California
|
94-2802192
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification
Number)
|
Large
Accelerated Filer
|
T
|
Accelerated
Filer
|
£
|
|
Non-accelerated
Filer
|
£ (Do not
check if a smaller reporting company)
|
Smaller
Reporting Company
|
£
|
PART
I.
|
Financial
Information
|
Page
|
|
ITEM
1.
|
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3
|
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4
|
|||
5
|
|||
6
|
|||
ITEM
2.
|
22
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||
ITEM
3.
|
32
|
||
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|||
ITEM
4.
|
32
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||
PART
II.
|
Other
Information
|
||
ITEM
1.
|
32
|
||
ITEM
1A.
|
32
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ITEM
2.
|
33
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ITEM
6.
|
33
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34
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September 26, 2008
|
December 28, 2007
|
|||||||
(In
thousands)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 70,479 | $ | 103,202 | ||||
Accounts
receivable, net
|
257,548 | 239,884 | ||||||
Other
receivables
|
8,724 | 10,201 | ||||||
Inventories,
net
|
162,033 | 143,018 | ||||||
Deferred
income taxes
|
49,637 | 44,333 | ||||||
Other
current assets
|
16,738 | 15,661 | ||||||
Total
current assets
|
565,159 | 556,299 | ||||||
Property
and equipment, net
|
50,819 | 51,444 | ||||||
Goodwill
|
716,191 | 675,850 | ||||||
Other
purchased intangible assets, net
|
181,196 | 197,777 | ||||||
Other
non-current assets
|
60,332 | 57,989 | ||||||
Total
assets
|
$ | 1,573,697 | $ | 1,539,359 | ||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of long-term debt
|
$ | 129 | $ | 126 | ||||
Accounts
payable
|
68,446 | 67,589 | ||||||
Accrued
compensation and benefits
|
47,994 | 55,133 | ||||||
Deferred
revenue
|
56,559 | 49,416 | ||||||
Accrued
warranty expense
|
12,077 | 10,806 | ||||||
Income
taxes payable
|
17,201 | 14,802 | ||||||
Other
current liabilities
|
35,808 | 51,980 | ||||||
Total
current liabilities
|
238,214 | 249,852 | ||||||
Non-current
portion of long-term debt
|
51,487 | 60,564 | ||||||
Non-current
deferred revenue
|
12,921 | 15,872 | ||||||
Deferred
income taxes
|
56,373 | 47,917 | ||||||
Other
non-current liabilities
|
54,672 | 56,128 | ||||||
Total
liabilities
|
413,667 | 430,333 | ||||||
Commitments
and contingencies
|
||||||||
Shareholders'
equity:
|
||||||||
Preferred
stock no par value; 3,000 shares authorized; none
outstanding
|
-- | -- | ||||||
Common
stock, no par value; 180,000 shares authorized; 119,523 and 121,596 shares
issued and outstanding at September 26, 2008 and December 28, 2007,
respectively
|
681,019 | 660,749 | ||||||
Retained
earnings
|
421,155 | 388,557 | ||||||
Accumulated
other comprehensive income
|
57,856 | 59,720 | ||||||
Total
shareholders' equity
|
1,160,030 | 1,109,026 | ||||||
Total
liabilities and shareholders' equity
|
$ | 1,573,697 | $ | 1,539,359 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26, 2008
|
September 28, 2007
|
September 26, 2008
|
September 28, 2007
|
|||||||||||||
(In
thousands, except per share data)
|
||||||||||||||||
Revenue (1)
|
$ | 328,087 | $ | 296,023 | $ | 1,061,150 | $ | 909,487 | ||||||||
Cost
of sales (1)
|
162,464 | 149,083 | 534,052 | 452,248 | ||||||||||||
Gross
margin
|
165,623 | 146,940 | 527,098 | 457,239 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Research
and development
|
35,348 | 31,707 | 112,097 | 96,737 | ||||||||||||
Sales
and marketing
|
48,664 | 45,274 | 151,727 | 134,967 | ||||||||||||
General
and administrative
|
22,072 | 21,262 | 70,051 | 67,182 | ||||||||||||
Restructuring
charges
|
21 | - | 2,435 | 3,025 | ||||||||||||
Amortization
of purchased intangible assets
|
5,462 | 4,911 | 15,768 | 14,212 | ||||||||||||
In-process
research and development
|
- | - | - | 2,112 | ||||||||||||
Total
operating expenses
|
111,567 | 103,154 | 352,078 | 318,235 | ||||||||||||
Operating
income
|
54,056 | 43,786 | 175,020 | 139,004 | ||||||||||||
