CAYMAN ISLANDS — (BUSINESS WIRE) — May 5, 2010 — Garmin Ltd. (Nasdaq: GRMN) today announced results for the fiscal quarter ended March 27, 2010.
First Quarter 2010 Financial Summary:
Executive overview from Dr. Min Kao, Chairman and Chief Executive Officer:
“The first quarter of 2010 provided mixed results but we view the overall trends in the business as positive indicators for the remainder of the year,” said Dr. Min Kao, chairman and chief executive officer of Garmin Ltd. “While excess channel inventory led to a decline in the sell-in of PNDs, sell-through trends of our major United States retail partners continued to show year-over-year growth. In addition, we generated strong revenue and margins in our outdoor/fitness, aviation and marine segments which allowed us to post pro forma earnings per share growth of 52% in the quarter.
Looking specifically at the auto/mobile segment, we believe that
inventory levels normalized toward the end of first quarter and that
sell-in to the retail channel has begun to more closely align to
sell-through trends in the second quarter. We anticipate that this
segment will improve sequentially throughout the remainder of 2010. The
Asian market improved significantly in the first quarter with 51% PND
unit growth. We experienced strong results throughout much of the region
and plan to build on this success in this growing market. Pricing was a
positive indicator in the quarter, with the average selling price (ASP)
improving both year-over-year and sequentially. Moving into the second
quarter, we believe that we are well-positioned in the industry with new
product introductions and promotional activities for the “dads and
grads” selling season.