Trimble Inc.
May 3, 2007

Trimble Reports First Quarter 2007 Revenue Growth of 27 Percent

- First Quarter Revenue of $285.7 million - Earnings Per Share of $0.24 GAAP and $0.33 non-GAAP

SUNNYVALE, Calif., May 3, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Trimble (Nasdaq: TRMB) today announced results for its first quarter 2007, ended March 30, 2007. Revenue for the first quarter of 2007 was $285.7 million, up approximately 27 percent from revenue of $225.9 million in the first quarter of 2006.

Operating income for the first quarter of 2007 was $39.3 million, up 19 percent from the first quarter of 2006, with operating margins of 13.7 percent, compared to 14.6 percent in the first quarter of 2006. For year-over-year comparisons it should be noted the amortization of purchased intangibles increased by $5.6 million versus the first quarter of 2006 due to acquisitions. In the first quarter of 2007, in-process research and development expense was $2.1 million and restructuring expense was $2.7 million, whereas there was no in-process research and development expense or restructuring expense in the first quarter of 2006. Additionally, the impact of stock-based compensation expense was $3.4 million in the first quarter of 2007, compared to $3.2 million in the first quarter of 2006. Excluding the above impacts, non-GAAP operating income grew by 43 percent compared to the first quarter of 2006, with non-GAAP operating income margins of 19.4 percent, compared to 17.1 percent in the first quarter of 2006.

Net income for the first quarter of 2007 was $28.7 million, up approximately 11 percent compared to net income of $25.8 million in the first quarter of 2006. Earnings per share for the first quarter of 2007 were $0.24 compared to earnings per share of $0.22 in the first quarter of 2006. The tax rate for the first quarter of 2007 was 32 percent. GAAP earnings per share in the first quarter of 2007 were negatively impacted by approximately $0.05 due to amortization of intangibles and in-process research and development expense, by $0.02 due to restructuring expense and by $0.02 due to stock-based compensation expense.

Adjusting for the amortization of intangibles, in-process research and development, restructuring, and the impact of stock-based compensation expenses, non-GAAP net income for the first quarter of 2007 was $39.6 million, up 33 percent compared to non-GAAP net income of $29.8 million in the first quarter of fiscal 2006. Non-GAAP earnings per share for the first quarter of 2007 were $0.33, up approximately 27 percent from non-GAAP earnings per share of $0.26 in the first quarter of 2006.

"During the first quarter, we achieved a symbolic milestone by reporting revenues of over $1 billion in a four quarter period for the first time. All segments reported strong performance with much of that strength reflecting improved international results," said Steven W. Berglund, Trimble's president and chief executive officer. "Our outlook remains positive as we anticipate both continuing progression in our traditional businesses, as well as the potential for improving financial results within @Road, our recent acquisition."

Trimble Results by Business Segment

Operating income by segment represents net revenue less operating expenses, excluding general corporate expenses, amortization of intangibles, in-process research and development, and restructuring expenses. In addition, for each segment, non-GAAP operating income excludes the impact of stock-based compensation expense.

Engineering and Construction

Revenue for Engineering and Construction (E&C) was $175.6 million for the first quarter of 2007, up approximately 20 percent compared to revenue of $146.7 million in the first quarter of 2006. Revenue growth in E&C was driven by strong sales of construction products and strong international growth.

Operating income in E&C was $42.2 million, or 24.0 percent of revenue, in the first quarter of 2007 compared to $26.4 million, or 18.0 percent of revenue, in the first quarter of 2006.

Non-GAAP operating income in E&C was $43.0 million, or 24.5 percent of revenue, in the first quarter of 2007 compared to $27.4 million, or 18.7 percent of revenue, in the first quarter of 2006.

Field Solutions

Field Solutions (TFS) revenue was $51.0 million in the first quarter of 2007, up 18 percent compared to $43.0 million in revenue in the first quarter of 2006. Growth was driven largely by a stronger agricultural market and the introduction of the EZ-Guide(R) 500 system.

TFS operating income was $16.6 million, or 32.6 percent of revenue for the first quarter of 2007 compared to $13.9 million, or 32.3 percent of revenue, in the first quarter of 2006.

TFS non-GAAP operating income was $16.8 million, or 33.0 percent of revenue for the first quarter of 2007 compared to $14.2 million, or 32.9 percent of revenue, in the first quarter of 2006.

