Trimble Inc.
Jul 28, 2009

Trimble Reports Second Quarter 2009 Revenue of $290.1 Million and Non-GAAP Earnings Per Share of $0.31

--Non-GAAP Operating Margins of 18.1 percent

SUNNYVALE, Calif., July 28, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Trimble (Nasdaq: TRMB) today announced revenue of $290.1 million for its second quarter ended July 3, 2009, down approximately 23 percent from revenue of $377.8 million in the second quarter of 2008.

Operating income for the second quarter of 2009 was $28.7 million, down approximately 54 percent from the second quarter of 2008. Operating margin in the second quarter of 2009 was 9.9 percent, compared to an operating margin of 16.7 percent in the second quarter of 2008. Amortization of intangibles was $13.0 million in the second quarter of 2009 compared to $10.9 million in the second quarter of 2008. The impact of stock-based compensation expense was $4.6 million compared to $3.8 million in the second quarter of 2008. There was also a $3.5 million restructuring expense, a $0.3 million acquisition-related inventory step-up charge and $2.0 million of non-recurring acquisition costs in the second quarter of 2009 compared to a $3.3 million restructuring expense, and no inventory step-up, or non-recurring acquisition costs in the second quarter of 2008. Excluding the above impacts, non-GAAP operating income of $52.4 million was down 35 percent compared to the second quarter of 2008. Non-GAAP operating margin was 18.1 percent in the second quarter of 2009, compared to 21.4 percent in the second quarter of 2008.

Second quarter 2009 net income was $20.9 million, down 57 percent compared to the second quarter of 2008. Diluted earnings per share for the second quarter of 2009 were $0.17 compared to diluted earnings per share of $0.39 in the second quarter of 2008.

Adjusting for the items noted above, non-GAAP net income of $37.4 million for the second quarter of 2009 was down 39 percent compared to the second quarter of 2008. Non-GAAP earnings per share for the second quarter of 2009 were $0.31 compared to non-GAAP earnings per share of $0.49 in the second quarter of 2008.

Cash flow from operations for the second quarter of 2009 was $65.5 million and cash flow from operations for the first half of 2009 was $108.7 million compared to $79.6 million in the second quarter of 2008 and $100.4 million in the first half of 2008.

"Although the engineering and construction segment continues to encounter severe recessionary conditions, the market demonstrated more stability in the second quarter than the prior two quarters," said Steven W. Berglund, Trimble's president and chief executive officer. "Field Solutions segment revenue was lower as a result of declines in both GIS and agriculture. The decline in agriculture reflected a slower market but also reflected the difficult comparison to an exceptional performance level in 2008. We expect the agricultural market to continue to be moderately slower than 2008 for the remainder of the year. Mobile Solutions orders have begun to reflect our generally strong sales pipeline which increases the probability of a significant performance improvement in 2010 for the segment," Berglund continued.

"Conditions continue to be uncertain and the second half of 2009 remains difficult to forecast. Even if overall economic conditions do not significantly improve, we believe we can return to year-over-year revenue growth in late 2009 or early 2010. Our focus remains on aligning costs and revenue while continuing to fund key strategic programs. This is reflected in the improvement of our non-GAAP operating margin in both the first and second quarters of 2009 compared to the fourth quarter of 2008," concluded Berglund.

Trimble Results by Business Segment

Segment operating income is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, restructuring expenses, amortization of intangibles, amortization of acquisition-related inventory step-up charges, non-recurring acquisition costs and the impact of stock-based compensation expense.

Engineering and Construction (E&C)

Second quarter 2009 E&C revenue was $147.2 million, down approximately 31 percent when compared to the second quarter of 2008. The decline in demand continued to primarily be driven by recessionary conditions in the U.S. and Europe.

Operating income in E&C for the second quarter 2009 was $19.2 million, or 13.0 percent of revenue, compared to $45.2 million, or 21.2 percent of revenue, in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in E&C was $20.6 million, or 14.0 percent of revenue, compared to $46.2 million, or 21.7 percent of revenue, in the second quarter of 2008. The decline in operating margin was largely due to lower revenue.

