DeLorme is a producer of personal satellite tracking, messaging, and navigation technology. The company’s main product, inReach, is known for its integration of GPS and satellite technologies. inReach provides the ability to send and receive text messages anywhere in the world including when outside of cell phone range by using the Iridium satellite constellation. By pairing with a smart phone, navigation is possible with access to free downloadable topographic maps and NOAA charts.DeLorme also produces printed atlas and topographic software products. DeLorme combines digital technologies with human editors to individually verify travel information and map details to ensure accuracy. A DeLorme Atlas & Gazetteer is a complement to a vehicle’s GPS or online mapping site, because it allows a traveler to browse and highlight the anticipated route and the possible activities or excursions along the way or at the destination. Paper atlases continue to be a strong seller for DeLorme, with more than 20 million copies sold to date to travelers, recreational enthusiasts, and map lovers. DeLorme’s Topo software is one of the sources of North American trail, logging road and terrain data for outdoor enthusiasts. Topo 10 has US and Canada topographic maps and elevation data with more than four million places of interest in US and Canada. In addition to comprehensive park data, Topo includes high-detail lake, river and stream data for all 50 states.Founded in 1976, DeLorme is headquartered in Yarmouth, Maine, and is home to Eartha, the world's largest revolving globe. Wikipedia.
News Article | May 3, 2017
SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)--Garmin Ltd. (Nasdaq: GRMN – News) today announced results for the first quarter ended April 1, 2017. Highlights for the first quarter 2017 include: “We continued our trend of consolidated revenue growth led by double digit growth in our marine, outdoor and aviation segments,” said Cliff Pemble, president and chief executive officer of Garmin Ltd. “The fitness segment declined slightly due to the rapidly maturing market for basic activity trackers. However, demand for advanced wearables remains strong. Our product development pipeline is robust and we look forward to launching compelling new products throughout the remainder of the year.” The marine segment posted robust revenue growth of 26% driven by our solid lineup of chartplotters, fishfinders and entertainment products. Gross margin increased year-over-year to 57% with product mix shifting toward new products with higher margin profiles. Operating margin improved to 17%, resulting in 76% operating income growth. During the first quarter of 2017, we started shipping our new touchscreen and keyed chartplotter combo offerings in our popular GPSMAP® product line, with positive customer reception. We remain focused on innovations and achieving market share gains within the inland fishing category. During the first quarter of 2017, the outdoor segment grew 20% with significant contributions from wearable devices. Gross margin improved to 63% while operating margin improved to 30%, resulting in 24% operating income growth. We began shipping our highly anticipated fēnix® 5 adventure watch series late in the first quarter as well as the new Garmin branded inReach handhelds. The aviation segment posted solid first quarter revenue growth of 16%, primarily driven by growth in aftermarket products. Gross and operating margins were strong at 74% and 31%, respectively, resulting in 27% operating income growth. During the quarter, we began shipping the G1000® NXi, the next generation integrated flight deck, expanded the market for our ADS-B products with the European Aviation Safety Agency certification of the GTX 345 and continued to enhance our portfolio of safety enhancing products with the G5, a cost-effective solution for electronic flight instruments. We will continue to focus on ADS-B and other global regulatory mandate opportunities that exist and gaining market share in the OEM market. During the first quarter of 2017, the fitness segment posted a revenue decline of 3% driven by lower volume in basic activity trackers partially offset by growth in our advanced wearables with GPS. Gross and operating margins increased year-over-year to 56% and 13%, respectively, resulting in an 11% growth in operating income. During the first quarter, we launched the Forerunner 935, our most advanced multisport watch with performance monitoring tools and introduced the vívosmart 3, an ultra-slim smart activity tracker with wrist based heart rate and innovative all-day stress tracking. While the market for basic activity trackers has matured rapidly over the past year, we continue to see opportunities within the advanced wearable with GPS category and are confident in our product roadmap for the remainder of 2017. The auto segment recorded revenue decline of 19% in the first quarter of 2017, primarily due to the ongoing PND market contraction partially offset by growth in our Auto OEM product lines. Gross margin remained constant at 44%, while operating margin declined year-over-year to 4%. During the first quarter of 2017, we began shipping the next generation Drive series PNDs, offering expanded safety and driver awareness features with WiFi