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Garmin Reports Record 2nd-Quarter Revenues

7/30/2008 09:55:00 AM Eastern

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.

Gross margin “remained solid,” at 45.8 percent for the quarter, down from 48.2 percent in the first quarter of this year and 50.5 percent in the prior year’s second quarter.

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 PND market share of 55 percent, higher than the first quarter’s 43 percent.

And Garmin reported that work has begun to expand its North American aviation production facility in Olathe, Kan., which is expected to be completed by the fourth quarter of next year.