Field Solutions

Second quarter 2009 Field Solutions revenue was $79.8 million, down 11 percent when compared to the second quarter of 2008. The revenue decline was driven by lower agriculture product sales. It should be noted that the year-over-year comparison was difficult because in the second quarter of 2008 Field Solutions demonstrated 63 percent year-over-year revenue growth due to an extended buying season in the quarter.

Operating income in Field Solutions for the second quarter 2009 was $30.1 million, or 37.8 percent of revenue, compared to $34.8 million, or 38.6 percent of revenue, in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in Field Solutions was $30.4 million, or 38.1 percent of revenue, compared to $35.0 million, or 38.9 percent of revenue in the second quarter of 2008.

Mobile Solutions

Second quarter 2009 Mobile Solutions revenue was $39.1 million, down approximately 8 percent when compared to the second quarter of 2008. The decline in revenue was primarily attributable to a decline in sales of ready mix products as well as the fact that the second quarter of 2008 benefited from the recognition of two large non-recurring revenue items.

Operating income in Mobile Solutions for the second quarter 2009 was $3.6 million, or 9.3 percent of revenue, compared to $1.9 million, or 4.6 percent of revenue in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in Mobile Solutions was $4.8 million, or 12.2 percent of revenue, up from 7.4 percent of revenue in the second quarter of 2008. The improvement is primarily due to reduced cost of sales overhead and operating expenses from restructuring.

Advanced Devices

Second quarter 2009 Advanced Devices revenue was $24.0 million, down approximately 26 percent when compared to the second quarter of 2008. The decline in second quarter revenue was due to slower sales of embedded products.

Operating income in Advanced Devices for the second quarter 2009 was $4.8 million, or 20.2 percent of revenue, compared to $6.6 million, or 20.3 percent of revenue, in the second quarter of 2008.

In the second quarter of 2009, non-GAAP operating income in Advanced Devices was $5.2 million, or 21.6 percent of revenue, compared to 21.3 percent of revenue in the second quarter of 2008.

Use of Non-GAAP Financial Information

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 to 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 this earnings release. Additional financial information about our use of non-GAAP results can be found on the investor relations page of our Web site at http://investor.trimble.com.

Forward Looking Guidance

For the third quarter of 2009 Trimble expects revenue in the range of $275 million plus or minus five percent. At a point estimate of $275 million in revenue, Trimble expects third quarter 2009 GAAP earnings per share of $0.13 and non-GAAP earnings per share of $0.25. Non-GAAP guidance for the third quarter of 2009 excludes the amortization of intangibles of $13.3 million related to previous acquisitions, the anticipated impact of stock-based compensation expense of $4.5 million and $1.3 million in anticipated restructuring charges. Both GAAP and non-GAAP earnings per share assume a 28 percent tax rate and 122.5 million shares outstanding.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on July 28, 2009 at 1:30 p.m. PT to review its second quarter 2009 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 seven days at (800) 642-1687 (U.S.) or (706) 645-9291 (international) and the pass code is 20081931. The replay will also be available on the Web at the address above.

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, Trimble is headquartered in Sunnyvale, Calif.

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 expectations for future financial market and economic conditions, our ability to maintain operating margins, revenue and earnings per share that Trimble expects to report in the third quarter 2009, changes in tax-rate, estimated restructuring costs and when we can return to year-over-year revenue growth. 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. If the current global economic crisis and recessionary conditions in the U.S. and Europe worsen or do not improve it may negatively impact our customers' purchasing decisions worldwide, including in emerging markets. In addition, the Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products. Any weakening of our accounts receivable or write-off of goodwill could also impair our financial results. Any failure to achieve predicted results could negatively impact the Company's revenues, cash flow from operations and other financial results. The Company's financial results 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, especially in light of greater uncertainty than normal in the economy in general. 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

                                    TRIMBLE
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (In thousands, except per share data)
                                   (Unaudited)

                                     Three Months Ended   Six Months Ended
                                     ------------------   ----------------

                                      Jul-3,    Jun-27,   Jul-3,    Jun-27,
                                       2009      2008      2009      2008
                                       ----      ----      ----      ----