capability, and introduced the Dash Cam 45 and 55, offering a high-quality recording in a compact form factor. Total operating expenses in the quarter were $256 million, an 8% increase from the prior year. Research and development increased 13% driven by aviation and advanced wearable products in fitness and outdoor. Selling, general and administrative expenses increased 7% driven primarily by legal related expenses and information technology costs. Advertising was relatively flat year-over-year. In the first quarter of 2017, we reported a $150 million income tax benefit. Excluding the $169 million income tax benefit due to the revaluation of certain Switzerland deferred tax assets, our pro forma effective tax rate for the first quarter of 2017 was 21.3% compared to an effective tax rate of 18.1% in the prior year. The year-over-year increase in the pro forma effective tax rate is primarily due to the Company’s election in February 2017 to align certain Switzerland corporate tax positions with evolving international tax initiatives. In the first quarter of 2017, we generated $95 million of free cash flow (see attached table for reconciliation of this non-GAAP measure). We continued to return cash to shareholders with our quarterly dividend of approximately $96 million and our share repurchases activity, which totaled approximately $28 million in the first quarter of 2017. We have approximately $47 million remaining in the share repurchase program authorized through December 31, 2017, and expect to repurchase Company stock as business and market conditions warrant. We ended the quarter with cash and marketable securities of approximately $2.3 billion. As announced in February 2017, the Board will recommend to the shareholders for approval at the annual meeting to be held on June 9, 2017 a cash dividend in the total amount of $2.04 per share (subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting), payable in four equal installments on dates to be approved by the Board. We are maintaining our 2017 guidance of approximately $3.02 billion of revenue and approximately $2.65 of pro forma EPS. The information for Garmin Ltd.’s earnings call is as follows: An archive of the live webcast will be available until July 6, 2017 on the Garmin website at www.garmin.com. To access the replay, click on the Investor Relations link and click over to the Events Calendar page. This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, currency movements, expenses, pricing, new products to be introduced in 2017, statements relating to possible future dividends and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 31, 2016 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2016 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html. Garmin, the Garmin logo, the Garmin delta, DeLorme, fēnix, GPSMAP and vívofit are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S.; Garmin Elevate and QuickFit are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved. To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma net income (earnings) per share, forward-looking pro forma earnings per share, pro forma effective tax rate and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company. The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, the effective tax rate and income tax provision before the effect of such discrete tax items are important measures in order to permit consistent comparison between periods. In fiscal 2016, there were no such discrete tax items identified. The net release of uncertain tax position reserves, amounting to approximately $1.0 million and $3.8 million in the first quarter 2017 and 2016, respectively, have not been included as pro forma adjustments in the above presentation of pro forma income tax provision as such amounts tend to be more recurring in nature, and do not affect comparability between periods. Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods. Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment. Forward-looking pro forma earnings per share excludes the effect of certain discrete tax items and foreign currency gains and losses. As discussed in the Pro Forma Net Income (Earnings) Per Share section above, management believes that net income (earnings) per share before the impact of foreign currency gains or losses is an important measure in order to permit a consistent comparison of the Company’s performance between periods. The estimated impact of such foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact of such foreign currency gains and losses, net of tax effects, was $0.16 per share for the 13-weeks ended April 1, 2017. Management believes certain discrete tax items may not be reflective of income tax expense incurred related to current period earnings. Therefore, in order to permit consistent comparison between periods, earnings per share before the effect of such discrete tax items is an important measure. In fiscal 2017, management believes certain discrete tax items will be recognized on a GAAP basis that will have an effect on the EPS comparability between periods: While management expects the above to have a significant impact on comparability, management is unable to determine if additional significant discrete tax items will be identified in fiscal 2017.
