“Solid third quarter”
Dr. Min Kao, Chairman and CEO said: “Garmin experienced a solid third quarter. Our continued strong growth in the automotive/mobile segment demonstrated that our products are well-positioned to take advantage of the growing interest in portable navigation devices. Independent market research indicates we have maintained a strong leadership position in North America with approximately fifty percent PND market share”. “In Europe Garmin gained over 20% PND market share”, added Garmin’s COO Cliff Pemble.
All geographic areas experienced significant growth: North America revenue was $454 million compared to $265 million, up 71%; Europe revenue was $227 million compared to $120 million, up 89%; Asia revenue was $48 million compared to $23 million, up 109%.
Revenue from automotive/mobile segment is now 71% of total revenues and operating margin are 28% for this segment. The PND product mix has been around one third low end products (Nuvi 200 and Nuvi 200W), two third mid range and high end for the quarter; it was about fifty percent each in the second quarter this year and is expected to possibly be 75% low end products during the last quarter due to the holiday season.
Last quarter Garmin was head to head with TomTom in this segment, but for this quarter TomTom generated a revenue of €427 million ($617 million) against $519 million for Garmin’s Automotive/Mobile segment (the dollar/Euro exchange rate playing obviously against Garmin).
In line with its record results for the quarter, Garmin as updated its guidance for the full year. Now the company anticipates overall revenue to exceed $2.9 billion in 2007, and earnings per share to exceed $3.40. Segment revenue growth rates for automotive/mobile, aviation, marine, and outdoor/fitness segments are expected to be 90%, 30%, 20%, and 10%, respectively and operating margins to be approximately 27% for the full year 2007.