    Revenue                          $290,063  $377,767  $579,017  $733,063
    Cost of sales                     147,263   190,668   292,259   371,588
                                      -------   -------   -------   -------
    Gross margin                      142,800   187,099   286,758   361,475
                                      -------   -------   -------   -------
    Gross margin (%)                     49.2%     49.5%     49.5%     49.3%

    Operating expenses
        Research and development       33,457    39,405    67,594    76,750
        Sales and marketing            45,163    51,904    94,098   103,062
        General and administrative     26,622    25,289    52,664    47,979
        Restructuring                   1,302     2,414     4,925     2,414
        Amortization of purchased
         intangible assets              7,530     5,163    14,499    10,306
                                        -----     -----    ------    ------
           Total operating expenses   114,074   124,175   233,780   240,511
                                      -------   -------   -------   -------


    Operating income                   28,726    62,924    52,978   120,964

    Non-operating income, net
        Interest income                   223       508       422       965
        Interest expense                 (465)     (413)     (958)   (1,175)
        Foreign currency transaction
         gain (loss), net                (216)    1,253       (32)    2,221
        Income from joint ventures,
         net                              352     2,618       520     4,633
        Other income (expense), net     1,161       153       447      (754)
                                        -----       ---       ---      ----
           Total non-operating income,
            net                         1,055     4,119       399     5,890
                                        -----     -----       ---     -----

    Income before taxes                29,781    67,043    53,377   126,854

    Income tax provision                8,631    18,444    14,530    38,188
                                        -----    ------    ------    ------
    Net income                         21,150    48,599    38,847    88,666
      Less: Net income attributable
       to
       noncontrolling interests           293         -       525         -
                                          ---       ---       ---       ---
    Net income attributable to
     Trimble Navigation Ltd.          $20,857   $48,599   $38,322   $88,666
                                      =======   =======   =======   =======

    Earnings per share attributable
     to Trimble Navigation Ltd.
         Basic                          $0.17     $0.40     $0.32     $0.73
                                        -----     -----     -----     -----
         Diluted                        $0.17     $0.39     $0.32     $0.71
                                        -----     -----     -----     -----

    Shares used in calculating
     earnings per share:
        Basic                         119,551   121,523   119,406   121,495
                                      -------   -------   -------   -------
        Diluted                       121,897   125,712   121,411   125,435
                                      -------   -------   -------   -------


                                    TRIMBLE
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                (Unaudited)


                                                     Jul-3,       Jan-2,
                                                      2009        2009
                                                      ----        ----
    Assets

    Current assets:
       Cash and cash equivalents                    $190,154   $147,531
       Accounts receivables, net                     199,928    204,269
       Other receivables                               9,747     17,540
       Inventories, net                              168,272    160,893
       Deferred income taxes                          36,358     41,810
       Other current assets                           18,392     16,404
                                                      ------     ------
          Total current assets                       622,851    588,447

    Property and equipment, net                       48,905     50,175
    Goodwill                                         746,159    715,571
    Other purchased intangible assets, net           223,682    228,901
    Other non-current assets                          49,446     51,922
                                                      ------     ------

          Total assets                            $1,691,043 $1,635,016
                                                  ========== ==========

    Liabilities

    Current liabilities:
       Current portion of long-term debt                 $48       $124
       Accounts payable                               55,596     49,611
       Accrued compensation and benefits              45,196     41,291
       Deferred revenue                               68,603     55,241
       Accrued warranty expense                       14,161     13,332
       Other accrued liabilities                      39,160     63,719
                                                      ------     ------
          Total current liabilities                  222,764    223,318

    Non-current portion of long-term debt            151,460    151,464
    Non-current deferred revenue                       9,145     12,418
    Deferred income taxes                             36,453     42,207
    Other non-current liabilities                     63,877     61,553
                                                      ------     ------
          Total liabilities                          483,699    490,960
                                                     -------    -------

    Commitments and contingencies

    Equity

    Shareholders' equity:
       Common stock                                  699,790    684,831
       Retained earnings                             466,243    427,921
       Accumulated other comprehensive income         36,934     27,649
                                                      ------     ------
    Total Trimble Navigation Ltd. shareholders'
     equity                                        1,202,967  1,140,401
    Noncontrolling interests                           4,377      3,655
                                                       -----      -----
          Total equity                             1,207,344  1,144,056