News Article | May 9, 2017
Michael A. Heffron brings nearly 40 years of defense business experience including having served as President and Chief Executive Officer of DeLorme Publishing Company, Inc. from January 2011 until its sale to Garmin in March 2016. Mr. Heffron was also a member of the DeLorme Board of Directors. Mr. Heffron had a distinguished career at BAE Systems plc. with multiple leadership positions as the President of Electronics Intelligence & Support Operating Group (EI&S), Member of the BAE's Executive Committee (2007-2011), President of Platform Solutions Unit responsible for the design, development and production of systems for the commercial & military aviation markets (2006-2007), and as Head of BAE's newly formed Information Warfare business 2001-2006). Endeavor Robotics also proudly announces that LTC Charlie Dean, USA, RET has joined as VP of Sales Worldwide. Prior to joining Endeavor Robotics, Charlie held positions at QinetiQ North America as Director of Business Development, Co-Director of Engineering, and Senior Program Manager for Unmanned Systems, and as a career US Army officer. Charlie served 22 years in the US Army where he served as an Infantry officer and held a variety of leadership positions including Director of Operations and Customer Interface at the US Army Natick Soldier Research, Development, and Engineering Center. Charlie also held positions at Draper Labs as Senior Business Development Manager and at TIAX as EVP and VP of Commercialization and Deployment. Charlie holds a B.S. and M.S. in Mechanical Engineering from the United States Military Academy at West Point and from the Massachusetts Institute of Technology, respectively. "Not only have our robots been used to investigate and destroy many tens of thousands of IEDs, the robots' light weight, multi-functional, interoperable capabilities ensure that they can meet the demanding requirements of many varied user communities including dismounted warfighters, counter-IED organizations, HazMat and CBRNe teams, incident response teams in power plants or factories around the globe. We at Endeavor Robotics continue a long legacy of supporting our customers 24/7 with world-class robots while leading the advanced development of next-generation systems," said Charlie Dean, VP of Global Sales. "Endeavor Robotics leads the development and fielding of the most capable, robust, unmanned ground robots in the world. The additions of Mike and Charlie to our team positions us well to serve and maintain our 6,000 installed robots and to continue the rapid development of next generation systems needed for today's evolving threats," said Sean Bielat, CEO, Endeavor Robotics. Endeavor's robots serve on the front lines around the world. Endeavor Robotics brings an established leadership team with decades of experience integrating ground robotic systems, and the best roboticists who collaborate with end-users to develop robots for worldwide markets which operate in areas of conflict and in response to natural disasters. Everyday our robots protect our service men and women from IEDs, hazardous materials and other deadly threats. Endeavor Robotics specializes in delivering and supporting battle-hardened and adaptable robotics. We are committed to design, develop and manufacture tactical robotics in the United States, and to work with industry leaders and government partners to deliver innovative, reliable, and the easiest to operate robot solutions. Our family of robots includes the 5 lb FirstLook, the less than 20 lb SUGV, the man-portable PackBot, and the heavy-duty Kobra. To date, we have delivered more than 6,000 robots to more than 40 countries worldwide. Please visit www.endeavorrobotics.com to learn more. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/endeavor-robotics-announces-key-additions-to-board-of-directors-and-worldwide-sales-team-300453159.html
News Article | February 15, 2017
The Resero hardware is designed to ride light and stay out of the way Avalanche safety technology has taken some interesting turns over the years. The avalanche airbag has gone wireless and wearable and the smartphone has managed to morph into an avalanche transceiver. But the latest avalanche safety device really brings some flash. Using pyrotechnics, the Resero XV system blows snowboard binding straps clean off at the pull of a wearable trigger, freeing the rider to more effectively rise to the top of the rushing snow. Founded in 2013, German company Avalanche Float Solutions introduced two outdoor safety products at last week's ISPO Munich show. The one we're most intrigued by is the Resero XV, a wireless system that frees snowboarder from snowboard to help him or her get on top of the avalanching snow, rather than being pulled down into it. Avalanche Float Solutions explains that in an avalanche, "anchor effect" can bury the snowboard with so much snow it'll pull the rider down with the equivalent of up to 2 or 3 tons of downward force. When you're strapped into the snowboard, there's no way of effectively freeing yourself from the "anchor," increasing the chances that you'll become buried below the surface and suffocate. The Resero XV system pairs a wireless transmitter, worn on the jacket or backpack, with a receiver/activator unit attached to the snowboard. Should the rider start sliding in an avalanche, he or she can quickly pull the activation handle on the transmitter to automatically pop the bindings free with the integrated pyrotechnic elements. Avalanche airbags rely on an activation handle similar to the one on the Resero XV, and Avalanche Float Solutions has teamed up with German avalanche airbag specialist ABS to make the Resero XV compatible with the P.Ride wireless airbag system. The first pull of the Resero XV handle wirelessly activates the airbag. If that doesn't work to get the rider to the top of the snow, a second pull pops the bindings and cuts the anchor loose. One question we have with the design of the Resero XV system is whether someone caught in an avalanche will have the time, awareness and physical capacity to pull the handle twice. If the rider is already struggling to stay afloat, even with the ABS airbag deployed, it seems likely he or she might not be able to give it a second pull. The reason that the ABS P.Ride airbag system includes the remote activation hardware that Avalanche Float Solutions uses to make the Resero XV wirelessly compatible is so that another P.Ride user can activate the airbag, helping prevent a scenario in which the victim does not activate his or her own airbag. When it introduced P.Ride last winter, ABS cited a statistic that 