GAAP Earnings Per Share $0.39 Non-GAAP Earnings Per Share $0.49
Operating income for the second quarter of 2008 was $62.9 million, up 12 percent from operating income of $56.0 million in the second quarter of 2007. Operating margins in the second quarter of 2008 were 16.7 percent, down slightly from operating margins of 17.1 percent in the second quarter of 2007. Amortization of intangibles increased from $10.4 million in the second quarter of 2007 to $10.9 million in the second quarter of 2008. The impact of stock-based compensation expense was flat year-over-year at $3.8 million. There was a $3.3 million restructuring expense in the second quarter of 2008 and a $333 thousand restructuring expense in the second quarter of 2007. Excluding these impacts, non-GAAP operating income of $81.0 million was up 15 percent compared to the second quarter of 2007. Non-GAAP operating margins were 21.4 percent in the second quarter of 2008, approximately flat compared to 21.5 percent in the second quarter of 2007.
Net income for the second quarter of 2008 was $48.6 million, up 39 percent compared to net income of $35.0 million in the second quarter of 2007. Diluted earnings per share for the second quarter of 2008 were $0.39, up 39 percent from diluted earnings per share of $0.28 in the second quarter of 2007.
The tax rate for the second quarter of 2008 was 28 percent, compared to 38 percent in the second quarter of 2007. The lower tax rate is due to the previously announced implementation of a global supply chain structure. Trimble now expects the full-year tax rate to be 31 percent versus previous guidance of 33 percent.
Adjusting for the amortization of intangibles and the impact of stock-based compensation and restructuring expenses, non-GAAP net income of $61.7 million for the second quarter of 2008 was up 40 percent compared to non-GAAP net income of $44.1 million in the second quarter of 2007. Non-GAAP earnings per share for the second quarter of 2008 were $0.49, up 40 percent from non-GAAP earnings per share of $0.35 in the second quarter of 2007.
"The Field Solutions segment continued its strong growth trend in the second quarter and we expect a robust agricultural environment for the remainder of the year. The environment for the Engineering and Construction segment remains uncertain in the U.S. and European markets, with continued strength outside those regions," said Steven W. Berglund, Trimble's chief executive officer.
"Although the Mobile Solutions segment has not yet reached our financial goals, potential large customers are showing significant, increased interest in our mobile products. This interest is driven by higher fuel prices, which are putting pressure on operating costs. We believe this improving sales pipeline has the potential to generate significant growth in revenue and profitability in 2009 in the segment. We continue to invest aggressively in anticipation of this growth," Berglund continued.
"While recognizing the potential impact of economic uncertainties we are reiterating the total company revenue guidance and increasing the earnings per share guidance for the 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, in-process research and development and the impact of stock-based compensation expense.
Engineering and Construction
Second quarter 2008 Engineering and Construction (E&C) revenue was $213.0 million, up approximately 7 percent when compared to revenue of $198.9 million in the second quarter of 2007. E&C growth was driven by strong international sales partially offset by slower conditions in the U.S.
Second quarter 2008 operating income in E&C was $45.2 million, or 21.2 percent of revenue, compared to $52.4 million, or 26.3 percent of revenue, in the second quarter of 2007.
Non-GAAP operating income in E&C was $46.2 million, or 21.7 percent of revenue, in the second quarter of 2008 compared to $53.2 million, or 26.7 percent of revenue, in the second quarter of 2007. As in the first quarter of 2008, the decline in operating margins resulted from the impact of foreign exchange rates, the impact of recent acquisitions which have not yet fully contributed to profitability, higher marketing and product development costs, and product mix.
Field Solutions
Second quarter 2008 Field Solutions revenue was $90.1 million, up approximately 63 percent compared to revenue of $55.3 million in the second quarter of 2007. Revenue growth was driven primarily by strong demand for agricultural products.
Second quarter 2008 operating income in Field Solutions was $34.8 million, or 38.6 percent of revenue compared to $18.4 million, or 33.3 percent of revenue, in the second quarter of 2007.
Non-GAAP operating income in Field Solutions was $35.0 million, or 38.9 percent of revenue, in the second quarter of 2008 compared to $18.6 million, or 33.6 percent of revenue, in the second quarter of 2007. Operating margin expansion resulted from operating leverage due to increased sales.
Mobile Solutions
Second quarter 2008 Mobile Solutions revenue was $42.3 million, up approximately 3 percent when compared to revenue of $40.9 million in the second quarter of 2007.