          Total liabilities and equity            $1,691,043 $1,635,016
                                                  ========== ==========


                                    TRIMBLE
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In thousands)
                                  (Unaudited)
                                                         Six Months Ended
                                                         Jul-3,    Jun-27,
                                                          2009      2008
                                                          ----      ----

    Cash flow from operating activities:
        Net Income                                       $38,847  $88,666

        Adjustments to reconcile net
     income  to net cash provided by
           operating activities:
             Depreciation expense                          9,071    9,274
             Amortization expense                         25,348   21,811
             Provision for doubtful accounts               3,053      119
             Amortization of debt issuance cost              113      113
             Deferred income taxes                        (3,406)  (2,791)
             Stock-based compensation                      8,780    7,777
             Equity gain from joint ventures                (520)  (4,633)
             Gain on bargain purchase                       (386)       -
             Excess tax benefit for stock-based
              compensation                                  (304)  (5,249)
             Provision for excess and obsolete
              inventories                                  2,933    3,283
             Other non-cash items                         (2,360)       1

        Add decrease (increase) in assets:
             Accounts receivables                          4,117  (26,832)
             Other receivables                             5,242      481
             Inventories                                  (7,556)  (8,997)
             Other current and non-current assets          2,289     (464)

        Add increase (decrease) in liabilities:
             Accounts payable                              4,790    4,637
             Accrued compensation and benefits             2,808     (303)
             Accrued liabilities                           8,591     (597)
             Deferred revenue                              7,224    3,974
             Income taxes payable                              -   10,093
                                                          ------   ------
     Net cash provided by operating activities           108,674  100,363
                                                         -------  -------

     Cash flow from investing activities:
          Acquisitions of businesses, net of cash
           acquired                                      (39,029) (45,082)
          Acquisition of property and equipment           (7,415)  (7,932)
          Acquisitions of intangible assets              (26,839)    (165)
          Other                                             (513)     302
                                                            ----      ---
     Net cash used in investing activities               (73,796) (52,877)
                                                         -------  -------

     Cash flow from financing activities:
          Issuance of common stock                         5,775   15,425
          Excess tax benefit for stock-based
           compensation                                      304    5,249
          Repurchase and retirement of common stock            -  (36,293)
          Payments on long-term debt and revolving credit
           lines                                            (149) (60,314)
                                                            ----  -------
     Net cash provided by (used in) financing
      activities                                           5,930  (75,933)
                                                           -----  -------

     Effect of exchange rate changes on cash and cash
      equivalents                                          1,815    5,068
                                                           -----    -----

     Net decrease in cash and cash equivalents            42,623  (23,379)
     Cash and cash equivalents - beginning of period     147,531  103,202
                                                         -------  -------

     Cash and cash equivalents - end of period          $190,154  $79,823
                                                        ========  =======


                                     TRIMBLE
                                REPORTING SEGMENTS
                               (Dollars in thousands)
                                    (Unaudited)


                                               Reporting Segments
                                               ------------------
                                  Engineering
                                      and        Field      Mobile   Advanced
                                 Construction  Solutions  Solutions   Devices
                                 ------------  ---------  ---------   -------

    THREE MONTHS ENDED
     JULY 3, 2009:
      Revenue                       $147,240    $79,787    $39,065   $23,971

      Operating income before
       corporate allocations:        $19,160    $30,148     $3,648    $4,833
        Operating margin (% of
         segment external net
         revenues)                     13.0%      37.8%       9.3%     20.2%

    THREE MONTHS ENDED
     JUNE 27, 2008:
      Revenue                       $213,019    $90,070    $42,285   $32,393

      Operating income before
       corporate allocations:        $45,161    $34,808     $1,942    $6,578
        Operating margin (% of
         segment external net
         revenues)                     21.2%      38.6%       4.6%     20.3%

    SIX MONTHS ENDED
     JULY 3, 2009:
      Revenue                       $274,891   $178,944    $77,353   $47,829

      Operating income before
       corporate allocations:        $21,669    $72,351     $6,796    $9,145
        Operating margin (% of
         segment external net
         revenues)                      7.9%      40.4%       8.8%     19.1%

