- First Quarter 2015 Revenue $582.6 Million, Down 4 Percent
(PRNewswire) — Trimble (NASDAQ: TRMB) today announced financial results for the first quarter of 2015.
First Quarter 2015 Financial Summary
First quarter 2015 revenue of $582.6 million was down 4 percent as compared to the first quarter of 2014. Engineering and Construction revenue was $299.3 million, down 3 percent. Field Solutions revenue was $115.3 million, down 17 percent. Mobile Solutions revenue was $128.2 million, up 8 percent. Advanced Devices revenue was $39.8 million, up 3 percent. Foreign currency translation unfavorably impacted company revenue by approximately 4 percent as compared to the first quarter of 2014.
GAAP operating income was $39.5 million, down 48 percent as compared to the first quarter of 2014. GAAP operating margin was 6.8 percent of revenue as compared to 12.5 percent of revenue in the first quarter of 2014.
GAAP net income was $34.1 million, down 50 percent as compared to the first quarter of 2014. Diluted GAAP earnings per share were $0.13 as compared to diluted GAAP earnings per share of $0.26 in the first quarter of 2014.
Non-GAAP operating income of $96.8 million was down 24 percent as compared to the first quarter of 2014. Non-GAAP operating margin was 16.6 percent of revenue as compared to 21.2 percent of revenue in the first quarter of 2014.
Non-GAAP net income of $72.7 million was down 29 percent as compared to the first quarter of 2014. Diluted non-GAAP earnings per share were $0.28 as compared to diluted non-GAAP earnings per share of $0.39 in the first quarter of 2014.
The GAAP tax rate for the quarter was 23 percent and the non-GAAP tax rate was 24 percent.
Operating cash flow in the quarter was $107.2 million, up 29 percent as compared to the first quarter of 2014.
"We continued to face the same headwinds we encountered in late 2014, primarily associated with the agriculture market, the fallout from the oil price decline, and the strong dollar," said Steven W. Berglund, Trimble's president and chief executive officer. "On the positive side, we had several meaningful competitive wins that validate our strategy in construction and transportation. We continue to see a challenge in the first half of 2015 with a return to growth and improved margins in the second half."
Forward Looking Guidance
For the second quarter of 2015 Trimble expects revenue to be between $570 million and $600 million with GAAP earnings per share of $0.04 to $0.12 and non-GAAP earnings per share of $0.23 to $0.30. Non-GAAP guidance excludes the amortization of intangibles of $40 million related to previous acquisitions, anticipated acquisition costs of $4 million, the anticipated impact of stock-based compensation expense of $13 million, and $5 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 28 percent and non-GAAP guidance assumes a tax rate of 24 percent. Both GAAP and non-GAAP earnings per share assume approximately 262 million shares outstanding.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on April 30, 2015 at 1:30 p.m. PT to review its first quarter 2015 results. It will be broadcast live on the Web at http://investor.trimble.com. Investors without Internet access may dial into the call at (800) 528-9198 (U.S.) or (702) 928-6633 (international). The pass code is 30863036. The replay will also be available on the Web at the address above.
Use of Non-GAAP Financial Information
To help our investors understand our past financial performance and our future results, as well as our performance relative to competitors, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. These non-GAAP measures can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, and to make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Further, we believe some of our investors track our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Core operating performance excludes items that are non-cash, not expected to recur or not reflective of ongoing financial results. Management also believes that looking at our core operating performance provides a supplemental way to provide consistency in period to period comparisons.
The specific non-GAAP measures, which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why these non-GAAP measures provide useful information to investors regarding our financial condition and results of operations and why management chose to exclude selected items can be found at the end of this release. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to this earnings release. Additional financial information about our use of non-GAAP results can be found on the investor relations page of our Web site at http://investor.trimble.com.
About Trimble
Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location—including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies, such as GPS, lasers and optics, Trimble solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1978, Trimble is headquartered in Sunnyvale, Calif.
For more information visit: www.trimble.com.
Safe Harbor
Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations for future financial market and economic conditions, the impact of acquisitions, the ability to deliver revenue, earnings per share and other financial projections that Trimble has guided for the second quarter and second half of 2015, the expected tax rate, the anticipated impact of stock-based compensation expense, the amortization of intangibles related to previous acquisitions and the anticipated number of shares outstanding and interest costs. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, or integrate new acquisitions. The Company's results would also be negatively impacted by weakening in the macro environment. Any failure to achieve predicted results could negatively impact the Company's revenues, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10- K, such as changes in economic conditions, further worsening in the agricultural market, critical part supply chain shortages, possible write-offs of goodwill, and regulatory proceedings affecting GPS. Undue reliance should not be placed on any forward-looking statement contained herein, especially in light of greater uncertainty than normal in the economy in general. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.
