The specific non-GAAP measures, which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why these non-GAAP measures provide useful information to investors regarding our financial condition and results of operations and why management chose to exclude selected items 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. 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: http://investor.trimble.com.
About Trimble
Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location—including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies, such as GPS, lasers and optics, Trimble solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1978, Trimble is headquartered in Sunnyvale, Calif.
For more information visit: www.trimble.com.
Safe Harbor
Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations for future financial market and economic conditions, the impact of acquisitions, the ability to deliver revenue, earnings per share and other financial projections that Trimble has guided for the first quarter, the expected tax rate, the anticipated impact of stock-based compensation expense, the amortization of intangibles related to previous acquisitions and the anticipated number of shares outstanding and interest costs. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, or integrate new acquisitions. The Company's results would also be negatively impacted by weakening in the macro environment including declining oil prices or foreign exchange fluctuations. Any failure to achieve predicted results could negatively impact the Company's revenues, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10- K, such as changes in economic conditions, further worsening in the agricultural market, critical part supply chain shortages and possible write-offs of goodwill. Undue reliance should not be placed on any forward-looking statement contained herein, especially in light of greater uncertainty than normal in the economy in general. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.
FTRMB
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(In millions, except per share data) | ||||||||
(Unaudited) | ||||||||
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Fourth Quarter of |
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Fiscal Years | ||||
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|
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2015 |
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2014 |
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2015 |
|
2014 |
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|
|
Revenues |
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|
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|
|
|
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Product |
|
$ 365.3 |
|
$ 386.5 |
|
$ 1,533.5 |
|
$ 1,713.6 |
Service |
|
109.4 |
|
104.3 |
|
419.9 |
|
396.0 |
Subscription |
|
85.0 |
|
73.0 |
|
337.0 |
|
285.9 |
Total revenues |
|
559.7 |
|
563.8 |
|
2,290.4 |
|
2,395.5 |
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|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
Product |
|
177.1 |
|
182.7 |
|
731.1 |
|
788.1 |
Service |
|
41.2 |
|
44.0 |
|
164.2 |
|
152.6 |
Subscription |
|
24.5 |
|
22.7 |
|
100.3 |
|
81.1 |
Amortization of purchased intangible assets |
|
23.8 |
|
21.9 |
|
92.6 |
|
82.9 |
Total cost of sales |
|
266.6 |
|
271.3 |
|
1,088.2 |
|
1,104.7 |
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|
|
|
- |
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|
|
- |
Gross margin |
|
293.1 |
|
292.5 |
|
1,202.2 |
|
1,290.8 |
Gross margin (%) |
|
52.4% |
|
51.9% |
|
52.5% |
|
53.9% |
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|
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|
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|
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|
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Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
85.4 |
|
80.8 |
|
336.7 |
|
318.0 |
Sales and marketing |
|
92.8 |
|
98.8 |
|
374.6 |
|
387.6 |
General and administrative |
|
63.2 |
|
16.9 |
|
255.3 |
|
247.1 |
Restructuring charges |
|
2.4 |
|
0.4 |
|
11.4 |
|
1.7 |
Amortization of purchased intangible assets |
|
16.4 |
|
18.8 |
|
69.8 |
|
75.6 |
Total operating expenses |
|
260.2 |
|
215.7 |
|
1,047.8 |
|
1,030.0 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
32.9 |
|
76.8 |
|
154.4 |
|
260.8 |
|
|
|
|
|
|
|
|
|
Non-operating income (expense), net |
|
|
|
|
|
|
|
|
Interest expense |
|
(6.5) |
|
(8.9) |
|
(25.6) |
|
(18.7) |
Foreign currency transaction gain (loss) |
|
(1.0) |
|
(1.3) |
|
0.2 |
|
(5.1) |
Income from equity method investments |
|
3.8 |
|
0.9 |
|
17.9 |
|
12.4 |
Other income (expense), net |
|
(0.9) |
|
4.1 |
|
4.9 |
|
16.6 |
Total non-operating income (expense), net |
|
(4.6) |
|
(5.2) |
|
(2.6) |
|
5.2 |
|
|
|
|
|
|
|
|
|
Income before taxes |
|
28.3 |
|
71.6 |
|
151.8 |
|
266.0 |
|
|
|
|
|
|
|
|
|
Income tax provision |
|
4.4 |
|
15.7 |
|
31.1 |
|
52.1 |
Net income |
|
23.9 |
|
55.9 |
|
120.7 |
|
213.9 |
Less: Net gain (loss) attributable to noncontrolling interests |
|
(0.1) |
|
0.1 |
|
(0.4) |
|
(0.2) |
Net income attributable to Trimble Navigation Ltd. |
|
$ 24.0 |
|
$ 55.8 |
|
$ 121.1 |
|
$ 214.1 |
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|
|
|
|
|
|
|
|
Earnings per share attributable to Trimble Navigation Ltd. |
|
|
|
|
|
|
|
|
Basic |
|
$ 0.10 |
|
$ 0.22 |
|
$ 0.47 |
|
$ 0.82 |
Diluted |
|
$ 0.09 |
|
$ 0.21 |
|
$ 0.47 |
|
$ 0.81 |
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|
|
|
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|
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Shares used in calculating earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
250.5 |
|
259.2 |
|
255.8 |
|
260.1 |
Diluted |
|
252.9 |
|
262.7 |
|
258.5 |
|
264.5 |