20 percent of airbags are not properly activated in an avalanche, largely because the victim doesn't pull the handle. That might be because he or she is physically unable to grab it during the tumultuous event, doesn't recognize the severity of the avalanche until it's too late, or otherwise just doesn't pull it in time. By including the wireless activation hardware, ABS hopes to cut this statistic down. With that in mind, it seems like the Resero XV should blow both the binding hardware and airbag with one pull, providing maximum burial prevention with the least amount of effort. Perhaps that's something that will evolve during the XV's ongoing development. AFS says the Resero XV is designed to be unobtrusive in terms of your natural riding, weighing around 11 oz (300 g) in its current form. It works with strap bindings but not rarer step-in or alpine styles. The hardware is designed to work in temperatures down to -22° F (-30° C) and is also built to hold strong through the moisture and vibration inherent in snowboarding. AFS does not have an estimated launch timeframe but estimates pricing at €400 (approx. US$420). It is working with the Technical University of Munich (TUM) in adapting the system to skis and is also looking at ways to make the system compatible with mechanical airbags that lack the P.Ride's wireless activation hardware. The company is also considering rolling in the emergency alert suite of its second product, the Resero Whistle. The Whistle is a straightforward emergency communications device that takes on the same wearable, pull-handle form as the XV. The device pairs with an accompanying app and uses both GSM and its own LoRaWAN low power wide area network to get a victim's location and medical information out to rescuers. It uses both GPS and RECCO to help rescuers locate the victim. The Whistle has a much broader range of uses than the avalanche-specific XV and could be a critical tool for many different types of wilderness emergencies, competing with existing communications tools like the inReach Explorer from DeLorme (now owned by Garmin). AFS intends to get the Resero Whistle out starting next winter (Northern Hemisphere), first to mountain professionals, then to the public. Estimated pricing is €149 (about $160) for the device and one year of service, with a €30 annual service fee following the first year. The first video clip below shows an illustration of how the Resero XV works to keep snowboarders afloat and also includes a quick shot of the pyrotechnic modules firing off. The second clip provides more information about the Resero Whistle. Both products got some love at ISPO, where the XV earned itself an ISPO Award and the Whistle was voted a finalist for the BrandNew Award.
News Article | November 4, 2016
Nearly a quarter of the world's population lives within 60 miles of the shoreline and within 300 feet of sea level elevation. As sea level rises, these shoreline communities as well as barrier islands, dunes and marshes become more at-risk. The LSU Center for Coastal Resiliency, or CCR, led by Scott Hagen, a professor in the LSU Department of Civil & Environmental Engineering and the LSU Center for Computation & Technology, has received $1.3 million in grants to support critical research that will advance the tools and processes to assess these risks. With support from the NOAA National Centers for Coastal Ocean Science, CCR will build upon its previous NOAA-funded efforts and those successful outcomes and strategies. One strategy has been to directly involve coastal resource managers early and throughout the assessment process. Resource managers' input has informed the development and application of large-scale, high-definition computer models that can predict the coastal dynamics of sea level rise and assess hydrodynamic and ecological impacts at the coastal land margin. This research examines the impacts from the coastal dynamics of sea level rise through integrated field assessments and models representing tides, wind-wave, storm surge, coastal morphology, overland and biological processes. In collaboration with the Dauphin Island Sea Lab, University of Central Florida, University of South Carolina and Texas A&M University-Corpus Christi, CCR researchers aim to refine, enhance and extend the models as well as link the economic impact and value of ecosystem services to the coastal dynamics of sea level rise. "Our collaborative work has helped shift the paradigm for climate change and sea level rise assessments at the coastal land margin away from 'bathtub' assessments, which simply apply a static rise to existing configurations, to a more dynamic and realistic assessment," said Hagen, the principal investigator of the projects. "The end products we have produced and are developing are truly outcomes from transdisciplinary work." This $1.2 million project is funded for four years. The researchers will deliver their results through a flexible, multi-platform mechanism that allows for region-wide or place-based assessments. "Engaging stakeholders appropriately and effectively over the duration of the project should help ensure development of accessible and useful tools that can empower communities in better understanding and preparing for the impacts of climate change and sea level rise," said Denise DeLorme, professor in the LSU Department of Environmental Sciences and co-principal investigator on the project. Tackling large-scale challenges, such as sea level rise and storm surge response, with high definition computer models requires robust high-performance computing infrastructure. "We have the people, tools and technology at LSU and the Center for Computation & Technology to find solutions that will be able to protect coastal communities worldwide," said J. "Ram" Ramanujam, director of the LSU Center for Computation & Technology. "CCR's strength is in building collaborations across disciplines to develop advanced systems-based models and further our understanding of the complexities that factor into coastal resiliency." CCR received another grant to quantify the dynamic effects of sea level rise and projected landscape changes on storm surge in Hampton Roads, Virginia, which is rated second only to New Orleans as the most vulnerable area to relative sea level rise in the U.S. Results from this project will be centered on scenario projections of nuisance flooding at high tide, storm surge depth and extent under a suite of storm conditions, sea level rise rates, landscape changes and possible management actions. CCR will partner with the Northern Gulf Institute at Mississippi State University on this project.
