Sunnyvale, California, USA, 25 January 2007 – Trimble has announced results for its fourth quarter and fiscal year 2006, ended December 29, 2006. Revenue for the fourth quarter of 2006 was $234.1 million, up 25 percent from revenue of $186.8 million in the fourth quarter of 2005. Fiscal 2006 revenue was $940.2 million, up 21 percent when compared to fiscal 2005 revenue of $774.9 million.
Operating income for the fourth quarter of 2006 was $27.3 million, up 19 percent from the fourth quarter of 2005. Operating income for fiscal 2006 was $135.4 million, up 8 percent from fiscal 2005. For year-over-year comparisons it should be noted that the impact of stock-based compensation expense resulting from the adoption of FAS 123(R) was $3.1 million in the fourth quarter of 2006 and $12.6 million for fiscal 2006.
The net impact of transactions with the Caterpillar Trimble Control Technologies (CTCT) joint venture, which were included in non-operating results in 2005, reduced operating results by $3.1 million in the quarter and by $18.2 million for the year. In addition, amortization of purchased intangibles and purchased in-process research and development expense increased by $2.4 million in the fourth quarter of 2006 compared to the fourth quarter of 2005 and by $7.0 million for fiscal 2006 compared to fiscal 2005, due to acquisitions. Adjusting for the above factors, operating income in the fourth quarter of 2006 was up 51 percent compared to the fourth quarter of 2005 and up 36 percent for fiscal 2006, compared to fiscal 2005.
Net income for the fourth quarter of 2006 was $24.0 million, up 3 percent when compared to net income of $23.4 million in the fourth quarter of 2005. Net income for fiscal 2006 was $103.7 million, up 22 percent compared to fiscal 2005. Earnings per share for the fourth quarter of 2006 were $0.41, flat compared to earnings per share of $0.41 in the fourth quarter of 2005. Earnings per share for fiscal 2006 were $1.79, up approximately 20 percent compared to fiscal 2005.
Earnings per share in the fourth quarter of 2006 were negatively impacted by approximately $0.04 due to the adoption of FAS 123(R) and by approximately $0.06 due to higher amortization of intangibles and in-process research and development. Earnings per share for fiscal 2006 were negatively impacted by $0.15 due to FAS 123(R) and by $0.18 due to higher amortization of intangibles and purchased in-process research and development expense. It should also be noted that net income in the fourth quarter of 2005 was favorably impacted by the recognition of a deferred gain of $9.3 million related to the CTCT joint venture.
Adjusting for the impact of FAS 123(R) and acquisition-related expenses, non-GAAP net income for the fourth quarter of 2006 was $30.1 million, up 85 percent compared to non-GAAP net income of $16.2 million in the fourth quarter of fiscal 2005. Using the same adjustments, non-GAAP net income for fiscal 2006 was $123.0 million, up 51 percent compared to fiscal 2005. Non-GAAP net income in the fourth quarter of 2006 benefited from a lower tax rate of 25 percent driven by a research and development tax credit and the favorable resolution of an international tax audit.
Non-GAAP earnings per share for the fourth quarter of 2006 were $0.51, up approximately 77 percent from non-GAAP earnings per share of $0.29 in the fourth quarter of 2005. Non-GAAP earnings per share for fiscal 2006 were $2.12, up approximately 48 percent compared to fiscal 2005. GAAP and non-GAAP earnings per share for the fourth quarter and fiscal 2006 were calculated on a diluted basis using approximately 58.6 million shares and 58 million shares, respectively.
“Trimble’s growth in 2006 demonstrated successful execution across our segments, particularly in Engineering and Construction and Mobile Solutions. It is encouraging to see our strategic focus on Mobile Solutions beginning to have a significant impact on results,” said Steven W. Berglund, Trimble’s President and CEO. “Early in 2007 it appears market conditions remain steady. Our 2007 results will be determined by our success with initiatives to further penetrate our markets, integrate acquisitions, and establish new standards of customer satisfaction.”
– About Trimble
Founded in 1978 and headquartered in Sunnyvale, Calif., Trimble has a worldwide presence with more than 2,800 employees in over 18 countries. For more information Trimble’s Web site at www.trimble.com.
