SUNNYVALE, Calif. — Trimble (TRMB) today announced fourth quarter and fiscal year end results.
Fourth Quarter 2014
Fourth quarter 2014 revenue of $563.8 million was down 6% compared to the fourth quarter of 2013. Engineering and Construction revenue was $328.5 million, down 1%. Field Solutions revenue was $80.7 million, down 27%. Mobile Solutions revenue was $124.1 million, down 1%. Advanced Devices revenue was $30.5 million, down 2%. Foreign currency translation unfavorably impacted company revenue by approximately 2%.
GAAP operating income was $76.9 million, up 14% as compared to the fourth quarter of 2013. GAAP operating margin was 13.6% of revenue vs. 11.2% of revenue in the fourth quarter of 2013, and benefitted from the reversal of a $51.3 million reserve for legal matters related to a jury verdict that was overturned.
GAAP net income was $55.8 million, down 7% vs. the fourth quarter of 2013. Diluted GAAP earnings per share were $0.21 as compared to diluted GAAP earnings per share of $0.23 in the fourth quarter of 2013.
Non-GAAP operating income of $84.2 million was down 33% as compared to the fourth quarter of 2013. Non-GAAP operating margin was 14.9% of revenue as compared to 20.9% of revenue in the fourth quarter of 2013.
Non-GAAP net income of $76.1 million was down 33% vs. the fourth quarter of 2013. Diluted non-GAAP earnings per share were $0.29 as compared to diluted non-GAAP earnings per share of $0.43 in the fourth quarter of 2013.
Operating cashflow in the quarter was $96.6 million, down 29% vs. the fourth quarter of 2013.
Fiscal 2014
Fiscal 2014 revenue of $2.4 billion was up 5% vs. fiscal 2013. Engineering and Construction revenue was $1.3 billion, up 10%. Field Solutions revenue was $422.1 million, down 11%. Mobile Solutions revenue was $486.8 million, up 5%. Advanced Devices revenue was $138.5 million, up 9%.
GAAP operating income was $260.8 million, up 4% as compared to fiscal 2013. GAAP operating margin was 10.9% of revenue as compared to 11% of revenue in fiscal 2013.
GAAP net income was $214.1 million, down 2% vs. fiscal 2013. Diluted GAAP earnings per share were $0.81 as compared to diluted GAAP earnings per share of $0.84 in fiscal 2013.
Non-GAAP operating income of $479.8 million was up 1% compared to fiscal 2013. Non-GAAP operating margin was 20% of revenue as compared to 20.7% of revenue in fiscal 2013.
Non-GAAP net income of $386.6 million was down 6% as compared to fiscal 2013. Diluted non-GAAP earnings per share were $1.46 as compared to diluted non-GAAP earnings per share of $1.58 in fiscal 2013.
Operating cashflow in fiscal 2014 was $407.1 million, down 2% as compared to fiscal 2013.
"We were impacted in the fourth quarter by a stronger dollar, deferred revenue accounting effects associated with new acquisitions, and the short term reaction to the decline in oil prices. The combined effect of these factors pushed us lower in our anticipated revenue range for the quarter and will influence first half 2015 results. Agriculture revenue for the quarter was consistent with our expectation and represents a significant year-over-year decline," said Steven W. Berglund, Trimble's president and chief executive officer. "Total fiscal year 2014 results for the company showed revenue and non-GAAP operating income expansion, despite the significant declines in agriculture. Although the agriculture market remains volatile and difficult to forecast, we continue to invest in the coming agriculture technology transformation while also taking steps in the short term to maintain our historically strong financial model for the company. Despite continuing headwinds in the first half of 2015 we anticipate strengthening results as the year progresses."
Forward Looking Guidance
For the first quarter of 2015 Trimble expects revenue to be between $590 million and $620 million with GAAP earnings per share of $0.09 to $0.16 and non-GAAP earnings per share of $0.26 to $0.33. Non-GAAP guidance excludes the amortization of intangibles of $41 million related to previous acquisitions, anticipated acquisition costs of $4 million, and the anticipated impact of stock-based compensation expense of $13 million. GAAP guidance assumes a tax rate of 23 percent and non-GAAP guidance assumes a tax rate of 22%. Both GAAP and non-GAAP earnings per share assume approximately 264 million shares outstanding.
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