Second quarter 2008 operating income in Mobile Solutions was $1.9 million, or 4.6 percent of revenue compared to $2.9 million, or 7.1 percent of revenue, in the second quarter of 2007.
Non-GAAP operating income in Mobile Solutions was $3.1 million, or 7.4 percent of revenue, in the second quarter of 2008 compared to $4.4 million, or 10.8 percent of revenue, in the second quarter of 2007. Operating income was impacted primarily by losses from the field service and direct store delivery products, which are expected to show improvement as a new product platform is rolled out.
Advanced Devices
Second quarter 2008 Advanced Devices revenue was $32.4 million, approximately flat when compared to revenue of $32.7 million in the second quarter of 2007.
Second quarter 2008 operating income in Advanced Devices was $6.6 million, or 20.3 percent of revenue compared to $5.4 million, or 16.5 percent of revenue, in the second quarter of 2007.
Non-GAAP operating income in Advanced Devices was $6.9 million, or 21.3 percent of revenue, in the second quarter of 2008 compared to $5.7 million, or 17.4 percent of revenue, in the second quarter of 2007. Improvements in operating margins were due to product mix.
Stock Repurchase Program
In January, Trimble announced a stock repurchase program for up to $250 million. As part of this program, in the first quarter of 2008, Trimble repurchased approximately 968 thousand shares of Trimble stock at an average purchase price of $26.71. In the second quarter of 2008, Trimble repurchased approximately 287 thousand shares of Trimble stock at an average purchase price of $36.25. Subsequent to the end of the second quarter, as of July 24, 2008, Trimble repurchased 741 thousand shares of Trimble stock at an average purchase price of $33.18.
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 http://investor.trimble.com.
Forward-Looking Guidance
In the third quarter of 2008, Trimble expects revenue to grow 13 to 15 percent compared to the third quarter of 2007, with revenue between $335 million and $340 million. Trimble expects third quarter 2008 GAAP earnings per share between $0.26 and $0.28 and non-GAAP earnings per share between $0.34 and $0.36. Non-GAAP guidance for the third quarter of 2008 excludes the amortization of intangibles expected to be $10.9 million related to previous acquisitions, and the anticipated impact of stock-based compensation expense of $3.8 million. Both GAAP and non-GAAP guidance use a 31 percent tax rate and assume 125.7 million shares outstanding.
Trimble has modified its full-year 2008 guidance incorporating the lower tax rate of 31 percent. Revenue for the full year 2008 is expected to grow 15 to 17 percent. Full-year non-GAAP earnings per share are expected to be $1.54 to $1.59, versus previous guidance of $1.50 to $1.55.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on July 24, 2008 at 1:30 p.m. PT to review its second quarter 2008 results. It will be broadcast live on the Web at http://investor.trimble.com. Investors without Internet access may dial into the call at (800) 528-9198 (U.S.) or (706) 634-6089 (international). A replay of the call will be available for seven days at (800) 642-1687 (U.S.) or ((706) 645-9291 (international) and the pass code is 54071517. The replay will also be available on the Web at the address above.
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 and headquartered in Sunnyvale, Calif., Trimble has a worldwide presence with more than 3,600 employees in over 18 countries.
For more information visit Trimble's Web site at http://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 the revenue, effective tax rate, stock-based compensation, the impact from in-process research and development expense, amortization of purchased intangibles, gross margin and earnings per share estimates for the third quarter and full-year 2008, the impact on operating income for the Company's mobile solutions segment as a new product platform is rolled out, and the potential for the mobile solutions segment to generate significant revenue and profitability in 2009. 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. For example, strong demand for the Company's products may not continue because of a decline in the overall health of the economy and international markets, which may result in reduced capital spending. In addition, the Company's results may be adversely affected if the growth rates and profitability expectations for each of its four segments are not achieved, or its joint ventures and recent acquisitions do not achieve anticipated results, or if the Company is unable to market, manufacture and ship new products. The potential impact of our new mobile solutions product platform and the ability of that segment to generate significant revenue and profitability in 2009 could be adversely affected by any delays in the roll out of the new platform or reduction in capital spending in its target customer base. Any failure to achieve predicted results could negatively impact the Company's revenues, gross margin and other financial results. Whether the Company achieves its guidance for the third quarter and full year 2008 will also depend on a number of other factors, including the 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. Undue reliance should not be placed on any forward-looking statement contained herein. 