Mobile Solutions

First quarter 2007 revenue for Mobile Solutions (TMS), was $29.9 million, up 137 percent from revenue of $12.6 million in the first quarter of 2006. $11.3 million of this revenue came from the acquisition of @Road, which closed Feb. 16, 2007.

TMS operating income was $1.0 million, or 3.4 percent of revenue for the first quarter of 2007 compared to $223 thousand, or 1.8 percent of revenue, in the first quarter of 2006.

TMS non-GAAP operating income was $1.8 million, or 5.9 percent of revenue for the first quarter of 2007 compared to $399 thousand, or 3.2 percent of revenue, in the first quarter of 2006.

Advanced Devices

Advanced Devices revenue was $29.3 million, up approximately 25 percent from revenue of $23.5 million in the first quarter of 2006 driven by embedded product sales.

Advanced Devices operating income was $3.3 million, or 11.4 percent of revenue for the first quarter of 2007 compared to $2.3 million, or 9.9 percent of revenue, in the first quarter of 2006.

Advanced Devices non-GAAP operating income was $3.7 million, or 12.6 percent of revenue for the first quarter of 2007 compared to $2.8 million, or 12.0 percent of revenue, in the first quarter of 2006.

Use of Non-GAAP Financial Information

Our results of operations have undergone significant change primarily due to the impact of acquisitions and FAS 123(R). To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The specific non-GAAP measures which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why management chose to exclude selected items and the additional purposes for which these non-GAAP measures are used can be found at the end of this release. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Management generally compensates for the limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non- GAAP financial measure to the most directly comparable GAAP financial measure or measures. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information, on the investor relations page of our Web site at www.investor.trimble.com.

Forward Looking Guidance

In the second quarter of 2007, Trimble expects revenue to grow 26 to 28 percent compared to the second quarter of 2006, with revenue between $308 million and $313 million. At a 39 percent tax rate, with approximately 124.6 million shares outstanding, Trimble expects second quarter 2007 GAAP earnings per share between $0.22 and $0.24.

Trimble expects non-GAAP earnings per share between $0.29 and $0.31, compared to actual split-adjusted non-GAAP earnings per share of $0.29 in the second quarter of 2006. Non-GAAP guidance for the second quarter of 2007 uses a 39 percent tax rate and excludes the amortization of intangibles of $10.7 million related to previous acquisitions, and the anticipated impact of stock-based compensation expense of $3.9 million.

As guided on Trimble's fourth quarter 2006 earnings call, revenue for 2007 is expected to be between $1.14 billion and $1.17 billion, with $80 million to $85 million of revenue coming from @Road. On a GAAP basis, Trimble expects 2007 earnings per share of $0.78 to $0.80. Trimble is raising its previously announced split-adjusted, non-GAAP earnings per share guidance for 2007 by two cents to $1.07 to $1.09, due to a lower debt level than originally guided, partially offset by a higher tax rate of 37 to 38 percent. Non-GAAP guidance for 2007 excludes an estimated $38.9 million impact from the amortization of intangibles, a $2.1 million impact from in-process research and development expense, a $2.7 million impact from restructuring expense, and a $14.8 million impact from stock-based compensation expense.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on May 3, 2007 at 1:30 p.m. PDT to review its first quarter 2007 results. It will be broadcast live on the Web at http://investor.trimble.com . Investors without Internet access may dial into the call at (800) 528-9198 (U.S.) or (706) 634-6089 (international). A replay of the call will be available for thirty days beginning at 8:00 p.m. PDT on May 3, 2007. The replay number is (800) 642-1687 (U.S.), or (706) 645-9291 (international), and the pass code is 4865208.

About Trimble

Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location -- including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies such as GPS, lasers and optics, Trimble solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1978 and headquartered in Sunnyvale, Calif., Trimble has a worldwide presence with more than 3,400 employees in over 18 countries.

For more information visit Trimble's Web site at www.trimble.com.

