December 16, 2002
Garmin® Revises Guidance Upward for Fourth Quarter
and Full-Year 2002, Announces Production and Facility Expansions
CAYMAN ISLANDS, December 16, 2002 / PR Newswire/ — Garmin
Ltd. (Nasdaq: GRMN) today revised its fourth quarter and full-year
2002 guidance upward due to continued strong consumer and aviation
product sales during the fourth quarter. The company also announced
expansion activities for both its Taiwan and Kansas facilities.
Revised Fourth Quarter and Fiscal Year 2002
"Sales across our business have been strong throughout
the fourth quarter, exceeding our earlier expectations. While
we have not yet completed the fourth quarter, given these favorable
trends, we are providing updated guidance," said Kevin Rauckman,
chief financial officer of Garmin Ltd. "Strong demand for
consumer products during the holidays, as well as the shipment
of significant quantities of backordered GTX™ 330 and GDL 49 aviation
products have pushed revenues higher than anticipated."
Revenues for the fourth quarter 2002 are now expected to be
in the $132-$135 million range, up significantly from the earlier
estimate of $106-$110 million. Full-year 2002 revenue guidance
in turn rises to a range of $464-$467 million. The company anticipates
providing 2003 revenue and EPS guidance during the fourth quarter
earnings call in mid-February.
Production and Facility Expansion in 2003
To support continued growth across the business, Garmin Ltd.
also announces several initiatives. In early 2003, two new surface-mount
technology lines will be purchased for the production facility
in Taiwan in order to create extra capacity for the company’s
growing consumer business.
In addition, Garmin is in the early stages of design for an
expansion of the Olathe, Kan. facility to be completed during
2004. This expansion will include additional floor space to support
Garmin's growing research and development needs, new call
center associates, additional warehouse facilities, and other
Also, Garmin has purchased and begun implementation of Oracle's
E-Business suite, a fully integrated enterprise suite of business
applications and supporting technologies, to upgrade its existing
MRPII system. The new Oracle ERP (Enterprise Resource Planning)
system will provide improved integration among the major Garmin
business entities in Taiwan, Europe, and the United States, and
enable the company to achieve a higher level of efficiency. The
system will be implemented in phases over the next couple of years.
Through its operating subsidiaries, Garmin Ltd. designs, manufactures,
and markets navigation, communications and information devices,
most of which are enabled by GPS technology. Garmin is a leader
in the general aviation and consumer markets and its products
serve aviation, marine, general recreation, automotive, wireless
and OEM applications. Garmin Ltd. is incorporated in the Cayman
Islands, and its principal subsidiaries are located in the United
States, Taiwan and the United Kingdom. For more information, visit
Garmin's Investor Relations site at www.garmin.com
or contact the Investor Relations department at 913-397-8200.