Trimble Reports Half-Billion in Q3 Revenue

Trimble on Thursday (November 1, 2012) announced third-quarter revenue of $504.8 million, up 21 percent as compared to the third quarter (Q3) of 2011.

GAAP operating income for the third quarter of 2012 was $63.5 million, up 96 percent from the year-earlier period. GAAP net income for Q3 2012 was $53.4 million, up 91 percent from Q3 2011. Diluted earnings per share in the third quarter of 2012 were $0.42 as compared to diluted earnings per share of $0.22 a year ago.

Trimble on Thursday (November 1, 2012) announced third-quarter revenue of $504.8 million, up 21 percent as compared to the third quarter (Q3) of 2011.

GAAP operating income for the third quarter of 2012 was $63.5 million, up 96 percent from the year-earlier period. GAAP net income for Q3 2012 was $53.4 million, up 91 percent from Q3 2011. Diluted earnings per share in the third quarter of 2012 were $0.42 as compared to diluted earnings per share of $0.22 a year ago.

"Third quarter results demonstrated both significant year-to-year organic revenue growth as well as non-GAAP operating margin expansion.  It is particularly encouraging that all reporting segments participated in this progression," said Steven Berglund, Trimble’s president and chief executive officer.

"While current macro-economic uncertainties require us to remain cautious about near-term prospects, the quarter’s results reinforce our expectation of sustainable market and financial success," Berglund added.

In its forward-looking guidance that accompanied the Q3 financial results, Trimble said it expected revenue between $503 million and $508 million in the next quarter, with GAAP earnings per share of $0.24 to $0.26 and non-GAAP earnings per share of $0.54 to $0.56. Non-GAAP guidance excludes the amortization of intangibles of $31.6 million related to previous acquisitions; anticipated acquisition costs of $8.0 million; and the anticipated impact of stock-based compensation expense of $8.1 million.

The results offer an encouraging prelude to the company’s annual Trimble Dimensions user conference next week in Las Vegas, Nevada, which focuses on some of the leading segments of its business, including construction and engineering, surveying, mapping, and mobile field services.

Third quarter 2012 non-GAAP operating income of $105.3 million was up 44 percent compared to Q3 2011. Non-GAAP operating margin was 20.9 percent of revenue as compared to 17.5 percent in the year-earlier period.

Trimble points out that its non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP.

By business category, Trimble reported the following Q3 2012 results:

Engineering and Construction (E&C)
Revenue was $287.2 million, up 19 percent over Q3 2011. Growth in E&C came primarily from the sales of heavy and highway and vertical construction products, and acquisitions, partially offset by the effect of foreign exchange. Geographically, there was growth across all major regions. Third-quarter operating income in E&C was $68.5 million, or 23.8 percent of revenue as compared to $42.6 million, or 17.7 percent in the year-earlier period.

Continuing its acquisition strategy in this area, Trimble announced today (November 2, 2012) that it has acquired assets of privately held Vico Software, Inc. (Vico) of Boulder, Colorado, which provides 5D virtual construction software and consulting services. The company says the acquisition extends its solutions for building construction and provides a platform to connect the information flow across the design-build-operate (DBO) lifecycle, improving cost management and optimizing the scheduling involved with complex building construction projects. Financial terms were not disclosed.

Field Solutions
Field Solutions revenue was $103.0 million, up 13 percent primarily due to increased sales of agricultural products. Operating income was $36.0 million, or 35.0 percent of revenue.

Mobile Solutions
Revenue was $83.8 million, up 44 percent, from the year-earlier period due to higher subscription revenue and the effects of acquisitions. Operating income was $8.2 million, or 9.8 percent.

Advanced Devices
Advanced Devices revenue was $30.7 million, up 13 percent, primarily due to strong sales of timing devices. Operating income in Advanced Devices for Q3 2012 was $5.7 million, or 18.5 percent.

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