TRIMBLE
REPORTING SEGMENTS
(Dollars in thousands)
(Unaudited)
Reporting Segments
------------------
Engineering
and Field Mobile Advanced
Construction Solutions Solutions Devices
------------ --------- --------- -------
THREE MONTHS ENDED
JULY 3, 2009:
Revenue $147,240 $79,787 $39,065 $23,971
Operating income before
corporate allocations: $19,160 $30,148 $3,648 $4,833
Operating margin (% of
segment external net
revenues) 13.0% 37.8% 9.3% 20.2%
THREE MONTHS ENDED
JUNE 27, 2008:
Revenue $213,019 $90,070 $42,285 $32,393
Operating income before
corporate allocations: $45,161 $34,808 $1,942 $6,578
Operating margin (% of
segment external net
revenues) 21.2% 38.6% 4.6% 20.3%
SIX MONTHS ENDED
JULY 3, 2009:
Revenue $274,891 $178,944 $77,353 $47,829
Operating income before
corporate allocations: $21,669 $72,351 $6,796 $9,145
Operating margin (% of
segment external net
revenues) 7.9% 40.4% 8.8% 19.1%
SIX MONTHS ENDED
JUNE 27, 2008:
Revenue $407,199 $178,107 $86,296 $61,461
Operating income before
corporate allocations: $82,115 $69,903 $4,395 $11,270
Operating margin (% of
segment external net
revenues) 20.2% 39.2% 5.1% 18.3%
TRIMBLE
GAAP TO NON-GAAP RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
------------------
Jul-3, Jun-27,
2009 2008
---- ----
Dollar % of Dollar % of
Amount Revenue Amount Revenue
------ ------- ------ -------
GROSS MARGIN:
GAAP gross margin: $142,800 49.2% $187,099 49.5%
Restructuring ( A ) 2,198 0.7% 930 0.3%
Amortization of
purchased
intangibles ( B ) 5,475 1.9% 5,755 1.5%
Stock-based
compensation ( C ) 477 0.2% 487 0.1%
Amortization of
acquisition-related
inventory step-up ( D ) 247 0.1% - 0.0%
--- --- --- ---
Non-GAAP gross
margin: $151,197 52.1% $194,271 51.4%
-------- ---- -------- ----
OPERATING EXPENSES:
GAAP operating expenses: $114,074 $124,175
Restructuring ( A ) (1,302) (2,414)
Amortization of
purchased
intangibles ( B ) (7,530) (5,163)
Stock-based
compensation ( C ) (4,077) (3,308)
Non-recurring
acquisition costs ( E ) (2,340) -
------ ------
Non-GAAP operating
expenses: $98,825 $113,290
------- --------
OPERATING INCOME:
GAAP operating
income: $28,726 9.9% $62,924 16.7%
Restructuring ( A ) 3,500 1.2% 3,344 0.8%
Amortization of
purchased
intangibles ( B ) 13,005 4.5% 10,918 2.9%
Stock-based
compensation ( C ) 4,554 1.6% 3,795 1.0%
Amortization of
acquisition-
related
inventory step-up ( D ) 247 0.1% - 0.0%
Non-recurring
acquisition
costs ( E ) 2,340 0.8% - 0.0%
----- --- ----- ---
Non-GAAP operating
income: $52,372 18.1% $80,981 21.4%
------- ---- ------- ----
NET INCOME:
GAAP net income
attributable to Trimble
Navigation Ltd. $20,857 $48,599
Restructuring ( A ) 3,500 3,344
Amortization of
purchased
intangibles ( B ) 13,005 10,918
Stock-based
compensation ( C ) 4,554 3,795
Amortization of
acquisition-
related inventory
step-up ( D ) 247 -
Non-recurring
acquisition costs ( E ) 1,954 -
Income tax effect
on non-GAAP
adjustments ( F ) (6,741) (4,966)
------ ------
Non-GAAP net income
attributable to
Trimble
Navigation Ltd. $37,376 $61,690
------- -------
DILUTED NET INCOME PER SHARE:
GAAP diluted net
income per share
attributable to
Trimble Navigation Ltd. $0.17 $0.39
Restructuring ( A ) 0.03 0.02
Amortization of
purchased
intangibles ( B ) 0.11 0.09
Stock-based
compensation ( C ) 0.04 0.03
Amortization of
acquisition-
related inventory
step-up ( D ) - -
Non-recurring
acquisition costs ( E ) 0.02 -
Income tax effect
on non-GAAP
adjustments ( F ) (0.06) (0.04)
----- -----
Non-GAAP diluted net
income per share
attributable
to Trimble
Navigation Ltd. $0.31 $0.49
----- -----
OPERATING LEVERAGE:
Increase (decrease)
in non-GAAP operating
income $(28,609)
Increase (decrease)
in revenue $(87,704)
Operating leverage
(increase in non-GAAP
operating income as
a % of increase
in revenue) N/A
% of % of
Segment Segment
SEGMENT OPERATING INCOME: Revenue Revenue
Engineering and Construction
GAAP operating
income before
corporate
allocations: $19,160 13.0% $45,161 21.2%
Stock-based
compensation ( G ) 1,431 1.0% 1,076 0.5%
----- --- ----- ---
Non-GAAP operating
income before
corporate allocations: $20,591 14.0% $46,237 21.7%
------- ---- ------- ----
Field Solutions
GAAP operating income
before corporate
allocations: $30,148 37.8% $34,808 38.6%
Stock-based
compensation ( G ) 260 0.3% 199 0.3%
--- --- --- ---
Non-GAAP operating
income before
