Garmin reports 3Q results

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Garmin today reported its total revenue was down 10 percent for the third quarter, though marine segment revenue increased 3 percent to $45 million as market share gains offset ongoing weakness in the industry.

Total revenue for the quarter, which ended Sept. 26, was $781 million, down from $870 million in the third quarter of 2008. Gross margin improved to 52.4 percent, compared to 44.3 percent in third quarter 2008, and declined slightly from 52.6 percent in second quarter 2009.

Operating margin improved to 30.3 percent, compared to 24.6 percent in third quarter 2008 and 29.8 percent in second quarter of 2009.

Diluted earnings per share increased 30 percent to $1.07 from 82 cents in third quarter 2008; pro forma earnings per share increased 17 percent to $1.02 from 87 cents in the same quarter in 2008.

The company said North America and Europe continued to experience year-over-year revenue declines, though Asia improved.

"While the general marine market remains down, we are outperforming our competitors on the strength of our marine product lineup and believe that we are gaining market share in the marine electronics industry," chairman and CEO Min Kao, said in a statement. "We were excited to recently announce our OEM relationship with Regal. Over two dozen 2010 Regal boat models will be offering Garmin electronics as standard selections on the equipment list."

"This relationship further validates our push into the OEM portion of the marine industry," he added. "While we do not expect to post significant growth in this segment until the macroeconomic conditions improve, we do expect that year-over-year revenues have stabilized in the near-term."

For the year to date, total revenue of $1.89 billion was reported. That's down 23 percent from $2.45 billion year-to-date in 2008. The marine segment decreased 16 percent to $144 million year-to-date, Garmin reported.

Diluted earnings per share decreased 21 percent to $2.12 from $2.68 in year-to-date 2008; pro forma EPS decreased 15 percent to $2.10 from $2.47 in year-to-date 2008.

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