Non-operating
income, net
|
||||||||||||||||
Interest
income
|
404 | 770 | 1,369 | 2,607 | ||||||||||||
Interest
expense
|
(214 | ) | (1,616 | ) | (1,389 | ) | (5,476 | ) | ||||||||
Foreign
currency transaction gain (loss), net
|
117 | (459 | ) | 2,338 | (532 | ) | ||||||||||
Income
from joint ventures
|
2,163 | 1,943 | 6,796 | 6,445 | ||||||||||||
Other
income (expense ), net
|
(907 | ) | 451 | (1,661 | ) | 1,173 | ||||||||||
Total
non-operating income, net
|
1,563 | 1,089 | 7,453 | 4,217 | ||||||||||||
Income
before taxes
|
55,619 | 44,875 | 182,473 | 143,221 | ||||||||||||
Income
tax provision
|
16,552 | 17,501 | 54,740 | 52,138 | ||||||||||||
Net
income
|
$ | 39,067 | $ | 27,374 | $ | 127,733 | $ | 91,083 | ||||||||
Basic
earnings per share
|
$ | 0.32 | $ | 0.23 | $ | 1.05 | $ | 0.77 | ||||||||
Shares
used in calculating basic earnings per share
|
120,603 | 120,591 | 121,171 | 118,553 | ||||||||||||
Diluted
earnings per share
|
$ | 0.31 | $ | 0.22 | $ | 1.02 | $ | 0.74 | ||||||||
Shares
used in calculating diluted earnings per share
|
124,423 | 125,687 | 125,071 | 123,691 |
Nine Months Ended
|
||||||||
September 26, 2008
|
September 28, 2007
|
|||||||
(In
thousands)
|
||||||||
Cash
flow from operating activities:
|
||||||||
Net
income
|
$ | 127,733 | $ | 91,083 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
expense
|
14,287 | 12,733 | ||||||
Amortization
expense
|
32,999 | 28,615 | ||||||
Provision
for doubtful accounts
|
597 | 684 | ||||||
Amortization
of debt issuance costs
|
169 | 162 | ||||||
Deferred
income taxes
|
(14,235 | ) | (6,547 | ) | ||||
Non-cash
restructuring charges
|
- | 1,725 | ||||||
Stock-based
compensation
|
11,603 | 10,949 | ||||||
In-process
research and development
|
- | 2,112 | ||||||
Equity
gain from joint venture
|
(6,796 | ) | (6,445 | ) | ||||
Excess
tax benefit for stock-based compensation
|
(5,847 | ) | (13,283 | ) | ||||
Provision
for excess and obsolete inventories
|
2,672 | 3,513 | ||||||
Other
non-cash items
|
179 | 144 | ||||||
Add
decrease (increase) in assets:
|
- | |||||||
Accounts
receivable
|
(16,230 | ) | (42,971 | ) | ||||
Other
receivables
|
1,598 | 4,619 | ||||||
Inventories
|
(16,165 | ) | (15,512 | ) | ||||
Other
current and non-current assets
|
(201 | ) | 6,353 | |||||
Add
increase (decrease) in liabilities:
|
||||||||
Accounts
payable
|
(1,859 | ) | (7,518 | ) | ||||
Accrued
compensation and benefits
|
(7,426 | ) | (6,182 | ) | ||||
Accrued
liabilities
|
725 | 5,350 | ||||||
Deferred
revenue
|
2,862 | 25,989 | ||||||
Income
taxes payable
|
15,280 | 33,511 | ||||||
Net
cash provided by operating activities
|
141,945 | 129,084 | ||||||
Cash
flow from investing activities:
|
||||||||
Acquisitions
of businesses, net of cash acquired
|
(69,310 | ) | (285,523 | ) | ||||
Acquisitions
of property and equipment
|
(11,293 | ) | (9,208 | ) | ||||
Dividends
received
|
3,148 | 2,888 | ||||||
Other
|
(154 | ) | 361 | |||||
Net
cash used in investing activities
|
(77,609 | ) | (291,482 | ) | ||||
Cash
flow from financing activities:
|
||||||||
Issuances
of common stock
|
22,119 | 27,830 | ||||||
Excess
tax benefit for stock-based compensation
|
5,847 | 13,283 | ||||||
Repurchase
and retirement of common stock
|
(115,851 | ) | - | |||||
Proceeds
from long-term debt and revolving credit lines
|
51,000 | 250,000 | ||||||
Payments
on long-term debt and revolving credit lines
|
(60,316 | ) | (170,037 | ) | ||||
Net
cash provided by (used in) financing activities
|
(97,201 | ) | 121,076 | |||||
Effect
of exchange rate changes on cash and cash equivalents
|
142 | (4,227 | ) | |||||
Net
decrease in cash and cash equivalents
|
(32,723 | ) | (45,549 | ) | ||||
Cash
and cash equivalents, beginning of period
|
103,202 | 129,621 | ||||||
Cash
and cash equivalents, end of period
|
$ | 70,479 | $ | 84,072 |
Cash
consideration
|
$ | 327,370 | ||
Common
stock consideration
|
161,947 | |||
Merger
costs *
|
5,712 | |||
Total
purchase price
|
$ | 495,029 |
Value
to be allocated to assets, based upon merger consideration
|
$ | 495,029 | ||
Less:
value of @Road’s assets acquired:
|
||||
Net
tangible assets acquired
|
137,916 | |||
Amortizable
intangibles assets:
|
||||
Developed
product technology
|
66,600 | |||
Customer
relationships
|
75,300 | |||
Trademarks
and tradenames
|
5,200 | |||
Subtotal
|
147,100 | |||
In-process
research and development
|
2,100 | |||
Deferred
tax liability
|
(56,855 | ) | ||
Goodwill
|
$ | 264,768 |
(in
thousands)
|
As
of February 16, 2007
|
|||
Cash
and cash equivalents
|
$ | 74,729 | ||
Accounts
receivable, net
|
14,255 | |||
Other
receivables
|
8,774 | |||
Inventories,
net
|
15,272 | |||
Other
current assets
|
12,627 | |||
Property
and equipment, net
|
5,854 | |||
Deferred
income taxes
|
41,146 | |||
Other
non-current assets
|
7,935 | |||
Total
assets acquired
|
$ | 180,592 | ||
Accounts
payable
|
19,285 | |||
Deferred
revenue
|
7,365 | |||
Other
current liabilities
|
16,026 | |||
Total
liabilities assumed
|
$ | 42,676 | ||
Total
net assets acquired
|
$ | 137,916 |
Nine Months Ended
|
||||
September 28,
2007 (a)
|
||||
(in
thousands, except per share data)
|
||||
Pro-forma
revenue
|
$ | 925,103 | ||
Pro-forma
net income
|
88,437 | |||
Pro-forma
basic net income per share
|
$ | 0.74 | ||
Pro-forma
diluted net income per share
|
$ | 0.71 |
(a)
|
The
pro-forma results of operations represent the Company’s results for the
nine months ended September 28, 2007 together with @Road’s historical
results through the acquisition date of February 16, 2007 as though they
had been combined as of December 31, 2005. Pro-forma
adjustments have been made based on the fair values of assets acquired and
liabilities assumed as of February 16, 2007. Pro-forma revenue
includes a $1.4 million
increase due to the timing of recognizing deferred revenue write-downs and
customer contracts where the product was delivered prior to the
acquisition date. Pro-forma net income includes a $0.5 million increase
due to the timing of recognizing revenue write-downs and related deferred
cost of sales write-downs, amortization of intangible assets related to
the acquisition of $2.2 million, and interest expense for debt used to
purchase @Road of $1.4 million. The pro-forma amounts provided herein
include adjustments to previously filed pro-forma numbers in the Company’s
10-Q’s.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Cost
of sales
|
$ | 453 | $ | 469 | $ | 1,433 | $ | 1,240 | ||||||||
Research
and development
|
796 | 868 | 2,629 | 2,619 | ||||||||||||
Sales
and marketing
|
937 | 1,059 | 2,898 | 2,800 | ||||||||||||
General
and administrative
|
1,640 | 1,408 | 4,643 | 4,290 | ||||||||||||
Total
operating expenses
|
3,373 | 3,335 | 10,170 | 9,709 | ||||||||||||
Total
stock-based compensation expense
|
3,826 | 3,804 | 11,603 | 10,949 | ||||||||||||
Tax
benefit (1)
|
(188 | ) | 294 | (740 | ) | (574 | ) | |||||||||
Total
stock-based compensation expense, net of tax
|
$ | 3,638 | $ | 4,098 | $ | 10,863 | $ | 10,375 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
Expected
dividend yield
|
-- | -- | -- | -- | ||||||||||||
Expected
stock price volatility
|
39.8 | % | 37.0 | % | 39.7 | % | 37.2 | % | ||||||||
Risk
free interest rate
|
2.6 | % | 4.4 | % | 2.7 | % | 4.5 | % | ||||||||
Expected
life of option
|
3.9
years
|
3.9
years
|
4.1
years
|
3.9
years
|
September 26, 2008
|
||||||||||||
(in
thousands)
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
|||||||||
Developed
product technology
|
$ | 162,472 | (76,157 | ) | $ | 86,315 | ||||||
Trade
names and trademarks
|
20,000 | (12,974 | ) | 7,026 | ||||||||
Customer
relationships and other intellectual properties
|
134,127 | (46,272 | ) | 87,855 | ||||||||
$ | 316,599 | (135,403 | ) | $ | 181,196 |
December 28,
2007
|
||||||||||||
(in
thousands)
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
|||||||||
Developed
product technology
|
$ | 157,394 | (58,273 | ) | $ | 99,121 | ||||||
Trade
names and trademarks
|
19,192 | (12,490 | ) | 6,702 | ||||||||
Customer
relationships and other intellectual properties
|
124,281 | (32,327 | ) | 91,954 | ||||||||
