Trimble Reports Fourth Quarter 2007 Revenue Growth of 34 Percent

Trimble Reports Fourth Quarter 2007 Revenue Growth of 34 Percent

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SUNNYVALE, Calif., Jan. 29, 2008 – Trimble has announced results for its fourth quarter and fiscal year 2007, ended Dec. 28, 2007. Revenue for the fourth quarter of 2007 was $312.8 million, up approximately 34 percent from revenue of $234.1 million in the fourth quarter of 2006. Fiscal 2007 revenue was $1.222 billion, up 30 percent when compared to fiscal 2006 revenue of $940.2 million.

Operating income for the fourth quarter of 2007 was $39.3 million, up 44 percent from the fourth quarter of 2006. Operating margins in the fourth quarter of 2007 were 12.6 percent, compared to 11.7 percent in the fourth quarter of 2006. It should be noted in year-over-year comparisons that amortization of intangibles increased from $4.1 million in the fourth quarter of 2006 to $10.1 million in the fourth quarter of 2007. Additionally, the impact of stock-based compensation expense was $4.1 million in the fourth quarter of 2007, compared to $3.1 million in the fourth quarter of 2006. There was no in-process research and development expense in the fourth quarter of 2007, while there was a $860 thousand in-process research and development expense in the fourth quarter of 2006. Excluding these impacts, non-GAAP operating income of $53.4 million grew by 51 percent compared to the fourth quarter of 2006. Non-GAAP operating margins were 17.1 percent in the fourth quarter of 2007, up from 15.1 percent in the fourth quarter of 2006.

Operating income for fiscal 2007 was $178.3 million, up 32 percent compared to 2006. Fiscal 2007 operating margins were 14.6 percent, compared to 14.4 percent in 2006. Amortization of intangibles increased from $13.1 million in 2006 to $38.6 million in 2007 due to acquisitions. Stock-based compensation expense was $15.0 million in 2007, compared to $12.6 million in the fourth quarter of 2006. In-process research and development expense was $2.1 million in 2007 compared to $1.9 million in 2006. In 2007 there was a $3.0 million restructuring expense, while in 2006 there was no restructuring expense. Excluding these impacts, 2007 non-GAAP operating income of $237.0 million grew by 45 percent compared to 2006. Non-GAAP operating income margins were 19.4 percent in 2007, up from 17.3 percent in 2006.

Net income for the fourth quarter of 2007 was up approximately 10 percent, to $26.3 million, compared to net income of $24.0 million in the fourth quarter of 2006. Diluted earnings per share for the fourth quarter of 2007 were $0.21, up from diluted earnings per share of $0.20 in the fourth quarter of 2006. The tax rate for the fourth quarter of 2007 was 35 percent, compared to 25 percent in the fourth quarter of 2006.

Adjusting for the amortization of intangibles, in-process research and development, and the impact of stock-based compensation expenses, non-GAAP net income for the fourth quarter of 2007 was up 18 percent, to $35.5 million, compared to non-GAAP net income of $30.1 million in the fourth quarter of 2006. Non-GAAP earnings per share for the fourth quarter of 2007 were $0.28, up from non-GAAP earnings per share of $0.26 in the fourth quarter of 2006.

Net income for fiscal 2007 was up approximately 13 percent, to $117.4 million, compared to net income of $103.7 million in 2006. Diluted earnings per share for fiscal 2007 were $0.94 up from diluted earnings per share of $0.89 in the fourth quarter of 2006. The full year tax rate for 2007 was 36 percent, compared to 30 percent in 2006.

Adjusting for restructuring charges, the amortization of intangibles, in-process research and development, and the impact of stock-based compensation expenses, non-GAAP net income for fiscal 2007 was up 26 percent, to $155.1 million, compared to non-GAAP net income of $123.2 million in 2006. Non-GAAP earnings per share for 2007 were $1.25, up approximately 17 percent from 2006 non-GAAP earnings per share of $1.06.