UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from____to____
Commission File Number 0-18645
TRIMBLE NAVIGATION LIMITED
(Exact name of registrant as specified in its charter)
California 94-2802192
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
645 North Mary Avenue, Sunnyvale, California 94088
(Address of Principal Executive Offices) (Zip Code)
(408) 481-8000
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
As of March 31, 1997, there were 22,060,500 shares of Common Stock (no par
value) outstanding.
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TRIMBLE NAVIGATION LIMITED
This report contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Actual results could differ materially from those indicated in the
forward-looking statements as a result of the risk factors set forth in this
report. The Company has attempted to identify forward-looking statements in this
report by placing an asterisk (*) in the left-hand margin.
Index
Page
Number
PART I. FINANCIAL INFORMATION
Item 1.Financial Statements
Condensed Consolidated Balance Sheets
-- March 31, 1997 and December 31, 1996 3
Condensed Consolidated Statements of Operations
-- Three Months ended March 31, 1997 and 1996 4
Condensed Consolidated Statements of Cash Flows
-- Three Months ended March 31, 1997 and 1996 5
Notes to Condensed Consolidated Financial Statements 6
Item 2.Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 6.Exhibits and Reports on Form 8-K 15
SIGNATURES 16
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Part I. Financial Information
Item 1. Financial Statements
TRIMBLE NAVIGATION LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1997 1996
- --------------------------------------------------------------------------------
(In thousands) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 26,114 $ 22,671
Short term investments 59,283 59,867
Accounts receivable, net 38,090 34,374
Inventories 38,920 38,858
Other current assets 3,556 3,633
----------- -----------
Total current assets 165,963 159,403
Net property and equipment 21,641 21,504
Intangible assets 4,181 4,493
Deferred income taxes 377 383
Other assets 5,405 4,058
============ ============
Total assets $ 197,567 $ 189,841
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 935 $ 316
Accounts payable 14,724 13,763
Accrued compensation and benefits 7,548 6,552
Customer advances 4,940 3,000
Accrued liabilities 11,534 10,358
Income taxes payable 2,004 869
------------ ------------
Total current liabilities 41,685 34,858
------------ ------------
Noncurrent portion of long-term debt and
other liabilities 30,888 30,938
------------ ------------
Total liabilities 72,573 65,796
------------ ------------
Shareholders' equity:
Common stock 125,350 125,535
Common stock warrants 700 700
Retained earnings (1,175) (2,603)
Unrealized gain on short term investments (43) 20
Foreign currency translation adjustment 162 393
------------ -----------
Total shareholders' equity 124,994 124,045
============ ===========
Total liabilities and shareholders' equity $ 197,567 $ 189,841
============ ===========
See accompanying notes to condensed consolidated financial statements.
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TRIMBLE NAVIGATION LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
---------------------------
1997 1996
- ----------------------------------------------------------------------------
(In thousands, except per share data)
Total revenue $ 60,551 $ 56,722
Operating expenses:
Cost of sales 29,045 26,015
Research and development 9,001 8,825
Sales and marketing 14,348 16,064
General and administrative 6,406 7,412
----------- -----------
Total operating expenses 58,800 58,316
----------- -----------
Operating income (loss) 1,751 (1,594)
----------- -----------
Nonoperating income (expense):
Interest income 1,053 1,248
Interest and other expenses (966) (969)
Foreign exchange gain (loss) 91 (117)
----------- -----------
Total nonoperating income (expense) 178 162
----------- -----------
Income (loss) before income taxes 1,929 (1,432)
Income tax provision (benefit) 500 (286)
=========== ===========
Net income (loss) $ 1,429 $ (1,146)
=========== ===========
Net income (loss) per share $ 0.06 $ (0.05)
=========== ===========
Weighted average common and dilutive common
equivalent shares 22,434 21,679
=========== ===========
See accompanying notes to condensed consolidated financial statements.