News Article | November 22, 2016
New NSR Report Projects More Markets, More Satellite M2M/IoT Offerings and More Competition Worldwide CAMBRIDGE, MA--(Marketwired - Nov 21, 2016) - NSR's Machine to Machine (M2M) and Internet of Things (IoT) via Satellite, 7th Edition (M2M7) report, released today, finds the global satellite M2M and IoT market will reach 5.96 million in-service satellite M2M/IoT terminals by 2025, corresponding to nearly $2.5 billion in annual retail revenues, a doubling over 2015. The report also finds the most lucrative application is Land Transport; however, other key verticals record strong growth. "NSR's latest report points to an optimistic picture for the industry; however, operators cannot stand still as increasing competition aims to take advantage of the growing demand for M2M/IoT," notes Alan Crisp, NSR Analyst and report lead author. "Growing cellular footprints, greater terrestrial reliability, and the rollout of 5G and LPWA networks, are increasing competition within the M2M/IoT market globally. Longer term, IoT-dedicated smallsats will also enter the market, providing unique and potentially compelling value propositions to disrupt the current market paradigm," notes Crisp. While competition within the M2M market will increase, opportunities also exist, such as dual-mode solutions, enabling operators to tap into new markets. Beyond this, with the growth of dedicated terrestrial IoT Low Power Wide Area (LPWA) networks, such as Sigfox and LoRa, new, albeit relatively niche, markets for satellite participation will open up. The compelling value proposition to provide satellite IoT backhaul for such networks will enable new revenue sources in the longer term, once these networks are rolled out globally. Presenting a larger opportunity is satellite consumer IoT, which will see significant growth in areas such as location and tracking devices. This will come in spite of the dominance of terrestrial connections. Most notable in this segment will be Globalstar SPOT and DeLorme InReach, which NSR forecasts will reach over 770,000 in-service units by 2025 -- 13% of active M2M/IoT satellite units in that year. About the Report M2M and IoT via Satellite, 7th Edition, expands NSR industry leading coverage, with analysis on four new distinct applications, including IoT and the Connected Car. The report offers deep insight into the continuously expanding and evolving M2M and IoT sectors, enabling companies to devote focus to growth opportunities for each application. This industry reference clarifies which applications will see the strongest revenue growth, unit demand trends and the shifts in ARPUs over the next decade. For additional information on this NSR offering, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1-617-674-7743. About NSR NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR's global team, unparalleled coverage and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings. First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries. Contact us at email@example.com to discuss how we can assist your business.
News Article | February 22, 2017
SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)--Garmin Ltd. (Nasdaq: GRMN) today announced results for the fiscal-year ended December 31, 2016. “2016 was a remarkable year of growth driven by strong sales in our outdoor, fitness, marine, and aviation segments,” said Cliff Pemble, president and Chief Executive Officer of Garmin Ltd. “Entering 2017, we see additional growth opportunities ahead and we are well positioned to seize these opportunities with a strong lineup of great products.” The outdoor segment grew 46% in the quarter with significant contributions from wearable devices combined with growth in all other product categories and the contribution of DeLorme products. Gross margin remained strong at 61% while operating margin was relatively flat at 33%, resulting in 42% operating income growth. We recently announced our fēnix® 5 series with three different designs all featuring Garmin Elevate™ wrist heart rate technology and our QuickFit™ band replacement system: the fēnix 5S is perfect for smaller wrists without sacrificing multisport functionality, the fēnix 5X includes preloaded wrist-based mapping, and the compact fēnix 5 is feature-packed with an all-new industrial design. We expect outdoor to continue to be a growth segment in 2017 as we leverage opportunities in wearables and other product categories in the segment. The fitness segment posted strong revenue growth of 20% in the quarter driven by wearables with Garmin Elevate™ wrist heart rate technology. Gross margin increased year-over-year to 52% with operating margin of 17%, resulting in a 15% growth in operating income. The recently launched vívofit jr. was well received by retailers and customers during the holiday quarter and we see additional growth potential for wearables designed specifically for children. We believe fitness will be our largest revenue contributor in 2017, and enter the year confident in our product lineup. The marine segment posted strong fourth quarter revenue growth of 19% driven by our solid lineup of chart plotters and fish finders. Gross margin decreased year-over-year to 52% due to product mix, while operating margin improved to 4%. In the quarter, we introduced new touchscreen and keyed chartplotter combo offerings in our popular GPSMAP® product line, many with built-in sonar, and new radar and entertainment offerings. We expect marine to continue to be a growth segment in 2017 as we focus