$ | 300,867 | (103,090 | ) | $ | 197,777 |
2008
(Remaining)
|
$ | 11,061 | ||
2009
|
41,234 | |||
2010
|
38,830 | |||
2011
|
33,997 | |||
2012
|
25,707 | |||
Thereafter
|
30,367 | |||
Total
|
$ | 181,196 |
Engineering and
Construction
|
Field Solutions
|
Mobile Solutions
|
Advanced Devices
|
Total
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Balance
as of December 28, 2007
|
$ | 317,886 | $ | 5,224 | $ | 337,661 | $ | 15,079 | $ | 675,850 | ||||||||||
Additions
due to acquisitions
|
35,230 | - | - | - | 35,230 | |||||||||||||||
Purchase
price adjustments
|
1,661 | 2,046 | 1,521 | - | 5,228 | |||||||||||||||
Foreign
currency translation adjustments
|
1,326 | - | (915 | ) | (528 | ) | (117 | ) | ||||||||||||
Balance
as of September 26,2008
|
$ | 356,103 | $ | 7,270 | $ | 338,267 | $ | 14,551 | $ | 716,191 |
As of
|
September 26,
2008
|
December 28,
2007
|
||||||
(in
thousands)
|
||||||||
Raw
materials
|
$ | 75,562 | $ | 63,465 | ||||
Work-in-process
|
7,809 | 9,267 | ||||||
Finished
goods
|
78,662 | 70,286 | ||||||
Total
inventories, net
|
$ | 162,033 | $ | 143,018 |
As of
|
September 26,
2008
|
December 28,
2007
|
||||||
(in
thousands)
|
||||||||
Deferred
compensation
|
$ | 7,582 | $ | 8,646 | ||||
Unrecognized
tax benefits
|
29,560 | 25,774 | ||||||
Other
non-current liabilities
|
17,530 | 21,708 | ||||||
Total
other non-current liabilities
|
$ | 54,672 | $ | 56,128 |
|
·
|
Engineering
and Construction — Consists of products currently used by survey and
construction professionals in the field for positioning, data collection,
field computing, data management, and machine guidance and control. The
applications served include surveying, road, runway, construction, site
preparation and building
construction.
|
|
·
|
Field
Solutions — Consists of products that provide solutions in a variety of
agriculture and geographic information systems (GIS) applications. In
agriculture these include precise land leveling and machine guidance
systems. In GIS these include handheld devices and software that enable
the collection of data on assets for a variety of governmental and private
entities.
|
|
·
|
Mobile
Solutions — Consists of products that enable end users to monitor and
manage their mobile assets by communicating location and activity-relevant
information from the field to the office. The Company offers a range of
products that address a number of sectors of this market including truck
fleets, security, and public safety
vehicles.
|
|
·
|
Advanced
Devices — The various operations that comprise this segment were
aggregated on the basis that no single operation accounted for more than
10% of the Company’s total revenue, operating income and assets. This
segment is comprised of the Component Technologies, Military and Advanced
Systems, Applanix and Trimble Outdoors
businesses.
|
Reporting Segments
|
||||||||||||||||||||
Engineering
and Construction
|
Field
Solutions
|
Mobile
Solutions
|
Advanced
Devices
|
Total
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Three
Months Ended September 26, 2008
|
||||||||||||||||||||
Segment
revenue
|
$ | 191,858 | $ | 64,354 | $ | 40,822 | $ | 31,053 | $ | 328,087 | ||||||||||
Operating
income
|
41,560 | 22,058 | 3,602 | 6,835 | 74,055 | |||||||||||||||
Three
Months Ended September 28, 2007
|
||||||||||||||||||||
Segment
revenue
|
$ | 182,135 | $ | 44,763 | $ | 39,204 | $ | 29,921 | $ | 296,023 | ||||||||||
Operating
income
|
42,824 | 11,931 | 2,855 | 4,893 | 62,503 | |||||||||||||||
Nine
Months Ended September 26, 2008
|
||||||||||||||||||||
Segment
revenue
|
$ | 599,057 | $ | 242,461 | $ | 127,118 | $ | 92,514 | $ | 1,061,150 | ||||||||||
Operating
income
|
123,675 | 91,961 | 7,997 | 18,105 | 241,738 | |||||||||||||||
Nine
Months Ended September 28, 2007
|
||||||||||||||||||||
Segment
revenue
|
$ | 556,592 | $ | 150,998 | $ | 109,988 | $ | 91,909 | $ | 909,487 | ||||||||||
Operating
income
|
137,359 | 46,957 | 6,778 | 13,620 | 204,714 | |||||||||||||||
As
of September 26, 2008
|
||||||||||||||||||||
Accounts
receivable (1)
|