Safe Harbor

Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include the revenue, effective tax rate, stock-based compensation, the impact from in- process research and development expense, amortization of purchased intangibles and earnings per share estimates for the second quarter and full year 2007 including the expected impact of the @Road acquisition. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. For example, strong demand for the Company's products may not continue because of a decline in the overall health of the economy and international markets, which may result in reduced capital spending. Fuel and other operating costs could remain high or increase, which could weaken sales into the agricultural market. In addition, the Company's results may be adversely affected if the growth rates and profitability expectations for each of its four segments are not achieved, or its joint ventures and recent acquisitions do not achieve anticipated results, or if the Company is unable to market, manufacture and ship new products. The Company's results would also be negatively impacted by unforeseen costs associated with the integration of @Road or delays in integrating the two companies. Any failure to achieve predicted results could negatively impact the Company's revenues, gross margin and other financial results. Whether the Company achieves its guidance for the second quarter of 2007 and fiscal 2007 will also depend on a number of other factors, including the risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10- K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.

    FTRMB


                    CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)
                                 (Unaudited)

                                                      Three Months Ended
                                                    Mar-30,       Mar-31,
                                                      2007         2006

    Revenue                                         $285,732       $225,854
    Cost of sales                                    142,602        118,391
    Gross margin                                     143,130        107,463
    Gross margin (%)                                   50.1%          47.6%

    Operating expenses
     Research and development                         31,163         24,446
     Sales and marketing                              42,147         32,706
     General and administrative                       21,642         15,761
     Restructuring                                     2,692              -
     Amortization of purchased intangible assets       4,106          1,485
     In-process research and development               2,112              -
      Total operating expenses                       103,862         74,398


    Operating income                                  39,268         33,065
    Operating margin (%)                               13.7%          14.6%

    Non-operating income (expense), net
     Interest income (expense), net                    (157)            434
     Foreign currency transaction gain, net              357            593
     Income from joint ventures                        2,422          1,616
     Other income, net                                   235            164
      Total non-operating income (expense), net        2,857          2,807

    Income before taxes                               42,125         35,872

    Income tax provision                              13,442         10,044
    Net income                                       $28,683        $25,828


    Earnings per share :
     Basic                                             $0.25          $0.24
     Diluted                                           $0.24          $0.22

    Shares used in calculating earnings per share:
     Basic                                           115,449        108,484
     Diluted                                         120,896        115,718


                         CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                  Unaudited

                                                         Period Ended
                                                    Mar-30,        Dec-29,
                                                      2007           2006
    Assets

    Current assets:
     Cash and cash equivalents                        63,571        129,621
     Accounts receivables, net                       216,099        172,008
     Other receivables                                12,323          6,014
     Inventories, net                                127,620        112,552
     Deferred income taxes                            29,286         25,905
     Other current assets                             13,456         13,026
      Total current assets                           462,355        459,126

    Property and equipment, net                       53,735         47,998
    Goodwill and other purchased
     intangible assets, net                          865,893        441,682
    Deferred income taxes                                407            399
    Other assets                                      44,162         29,226
      Total non-current assets                       964,197        519,305

      Total assets                                $1,426,552       $978,431

    Liabilities and Shareholders' Equity

    Current liabilities:
     Current portion of long-term debt                 9,994              -

     Accounts payable                                 67,770         44,148
     Accrued compensation and benefits                38,527         47,006
     Accrued liabilities                              37,325         24,973
     Deferred revenue                                 35,039         28,060
     Accrued warranty expenses                         9,616          8,607
     Deferred income taxes                             1,334          4,525
     Income taxes payable                             12,951         23,814
      Total current liabilities                      212,556        181,133

    Non-current portion of long-term debt            160,487            481
    Deferred income taxes                             37,400         21,633
    Other non-current liabilities                     58,694         27,519
      Total liabilities                              469,137        230,766

    Shareholders' equity:
     Common stock                                    616,512        435,371
     Retained earnings                               299,867        271,183
     Accumulated other comprehensive income           41,036         41,111
      Total shareholders' equity                     957,415        747,665

      Total liabilities and
       shareholders' equity                       $1,426,552       $978,431


                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In thousands)
                                  Unaudited
                                                      Three Months Ended
                                                     Mar-30,        Mar-31,
                                                      2007           2006


    Cash flow from operating activities:
     Net Income                                      $28,683        $25,828

     Adjustments to reconcile net income to
      net cash provided by
      operating activities, net of effect of
      acquisitions:
      Depreciation expense                             4,121          3,104
      Excess and obsolescence reserve                  1,055          2,710
      Amortization expense                             7,894          2,380
      Provision for doubtful accounts                    288            360
      Stock-based compensation                         3,353          3,230
      Non-cash restructuring expense                   1,391              -
      In-process research and development              2,112              -
      Gain from joint ventures                       (2,423)        (1,616)
      Excess tax benefit for stock-based
       compensation                                  (2,193)        (3,941)
      Other                                              153            414