on market share gains and new product innovations. The aviation segment posted solid revenue growth of 13% in the quarter with growth contributions from both OEM and aftermarket. Gross and operating margins were 77% and 28%, respectively. During the quarter, we received FAA installation approval for our helicopter ADS-B offerings, supported Cirrus in the certification and initial deliveries of the SF 50 light jet, and Textron Airland announced our selection as the avionics provider for the Scorpion light attack aircraft. We continue to invest in upcoming certifications with our numerous OEM partners, as well as ongoing opportunities for long-term market share gains. The auto segment recorded revenue decline of 17% in the quarter, primarily due to the ongoing PND market contraction. Gross margin remained constant at 42%, while operating margin declined year-over-year to 9%. At the recent CES show we announced our next generation Drive series PNDs, which offer expanded safety and driver awareness features and WIFI capability that enhances the process of updating maps and other content stored on the device. During the quarter, we were chosen as a Tier 1 infotainment hardware supplier for BMW affirming recent investments in our OEM program. Total operating expenses in the quarter were $311 million, a 16% increase from the prior year. Advertising increased 19%, driven by year-over-year increases in the fitness and outdoor segments to support wearables. Research and development and selling, general and administrative expenses increased 22% and 9%, respectively, due primarily to recent acquisitions and an additional week in our fourth quarter 2016. The effective tax rate in the fourth quarter of 2016 was 19.0%, an increase from 13.2% in the prior year quarter. The year-over-year increase in the fourth quarter 2016 tax rate is primarily due to the recording of a full year of the U.S. research and development tax credit in the fourth quarter of 2015 versus being spread over four quarters in 2016. In the fourth quarter of 2016, we generated $165 million of free cash flow (see attached table for reconciliation of this non-GAAP measure). We continued to return cash to shareholders through dividends and share repurchases. As a result of the additional week in the fourth quarter 2016, two quarterly dividends were recorded totaling approximately $192 million and we repurchased approximately $28 million of Company stock. We have approximately $75 million remaining in the share repurchase program which was extended through December 31, 2017, and expect to repurchase Company stock as business and market conditions warrant. We ended the quarter with cash and marketable securities of approximately $2.3 billion. We expect 2017 revenue of approximately $3.02 billion as growth in outdoor, fitness, marine and aviation is offset by ongoing declines in the PND market. We expect gross margins to be approximately 56%, relatively flat to the prior year. Operating margin is expected to be approximately 20%. With a pro forma expected tax rate of approximately 22%, we currently forecast 2017 pro forma EPS of approximately $2.65. The expected year-over-year increase in the 2017 pro forma tax rate is primarily due to the Company’s election to adjust certain Switzerland tax positions to address potential tax risk from evolving global tax initiatives. The board of directors intends to recommend to the shareholders for approval at the annual meeting to be held on June 9, 2017, a cash dividend in the amount of $2.04 per share (subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting), payable in four equal installments on dates to be determined by the Board. The Board currently anticipates the scheduling of the dividend in four installments as follows: In addition, the board of directors has established March 31, 2017 as the payment date and March 15, 2017 as the record date for the final dividend installment of $0.51 per share, per the prior approval at the 2016 annual shareholders’ meeting. The first, second and third payments of $0.51 per share were made on June 30, 2016, September 30, 2016, and December 30, 2016, respectively. The information for Garmin Ltd.’s earnings call is as follows: An archive of the live webcast will be available until April 27, 2017 on the Garmin website at www.garmin.com. To access the replay, click on the Investor Relations link and click over to the Events Calendar page. This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s GAAP and pro forma estimated earnings, EPS, tax rate and revenue for fiscal 2017, the Company’s expected segment revenue growth rates, margins, currency movements, expenses, pricing, new products to be introduced in 2017 and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 31, 2016 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2016 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html. Garmin, the Garmin logo, the Garmin delta, DeLorme, fēnix, GPSMAP and vívofit, are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S.; Garmin Elevate and QuickFit are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma net income (earnings) per share, forward-looking pro forma earnings per share, forward-looking pro forma tax rate and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company. Management believes that net income (earnings) per share before the impact of foreign currency gain or loss and certain discrete income tax items, as discussed below, is an important measure. The majority of the Company’s consolidated foreign currency gain