$ | 161,185 | $ | 41,619 | $ | 30,520 | $ | 24,224 | $ | 257,548 | ||||||||||
Inventories
|
106,920 | 20,063 | 16,821 | 18,229 | 162,033 | |||||||||||||||
As
of December 28, 2007
|
||||||||||||||||||||
Accounts
receivable (1)
|
$ | 158,913 | $ | 37,294 | $ | 25,469 | $ | 18,208 | $ | 239,884 | ||||||||||
Inventories
|
89,780 | 15,745 | 18,781 | 18,712 | 143,018 |
(1)
|
As
presented, accounts receivable represents trade receivables, net, which
are specified between segments.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Consolidated
segment operating income
|
$ | 74,055 | $ | 62,503 | $ | 241,738 | $ | 204,707 | ||||||||
Unallocated
corporate expense
|
(8,405 | ) | (8,543 | ) | (30,058 | ) | (32,065 | ) | ||||||||
Amortization
of purchased intangible assets
|
(11,143 | ) | (10,174 | ) | (32,865 | ) | (28,501 | ) | ||||||||
In-process
research and development expense
|
-- | -- | -- | (2,112 | ) | |||||||||||
Restructuring
charges
|
(451 | ) | -- | (3,795 | ) | (3,025 | ) | |||||||||
Consolidated
operating income
|
54,056 | 43,786 | 175,020 | 139,004 | ||||||||||||
Non-operating
income, net
|
1,563 | 1,089 | 7,453 | 4,217 | ||||||||||||
Consolidated
income before taxes
|
$ | 55,619 | $ | 44,875 | $ | 182,473 | $ | 143,221 |
As of
|
September 26,
2008
|
December 28,
2007
|
||||||
(in
thousands)
|
||||||||
Credit
Facilities:
|
||||||||
Term
loan
|
$ | - | $ | 60,000 | ||||
Revolving
credit facility
|
51,000 | - | ||||||
Promissory
notes and other
|
616 | 690 | ||||||
Total
debt
|
51,616 | 60,690 | ||||||
Less
current portion of long-term debt
|
129 | 126 | ||||||
Non-current
portion
|
$ | 51,487 | $ | 60,564 |
2008
(Remaining)
|
$ | 4,926 | ||
2009
|
18,258 | |||
2010
|
12,153 | |||
2011
|
7,676 | |||
2012
|
5,710 | |||
Thereafter
|
1,023 | |||
Total
|
$ | 49,746 |
Fair Values as of September 26, 2008
|
||||||||||||||||
(in
thousands)
|
Level
I
|
Level
II
|
Level
III
|
Total
|
||||||||||||
Assets
|
||||||||||||||||
Deferred
compensation plan assets (1)
|
7,693 | — | — | 7,693 | ||||||||||||
Derivative
assets (2)
|
— | 160 | — | 160 | ||||||||||||
Total
|
7,693 | 160 | — | 7,853 | ||||||||||||
Liabilities
|
||||||||||||||||
Deferred
compensation plan liabilities (1)
|
7,582 | — | — | 7,582 | ||||||||||||
Derivative
liabilities (2)
|
— | — | — | — | ||||||||||||
Total
|
7,582 | — | — | 7,582 |
(1)
|
Deferred
compensation plan assets and liabilities: The Company maintains
a self-directed, non-qualified deferred compensation plan for certain
executives and other highly compensated employees. The investment assets
and liabilities included in Level I are valued using quoted market
prices.
|
(2)
|
Derivative
assets and liabilities: Derivative assets and liabilities
included in Level II primarily represent forward currency exchange
contracts. The fair values are determined using inputs based on observable
quoted prices.
|
Balance
as of December 28, 2007
|
$ | 10,806 | ||
Accruals
for warranties issued
|
16,387 | |||
Changes
in estimates
|
-- | |||
Warranty
settlements (in cash or in kind)
|
(15,116 | ) | ||
Balance
as of September 26, 2008
|
$ | 12,077 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in
thousands, except per share amounts)
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Income
available to common shareholders:
|
$ | 39,067 | $ | 27,374 | $ | 127,733 | $ | 91,083 | ||||||||
Denominator:
|
||||||||||||||||
Weighted
average number of common shares used in basic earnings per
share
|
120,603 | 120,591 | 121,171 | 118,553 | ||||||||||||
Effect
of dilutive securities (using treasury stock method):
|
||||||||||||||||
Common
stock options and restricted stock units
|
3,820 | 5,025 | 3,893 | 4,848 | ||||||||||||
Common
stock warrants
|
-- | 71 | 7 | 290 | ||||||||||||
Weighted
average number of common shares and dilutive potential common shares used
in diluted earnings per share
|
124,423 | 125,687 | 125,071 | 123,691 | ||||||||||||
Basic
earnings per share
|
$ | 0.32 | $ | 0.23 | $ | 1.05 | $ | 0.77 | ||||||||
Diluted
earnings per share
|
$ | 0.31 | $ | 0.22 | $ | 1.02 | $ | 0.74 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Severance
