Garmin reports 1Q results

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Garmin Ltd. said today that it had first-quarter revenue of $639 million, up 2 percent from the prior year, with marine, outdoor, aviation and fitness collectively growing 12 percent and contributing 75 percent of total revenue.

Gross margin improved to 58.3 percent, compared with 54.5 percent in the prior-year quarter, the company said.

“We continued our trend of consolidated revenue growth, led by double-digit growth in our marine, outdoor and aviation segments,” Garmin president and CEO Cliff Pemble said in a statement.

The company said its marine segment posted revenue growth of 26 percent, driven by Garmin’s lineup of chart plotters, fishfinders and entertainment products.

Gross margin increased year over year to 57 percent with the product mix shifting toward new products with higher-margin profiles. The company said its operating margin improved to 18.2 percent, resulting in a 76 percent increase in operating income.

Garmin reported net income of $98.6 million for the quarter that ended April 1, compared with $92.1 million, or 49 cents a share, in the quarter last year.

Garmin said it started to ship its new touchscreen and keyed chart plotter combo offerings with its GPSMAP product line during the quarter, with positive customer reception.

“We remain focused on innovations and achieving market share gains within the inland fishing category,” the company said.

“The fitness segment declined slightly, due to the rapidly maturing market for basic activity trackers,” Pemble said. “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.”

Garmin is maintaining its 2017 guidance of about $3 billion in revenue and about $2.65 in pro forma earnings per share.

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