SCHAFFHAUSEN, Switzerland— Garmin Ltd. (Nasdaq: GRMN – News) today announced results for the first quarter ended March 28, 2020.
Highlights for first quarter 2020 include:
- Total revenue of $856 million, a 12% increase, with fitness, marine, outdoor and aviation collectively increasing 17% over the prior year quarter
- Gross margin of 59.2% compared to 59.0% in the prior year quarter
- Operating margin improved to 20.7% compared to 19.8% in the prior year quarter
- Operating income of $177 million, increasing 17% over the prior year quarter
- GAAP EPS was $0.84 and pro forma EPS(1) was $0.91, representing 25% growth over the prior year quarter
- Strong balance sheet with no debt and $2.6 billion of cash and marketable securities
- Garmin ADS-B solution selected for British Airways’ franchise partner SUN-AIR’s Dornier 328 aircraft
- Recognized as an exceptional marine and aviation OEM supplier, winning several awards in the quarter
- With the assistance of Panoptix LiveScope, Garmin sponsored anglers swept the top three spots at the 2020 Bassmaster Classic
- Withdrawing fiscal 2020 guidance due to economic uncertainty caused by the COVID-19 pandemic
Revenue from the marine segment grew 22% in the first quarter driven by our innovative chartplotters and advanced sonars. Gross margin and operating margin were 58% and 25%, respectively, resulting in 58% operating income growth. Boating is an active lifestyle pursuit that promotes family time, relaxation, and a sense of freedom. Our marine segment is committed to providing leading edge, high quality products and systems with the latest technology that our customers demand as they turn their attention to activities on the water.
Revenue from the outdoor segment grew 14% in the first quarter with significant contributions from adventure watches. Gross margin and operating margin were 64% and 27%, respectively, resulting in 12% operating income growth. Outdoor recreation is important for those who love adventure and exploring nature. Our outdoor segment is committed to providing compelling products that enable and enrich the experiences of our customers as they turn their attention to activities in the great outdoors.