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TRIMBLE NAVIGATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended
March 31,
-------------------------
1997 1996
- --------------------------------------------------------------------------------
(In thousands)
Net cash provided (used) by operating activities $ 6,152 $ (2,871)
--------- ---------
Cash flow from investing activities:
Purchase of short term investments (20,291) (11,892)
Maturities of short term investments 17,375 8,800
Sales of short term investments 3,500 2,425
Equity investments (1,000) (1,400)
Acquisition of property and equipment (2,554) (2,466)
Capitalized patent expenditures (118) (220)
---------- ----------
Net cash used in investing activities (3,088) (4,753)
---------- ----------
Cash flow from financing activities:
Issuance of common stock 488 688
Purchase of treasury stock (673) -
Collection of notes receivable (77) 76
(Payments)/proceeds on long-term debt and revolving
credit facilities 641 (421)
---------- ----------
Net cash provided by financing activities 379 343
---------- ----------
Net increase (decrease) in cash and cash equivalents 3,443 (7,281)
Cash and cash equivalents -- beginning of period 22,671 29,711
========== ==========
Cash and cash equivalents -- end of period $26,114 $22,430
========== ==========
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest $ 837 $ 791
Income taxes, net of refunds $ (678) $ (79)
See accompanying notes to condensed consolidated financial statements.
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TRIMBLE NAVIGATION LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - Basis of Presentation:
The condensed consolidated financial statements for the quarters ended March 31,
1997 and 1996 presented in this Quarterly Report on Form 10-Q are unaudited. The
balance sheet at December 31, 1996, has been derived from the audited financial
statements at that date but does not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, these statements include all
adjustments (consisting only of normal recurring adjustments) necessary for a
fair statement of the results for the interim periods presented. The condensed
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements and notes thereto included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1996.
The results of operations for the three month period ended March 31, 1997, are
not necessarily indicative of the results that may be expected for the year
ending December 31, 1997.
NOTE 2 - Inventories:
Inventories consist of the following:
March 31, December 31,
1997 1996
- ------------------------------------------------------------------------------
(In thousands)
Raw materials $ 22,350 $ 24,145
Work-in-process 6,395 5,174
Finished goods 10,175 9,539
----------- -------------
$ 38,920 $ 38,858
NOTE 3 - New Accounting Standards:
Effective January 1, 1997, the Company adopted Statement of Financial Accounting
Standards No. 125 ("SFAS 125"), "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities." At March 31, 1997, the
Company was contingently liable to a Japanese bank for $855,000, at month end
exchange rates arising from customers' notes receivable which the Company sold
with recourse to the bank. In accordance with SFAS 125 the Company has recorded
this amount as a liability.
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, "Earnings Per Share", which is required to be adopted on December 31, 1997.
At that time, the Company will be required to change the method currently used
to compute earnings per share and to restate all prior periods. Under the new
requirements for calculating primary earnings per share, the dilutive effect of
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stock options will be excluded. The impact of Statement 128 on the calculation
of primary and fully diluted earnings per share for these quarters is not
expected to be material.
NOTE 4 - Contingencies:
Shareholder Litigation
On December 6, 1995, two shareholders filed a class action lawsuit against
the Company and certain directors and officers of the Company. Subsequent to
that date, additional lawsuits were filed by other shareholders. The lawsuits
were subsequently amended and consolidated into one complaint which was filed on
April 5, 1996. The amended consolidated complaint seeks to bring an action as a
class action consisting of all persons who purchased the common stock of the
Company during the period April 18, 1995, through December 5, 1995 (the "Class
Period"). The plaintiffs allege that the defendants sought to induce the members
of the Class to purchase the Company's common stock during the Class Period at
artificially inflated prices. The plaintiffs seek recissory or compensatory
damages with interest thereon, as well as reasonable attorneys' fees and
extraordinary equitable and/or injunctive relief. The Company filed a motion to
dismiss, which was heard by the Court on August 16, 1996. The court rejected the
plaintiffs lawsuit, but allowed thirty days to resubmit its complaint. On
September 24, 1996, the plaintiffs filed an amended complaint. On April 28,
1997, the Court granted in part, and denied in part, the Company's motion to
dismiss. The Court further granted the plaintiffs leave to replead certain
dismissed claims. The Company does not believe that it is possible to predict
the outcome of this litigation.
Other Litigation
* In October 1995, an employee who was terminated by the Company in 1992
filed a Complaint against the Company, alleging that his incentive stock options
continued to vest subsequent to his termination. He seeks damages of
approximately $1,000,000. The Company has filed a general denial in answer to
the Complaint, and a trial date has been set for September 15, 1997. The Company
does not believe that the Complaint will be successful.