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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended Jun-27, Jun-29, Jun-27, Jun-29, 2008 2007 2008 2007 Revenue $377,767 $327,732 $733,063 $613,464 Cost of sales 190,668 160,563 371,588 303,165 Gross margin 187,099 167,169 361,475 310,299 Gross margin (%) 49.5% 51.0% 49.3% 50.6% Operating expenses Research and development 39,405 33,867 76,750 65,030 Sales and marketing 51,904 47,546 103,062 89,693 General and administrative 25,289 24,278 47,979 45,920 Restructuring 2,414 333 2,414 3,025 Amortization of purchased intangible assets 5,163 5,195 10,306 9,301 In-process research and development - - - 2,112 Total operating expenses 124,175 111,219 240,511 215,081 Operating income 62,924 55,950 120,964 95,218 Non-operating income, net Interest income 508 593 965 1,836 Interest expense (413) (2,459) (1,175) (3,859) Foreign currency transaction gain (loss), net 1,253 (430) 2,221 (73) Income from joint ventures, net 2,618 2,080 4,633 4,502 Other income (expense), net 153 487 (754) 722 Total non-operating income, net 4,119 271 5,890 3,128 Income before taxes 67,043 56,221 126,854 98,346 Income tax provision 18,444 21,195 38,188 34,637 Net income $48,599 $35,026 $88,666 $63,709 Earnings per share: Basic $0.40 $0.29 $0.73 $0.54 Diluted $0.39 $0.28 $0.71 $0.52 Shares used in calculating earnings per share : Basic 121,523 119,621 121,495 117,535 Diluted 125,712 124,584 125,435 122,539 CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Unaudited Jun-27, Dec-28, 2008 2007 Assets Current assets: Cash and cash equivalents $79,823 $103,202 Accounts receivables, net 267,200 239,884 Other receivables 9,985 10,201 Inventories, net 153,369 143,018 Deferred income taxes 42,257 44,333 Other current assets 17,004 15,661 Total current assets 569,638 556,299 Property and equipment, net 51,615 51,444 Goodwill 713,010 675,850 Other purchased intangible assets, net 186,971 197,777 Other non-current assets 62,598 57,989 Total assets $1,583,832 $1,539,359 Liabilities and Shareholders' Equity Current liabilities: Current portion of long-term debt $137 $126 Accounts payable 73,581 67,589 Accrued compensation and benefits 56,149 55,133 Deferred revenue 59,077 49,416 Accrued warranty expense 11,942 10,806 Income taxes payable 14,060 14,802 Other accrued liabilities 36,333 51,980 Total current liabilities 251,279 249,852 Non-current portion of long-term debt 432 60,564 Non-current deferred revenue 10,719 15,872 Deferred income taxes 59,976 47,917 Other non-current liabilities 52,503 56,128 Total liabilities 374,909 430,333 Commitments and contingencies Shareholders' equity: Common stock 683,274 660,749 Retained earnings 447,806 388,557 Accumulated other comprehensive income 77,843 59,720 Total shareholders' equity 1,208,923 1,109,026 Total liabilities and shareholders' equity $1,583,832 $1,539,359 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Unaudited Six Months Ended Jun-27, Jun-29, 2008 2007 Cash flow from operating activities: Net Income $88,666 $63,709 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 9,274 8,426 Amortization expense 21,811 18,394 Provision for doubtful accounts 119 358 Amortization of debt issuance cost 113 105 Deferred income taxes (2,791) (8,636) Non-cash restructuring expense - 1,725 Stock-based compensation 7,777 7,145 In-process research and development - 2,112 Equity gain from joint ventures (4,633) (4,502) Excess tax benefit for stock-based compensation (5,249) (5,929) Provision for excess and obsolete inventories 3,283 1,941 Other non-cash items 1 139 Add decrease (increase) in assets: Accounts receivables (26,832) (41,832) Other receivables 481 2,968 Inventories (8,997) (11,760) Other current and non- current assets (464) 9,414 Add increase (decrease) in liabilities: Accounts payable 4,637 (6,298) Accrued compensation and benefits (303) 80 Accrued liabilities (597) 3,136 Deferred revenue 3,974 12,132 Income taxes payable 10,093 33,630 Net cash provided by operating activities 100,363 86,457 Cash flows from investing activities: Acquisitions of businesses, net of cash acquired (45,082) (277,743) Acquisition of