    SIX MONTHS ENDED
     JUNE 27, 2008:
      Revenue                       $407,199   $178,107    $86,296   $61,461

      Operating income before
       corporate allocations:        $82,115    $69,903     $4,395   $11,270
        Operating margin (% of
         segment external net
         revenues)                     20.2%      39.2%       5.1%     18.3%




                                       TRIMBLE
                             GAAP TO NON-GAAP RECONCILIATION
                       (Dollars in thousands, except per share data)
                                        (Unaudited)

                                                Three Months Ended
                                                ------------------
                                           Jul-3,               Jun-27,
                                            2009                 2008
                                            ----                 ----
                                    Dollar      % of       Dollar      % of
                                    Amount     Revenue     Amount     Revenue
                                    ------     -------     ------     -------
    GROSS MARGIN:
      GAAP gross margin:          $142,800      49.2%    $187,099      49.5%
        Restructuring      ( A )     2,198       0.7%         930       0.3%
        Amortization of
         purchased
         intangibles       ( B )     5,475       1.9%       5,755       1.5%
        Stock-based
         compensation      ( C )       477       0.2%         487       0.1%
        Amortization of
         acquisition-related
         inventory step-up ( D )      247        0.1%           -       0.0%
                                      ---        ---          ---        ---
      Non-GAAP gross
       margin:                   $151,197       52.1%    $194,271      51.4%
                                 --------       ----     --------      ----

    OPERATING EXPENSES:
      GAAP operating expenses:   $114,074                $124,175
        Restructuring      ( A )   (1,302)                 (2,414)
        Amortization of
         purchased
         intangibles       ( B )   (7,530)                 (5,163)
        Stock-based
         compensation      ( C )   (4,077)                 (3,308)
        Non-recurring
         acquisition costs ( E )   (2,340)                      -
                                    ------                 ------
      Non-GAAP operating
       expenses:                  $98,825                $113,290
                                  -------                --------

    OPERATING INCOME:
      GAAP operating
       income:                    $28,726        9.9%     $62,924      16.7%
        Restructuring      ( A )    3,500        1.2%       3,344       0.8%
        Amortization of
         purchased
         intangibles       ( B )   13,005        4.5%      10,918       2.9%
        Stock-based
         compensation      ( C )    4,554        1.6%       3,795       1.0%
        Amortization of
         acquisition-
         related
         inventory step-up ( D )      247        0.1%          -        0.0%
        Non-recurring
         acquisition
         costs             ( E )    2,340        0.8%          -        0.0%
                                    -----        ---         -----      ---
      Non-GAAP operating
       income:                    $52,372       18.1%     $80,981      21.4%
                                  -------       ----      -------      ----

    NET INCOME:
      GAAP net income
       attributable to Trimble
       Navigation Ltd.            $20,857                 $48,599
        Restructuring      ( A )    3,500                   3,344
        Amortization of
         purchased
         intangibles       ( B )   13,005                  10,918
        Stock-based
         compensation      ( C )    4,554                   3,795
        Amortization of
         acquisition-
         related inventory
         step-up           ( D )      247                       -
        Non-recurring
         acquisition costs ( E )    1,954                       -
        Income tax effect
         on non-GAAP
         adjustments       ( F )   (6,741)                 (4,966)
                                    ------                 ------
      Non-GAAP net income
       attributable to
       Trimble
       Navigation Ltd.            $37,376                 $61,690
                                  -------                 -------

    DILUTED NET INCOME PER SHARE:
      GAAP diluted net
       income per share
       attributable to
       Trimble Navigation Ltd.      $0.17                   $0.39
        Restructuring      ( A )     0.03                    0.02
        Amortization of
         purchased
         intangibles       ( B )     0.11                    0.09
        Stock-based
         compensation      ( C )     0.04                    0.03
        Amortization of
         acquisition-
         related inventory
         step-up           ( D )        -                       -
        Non-recurring
         acquisition costs ( E )     0.02                       -
        Income tax effect
         on non-GAAP
         adjustments       ( F )    (0.06)                  (0.04)
                                    -----                    -----
      Non-GAAP diluted net
       income per share
       attributable
       to Trimble
       Navigation Ltd.              $0.31                   $0.49
                                    -----                   -----

