GPS companies smash records

GPS World, Sept, 2004

GPS technology providers Trimble, Garmin, CSI Wireless, and NovAtel all rewrote their record books with best-ever financial performances in second fiscal quarters of 2004.

Trimble of Sunnyvale, California, recorded second quarter (Q2) revenues of $179.5 million, a 30 percent increase over 2003. Q2 net income rose 140 percent, to $19.5 million.

Trimble's construction machine control and agricultural guidance solutions recorded strong sales and margins, as did new product launches such as the Trim Trac locator.

Garmin Ltd., based in the Cayman Islands, posted a 32-percent jump in revenue in its Q2 revenue of $189.7 million (up from $143.5 million), driving record Q2 net income of $56.3 million, up 19 percent from 2003.

Garmin realized a sales boost from the introduction of 36 new products such as its StreetPilots, marine network systems, and G1000 avionics. The company's aviation segment soared 41 percent.

CSI Wireless Inc. of Calgary, Alberta, Canada reported record quarterly net earnings of $1.6 million in Q2, with revenues of $18.7 million, an increase of more than 24 percent and an increase in net profit of 115 percent compared to the first quarter of 2004. Gross margins of $6.7 million, or 36 percent, in Q2 were another record. The company stated its GPS Unit outperformed expectations with respect to revenues and gross margins in Q2. Revenues increased on a consecutive quarterly basis in both the GPS and wireless business units. The company recently announced incremental purchase orders of $18 million covering Q3 and Q4.

NovAtel Inc., also of Calgary, Alberta, Canada, reported 2004 Q2 revenues of $9.8 million--a quarterly record--compared to $6.6 million in Q2 2003, with net income for Q2 2004 of $1.5 million compared to $520,000 in the similar period a year ago.

NovAtel's Special Applications Q2 revenue grew 34 percent year over year, its increase attributable to product shipments into Leica and revenue from the L1 product line acquired in May 2003 from CMC Electronics. Aerospace and Defence grew 79 percent over Q2 2003, largely due to engineering services and product shipments to Raytheon Company for the next-generation U.S. Wide Area Augmentation System (WAAS) program. In Geomatics, the company reported a 17-percent increase, citing "positive trends" at Point, Inc., a joint venture with Sokkia Co., Ltd.