or loss is typically driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at one of the Company’s subsidiaries. However, there is minimal cash impact from such foreign currency gain or loss. The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of the income tax expense that is incurred related to the current period earnings. Accordingly, earnings per share before the impact of foreign currency translation gain or loss and certain discrete income tax items permits a consistent comparison of the Company’s operating performance between periods. The tax effect of foreign currency gains (losses) was calculated using effective tax rates of 19.0% and 13.2% for the fourth quarters of 2016 and 2015, respectively and 18.9% and 19.6% for the fiscal years of 2016 and 2015. The effective tax rate is calculated by taking the Income tax provision divided by Income before taxes, as presented on the face of the Condensed Consolidated Statements of Income both on a quarterly and fiscal year basis There were no discrete tax items identified by management in the 53-weeks and 52-weeks ended December 31, 2016 and December 26, 2015, respectively, that were excluded from pro forma earnings per share. The net release of other uncertain tax position reserves, amounting to approximately $11.9 million and $7.3 million for the 53-weeks and 52-weeks ended December 31, 2016 and December 26, 2015, respectively, have not been included as pro forma adjustments in the above presentation of pro forma earnings per share as such amounts tend to be more recurring in nature, and do not affect comparability between periods. Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow plus one-time cash payments associated with our inter-company restructuring less capital expenditures for property and equipment. Forward-looking pro forma tax rate and pro forma earnings per share are calculated before the effect of certain discrete tax items. Management believes certain discrete tax items may not be reflective of income tax expense incurred as a result of current period earnings. Therefore, in order to permit consistent comparison between periods, the tax rate and earnings per share before the effect of such discrete tax items are important measures. In the 53-weeks ended December 31, 2016, there were no such discrete tax items identified. However, in fiscal 2017, management believes certain discrete tax items will be recognized on a U.S. GAAP-basis, that will have an effect on comparability between periods: While management expects the above to have a significant impact on comparability, management is unable to determine whether or not additional significant discrete tax items will be identified in fiscal 2017. In addition to the discrete tax items discussed in the forward-looking pro forma tax rate section above, our 2017 pro forma EPS excludes foreign currency exchange gains and losses. The estimated impact of such foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact of such foreign currency gains and losses, net of tax effects, was $0.01 and $0.13 per share for the 14-weeks and 53-weeks ended December 31, 2016, respectively.
News Article | September 15, 2016
This is the fourth installment in a series of dispatches. Follow along here. AT THE ARCTIC CIRCLE, NWT—If I had to prioritize the most important gear I brought with me on this climate change reporting trip, the portable solar panels would rank pretty high. The canoe and paddles probably have to come first. Then my DeLorme inReach, a fantastic device that acts as both GPS and text-via-satellite link to the outside world. But then, next on the list, my method of charging that device: a system from Goal Zero, a three-panel array and heavy rechargeable battery pack. The sun never set, and so I could put the system outside the tent at night and find a charged battery in the morning. The longest stretch of the Mackenzie River without human settlement is the section between Fort Good Hope and Tsiigehtchic, over 200 miles of gorge, wind, mud, rain, and grizzly bear that crosses the Arctic Circle. It took me a week of paddling to traverse it, and I never saw another person, boat, or plane. If the canoe capsized and I got stranded in that rocky socket of wilderness, I could drink the water from the river and survive without food for days, but unless I had a fully charged inReach, I couldn't call for help. My communications, my navigating, my hope of rescue, all relied on electricity provided by my solar panel. Communities in the north can't possibly hang from such a tenuous thread. In a land of such extreme weather, reliable electricity is a matter of urgent public safety. Which is why, in my experience, the song of the North is not a loon's call or wolf's howl, as many famous outdoor writers contend, but rather the hum of the diesel generator. It should go without saying that the towns of the Northwest Territory are off the grid. Most power plants in each village consist of a bank of three massive diesel generators: one to run, one in maintenance, one emergency backup. Harmonizing with this perpetual rumble is a symphony of engines, from the trucks, four-wheelers, dirt bikes, powerboats, personal home generators, and heavy construction equipment that clog each outpost. Fuel is extremely difficult to transport to a place like Fort Good Hope or Tulita, and yet motors run all day and night. I'm far from the only one who has taken notice of this incongruence. Teresa Chilkowich, the Dehcho community coordinator with the Arctic Energy Alliance, is working with local