property and equipment (7,932) (6,270) Dividends received 151 581 Other (14) 378 Net cash used in investing activities (52,877) (283,054) Cash flow from financing activities: Issuance of common stock 15,425 15,761 Excess tax benefit for stock- based compensation 5,249 5,929 Repurchase and retirement of common stock (36,293) - Proceeds from long-term debt and revolving credit lines - 250,000 Payments on long-term debt and revolving credit lines (60,314) (127,517) Other - - Net cash provided by (used in) financing activities (75,933) 144,173 Effect of exchange rate changes on cash and cash equivalents 5,068 (3,437) Net decrease in cash and cash equivalents (23,379) (55,861) Cash and cash equivalents - beginning of period 103,202 129,621 Cash and cash equivalents - end of period $79,823 $73,760 NON-GAAP RECONCILIATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended Jun-27, Jun-29, Jun-27, Jun-29, 2008 2007 2008 2007 REVENUE: $377,767 $327,732 $733,063 $613,464 GROSS MARGIN: GAAP gross margin: $187,099 $167,169 $361,475 $310,299 Restructuring (A) 930 - 930 - Amortization of purchased intangibles (B) 5,755 5,237 11,416 9,026 Stock-based compensation (D) 487 429 980 771 Amortization of acquisition-related inventory step-up (E) - - 183 - Non-GAAP gross margin: $194,271 $172,835 $374,984 $320,096 Non-GAAP gross margin (% of revenue) 51.4% 52.7% 51.2% 52.2% OPERATING EXPENSES: GAAP operating expenses: $124,175 $111,219 $240,511 $215,081 Restructuring (A) (2,414) (333) (2,414) (3,025) Amortization of purchased intangibles (B) (5,163) (5,195) (10,306) (9,301) In-process research and development (C) - - - (2,112) Stock-based compensation (D) (3,308) (3,363) (6,797) (6,374) Non-GAAP operating expenses: $113,290 $102,328 $220,994 $194,269 OPERATING INCOME: GAAP operating income: $62,924 $55,950 $120,964 $95,218 Restructuring (A) 3,344 333 3,344 3,025 Amortization of purchased intangibles (B) 10,918 10,432 21,722 18,327 In-process research and development (C) - - - 2,112 Stock-based compensation (D) 3,795 3,792 7,777 7,145 Amortization of acquisition-related inventory step-up (E) - - 183 - Non-GAAP operating income: $80,981 $70,507 $153,990 $125,827 Non-GAAP operating margin (% of revenue) 21.4% 21.5% 21.0% 20.5% NET INCOME: GAAP net income: $48,599 $35,026 $88,666 $63,709 Restructuring (A) 3,344 333 3,344 3,025 Amortization of purchased intangibles (B) 10,918 10,432 21,722 18,327 In-process research and development (C) - - - 2,112 Stock-based compensation (D) 3,795 3,792 7,777 7,145 Amortization of acquisition-related inventory step-up (E) - - 183 - Income tax effect on non- GAAP adjustments (F) (4,966) (5,489) (9,907) (10,610) Non-GAAP net income: $61,690 $44,094 $111,785 $83,708 DILUTED NET INCOME PER SHARE: GAAP diluted net income per share: $0.39 $0.28 $0.71 $0.52 Non-GAAP diluted net income per share: $0.49 $0.35 $0.89 $0.68 SHARES USED TO COMPUTE DILUTED NET INCOME PER SHARE: GAAP and Non-GAAP shares used to compute net income per share: 125,712 124,584 125,435 122,539 OPERATING LEVERAGE: Increase in non-GAAP operating income $10,474 $28,163 Increase in revenue $50,035 $119,599 Operating leverage (increase in non-GAAP operating income as a % of increase in revenue) 20.9% 23.5% The non-GAAP financial measures included in the table above are non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income and non-GAAP diluted net income per share, which adjust for the following items: expenses related to acquisitions, stock-based compensation expense and restructuring charges. Management uses these non-GAAP measures to assess trends in its business and for budgeting purposes, as many of these excluded items are non-cash. In addition, we believe that the presentation of these non-GAAP financial measures is useful to investors for the reasons associated with each of the adjusting items as described below. (A) Restructuring. The amounts recorded are for employee compensation resulting from reductions in employee headcount in connection with our company restructurings and we believe they are not directly related to the operation of our business. (B) Amortization of purchased intangibles. The amounts recorded as amortization of purchased intangibles arise from prior acquisitions and are non-cash in nature. We exclude these expenses because we believe they are not reflective of ongoing operating results in the period incurred and are not directly related to the operation of our business. Approximately $5,755K and $5,237K of the amortization of purchased intangibles was included in cost of sales for the three months ended June 27, 2008 and June 29, 2007, and approximately $5,163K and $5,195K was reported as a separate line within operating expenses for the three months ended June 27, 2008 and June 