corporate
allocations: $30,408 38.1% $35,007 38.9%
------- ---- ------- ----
Mobile Solutions
GAAP operating income
before corporate
allocations: $3,648 9.3% $1,942 4.6%
Stock-based
compensation ( G ) 1,103 2.9% 1,187 2.8%
----- --- ----- ---
Non-GAAP operating
income before
corporate
allocations: $4,751 12.2% $3,129 7.4%
------ ---- ------ ---
Advanced Devices
GAAP operating income
before corporate
allocations: $4,833 20.2% $6,578 20.3%
Stock-based
compensation ( G ) 346 1.4% 315 1.0%
--- --- --- ---
Non-GAAP operating
income before
corporate
allocations: $5,179 21.6% $6,893 21.3%
------ ---- ------ ----
Six Months Ended
----------------
Jul-3, Jun-27,
2009 2008
---- ----
% of % of
Revenue Revenue
------- -------
GROSS MARGIN:
GAAP gross margin: $286,758 49.5% $361,475 49.3%
Restructuring ( A ) 3,063 0.5% 930 0.1%
Amortization of
purchased
intangibles ( B ) 10,760 1.9% 11,416 1.6%
Stock-based
compensation ( C ) 915 0.2% 980 0.2%
Amortization of
acquisition-
related inventory
step-up ( D ) 470 0.1% 183 0.0%
--- --- --- ---
Non-GAAP gross margin: $301,966 52.2% $374,984 51.2%
-------- ---- -------- ----
OPERATING EXPENSES:
GAAP operating expenses: $233,780 $240,511
Restructuring ( A ) (4,925) (2,414)
Amortization of
purchased
intangibles ( B ) (14,499) (10,306)
Stock-based
compensation ( C ) (7,865) (6,797)
Non-recurring
acquisition
costs ( E ) (2,805) -
------ -----
Non-GAAP operating
expenses: $203,686 $220,994
-------- --------
OPERATING INCOME:
GAAP operating income: $52,978 9.1% $120,964 16.5%
Restructuring ( A ) 7,988 1.4% 3,344 0.4%
Amortization of
purchased
intangibles ( B ) 25,259 4.4% 21,722 3.0%
Stock-based
compensation ( C ) 8,780 1.5% 7,777 1.1%
Amortization of
acquisition-
related inventory
step-up ( D ) 470 0.1% 183 0.0%
Non-recurring
acquisition costs ( E ) 2,805 0.5% - 0.0%
----- --- --- ---
Non-GAAP operating
income: $98,280 17.0% $153,990 21.0%
------- ---- -------- ----
NET INCOME:
GAAP net income
attributable to
Trimble
Navigation Ltd. $38,322 $88,666
Restructuring ( A ) 7,988 3,344
Amortization of
purchased
intangibles ( B ) 25,259 21,722
Stock-based
compensation ( C ) 8,780 7,777
Amortization of
acquisition-
related inventory
step-up ( D ) 470 183
Non-recurring
acquisition costs ( E ) 2,419 -
Income tax effect
on non-GAAP
adjustments ( F ) (12,155) (9,907)
------- ------
Non-GAAP net income
attributable to
Trimble
Navigation Ltd. $71,083 $111,785
------- --------
DILUTED NET INCOME PER SHARE:
GAAP diluted net
income per share
attributable to
Trimble Navigation
Ltd. $0.32 $0.71
Restructuring ( A ) 0.07 0.03
Amortization of
purchased
intangibles ( B ) 0.21 0.17
Stock-based
compensation ( C ) 0.07 0.06
Amortization of
acquisition-
related inventory
step-up ( D ) - -
Non-recurring
acquisition costs ( E ) 0.02 -
Income tax effect
on non-GAAP
adjustments ( F ) (0.10) (0.08)
----- -----
Non-GAAP diluted
net income per
share attributable
to Trimble
Navigation Ltd. $0.59 $0.89
----- -----
OPERATING LEVERAGE:
Increase (decrease)
in non-GAAP
operating income $(55,710)
Increase (decrease)
in revenue $(154,046)
Operating leverage
(increase in non-GAAP
operating income as
a % of increase
in revenue) N/A
% of % of
Segment Segment
Revenue Revenue
SEGMENT OPERATING INCOME:
Engineering and Construction
GAAP operating income
before corporate
allocations: $21,669 7.9% $82,115 20.2%
Stock-based
compensation ( G ) 2,739 1.0% 2,047 0.5%
----- --- ----- ---
Non-GAAP operating
income before
corporate
allocations: $24,408 8.9% $84,162 20.7%
------- --- ------- ----
Field Solutions
GAAP operating
income before
corporate allocations: $72,351 40.4% $69,903 39.2%
Stock-based
compensation ( G ) 482 0.3% 397 0.3%
--- --- --- ---
Non-GAAP operating
income before
corporate
allocations: $72,833 40.7% $70,300 39.5%
------- ---- ------- ----
Mobile Solutions
GAAP operating
income before
corporate
allocations: $6,796 8.8% $4,395 5.1%
Stock-based
compensation ( G ) 2,247 2.9% 2,595 3.0%
----- --- ----- ---
Non-GAAP operating
income before
corporate
allocations: $9,043 11.7% $6,990 8.1%
------ ---- ------ ---
Advanced Devices
GAAP operating income
before
corporate
allocations: $9,145 19.1% $11,270 18.3%
Stock-based
compensation ( G ) 671 1.4% 642 1.1%
--- --- --- ---
Non-GAAP operating
income before
corporate
allocations: $9,816 20.5% $11,912 19.4%
------ ---- ------- ----