7
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenues
Revenues for the three months ended March 31, 1997 and 1996 were $60,551,000 and
$56,722,000, respectively. The table below shows the Company's revenues broken
down by business unit:
Three Months Ended March 31,
------------------------------------
Increase/
1997 1996 (Decrease)
- --------------------------------------------------------------------------------
(In thousands)
Commercial Systems $38,122 $38,137 0%
Software & Component Technologies 9,575 9,606 0%
Aerospace 12,854 8,979 43%
---------- ---------- ----------
Total revenue $60,551 $56,722 7%
---------- ---------- ----------
Commercial Systems
Commercial Systems revenues for the three month period ended March 31, 1997
decreased slightly within the Land Survey and Marine vertical markets. However,
the Company believes that it has maintained its market share worldwide.
The decreases in Land Survey sales in the first quarter of 1997,
compared to the first quarter of 1996 is due in part to the continued slow down
of the European and Japanese economies. Also, during the quarter, the Company
experienced delays in shipping newly introduced Land Survey products.
Revenues from the Marine market had a slight improvement in the first
quarter of 1997 compared to the prior three quarters, but was still slightly
down compared to that of the prior year.
The decrease in Land Survey and Marine sales were partially offset by an
increase in the overall Commercial Systems' revenues for the first quarter of
1997, as compared to the first quarter of 1996 which occurred primarily in the
Precise Positioning and GIS vertical markets.
Tracking and Communications revenues have increased slightly in the first
quarter of 1997 compared to the first quarter of 1996 due to the resumption of
shipments late in the first quarter of 1997 to American Mobile Satellite
8
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Corporation (AMSC), a Reston, Virginia, based company that provides a variety of
voice and data services via satellite. The shipments were originally
discontinued late in the fourth quarter of 1995 by the request of AMSC to cease
delivery, in part due to delays in AMSC's completion of software. On February
20, 1997, an agreement was signed between Trimble and AMSC to resume shipments
of its Galaxy/GPS terminals at the rate of 500 units per month, beginning in
March 1997. Approximately 250 units were shipped in March 1997.
Software and Component Technologies
Software and Component Technologies slight decrease in revenues for the three
month period ended March 31, 1997, as compared with the first quarter of 1996
was due to lower consumer product sales.
Aerospace
* Sales of Aerospace products increased for the first quarter of 1997, compared
to the first quarter of 1996 primarily due to the increased sales of the HT
9100, Honeywell Trimble product line. The Company considers its Aerospace
products to be a long term growth opportunity. It believes that success in this
area will be dependent upon the success of the current strategic alliance with
Honeywell.
* Military sales decreased in the first quarter of 1997, compared to the first
quarter of 1996. Military sales are highly dependent on contracts that are
subject to government approval and are, therefore, expected to continue to
fluctuate from period to period. The Company believes that opportunities in this
market have been substantially reduced by cutbacks in U.S. and foreign military
spending.
Revenue outside the US
* Sales to unaffiliated customers in locations outside the U.S. comprised
approximately 48% of revenue in the first three months of 1997 and approximately
52% in the first quarter of 1996. During the first quarter of 1997, lower
revenues in Europe affected many of the Company's product lines, and lower
revenues in Japan primarily related to surveying products. The Company
anticipates that export revenue and sales made by its subsidiaries in locations
outside the U.S. will continue to account for a significant portion of its
revenue and, therefore, the Company is subject to the risks inherent in these
sales, including unexpected changes in regulatory requirements, exchange rates,
governmental approval, tariffs or other barriers. Even though the U.S.
Government announced on March 29, 1996, that it would support and maintain the
GPS system, as well as eliminate the use of Selective Availability (S/A) (a
method of degrading GPS accuracy), customers in certain foreign markets may be
reluctant to purchase products based on GPS technology given the control of GPS
by the U.S. Government. The Company's results of operations could be adversely
affected if the Company were unable to continue to generate significant sales in
locations outside the U.S.
Gross Margin
Gross margin varies on a quarterly basis due to a number of factors,
including product mix, domestic versus international sales, customer type, the
effects of production volumes and fixed manufacturing costs on unit product
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costs and new product start-up costs. Gross margin as a percentage of total
product revenue was 52% and 54% in the three month periods ended March 31, 1997
and 1996, respectively. The lower gross margin percentage in the first quarter
of 1997 compared to the first quarter of 1996 primarily reflected a shift in
product mix from higher margin commercial systems sales to lower margin avionics
and OEM sales and decreases in the margins obtained on sales of commercial
systems products. There can be no assurance that these margins will be sustained
because of mix changes within and among the business units, market pressures on
unit selling prices, fluctuations in unit manufacturing costs and other factors.
