Garmin Reports Record 2nd-Quarter Revenues
By Steve Smith and Amy Gilroy -- TWICE, 8/4/2008
CAYMAN ISLANDS — Garmin reported double-digit revenue gains in its second quarter, with sales strength practically across the board.
Total revenue for the second quarter, ended June 28, was $912 million, up 23 percent from last year's second quarter. Net income per share was up 21 percent, compared with the same time last year, reaching $256.1 million.
The portable navigation device maker said revenue strength in the automotive/mobile and outdoor/fitness segments helped drive its business during the quarter.
Automotive/mobile revenue increased 24 percent to $632 million compared with last year, and outdoor/fitness revenue was up 54 percent to $119 million in the quarter. Aviation segment revenue increased 15 percent to $90 million, while the marine segment was down 11 percent to $71 million.
Geographically, North America revenue was up 27 percent to $576 million.
Garmin said it sold 3.9 million units in the second quarter, up 54 percent from last year, with year-to-date shipments up 64 percent for the same period in 2007.
The company claimed a North American portable navigation device (PND) market share of 55 percent, higher than the first quarter's 43 percent.
Garmin also reported it will delay the launch of its GPS/smartphone, called the Nuvifone, until 2009 due to issues meeting carrier requirements.
The Nuvifone was originally planned for the third quarter. The company expects it will resolve individual carrier's technical requirements in both the United States and Europe to launch next year.
Garmin also said PND shipments to North America were up 100 percent for the quarter from a year ago, but growth in the PND market is slowing compared to past years.
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