and benefits
|
$ | 451 | $ | -- | $ | 3,795 | $ | 3,025 |
Balance
as of December 28, 2007
|
$ | 1,326 | ||
Charges
|
3,795 | |||
Payments
|
(2,793 | ) | ||
Adjustment
|
(1,020 | ) | ||
Balance
as of September 26,2008
|
$ | 1,308 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
income
|
$ | 39,067 | $ | 27,374 | $ | 127,733 | $ | 91,083 | ||||||||
Foreign
currency translation adjustments, net of tax
|
(19,835 | ) | 12,662 | (1,688 | ) | 18,761 | ||||||||||
Net
unrealized actuarial gain (loss)
|
21 | (12 | ) | (3 | ) | (20 | ) | |||||||||
Net
unrealized gain (loss) on investments
|
(173 | ) | (15 | ) | (173 | ) | 20 | |||||||||
Comprehensive
income
|
$ | 19,080 | $ | 40,009 | $ | 125,869 | $ | 109,844 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
||||||||||||
($
in thousands)
|
||||||||||||||||
Total
consolidated revenue
|
$ | 328,087 | $ | 296,023 | $ | 1,061,150 | $ | 909,487 | ||||||||
Gross
margin
|
$ | 165,623 | $ | 146,940 | $ | 527,098 | $ | 457,239 | ||||||||
Gross
margin %
|
50.5 | % | 49.6 | % | 49.7 | % | 50.3 | % | ||||||||
Total
consolidated operating income
|
$ | 54,056 | $ | 43,786 | $ | 175,020 | $ | 139,004 | ||||||||
Operating
income %
|
16.5 | % | 14.8 | % | 16.5 | % | 15.3 | % |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in thousands, except
percentages)
|
||||||||||||||||
Engineering
and Construction
|
||||||||||||||||
Revenue
|
$ | 191,858 | $ | 182,135 | $ | 599,057 | $ | 556,592 | ||||||||
Segment
revenue as a percent of total revenue
|
59 | % | 62 | % | 56 | % | 61 | % | ||||||||
Operating
income
|
$ | 41,560 | $ | 42,824 | $ | 123,675 | $ | 137,359 | ||||||||
Operating
income as a percent of segment revenue
|
22 | % | 24 | % | 21 | % | 25 | % | ||||||||
Field
Solutions
|
||||||||||||||||
Revenue
|
$ | 64,354 | $ | 44,763 | $ | 242,461 | $ | 150,998 | ||||||||
Segment
revenue as a percent of total revenue
|
20 | % | 15 | % | 23 | % | 17 | % | ||||||||
Operating
income
|
$ | 22,058 | $ | 11,931 | $ | 91,961 | $ | 46,957 | ||||||||
Operating
income as a percent of segment revenue
|
34 | % | 27 | % | 38 | % | 31 | % | ||||||||
Mobile
Solutions
|
||||||||||||||||
Revenue
|
$ | 40,822 | $ | 39,204 | $ | 127,118 | $ | 109,988 | ||||||||
Revenue
as a percent of total revenue
|
12 | % | 13 | % | 12 | % | 12 | % | ||||||||
Operating
income
|
$ | 3,602 | $ | 2,855 | $ | 7,997 | $ | 6,778 | ||||||||
Operating
income as a percent of segment revenue
|
9 | % | 7 | % | 6 | % | 6 | % | ||||||||
Advanced
Devices
|
||||||||||||||||
Revenue
|
$ | 31,053 | $ | 29,921 | $ | 92,514 | $ | 91,909 | ||||||||
Segment
revenue as a percent of total revenue
|
9 | % | 10 | % | 9 | % | 10 | % | ||||||||
Operating
income
|
$ | 6,835 | $ | 4,893 | $ | 18,105 | $ | 13,620 | ||||||||
Operating
income as a percent of segment revenue
|
22 | % | 16 | % | 20 | % | 15 | % |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Consolidated
segment operating income
|
$ | 74,055 | $ | 62,503 | $ | 241,738 | $ | 204,707 | ||||||||
Unallocated
corporate expense
|
(8,405 | ) | (8,543 | ) | (30,058 | ) | (32,065 | ) | ||||||||
Amortization
of purchased intangible assets
|
(11,143 | ) | (10,174 | ) | (32,865 | ) | (28,501 | ) | ||||||||
In-process
research and development expense
|
-- | -- | -- | (2,112 | ) | |||||||||||
Restructuring
charges
|
(451 | ) | -- | (3,795 | ) | (3,025 | ) | |||||||||
Consolidated
operating income
|
54,056 | 43,786 | 175,020 | 139,004 | ||||||||||||
Non-operating
income, net
|
1,563 | 1,089 | 7,453 | 4,217 | ||||||||||||
Consolidated
income before taxes
|
$ | 55,619 | $ | 44,875 | $ | 182,473 | $ | 143,221 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
|
September 28,
|
September 26,
|
September 28,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in thousands, except
percentages)
|
||||||||||||||||
Research
and development
|
$ | 35,348 | $ | 31,707 | $ | 112,097 | $ | 96,737 | ||||||||
Percentage
of revenue
|
11 | % | 11 | % | 11 | % | 11 | % | ||||||||
Sales
and marketing
|
48,664 | 45,274 | 151,727 | 134,967 | ||||||||||||