First Nations to find a practical energy balance, between full reliance on dirty and expensive fossil fuels and my precarious clean alternative. Sometimes her work is deceptively obvious and practical; Jean Marie River, a town of 70 people near the start of the Mackenzie, saved $9000 a year by unplugging a single soda machine, a story that went semi-viral. Read more: This Is Where 1 Million Paddle Strokes Gets a Climate Reporter in a Canoe More often, though, the work is more complicated. There is a regulatory limit to the number of pellet stoves, LED lighting systems, and other clean projects Chilkowich can undertake. "There is a cap on solar in each community," she told me, because she can't put Northwest Territories Power Corporation out of business. The company has to stay just profitable enough so it's worth it to run the diesel generators all winter. When oil prices are low, the territorial government reinvests the savings in clean energy projects—but not too many. "Everything's connected," Chilkowich said, as she explained the economics to me. "There is a cap on solar in each community" Consider the case study of Jean Marie River, home not only to an unplugged soda machine but also to a new 6000-watt solar array that its citizens can monitor in real time. That project proved economically attractive because of the wide range of energy costs up north. In the United States, a kilowatt-hour of energy costs about 13 cents. In big cities, like New York, the cost can be higher (18 cents), and in Idaho it only costs about 8 cents. Still, the price is relatively consistent. Not so in the Canadian north. While power in Edmonton, a comparatively southern city (population: 900,000), is 5 cents Canadian (about 4 cents USD), a kilowatt-hour of power in the indigenous community of Colville Lake (population: 166) costs up to $2.96 CDN. The first 600 kilowatt-hours of electricity are subsidized for residential customers, costing "only" 28 cents CDN, but businesses and governments make up the difference. The First Nations band in Jean Marie River was paying $1.91 CDN, making a solar array an easier sell. During my travels down the river, I came to realize that one of Chilkowich's greatest challenges, ironically, is instilling a mentality of conservation. A thousand caribou for every hunter, more oil under the ground than Alaska; so many resources on so much land inhabited by so few people, one could easily feel like they will never run out. When I spent time in people's homes in the north, I discovered they were very conscious of their water use, because it was delivered only twice a week to a holding tank at their home. Electricity and gasoline, however, were more conspicuously wasted. Fans and lights left on, the television blaring while no one watches, and, despite the $8/gallon CDN cost of gas, cruising around town in a crew-cab pickup seemed to be typical recreation. Northern Canadian communities don't use any more electricity, per capita, than southern ones, but with costs so high, this surprised me. I asked Chilkowich to explain, since she is also working a project to place advanced electricity meters in individual homes. "I think it's out of sight, out of mind," she said. "You can see the level of the water tank in your home, you know to conserve. But the electricity, you don't see. If they had to add quarters to get power, like at the car wash, they'd turn off the lights." The scenery changes, but human nature stubbornly pervades. Travel support for this series was provided by the Pulitzer Center on Crisis Reporting. Get six of our favorite Motherboard stories every day by signing up for our newsletter.
DeLorme | Date: 2015-02-13
A method of transmitting a destination along with the users current location to a central viewing site allowing the user set or change their travel plan while they are on their trip and minimize bandwidth use on expensive or slow networks. A byproduct of this method is the transmission device can record the detailed path traveled by the user while transmitting enough user locations to give the viewer at the central viewing site a good indication of where the user has been. The detailed route traveled by the user is uploaded to the central viewing site when the transmission device is connected to a faster or less expensive network.
DeLorme | Date: 2014-03-13
A power supply circuit (1) for powering a load device (10) with the requirements of a high power burst at a low duty cycle. The power circuitry includes; a power source (2), a voltage comparator (3) which makes sure that the power source has enough power for the system, a series boost regulator (5) which delivers a higher voltage to the capacitor (7), a switching buck/boost regulator (8) which receives the voltage from the capacitor and regulates the higher or lower voltage to the load device.
News Article | September 12, 2016
This is part of a Motherboard series on climate change. Follow along here. It took five months to plan, purchase, test, re-purchase, and pack the gear I'd need to paddle the entire length of the Mackenzie River to report on climate change. Here are the highlights of the kit, as seen below, from the bottom-right corner and spiraling clockwise. The DeLorme inReach. How did people plan expeditions before they had this all-in-one GPS, digital map, weather- predictor, emergency beacon, and satellite texting machine? And even after all that, I was only half-packed. This photo is missing the food. Get six of our favorite Motherboard stories every day by signing up for our newsletter.