Financial overview from Kevin Rauckman, Chief Financial Officer:

“Our strategic focus on a diversified business model is serving us well,” said Kevin Rauckman, Chief Financial Officer of Garmin Ltd. “Gross margin for the overall business in the third quarter improved both sequentially and year-over-year to 52%, contributed by an improved product mix and lower than anticipated deferral of revenues associated with our bundled products in the automotive/mobile segment.

Operating margin was 22% in the quarter, a sequential improvement from 20% in the second quarter. On a year-over-year basis, total operating expenses increased by $20 million. Advertising expense decreased by $6 million as cooperative advertising and media spending were reduced in the automotive/mobile segment. Research and development increased by $3 million due to our recent acquisitions. Other selling, general and administrative expenses increased by $22 million driven primarily by the acquisitions.

We generated $174 million of free cash flow in the third quarter of 2011. We had a cash and marketable securities balance of over $2.4 billion at the end of the quarter after payment of approximately $155 million for the June 30 dividend installment.”

2011 Full-Year Guidance

We now expect revenue of approximately $2.6 billion. Our EPS range has also increased due to the improved margin outlook for the full year. These factors and an anticipated effective tax rate of approximately 12% result in a forecasted 2011 pro forma EPS of $2.30 - $2.40.

Non-GAAP Measures

Pro Forma net income (earnings) per share

Management believes that net income per share before the impact of foreign currency translation gain or loss and other one-time items is an important measure. The majority of the Company’s consolidated foreign currency gain or loss results from transactions involving the Euro, the British Pound Sterling and the Taiwan Dollar and from the exchange rate impact of the significant cash and marketable securities, receivables and payables held in U.S. dollars at the end of each reporting period by the Company’s various non U.S. subsidiaries. Such gain or loss is required under GAAP because the functional currency of the subsidiaries differs from the currency in which various assets and liabilities are held. However, there is minimal cash impact from such foreign currency gain or loss. Accordingly, earnings per share before the impact of foreign currency translation gain or loss allow an assessment of the Company’s operating performance before the non-cash impact of the position of the U.S. Dollar versus other currencies, which permits a consistent comparison of results between periods.