29, 2007, respectively. Approximately $11,416K and $9,026K of the amortization of purchased intangibles was included in cost of sales for the six months ended June 27, 2008 and June 29, 2007, and approximately $10,306K and $9,301K was reported as a separate line within operating expenses for the six months ended June 27, 2008 and June 29, 2007, respectively. (C) In-process research and development. The amounts recorded as in-process research and development arise from prior acquisitions and are non-cash in nature. We exclude these expenses because we believe they are not reflective of ongoing operating results in the period incurred and not directly related to the operation of our business. (D) Stock-based Compensation. The amounts consist of expenses for employee stock options and purchase rights under our employee stock purchase plan determined in accordance with SFAS 123(R), which became effective for us on January 1, 2006. We exclude these stock-based compensation expenses because they are non-cash expenses that we believe are not reflective of ongoing operation results. For the three and six months ended June 27, 2008 and June 29, 2007, stock-based compensation was allocated as follows: Three Months Ended Six Months Ended Jun-27, Jun-29, Jun-27, Jun-29, 2008 2007 2008 2007 Cost of sales $487 $429 $980 $771 Research and development 916 1,022 1,833 1,751 Sales and Marketing 931 974 1,961 1,741 General and administrative 1,461 1,367 3,003 2,882 $3,795 $3,792 $7,777 $7,145 (E) Amortization of acquisition-related inventory step-up. The purchase accounting entries associated with our business acquisitions require us to record inventory at its fair value, which is sometimes greater than the previous book value of the inventory. The increase in inventory value is amortized to cost of sales over the period that the related product is sold. We exclude inventory step-up amortization from our non-GAAP measures because we do not believe it is reflective of our ongoing operating results, and it is not used by management to assess the core profitability of our business operations. (F) Income tax effect on non-GAAP adjustments. This amounts adjusts the provision for income taxes to reflect the effect of the non-GAAP adjustments on non-GAAP operating income. NON-GAAP RECONCILIATION REPORTING SEGMENTS (Dollars in thousands) (Unaudited) Reporting Segments Engineering and Field Mobile Advanced Construction Solutions Solutions Devices THREE MONTHS ENDED JUNE 27, 2008: Revenue $213,019 $90,070 $42,285 $32,393 GAAP operating income before corporate allocations: $45,161 $34,808 $1,942 $6,578 Stock-based compensation (G) 1,076 199 1,187 315 Non-GAAP operating income before corporate allocations: $46,237 $35,007 $3,129 $6,893 Non-GAAP operating margin (% of segment external net revenues) 21.7% 38.9% 7.4% 21.3% THREE MONTHS ENDED JUNE 29, 2007: Revenue $198,853 $55,273 $40,927 $32,679 GAAP operating income before corporate allocations: $52,371 $18,398 $2,906 $5,384 Stock-based compensation (G) 806 164 1,527 303 Non-GAAP operating income before corporate allocations: $53,177 $18,562 $4,433 $5,687 Non-GAAP operating margin (% of segment external net revenues) 26.7% 33.6% 10.8% 17.4% SIX MONTHS ENDED JUNE 27, 2008: Revenue $407,199 $178,107 $86,296 $61,461 GAAP operating income before corporate allocations: $82,115 $69,903 $4,395 $11,270 Stock-based compensation (G) 2,047 397 2,595 642 Non-GAAP operating income before corporate allocations: $84,162 $70,300 $6,990 $11,912 Non-GAAP operating margin (% of segment external net revenues) 20.7% 39.5% 8.1% 19.4% SIX MONTHS ENDED JUNE 29, 2007: Revenue $374,457 $106,235 $70,784 $61,988 GAAP operating income before corporate allocations: $94,535 $35,026 $3,923 $8,727 Stock-based compensation (G) 1,678 354 2,269 667 Non-GAAP operating income before corporate allocations: $96,213 $35,380 $6,192 $9,394 Non-GAAP operating margin (% of segment external net revenues) 25.7% 33.3% 8.7% 15.2% (G) Stock-based Compensation. The amounts consist of expenses for employee stock options and purchase rights under our employee stock purchase plan determined in accordance with SFAS 123(R), which became effective for us on January 1, 2006. We discuss our operating results by segment with and with-out stock-based compensation expense, as we believe it is useful to investors to understand the impact of the application of SFAS 123(R) to our results of operations. Stock-based compensation not allocated to the reportable segments was approximately $1,018K and $992K for the three months ended June 27, 2008 and June 29, 2007, respectively and $2,096K and $2,177K for the six months ended June 27, 2008 and June 29, 2007, respectively.
Web site:
http://www.trimble.com/
http://investor.trimble.com/