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Garmin Reports Higher Sales, Profits

5/03/2006 11:28:00 AM Eastern

Olathe, Kan. — Garmin reported $322.3 million in revenue for the first quarter, ended April 1, a 67 percent increase over $192.7 million from the prior year’s opening quarter.

Operating income for the first quarter was $100.1 million, up from the previous year’s $65.8 million, and net income was $87.5 million, a hefty jump from the previous year’s $47.4 million.

Garmin, a leading producer of GSP products, said it sold 921,000 units during the first quarter, up 58 percent from the same quarter in 2005.

Kevin Rauckman, chief financial officer, noted. “Gross margin and operating margin improved in our outdoor/fitness and marine segments” but declined in the automotive/mobile and aviation segments when compared to the year-ago quarter. “Total operating margin of 31.1 percent for the first quarter remained strong at 30 basis points about Q4 2005 levels. These results were in line with our expectations.”

Garmin said it would introduce 60 new products in 2006 with more announcements during the first half in preparation for all deliveries and the holiday season.