SUNNYVALE, Calif., July 28 /PRNewswire-FirstCall/ -- Trimble (NASDAQ: TRMB) today announced revenue of $290.1 million for its second quarter ended July 3, 2009, down approximately 23 percent from revenue of $377.8 million in the second quarter of 2008.

Operating income for the second quarter of 2009 was $28.7 million, down approximately 54 percent from the second quarter of 2008. Operating margin in the second quarter of 2009 was 9.9 percent, compared to an operating margin of 16.7 percent in the second quarter of 2008. Amortization of intangibles was $13.0 million in the second quarter of 2009 compared to $10.9 million in the second quarter of 2008. The impact of stock-based compensation expense was $4.6 million compared to $3.8 million in the second quarter of 2008. There was also a $3.5 million restructuring expense, a $0.3 million acquisition-related inventory step-up charge and $2.0 million of non-recurring acquisition costs in the second quarter of 2009 compared to a $3.3 million restructuring expense, and no inventory step-up, or non-recurring acquisition costs in the second quarter of 2008. Excluding the above impacts, non-GAAP operating income of $52.4 million was down 35 percent compared to the second quarter of 2008. Non-GAAP operating margin was 18.1 percent in the second quarter of 2009, compared to 21.4 percent in the second quarter of 2008.

Second quarter 2009 net income was $20.9 million, down 57 percent compared to the second quarter of 2008. Diluted earnings per share for the second quarter of 2009 were $0.17 compared to diluted earnings per share of $0.39 in the second quarter of 2008.

Adjusting for the items noted above, non-GAAP net income of $37.4 million for the second quarter of 2009 was down 39 percent compared to the second quarter of 2008. Non-GAAP earnings per share for the second quarter of 2009 were $0.31 compared to non-GAAP earnings per share of $0.49 in the second quarter of 2008.

Cash flow from operations for the second quarter of 2009 was $65.5 million and cash flow from operations for the first half of 2009 was $108.7 million compared to $79.6 million in the second quarter of 2008 and $100.4 million in the first half of 2008.

"Although the engineering and construction segment continues to encounter severe recessionary conditions, the market demonstrated more stability in the second quarter than the prior two quarters," said Steven W. Berglund, Trimble's president and chief executive officer. "Field Solutions segment revenue was lower as a result of declines in both GIS and agriculture. The decline in agriculture reflected a slower market but also reflected the difficult comparison to an exceptional performance level in 2008. We expect the agricultural market to continue to be moderately slower than 2008 for the remainder of the year. Mobile Solutions orders have begun to reflect our generally strong sales pipeline which increases the probability of a significant performance improvement in 2010 for the segment," Berglund continued.

"Conditions continue to be uncertain and the second half of 2009 remains difficult to forecast. Even if overall economic conditions do not significantly improve, we believe we can return to year-over-year revenue growth in late 2009 or early 2010. Our focus remains on aligning costs and revenue while continuing to fund key strategic programs. This is reflected in the improvement of our non-GAAP operating margin in both the first and second quarters of 2009 compared to the fourth quarter of 2008," concluded Berglund.

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, non-recurring acquisition costs and the impact of stock-based compensation expense.

Engineering and Construction (E&C)

Second quarter 2009 E&C revenue was $147.2 million, down approximately 31 percent when compared to the second quarter of 2008. The decline in demand continued to primarily be driven by recessionary conditions in the U.S. and Europe.

Operating income in E&C for the second quarter 2009 was $19.2 million, or 13.0 percent of revenue, compared to $45.2 million, or 21.2 percent of revenue, in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in E&C was $20.6 million, or 14.0 percent of revenue, compared to $46.2 million, or 21.7 percent of revenue, in the second quarter of 2008. The decline in operating margin was largely due to lower revenue.

Field Solutions

Second quarter 2009 Field Solutions revenue was $79.8 million, down 11 percent when compared to the second quarter of 2008. The revenue decline was driven by lower agriculture product sales. It should be noted that the year-over-year comparison was difficult because in the second quarter of 2008 Field Solutions demonstrated 63 percent year-over-year revenue growth due to an extended buying season in the quarter.

Operating income in Field Solutions for the second quarter 2009 was $30.1 million, or 37.8 percent of revenue, compared to $34.8 million, or 38.6 percent of revenue, in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in Field Solutions was $30.4 million, or 38.1 percent of revenue, compared to $35.0 million, or 38.9 percent of revenue in the second quarter of 2008.

Mobile Solutions

Second quarter 2009 Mobile Solutions revenue was $39.1 million, down approximately 8 percent when compared to the second quarter of 2008. The decline in revenue was primarily attributable to a decline in sales of ready mix products as well as the fact that the second quarter of 2008 benefited from the recognition of two large non-recurring revenue items.

Operating income in Mobile Solutions for the second quarter 2009 was $3.6 million, or 9.3 percent of revenue, compared to $1.9 million, or 4.6 percent of revenue in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in Mobile Solutions was $4.8 million, or 12.2 percent of revenue, up from 7.4 percent of revenue in the second quarter of 2008. The improvement is primarily due to reduced cost of sales overhead and operating expenses from restructuring.

Advanced Devices

Second quarter 2009 Advanced Devices revenue was $24.0 million, down approximately 26 percent when compared to the second quarter of 2008. The decline in second quarter revenue was due to slower sales of embedded products.

Operating income in Advanced Devices for the second quarter 2009 was $4.8 million, or 20.2 percent of revenue, compared to $6.6 million, or 20.3 percent of revenue, in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in Advanced Devices was $5.2 million, or 21.6 percent of revenue, compared to 21.3 percent of revenue in the second quarter of 2008.

Use of Non-GAAP Financial Information

To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The specific non-GAAP measures which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why management chose to exclude selected items and the additional purposes for which these non-GAAP measures are used can be found at the end of this release. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Management generally compensates for the limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure or measures. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results which is attached to this earnings release. Additional financial information about our use of non-GAAP results can be found on the investor relations page of our Web site at investor.trimble.com