Percentage
of revenue
|
15 | % | 15 | % | 14 | % | 15 | % | ||||||||
General
and administrative
|
22,072 | 21,262 | 70,051 | 67,182 | ||||||||||||
Percentage
of revenue
|
7 | % | 7 | % | 7 | % | 7 | % | ||||||||
Total
|
$ | 106,084 | $ | 98,243 | $ | 333,875 | $ | 298,886 | ||||||||
Percentage
of revenue
|
32 | % | 33 | % | 31 | % | 33 | % |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Severance
and benefits
|
$ | 451 | $ | -- | $ | 3,795 | $ | 3,025 |
Balance
as of December 28, 2007
|
$ | 1,326 | ||
Charges
|
3,795 | |||
Payments
|
(2,793 | ) | ||
Adjustment
|
(1,020 | ) | ||
Balance
as of September 26,2008
|
$ | 1,308 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 26,
2008
|
September 28,
2007
|
September 26,
2008
|
September 28,
2007
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Interest
income
|
$ | 404 | $ | 770 | $ | 1,369 | $ | 2,607 | ||||||||
Interest
expense
|
(214 | ) | (1,616 | ) | (1,389 | ) | (5,476 | ) | ||||||||
Foreign
currency transaction gain (loss), net
|
117 | (459 | ) | 2,338 | (532 | ) | ||||||||||
Income
from joint ventures
|
2,163 | 1,943 | 6,796 | 6,445 | ||||||||||||
Other
income (expense), net
|
(907 | ) | 451 | (1,661 | ) | 1,173 | ||||||||||
Total
non-operating income, net
|
$ | 1,563 | $ | 1,089 | $ | 7,453 | $ | 4,217 |
As of
|
September 26,
2008
|
December 28,
2007
|
||||||
(in
thousands)
|
||||||||
Cash
and cash equivalents
|
$ | 70,479 | $ | 103,202 | ||||
Total
debt
|
$ | 51,616 | $ | 60,690 |
Nine Months Ended
|
September 26,
2008
|
September 28,
2007
|
||||||
(in
thousands)
|
||||||||
Cash
provided by operating activities
|
$ | 141,945 | $ | 129,084 | ||||
Cash
used in investing activities
|
$ | (77,609 | ) | $ | (291,482 | ) | ||
Cash
provided by (used in) financing activities
|
$ | (97,201 | ) | $ | 121,076 | |||
Effect
of exchange rate changes on cash and cash equivalents
|
$ | 142 | $ | (4,227 | ) | |||
Net
decrease in cash and cash equivalents
|
$ | (32,723 | ) | $ | (45,549 | ) |
|
September 26,
|
December 28,
|
||||||
As of
|
2008
|
2007
|
||||||
Accounts
receivable days sales outstanding
|
71 | 70 | ||||||
Inventory
turns per year
|
4.4 | 4.3 |
Total Number of Shares
Purchased
|
Average Price Paid per
Share
|
Total Number of Shares Purchased as Part of
Publicly Announced Program
|
Maximum Dollar Value of Shares that May Yet Be
Purchased Under the Program (1)
|
|||||||||||||
June
28, 2008 – August 1, 2008
|
889,746 | 33.21 | 889,746 | 184,148,003 | ||||||||||||
August
2, 2008 – August 29, 2008
|
587,043 | 34.06 | 587,043 | 164,142,807 | ||||||||||||
August
30, 2008 – September 26, 2008
|
974,871 | 30.75 | 974,871 | 134,149,431 | ||||||||||||
Total
Activities
|
2,451,660 | 32.43 | 2,451,660 |
(1)
|
In
January 2008, the Company announced that its board of directors had
authorized a stock repurchase program for up to $250 million, effective
February 1, 2008. The timing and actual number of shares repurchased will
depend on a variety of factors including price, regulatory requirements,
capital availability, and other market conditions. The program does not
require the purchase of any minimum number of shares and may be suspended
or discontinued at any time without public
notice.
|
3.1
|
Restated
Articles of Incorporation of the Company filed June 25, 1986.
(3)
|
3.2
|
Certificate
of Amendment of Articles of Incorporation of the Company filed October 6,
1988. (3)
|
3.3
|
Certificate
of Amendment of Articles of Incorporation of the Company filed July 18,
1990. (3)
|
3.4
|
Certificate
of Determination of Rights, Preferences and Privileges of Series A
Preferred Participating Stock of the Company filed February 19, 1999.
(3)
|
3.5
|
Certificate
of Amendment of Articles of Incorporation of the Company filed May 29,
2003. (4)
|
3.6
|
Certificate
of Amendment of Articles of Incorporation of the Company filed March 4,
2004. (5)
|
3.7
|
Certificate
of Amendment of Articles of Incorporation of the Company filed February
21, 2007. (8)
|
3.8
|
Bylaws
of the Company, amended and restated through July 20, 2006.