    OPERATING LEVERAGE:
      Increase (decrease)
       in non-GAAP operating
       income                    $(28,609)
      Increase (decrease)
       in revenue                $(87,704)
      Operating leverage
      (increase in non-GAAP
       operating income as
       a % of increase
       in revenue)                    N/A

                                                 % of                 % of
                                                Segment              Segment
    SEGMENT OPERATING INCOME:                   Revenue              Revenue
      Engineering and Construction
        GAAP operating
         income before
         corporate
         allocations:             $19,160       13.0%     $45,161      21.2%
          Stock-based
           compensation    ( G )    1,431        1.0%       1,076       0.5%
                                    -----        ---        -----       ---
        Non-GAAP operating
         income before
         corporate allocations:   $20,591       14.0%     $46,237      21.7%
                                  -------       ----      -------      ----

      Field Solutions
        GAAP operating income
         before corporate
         allocations:             $30,148       37.8%     $34,808      38.6%
          Stock-based
          compensation    ( G )       260        0.3%         199       0.3%
                                      ---         ---         ---        ---
        Non-GAAP operating
         income before
         corporate
         allocations:             $30,408       38.1%     $35,007      38.9%
                                  -------       ----      -------       ----

      Mobile Solutions
        GAAP operating income
         before corporate
         allocations:              $3,648        9.3%      $1,942       4.6%
          Stock-based
          compensation     ( G )    1,103        2.9%       1,187       2.8%
                                    -----        ---        -----       ---
        Non-GAAP operating
         income before
         corporate
         allocations:              $4,751       12.2%      $3,129       7.4%
                                   ------       ----       ------       ---

      Advanced Devices
        GAAP operating income
         before corporate
         allocations:              $4,833       20.2%      $6,578      20.3%
          Stock-based
          compensation     ( G )      346        1.4%         315       1.0%
                                      ---        ---          ---        ---
        Non-GAAP operating
         income before
         corporate
         allocations:              $5,179       21.6%      $6,893      21.3%
                                   ------       ----       ------      ----




                                                 Six Months Ended
                                                  ----------------
                                           Jul-3,               Jun-27,
                                            2009                 2008
                                            ----                 ----
                                                % of                   % of
                                               Revenue                Revenue
                                                -------               -------
    GROSS MARGIN:
      GAAP gross margin:         $286,758       49.5%    $361,475      49.3%
        Restructuring      ( A )    3,063        0.5%         930       0.1%
        Amortization of
         purchased
         intangibles       ( B )   10,760        1.9%      11,416       1.6%
        Stock-based
        compensation       ( C )      915        0.2%         980       0.2%
        Amortization of
         acquisition-
         related inventory
         step-up           ( D )      470        0.1%         183       0.0%
                                      ---        ---          ---       ---
      Non-GAAP gross margin:     $301,966       52.2%    $374,984      51.2%
                                 --------       ----     --------      ----

    OPERATING EXPENSES:
      GAAP operating expenses:   $233,780                $240,511
        Restructuring      ( A )   (4,925)                 (2,414)
        Amortization of
         purchased
         intangibles       ( B )  (14,499)                (10,306)
        Stock-based
         compensation      ( C )   (7,865)                 (6,797)
        Non-recurring
         acquisition
         costs             ( E )   (2,805)                      -
                                   ------                   -----
      Non-GAAP operating
       expenses:                 $203,686                $220,994
                                 --------                --------

    OPERATING INCOME:
      GAAP operating income:      $52,978        9.1%    $120,964      16.5%
        Restructuring      ( A )    7,988        1.4%       3,344       0.4%
        Amortization of
         purchased
         intangibles       ( B )   25,259        4.4%      21,722       3.0%
        Stock-based
        compensation       ( C )    8,780        1.5%       7,777       1.1%
        Amortization of
         acquisition-
         related inventory
         step-up           ( D )      470        0.1%         183       0.0%
        Non-recurring
         acquisition costs ( E )    2,805        0.5%           -       0.0%
                                    -----        ---          ---       ---
      Non-GAAP operating
      income:                     $98,280       17.0%    $153,990      21.0%
                                  -------       ----     --------      ----