     Add decrease (increase) in assets:
      Accounts receivables, net                     (28,262)       (26,211)
      Other receivables                                1,867          2,157
      Inventories                                    (1,025)          3,160
      Deferred income taxes                          (6,402)        (1,880)
      Other current and non-current assets            11,167        (6,827)

     Add increase (decrease) in liabilities:
      Accounts payable                                 3,265          4,361
      Accrued compensation and benefits             (11,618)        (6,601)
      Accrued liabilities                              2,063          3,503
      Deferred revenue                                 3,296          5,410
      Income taxes payable                            12,962          7,336
    Net cash provided by operating activities         31,747         16,877

    Cash flows from investing activities:
     Acquisitions, net of cash acquired            (272,050)        (2,272)
     Acquisition of property and equipment           (3,873)        (4,972)
     Other                                                12              -
    Net cash used in investing activities          (275,911)        (7,244)

    Cash flow from financing activities:
     Issuance of common stock                         10,474          7,149
     Excess tax benefit for stock-based
      compensation                                     2,193          3,941
     Proceeds from long-term debt and
      revolving credit lines                         250,000              -

     Payments on long-term debt and revolving
      credit lines                                  (80,000)              -
     Other                                                               10
    Net cash provided in financing activities        182,667         11,100

     Effect of exchange rate changes on cash
      and cash equivalents                           (4,553)          3,062

     Net increase (decrease) in cash and cash
      equivalents                                   (66,050)         23,795
     Cash and cash equivalents - beginning
      of period                                      129,621         73,853

     Cash and cash equivalents - end of period       $63,571        $97,648


                           NON-GAAP RECONCILIATION
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                (Dollars in  thousands, except per share data)
                                 (Unaudited)



                                                      Three Months Ended
                                                 Mar-30, 2007   Mar-31, 2006


    REVENUE:                                        $285,732       $225,854


    GROSS MARGIN:
     GAAP gross margin:                            $143,130       $107,463
      Amortization of purchased
       intangibles( B )                               3,789            855
      Stock-based compensation( D )                     342            287
     Non-GAAP gross margin:                        $147,261       $108,605
     Non-GAAP gross margin (% of revenue)             51.5%          48.1%

    OPERATING INCOME:
     GAAP operating income:                         $39,268        $33,065
      Restructuring( A )                              2,692              -
      Amortization of purchased intangibles( B )       7,895          2,340
      In-process research and development( C )        2,112              -
      Stock-based compensation( D )                   3,353          3,230
     Non-GAAP operating income:                     $55,320        $38,635
     Non-GAAP operating margin
      (% of revenue)                                  19.4%          17.1%

    NET INCOME:
     GAAP net income                                $28,683        $25,828
      Restructuring( A )                              2,692              -
      Amortization of purchased intangibles( B )       7,895          2,340
      In-process research and development( C )        2,112              -
      Stock-based compensation( D )                   3,353          3,230
      Income tax effect on non-GAAP
       adjustments( E )                             (5,121)        (1,560)
     Non-GAAP net income                            $39,614        $29,838

    DILUTED NET INCOME PER SHARE:
     GAAP diluted net income per share:               $0.24          $0.22
     Non-GAAP diluted net income per share:           $0.33          $0.26

    SHARES USED TO COMPUTE DILUTED NET
    INCOME PER SHARE:
     GAAP and Non-GAAP shares used to compute
     net income per share:                          120,896        115,718

    OPERATING LEVERAGE
     Increase in Non-GAAP operating
      income                              ( F )     $16,685
     Increase in Revenue                            $59,878
     Operating leverage (Increase in
      Non-GAAP operating income
      as a % of Increase in Revenue)                  27.9%


The non-GAAP financial measures included in the table above are non-GAAP gross margin, non-GAAP operating income, non-GAAP net income and non-GAAP diluted net income per share, which adjust for the following items: expenses related to acquisitions, stock-based compensation expense and restructuring charges. Management uses these non-GAAP measures to assess trends in its business and for budgeting purposes as many of these excluded items are non-cash. In addition, we believe that the presentation of these non-GAAP financial measures is useful to investors for the reasons associated with each of the adjusting items as described below.

