1.94 as compared to non-GAAP diluted earnings per share of $1.45 in fiscal 2017.

The GAAP tax rate for the year resulted in a benefit of 2 percent as compared to an expense of 52 percent in fiscal 2017, and the non-GAAP tax rate was 19 percent as compared to 23 percent in fiscal 2017.

Operating cash flow for fiscal 2018 was $486.7 million, up 13 percent as compared to fiscal 2017. Deferred revenue for fiscal 2018 was $387.2 million, up 40 percent as compared to fiscal 2017.

During fiscal 2018, Trimble repurchased approximately 2.4 million shares for $90.0 million. Approximately $352 million remains under the current share repurchase authorization as of the end of the fourth quarter.

Forward Looking Guidance

For the first quarter of 2019, Trimble expects to report GAAP revenue between $792 million and $817 million and GAAP earnings per share of $0.21 to $0.25, and non-GAAP revenue between $795 million and $820 million and non-GAAP earnings per share of $0.44 to $0.48 . GAAP guidance assumes a tax rate of 18 percent and non-GAAP guidance assumes a tax rate of 20 percent. Both GAAP and non-GAAP earnings per share assume approximately 254 million shares outstanding. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.