Schaffhausen, Switzerland – Garmin® Ltd. (NASDAQ: GRMN), today announced results for the third quarter ended September 25, 2021.
Highlights for third quarter 2021 include:
- Total revenue of $1.19 billion, a 7% increase over the prior year quarter
- Gross and operating margin were 58.4% and 23.7%, respectively
- Operating income of $283 million, an 11% decrease compared to the prior year quarter
- GAAP EPS was $1.34 and pro forma EPS(1) was $1.41
- Named Manufacturer of the Year by the National Marine Electronics Association for the seventh consecutive year
- Ranked #1 in avionics support for the 18th consecutive year by Aviation International News
- Received production qualification from BMW for our Olathe, Kansas manufacturing facility
- Launched the Approach® R10, our first portable golf launch monitor
- Recently hosted fifth annual Garmin Developer Conference where we announced strategic Connect IQ partnerships
Executive Overview from Cliff Pemble, President and Chief Executive Officer:
“I am very pleased with our performance in the quarter as we are now comparing against the robust pandemicdriven growth from the prior year,” said Cliff Pemble, President and CEO of Garmin. “Strong demand for active lifestyle products continued, and our marine and aviation segments recorded impressive double-digit growth resulting in record consolidated revenue in the third quarter. We are very pleased with the results we have delivered thus far, giving us confidence to raise our full year 2021 revenue and EPS guidance.”
Revenue from the outdoor segment decreased 3% in the third quarter primarily due to the timing of product introductions in the prior year. Gross margin and operating margins were 65% and 38%, respectively, resulting in $124 million of operating income. During the quarter, we launched the Approach R10, our first portable golf launch monitor, designed to help golfers improve their game with more than a dozen key metrics shown in real time.
Revenue from the marine segment grew 25% in the third quarter with growth across multiple categories, led by strong demand for our chartplotters. Gross margin and operating margins were 56% and 26%, respectively, resulting in $54 million of operating income. During the quarter, we launched Surround View, the marine industry’s first intelligent camera system to offer captains a 360-degree bird’s-eye view around the boat. Also, during the quarter, Garmin marine electronics were selected by Malibu Boats to exclusively outfit their full line of Axis wakesurf and wakeboarding boats.
Additional Financial Information:
Total operating expenses in the third quarter were $413 million, an 18% increase over the prior year. Research and development increased by 22%, primarily due to engineering personnel costs. Selling, general and administrative expenses increased 14%, driven primarily by personnel related expenses and information technology costs. Advertising increased 8% driven primarily by higher media spend in the quarter.
The complete report can be found at Garmin.com.
Garmin International, Inc. is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin, GPSMAP, Navionics and Fusion are registered trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.