Garmin Reports Record Fourth Quarter and Fiscal Year

Garmin Ltd. announced record revenue and earnings for its fourth fiscal quarter ended Dec. 28, 2002, from its headquarters in the Cayman Islands.

"Fiscal 2002 has been a remarkable year for us. We are pleased to report that, in the face of weak overall consumer spending, demand for our products remains strong," said Dr. Min Kao, CEO of Garmin Ltd. "Overall revenue grew 26 percent, primarily spurred by growth in our consumer segment. This segment recorded a 46 percent growth in revenues during this quarter, and 33.2 percent during 2002, with strength across all of our consumer product lines. Additionally, during the fourth quarter we experienced a 80.6 percent growth in EPS when excluding the effects of foreign currency from the prior year quarter. Including effects of foreign currency, the fourth quarter EPS growth rate was 62.2 percent. Net income for the fourth quarter increased to $45.5 million, compared to $28 million in the prior year. Net foreign currency gains and losses were in total insignificant in 2002, and had no impact on EPS... New products have been enthusiastically received across the board. Consumer awareness of the utility of GPS navigation continues to grow, we have experienced continued growth in our core markets as a result."

Fourth Quarter 2002

Revenue for the quarter increased 43.7 percent to $133.7 million from $93.0 million in the year-ago quarter. Net income increased to $45.5 million, compared to $28 million or $0.26 diluted earnings per share in the year-ago quarter... Excluding the effects of foreign currency, diluted EPS for the quarter was $0.42 compared to $0.23 in the year-ago quarter.  Aviation revenue totaled $31.7 million -- a 36.7 percent increase compared to the year-ago quarter. Total units sold for the quarter increased to 478,000 from 338,000 -- representing an increase of 41.4 percent.

FMI: www.garmin.com