( A ) Restructuring. The amounts recorded are for employee compensation resulting from reductions in employee headcount in connection with our company restructurings and we believe they are not directly related to the operation of our business.

( B ) Amortization of purchased intangibles. The amounts recorded as amortization of purchased intangibles arise from prior acquisitions and are non-cash in nature. We exclude these expenses because we believe they are not reflective of ongoing operating results in the period incurred and are not directly related to the operation of our business. Approximately $3,789K and $855K of the amortization of purchased intangibles was included in cost of sales for the three months ended March 30, 2007 and March 31, 2006, respectively, and approximately $4,106K and $1,485K was reported as a separate line within operating expenses for the three months ended March 30, 2007 and March 31, 2006, respectively.

( C ) In-process research and development. The amounts recorded as in- process research and development arise from prior acquisitions and are non- cash in nature. We exclude these expenses because we believe they are not reflective of ongoing operating results in the period incurred and not directly related to the operation of our business.

( D ) Stock-based Compensation. The amounts consist of expenses for employee stock options and purchase rights under our employee stock purchase plan determined in accordance with SFAS 123(R), which became effective for us on January 1, 2006. We exclude these stock-based compensation expenses because they are non-cash expenses that we believe are not reflective of ongoing operating results. Further, we believe it is useful to investors to understand the impact of the application of SFAS 123(R) to our results of operations. For the three months ended March 30, 2007 and March 31, 2006, stock-based compensation was allocated as follows:


                                                        Three Months Ended
                                                      Mar-30,        Mar-31,
                                                       2007          2006
    Cost of sales                                       $342           $287
    Research and development                             729            639
    Sales and Marketing                                  767            741
    General and administrative                         1,515          1,563
                                                      $3,353         $3,230

( E ) Income tax effect on non-GAAP adjustments. This amounts adjusts the provision for income taxes to reflect the effect of the non-GAAP adjustment on non-GAAP operating income.

( F ) Increase in Non-GAAP operating income. This amount represents the difference between non-GAAP operating income for the three months ended March 30, 2007 of $55,320K and non-GAAP operating income for the three months ended March 31, 2006 of $38,635K, as provided in the table above.


                           NON-GAAP RECONCILIATION
                              REPORTING SEGMENTS
                            (Dollars in thousands)
                                 (Unaudited)

                                           Reporting Segments
                          Engineering
                              and         Field       Mobile       Advanced
                         Construction   Solutions   Solutions      Devices


    THREE MONTHS ENDED MARCH 30, 2007:

     Revenue               $175,604      $50,962     $29,857      $29,309

     GAAP operating income
      before corporate
      allocations:          $42,164      $16,628      $1,010       $3,343
      Stock-based
       compensation( G )        872          190         742          364
     Non-GAAP operating
      income before
      corporate
      allocations:          $43,036      $16,818      $1,752       $3,707
     Non-GAAP operating
      margin (% of segment
      external net revenues)  24.5%        33.0%        5.9%        12.6%


    THREE MONTHS ENDED MARCH 31, 2006:

    Revenue                $146,733      $43,042     $12,607      $23,472

    GAAP operating income
     before corporate
     allocations:           $26,377      $13,908        $223       $2,323
    Stock-based
     compensation( G )        1,034          245         176          485
    Non-GAAP operating
     income before corporate
     allocations:           $27,411      $14,153        $399       $2,808
    Non-GAAP operating
     margin (% of segment
     external net revenues)   18.7%        32.9%        3.2%        12.0%


( G ) Stock-based Compensation. The amounts consist of expenses for employee stock options and purchase rights under our employee stock purchase plan determined in accordance with SFAS 123(R), which became effective for us on January 1, 2006. We discuss our operating results by segment with and with-out stock-based compensation expense, as we believe it is useful to investors to understand the impact of the application of SFAS 123(R) to our results of operations because it facilitates trends in the business prior to the adoption of SFAS 123(R). Stock-based compensation not allocated to the reportable segments was approximately $1,185K and $1,290K for the three months ended March 30, 2007 and March 31, 2006, respectively.

SOURCE Trimble

investors, Willa McManmon, +1-408-481-7838, or willa_mcmanmon@trimble.com, or media,
LeaAnn McNabb, +1-408-481-7808, or leaann_mcnabb@trimble.com
http://www.trimble.com

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