SCHAFFHAUSEN, Switzerland— Garmin Ltd. (Nasdaq: GRMN – News) today announced results for the fourth quarter and fiscal year ended December 29, 2018.
Revenue from the marine segment grew 13% in the quarter driven by our new lineup of chartplotters, advanced sonars, and cartography offerings that combine the best of both Garmin and Navionics content. Gross and operating margins improved to 58% and 9%, respectively. Garmin recently began shipping the 2019 lineup of marine electronics including the GPSMAP® 8600 series, our flagship product line with combined Garmin and Navionics chart content.
Highlights for the fourth quarter 2018 include:
- Total revenue of $932 million, a 4% increase, with aviation, marine, outdoor and fitness collectively increasing 13% over the prior year quarter
- Gross margin improved to 58.9% compared to 56.1% in the prior year quarter
- Operating margin improved to 23.9% compared to 20.4% in the prior year quarter
- Operating income of $223 million, representing 21% growth over the prior year
- GAAP EPS was $1.00 and pro forma EPS(1) was $1.02 for fourth quarter 2018, representing growth of 26% over the prior year
- Recently signed an agreement to acquire Tacx, a leading provider of indoor bike trainers
- Launched our first marine chartplotters with a combined Garmin and Navionics® chart database, offering industry leading breadth and depth of coverage
Highlights for the fiscal year 2018 include:
- Total revenue of $3,347 million, a 7% increase, with aviation, marine, outdoor and fitness collectively increasing 16% over the prior year
- Gross margin improved to 59.1% compared to 57.6% in the prior year
- Operating margin improved to 23.3% compared to 21.9% in the prior year
- Operating income of $778 million, representing 14% growth over the prior year
- GAAP EPS was $3.66 and pro forma EPS(1) was $3.69, representing 22% growth over the prior year
- Launched new categories of innovative wearables including Instinct™, a GPS smartwatch that expands the market for adventure watches, and Descent™, a dive computer in a watch style design for recreational, technical and free divers
- Expanded our portfolio of music compatible devices and integrated seven music providers into our Connect IQ™ app store including Spotify, Deezer and KKBOX
- Shipped nearly 15 million units and over 205 million since inception, including over one million certified aviation products.
- Completed the strategic acquisitions of FltPlan, a leading electronic flight planning and service provider, and Trigentic, a privately-held worldwide provider of marine electronic digital switching
- Opened our new aviation manufacturing facility in Olathe, Kansas, more than doubling our North American manufacturing capacity