While Commercial Systems products have the highest gross margins of all the
Company's products, their margins have decreased primarily because the Company
reduced prices on these products in response to competition. The Company expects
competition to increase in its Commercial Systems markets and, therefore, it is
likely that further price erosion will occur, with consequently lower gross
margin percentages in the future.
* The Company also expects that a higher percentage of its business in the
future will be conducted through alliances with strategic partners, e.g.
Honeywell, Caterpillar, and Case. As a result of volume pricing and the
assumption of certain operating costs in connection with such partners, margins
for this business are likely to be lower than sales directly to end-users.
Operating Expenses
The following table shows operating expenses for the periods indicated and
should be read in conjunction with the narrative descriptions of those operating
expenses below:
Three Months Ended March 31,
-----------------------------------------
Increase/
1997 1996 (Decrease)
- ---------------------------------------------------------------------
(In thousands)
Research and development 9,001 8,825 2%
Sales and marketing 14,348 16,064 (11)%
General and administrative 6,406 7,412 (14)%
---------- ---------- --------
Total $ 29,755 $ 32,301 (8)%
---------- ---------- --------
Research and Development
Research and development increased slightly in the three month period ended
March 31, 1997, as compared with the corresponding 1996 period. The higher
research and development expense in the 1997 period is due to an increase in
personnel and the related expenses which accompany an increase in the number of
employees. The increase in research and development personnel is part of the
Company's continuing aggressive development of future products.
* The Company expects that a significant portion of its future revenues and
operating income will continue to be derived from sales of newly introduced
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products. Consequently, the Company's future success depends in part on its
ability to continue to develop and manufacture new competitive products with
high gross profit margins. Advances in product technology will require continued
substantial investment in research and development in order to maintain and
enhance the Company's market position and achieve high gross profit margins.
Development and manufacturing schedules for technology products are difficult to
predict, and there can be no assurance that the Company will achieve timely
initial customer shipments of new products. The timely availability of these
products in volume and their acceptance by customers are important to the future
success of the Company. In addition, certain of the Company's products are
subject to governmental and similar certifications before they can be sold. For
example, FAA certification is required for all aviation products. An inability
or delay in obtaining such certifications could have an adverse effect on the
Company's operating results.
Sales and Marketing
The decreased sales and marketing expenses for the three month period ended
March 31, 1997, as compared with the corresponding period in 1996 is due
primarily to reduction in headcount and decreases in temporary help and
consulting, resulting from the Company's restructuring in September 1996. In
addition, there were decreases in advertising and promotional items related to
lower costs for the annual report and lower media development costs.
The Company's future growth will depend upon the timely development of products
and continued viability of the markets in which the Company currently competes
and upon the Company's ability to continue to identify and exploit new markets
for its products. In addition, the Company has encountered significant
competition in selected markets, and the Company expects such competition to
intensify as the market for GPS applications receives acceptance. Several of the
Company's competitors are major corporations with substantially greater
financial, technical, marketing and manufacturing resources. Increased
competition is likely to result in reduced market share and in price reductions
of GPS-based products, which could adversely affect the Company's revenues and
profitability.
General and Administrative
The decrease in general and administrative expense for the three month period
ended March 31, 1997, as compared with the same period for 1996, primarily
reflects lower legal expenses as a result of reduced litigation.
Income Taxes
* The income tax rates of 26% and 20% for the three months ended March 31, 1997
and 1996 respectively are less than the applicable federal statutory rate of 35%
primarily due to realization of previously reserved deferred tax assets. The
1997 rate is higher than the 1996 rate primarily due to higher foreign taxes.
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Inflation
The effects of inflation on the Company's financial results have not
been significant to date.
Liquidity and Capital Resources
* For the three month period ended March 31, 1997, cash provided by operating
activities was $6,152,000 as compared to cash used of $2,871,000 in the same
period in 1996. Cash provided by sales of common stock in 1997 represents
proceeds from purchases made pursuant to the Company's stock option and employee
stock purchase plans and totaled $488,000 for the three months ended March 31,
1997. The Company has relied primarily on cash provided by financing activities
and net sales of short-term investments to fund operations, capital
expenditures, to repurchase the Company's common stock (see further explanation
below), and other investing activities. The Company's ability to generate cash
from operations will depend in a large part on revenues and the rate of
collections of accounts receivable. Management believes that its cash, cash
equivalents and short-term investment balances, with its existing credit line,
will be sufficient to meet its anticipated cash needs for at least one year. At
March 31, 1997, the Company had cash and cash equivalents of $26,114,000 and
short-term investments of $59,283,000.
