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May 01, 2001

Garmin® Reports Record First Quarter Revenue and Net Income

CAYMAN ISLANDS, May 1 / PRNewswire / — Garmin Ltd. (Nasdaq: GRMN) today announced record revenue of $85.5 million in its first fiscal quarter ended March 31, 2001 — up 12 percent from the $76.6 million generated in the year-ago quarter. Net income increased 16 percent for the first quarter of fiscal 2001 to $23.8 million, or $0.22 per share, compared to $20.6 million, or $0.19 per share, on a proforma basis in the year-ago quarter.

First quarter 2001 net income included a $1.1 million foreign currency loss as a result of a weaker U.S. dollar compared to the New Taiwan dollar. Excluding the foreign currency loss, EPS for the quarter was $0.23.

Revenue growth was favorable across both business segments during the first quarter as Consumer revenue totaled $58.5 million — a 17 percent growth compared to the first quarter of 2000. Aviation revenue totaled $27.0 million — a 2 percent growth compared to the year-ago quarter. Total units sold for the quarter increased to 320,000 from 263,000 in 2000 — representing an increase of 22 percent.

"We are pleased with our results for the first quarter," said Gary Burrell, co-CEO and co-chairman of Garmin Ltd. "Results were strong across both consumer and aviation segments. Our GPS-enabled products continued to sell well in the first quarter, despite the current economic environment. We also have been very successful in expanding our R&D capability during the quarter."

Revenue growth increased across all regions during the first quarter of fiscal 2001 when compared to the year-ago quarter:

  • U.S. revenue was $60.8 million compared to $57.0 million, up 7 percent.
  • Europe revenue was $20.8 million compared to $16.7 million, up 25 percent.
  • Asia revenue was $3.9 million compared to $2.9 million, up 34 percent.

"We are excited about the acceptance of our seven new products that were introduced in the first quarter alone. We are especially pleased with the positive response to the eTrex® series and the turn-by-turn, voice-prompted StreetPilot® III," said Dr. Min Kao, co-CEO and co-chairman of Garmin Ltd. "We are looking forward to the second quarter where we anticipate the introduction of 10 additional products to our marine portable product line, saltwater fishfinders and fixed-mount chartplotters with superior new cartography."

"The second quarter has traditionally been one of our stronger quarters," said Kevin Rauckman, chief financial officer of Garmin Ltd. "We expect the second quarter to be strong due to our scheduled new product introductions. As we continue to retain our leadership position in both the aviation and marine markets, we expect to achieve an eleventh year of continuous revenue growth and high profitability."

Earnings Call Information

The information for Garmin Ltd.'s earnings call is as follows:

When: Wednesday, May 2, 2001 at 11:00 a.m. Eastern

Where: event calendar

How: Simply log on to the web at the address above or call to listen in at 800-659-1025.


A phone recording will be available for 24 hours following the earnings call and can be accessed by dialing 800-252-6030 utilizing the access code 8486845. An archive of the live webcast will be available until May 16, 2001 on the Garmin website. To access the replay, click on the Investor Relations link and click over to the Events Calendar page.

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding the company’s future financial position, revenues, earnings, plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning risk factors that could affect Garmin's actual results is contained in the Annual Report on Form 10-K for the year ended December 30, 2000 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin's Form 10-K can be downloaded from the financial reports page.

Through its operating subsidiaries, Garmin Ltd. designs and manufactures navigation, communication and information electronics. The company's primary markets are aviation, marine, outdoor recreation, automotive, wireless and OEM. The headquarters of Garmin Ltd. is located in Grand Cayman, Cayman Islands, and its principal subsidiaries maintain offices in the United States, Taiwan and United Kingdom. For more information, visit the investor relations site of Garmin Ltd. or contact the Investor Relations department at 913-397-8200. eTrex and StreetPilot are registered trademarks owned by Garmin Ltd. or its subsidiaries.


Garmin Ltd. And Subsidiaries

Condensed Consolidated Statements of Income (In thousands, except per share information)

  Three Months Ended
March 31 , 2001 March 25 , 2000
Net sales $85,534 $76,576
Cost of goods sold 39,616 34,663
Gross profit 45,918 41,913
Selling, general, and administrative expense 9,259 7,091
Research and development expense 6,296 4,706
  15,555 11,797
Operating income 30,363 30,116
Other income (expense) (A) 1,538 (3,152)
Income before income taxes 31,901 26,964
Income tax provision 8,102 6,365
Net income $23,799 $20,599

Net income per share:

$ 0.22
$ 0.22

$ 0.21
$ 0.21
Weighted average common shares: outstanding:



(A) Includes $1.1 million of foreign currency loss in Q1 2001 and a $3.7 million loss in Q1 2000.



Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)

Assets Year Ended
March 31 , 2001 Dec. 30, 2000

Current assets:
Cash and cash equivalents
Accounts receivable
Deferred income taxes
Prepaid expenses


Total current assets 402,846 388,021
Property and equipment, net 68,083 64,704
Restricted cash 2,644 5,848
Other assets 5,312 4,774
Total assets $478,885 $463,347
Liabilities and Stockholder's Equity

Current liabilities:
Accounts payable
Salaries and benefits payable
Warranty reserve
Income taxes payable
Other accrued liabilities


Total current liabilities 36,287 42,041
Long-term debt 43,983 46,359
Deferred income taxes 8,637 9,616
Other liabilities --- 92
Stockholder's equity:
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss


Total stockholder's equity 389,978 365,239
Total liabilities and stockholder's equity $478,885 $463,347


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