    NET INCOME:
      GAAP net income
         attributable to
         Trimble
         Navigation Ltd.          $38,322                 $88,666
        Restructuring      ( A )    7,988                   3,344
        Amortization of
         purchased
         intangibles       ( B )   25,259                  21,722
        Stock-based
         compensation      ( C )    8,780                   7,777
        Amortization of
         acquisition-
         related inventory
         step-up           ( D )      470                     183
        Non-recurring
         acquisition costs ( E )    2,419                       -
        Income tax effect
         on non-GAAP
         adjustments       ( F )  (12,155)                 (9,907)
                                  -------                  ------
      Non-GAAP net income
       attributable to
       Trimble
       Navigation Ltd.            $71,083                $111,785
                                  -------                --------

    DILUTED NET INCOME PER SHARE:
      GAAP diluted net
         income per share
         attributable to
         Trimble Navigation
         Ltd.                       $0.32                   $0.71
        Restructuring      ( A )     0.07                    0.03
        Amortization of
         purchased
         intangibles       ( B )     0.21                    0.17
        Stock-based
         compensation      ( C )     0.07                    0.06
        Amortization of
         acquisition-
         related inventory
         step-up           ( D )        -                       -
        Non-recurring
         acquisition costs ( E )     0.02                       -
        Income tax effect
         on non-GAAP
         adjustments       ( F )    (0.10)                  (0.08)
                                     -----                  -----
      Non-GAAP diluted
       net income per
       share attributable
       to Trimble
       Navigation Ltd.              $0.59                   $0.89
                                    -----                   -----

    OPERATING LEVERAGE:
      Increase (decrease)
       in non-GAAP
       operating income          $(55,710)
      Increase (decrease)
       in revenue               $(154,046)
      Operating leverage
      (increase in non-GAAP
       operating income as
       a % of increase
       in revenue)                    N/A

                                                 % of                 % of
                                                Segment              Segment
                                                Revenue              Revenue
    SEGMENT OPERATING INCOME:
     Engineering and Construction
        GAAP operating income
         before corporate
         allocations:             $21,669        7.9%     $82,115      20.2%
          Stock-based
           compensation    ( G )    2,739        1.0%       2,047       0.5%
                                    -----        ---        -----       ---
        Non-GAAP operating
         income before
         corporate
         allocations:             $24,408        8.9%     $84,162      20.7%
                                  -------        ---      -------      ----

      Field Solutions
        GAAP operating
        income before
         corporate allocations:   $72,351       40.4%     $69,903      39.2%
          Stock-based
           compensation    ( G )      482        0.3%         397       0.3%
                                      ---        ---          ---       ---
        Non-GAAP operating
         income before
         corporate
         allocations:             $72,833       40.7%     $70,300      39.5%
                                  -------       ----      -------      ----

      Mobile Solutions
        GAAP operating
         income before
         corporate
         allocations:              $6,796        8.8%      $4,395       5.1%
          Stock-based
           compensation    ( G )    2,247        2.9%       2,595       3.0%
                                    -----        ---        -----       ---
        Non-GAAP operating
         income before
         corporate
         allocations:              $9,043       11.7%      $6,990       8.1%
                                   ------       ----       ------       ---

      Advanced Devices
        GAAP operating income
         before
         corporate
         allocations:              $9,145       19.1%     $11,270      18.3%
          Stock-based
           compensation    ( G )      671        1.4%         642       1.1%
                                      ---        ---          ---       ---
        Non-GAAP operating
         income before
         corporate
         allocations:              $9,816       20.5%     $11,912      19.4%
                                   ------       ----      -------      ----




                                TRIMBLE
             FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION
                        (Dollars in thousands)
                              (Unaudited)


    The non-GAAP financial measures included in the previous table are non-
    GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income,
    non-GAAP net income, non-GAAP diluted net income per share and operating
    leverage, and non-GAAP segment operating income before corporate
    allocations. These non-GAAP measures can be used to evaluate the Company's
    historical and prospective financial performance, as well as its
    performance relative to competitors.  The Company believes some of its
    investors track the Company's "core operating performance" as a means of
    evaluating the Company's performance in the ordinary, ongoing, and
    customary course of its operations.  Management also believes that looking
    at its core operating performance provides a supplemental way to provide
    consistency in period to period comparisons.  Accordingly, management
    excludes from non-GAAP those items relating to restructuring, amortization
    of purchased intangibles, stock based compensation, amortization of
    acquisition-related inventory step-up and non-recurring acquisition costs,
    which the Company believes are not indicative of its core operating
    performance.