In August 1995, the Company entered into an agreement with two banks for a $30.0
million unsecured line of credit that expires in July 1997. The agreement
enables the Company to borrow up to $30.0 million provided that certain
financial and other covenants are met. The agreement provides for payment of a
commitment fee of 0.5% for the unused portion of the line of credit. Borrowings
bear interest at the higher of (i) one of the bank's annual prime rate, and (ii)
the federal funds rate plus 0.5%. No borrowings have been made under this line
of credit. The Company intends to obtain another line of credit on similar terms
after this line expires.
In February 1996, the Company announced that it had approved a discretionary
program whereby up to 600,000 shares of its common stock may be repurchased by
the Company to offset potential dilutive effects to earnings per share from the
issuance of stock options. The Company intends to use existing cash, cash
equivalents and short-term investments to finance any such stock repurchases
under this program. In 1996, the Company purchased 250,000 shares at a cost of
$3,545,000. In the first quarter of 1997 the Company purchased 50,000 shares at
a cost of $673,000.
During the three months ended March 31, 1997 and 1996, the Company invested
$1,000,000 and $1,400,000 respectively, in equity securities of companies that
either use GPS technology or whose technology can be used in conjunction with
the Company's GPS technology. The Company is continually evaluating potential
external investments in technologies related to its business. There can be no
assurance that investments already made and potential future investments will be
successful.
Other Risk Factors
Revenue has tended to fluctuate on a quarterly basis due to the timing of
shipments of products under contracts, the sale of license rights and seasonal
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patterns favoring spring and summer for the Commercial Systems business. This
pattern was not repeated in 1996 and there can be no assurances that there will
be any reversion to the prior seasonal revenue trends during 1997. A significant
portion of the Company's quarterly revenues occur from orders received and
immediately shipped to customers in the last few weeks and days of a quarter. If
orders are not received, or shipments are delayed a few days at the end of a
quarter, operating results would be significantly adversely impacted.
* The Company has a relatively fixed cost structure in the short term which is
determined by the business plans and strategies the Company intends to implement
in the markets it addresses. This effective leveraging means that increases or
decreases in revenues have more than a proportional impact on net income or
losses. The Company estimates that a change in product revenue of $1 million
would cause a corresponding change in the Company's earnings per share by 2 to 3
cents.
* In the longer term, the Company believes that the Software and Component
Technologies business unit will comprise a significant portion of the Company's
business. The Software and Component Technologies business unit differs in
nature from most of the Company's markets because volumes are high and margins
relatively low. Software and Component Technologies customers are extremely
price sensitive. As costs decrease through technological advances, these
advances will be passed on to the customer. To compete in the Software and
Component Technologies market requires high-volume production and manufacturing
techniques. Customers expect high quality standards with very low defect rates.
The Company is relatively inexperienced compared to competitors with far greater
resources in such high-volume manufacturing and associated support activities.
The Company's stock price is subject to significant volatility. If revenues
and/or earnings fail to meet the expectations of the investment community, there
could be an immediate and significant impact on the trading price of the
Company's stock.
The value of the Company's products relies substantially on the Company's
technical innovation in fields in which there are many current patent filings.
The Company recognizes that as new patents are issued or are brought to the
Company's attention by the holders of such patents, it may be necessary for the
Company to withdraw products from the market, take a license from such patent
holders, or redesign its products. The Company does not believe any of its
products infringe patents or other proprietary rights of third parties, but
cannot be certain they do not do so. In addition, the legal costs and
engineering time required to safeguard intellectual property or to defend
against litigation could become a significant expense of operations. Such events
could have a material adverse effect on the Company's revenues or profitability.
The Company is continually evaluating alliances and external investments in
technologies related to its business and has already entered into alliances and
made relatively small investments in GPS related technology companies.
Acquisitions of companies, divisions of companies, or products and alliances
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entail numerous risks, including (i) the potential inability to successfully
integrate acquired operations and products or to realize anticipated synergies,
economies of scale or other value, (ii) diversion of management's attention, and
(iii) loss of key employees of acquired operations. Any such problems could have
a material adverse effect on the Company's business, financial condition and
results of operations. No assurances can be given that the Company will not
incur problems from current or future alliances, acquisitions, or investments.
