Garmin Ltd. saw revenue grow 19 percent in its marine segment in the first quarter, compared with the quarter a year earlier, and said demand for its new products, including autopilot solutions, chart plotters and radars, has improved.
The company reported $583 million in total revenue for the quarter that ended March 29, with outdoor, fitness, aviation and marine delivering 58 percent of total revenue and growing 22 percent from 2013.
Net income for the quarter was $118.8 million, or 61 cents a diluted share, compared with $88.7 million, or 45 cents a share, a year earlier.
Gross and operating profit margins improved from the prior year’s quarter to 57 percent and 21 percent, respectively.
“We have had a great start to 2014, with revenue, operating income and pro forma EPS growth; yet, we realize that we cannot be complacent,” Garmin president and CEO Cliff Pemble said in a statement. “The markets that we serve are dynamic and competitive, so we must capitalize on our strong portfolio of products in 2014 while also identifying new opportunities and innovations that will provide future growth potential.”
For the marine segment, gross margins improved year-over-year, to 52 percent, in the quarter, with the product mix shifting toward new products with higher-margin profiles.
Operating margins improved significantly during the quarter, with improved research and development efficiency following the delivery of many new products in the past year.
Total operating expenses in the quarter were $210 million, a 7 percent increase from the prior year.
Garmin said that although first-quarter results exceeded its expectations it will wait until the second quarter to update guidance because the first quarter is historically its seasonally weakest quarter of the year.