    ( A ) Restructuring. Included in our GAAP presentation of cost of sales
          and operating expenses, restructuring costs recorded are primarily
          for employee compensation resulting from reductions in employee
          headcount in connection with our company restructurings.
          We exclude restructuring from our non-GAAP measures because we
          believe they are not indicative of our core operating performance.

    ( B ) Amortization of purchased intangibles.  Included in our GAAP
          presentation of cost of sales and operating expenses, amortization
          of purchased intangibles recorded arise from prior acquisitions and
          are non-cash in nature.  We exclude these expenses from our non-GAAP
          measures because we believe they are not indicative of our core
          operating performance.

    ( C ) Stock-based compensation. Included in our GAAP presentation of cost
          of sales and operating expenses, stock-based compensation consists
          of expenses for employee stock options and awards and purchase
          rights under our employee stock purchase plan determined in
          accordance with SFAS 123(R).  We exclude stock-based compensation
          expense from our non-GAAP measures because some investors may view
          it as not reflective of our core operating performance as it is a
          non-cash expense.   For the three months and six months ended July
          3, 2009 and June 27, 2008, stock-based compensation was allocated
          as follows:


                                      Three Months    Six Months
                                          Ended          Ended
                                      ------------    ----------
                                      Jul-3,  Jun-27, Jul-3, Jun-27,
                                       2009    2008   2009    2008
                                       ----    ----   ----    ----
        Cost of sales                  $477    $487   $915    $980
        Research and development        854     916  1,638   1,833
        Sales and Marketing           1,062     931  2,066   1,961
        General and administrative    2,161   1,461  4,161   3,003
                                      -----   -----  -----   -----
                                     $4,554  $3,795 $8,780  $7,777
                                     ------  ------ ------  ------


    ( D ) Amortization of acquisition-related inventory step-up.  The
          purchase accounting entries associated with our business
          acquisitions require us to record inventory at its fair value,
          which is sometimes greater than the previous book value of the
          inventory.  Included in our GAAP presentation of cost of sales, the
          increase in inventory value is amortized to cost of sales over the
          period that the related product is sold.  We exclude inventory step-
          up amortization from our non-GAAP measures because we do not believe
          it is indicative of our core operating performance.

    ( E ) Non-recurring acquisition costs.  Included in our GAAP presentation
          of operating expenses and non-operating income, net, non-recurring
          acquisition costs consist of external and incremental costs
          resulting directly from merger and acquisition activities such as
          legal, due diligence and integration costs.  Also included are
          unusual acquisition related items such as a gain on bargain
          purchase (resulting from the fair value of indentifiable net assets
          acquired exceeding the consideration transferred) and payments made
          to settle earnout disputes.  We exclude these items because they are
          non-recurring and unique to specific acquisitions and are not
          indicative of our core operating performance.

    ( F ) Income tax effect on non-GAAP adjustments. This amount adjusts the
          provision for income taxes to reflect the effect of the non-GAAP
          adjustments on non-GAAP net income.

    ( G ) Stock-based Compensation. The amounts consist of expenses for
          employee stock options and awards and purchase rights under our
          employee stock purchase plan determined in accordance with SFAS
          123(R). As referred to above we exclude stock-based compensation
          here because investors may view it as not reflective of our core
          operating performance.  However, management does include stock-based
          compensation for budgeting and incentive plans as well as for
          reviewing internal financial reporting. We discuss our operating
          results by segment with and without 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.  Stock-based compensation not allocated to the
          reportable segments was approximately $1,414K and $1,018K for the
          three months ended July 3, 2009 and June 27, 2008, respectively and
          $2,641K and $2,096K for the six months ended July 3, 2009 and June
          27, 2008, respectively.


SOURCE Trimble

http://www.trimble.com

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