Furthermore, there can be no assurance that the Company will realize value from
any such alliances, acquisitions, or investments.
The Company's products rely on signals from the GPS Navstar satellite system
built and maintained by the U.S. Department of Defense. Navstar satellites and
their ground support systems are complex electronic systems subject to
electronic and mechanical failures and possible sabotage. Some of these 24
satellites have exceeded their design lives of 7.5 years and are also subject to
damage by the hostile space environment in which they operate. Repair of damaged
or malfunctioning satellites is impossible. If a significant number of
satellites were to become inoperable, there could be a substantial delay before
they are replaced with new satellites. A reduction in the number of operating
satellites would impair the current utility of the GPS system and the growth of
current and additional market opportunities. In addition, there can be no
assurance that the U.S. Government will remain committed to the operation and
maintenance of GPS satellites over a long period of time, nor that policies of
the U.S. Government allowing for the use of GPS without charge will remain
unchanged. Because of ever increasing commercial applications of GPS, other U.S.
Government agencies may become involved in the administration or the regulation
of the use of GPS signals. Any of the foregoing factors could affect the
willingness of buyers of the Company's products to select GPS-based systems
instead of products based on competing technologies. Any resulting change in
market demand for GPS products would have a material adverse effect on the
Company's financial results. Certain European government organizations have
expressed concern regarding the susceptibility of GPS equipment to intentional
or inadvertent signal interference. Such concern could translate into reduced
demand for GPS products in certain geographic regions.
14
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits
11.1 Computation of Earnings (Loss) Per Common Share
27 Financial Data Schedule
B. Reports on Form 8-K
There were no reports on Form 8-K filed during the quarter ended
March 31, 1997
15
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TRIMBLE NAVIGATION LIMITED
(Registrant)
By:/s/Dennis R. Ing
Dennis R. Ing
(Vice President Finance, Chief Financial
Officer, and principal financial and
principal accounting officer)
DATE: May 14, 1997
16
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TRIMBLE NAVIGATION LIMITED
EXHIBIT 11.1
Computation of Earnings (Loss) Per Common Share
Three Months Ended
March 31,
-------------------------
1997 1996
- --------------------------------------------------------------------------------
(In thousands, except per share data)
PRIMARY EARNINGS (LOSS) PER COMMON SHARE
Computation of common and common
equivalent shares outstanding:
Common stock outstanding 22,066 21,679
Common stock options 308 -
Common stock warrants 60 -
Total weighted average common --------- ---------
and dilutive common equivalent shares outstanding 22,434 21,679
========= =========
--------- ---------
Net income (loss) $1,429 ($1,146)
========= =========
Primary earnings (loss) per share $0.06 ($0.05)
========= =========
FULLY DILUTED EARNINGS (LOSS) PER COMMON SHARE
Computation of common and common
equivalent shares outstanding:
Common stock outstanding 22,066 21,679
Common stock options 308 -
Common stock warrants 60 -
Total weighted average common --------- ---------
and dilutive common equivalent shares outstanding 22,434 21,679
========= =========
--------- ---------
Net income (loss) $1,429 ($1,146)
========= =========
Fully diluted earnings (loss) per share $0.06 ($0.05)
========= =========
17
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND CONDENSED CONSOLIDATED STATEMENT
OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 26,114
<SECURITIES> 29,283
<RECEIVABLES> 38,090
<ALLOWANCES> 0
<INVENTORY> 38,920
<CURRENT-ASSETS> 165,963
<PP&E> 21,641
<DEPRECIATION> 0
<TOTAL-ASSETS> 197,567
<CURRENT-LIABILITIES> 41,685
<BONDS> 0
0
0
<COMMON> 130,268
<OTHER-SE> (5,274)
<TOTAL-LIABILITY-AND-EQUITY> 196,567
<SALES> 60,551
<TOTAL-REVENUES> 60,551
<CGS> 29,045
<TOTAL-COSTS> 29,045
<OTHER-EXPENSES> 29,755
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 918
<INCOME-PRETAX> 1,929
<INCOME-TAX> 500
<INCOME-CONTINUING> 1,429
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,429
<EPS-PRIMARY> 0.06
<EPS-DILUTED> 0.06
</TABLE>