(7)
|
4.1
|
Specimen
copy of certificate for shares of Common Stock of the Company.
(1)
|
4.2
|
Preferred
Shares Rights Agreement dated as of February 18, 1999.
(2)
|
4.3
|
Agreement
of Substitution and Amendment of Preferred Shares Rights Agreement dated
September 10, 2004. (6)
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 dated November 4, 2008.
(9)
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 dated November 4, 2008.
(9)
|
32.1
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated November
4, 2008. (9)
|
32.2
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated November
4, 2008. (9)
|
(1)
|
Incorporated
by reference to exhibit number 4.1 to the registrant's Registration
Statement on Form S-1, as amended (File No. 33-35333), which
became effective July 19, 1990.
|
(2)
|
Incorporated
by reference to exhibit number 1 to the registrant's Registration
Statement on Form 8-A, which was filed on February 18,
1999.
|
(3)
|
Incorporated
by reference to identically numbered exhibits to the registrant's Annual
Report on Form 10-K for the fiscal year ended January 1,
1999.
|
(4)
|
Incorporated
by reference to exhibit number 3.5 to the registrant’s Quarterly Report on
Form 10-Q for the quarter ended July 4,
2003.
|
(5)
|
Incorporated
by reference to exhibit number 3.6 to the registrant’s Quarterly Report on
Form 10-Q for the quarter ended April 2,
2004.
|
(6)
|
Incorporated
by reference to exhibit number 4.3 to the registrant’s Annual Report on
Form 10-K for the year ended December 31,
2004.
|
(7)
|
Incorporated
by reference to exhibit number 3.7 to the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 29,
2006.
|
(8)
|
Incorporated
by reference to exhibit number 3.7 to the Company’s Quarterly Report on
Form 10-Q for the quarter ended March 30,
2007.
|
(9)
|
Filed
herewith.
|
TRIMBLE NAVIGATION LIMITED
|
||
(Registrant)
|
||
By:
|
/s/ Rajat Bahr
|
|
Rajat
Bahri
|
||
Chief
Financial Officer
|
||
(Authorized
Officer and Principal
|
||
Financial
Officer)
|
3.1
|
Restated
Articles of Incorporation of the Company filed June 25, 1986.
(3)
|
3.2
|
Certificate
of Amendment of Articles of Incorporation of the Company filed October 6,
1988. (3)
|
3.3
|
Certificate
of Amendment of Articles of Incorporation of the Company filed July 18,
1990. (3)
|
3.4
|
Certificate
of Determination of Rights, Preferences and Privileges of Series A
Preferred Participating Stock of the Company filed February 19, 1999.
(3)
|
3.5
|
Certificate
of Amendment of Articles of Incorporation of the Company filed May 29,
2003. (4)
|
3.6
|
Certificate
of Amendment of Articles of Incorporation of the Company filed March 4,
2004. (5)
|
3.7
|
Certificate
of Amendment of Articles of Incorporation of the Company filed February
21, 2007. (8)
|
3.8
|
Bylaws
of the Company, amended and restated through July 20, 2006.
(7)
|
4.1
|
Specimen
copy of certificate for shares of Common Stock of the Company.
(1)
|
4.2
|
Preferred
Shares Rights Agreement dated as of February 18, 1999.
(2)
|
4.3
|
Agreement
of Substitution and Amendment of Preferred Shares Rights Agreement dated
September 10, 2004. (6)
|
4.4
|
Form
of Warrant dated April 12, 2002.
(4)
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 dated November 4, 2008.
(9)
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 dated November 4, 2008.
(9)
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated November
4, 2008. (9)
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated November
4, 2008. (9)
|
(1)
|
Incorporated
by reference to exhibit number 4.1 to the registrant's Registration
Statement on Form S-1, as amended (File No. 33-35333), which
became effective July 19, 1990.
|
(2)
|
Incorporated
by reference to exhibit number 1 to the registrant's Registration
Statement on Form 8-A, which was filed on February 18,
1999.
|
(3)
|
Incorporated
by reference to identically numbered exhibits to the registrant's Annual
Report on Form 10-K for the fiscal year ended January 1,
1999.
|
(4)
|
Incorporated
by reference to exhibit number 3.5 to the registrant’s Quarterly Report on
Form 10-Q for the quarter ended July 4,
2003.
|
(5)
|
Incorporated
by reference to exhibit number 3.6 to the registrant’s Quarterly Report on
Form 10-Q for the quarter ended April 2,
2004.
|
(6)
|
Incorporated
by reference to exhibit number 4.3 to the registrant’s Annual Report on
Form 10-K for the year ended December 31,
2004.
|
(7)
|
Incorporated
by reference to exhibit number 3.7 to the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 29,
2006.
|
(8)
|
Incorporated
by reference to exhibit number 3.7 to the Company’s Quarterly Report on
Form 10-Q for the quarter ended March 30,
2007.
|
(9)
|
Filed
herewith.
|