Industry Summary Articles

Fourth quarter 2016 revenue of $585.5 million was up 5 percent as compared to the fourth quarter of 2015. Engineering and Construction revenue was $320.2 million, up less than 1 percent. Field Solutions revenue was $83.3 million, up 5 percent. Mobile Solutions revenue was $146.8 million, up 11 percent. Advanced Devices revenue was $35.2 million, up 21 percent.

GAAP operating income was $55.3 million, up 68 percent as compared to the fourth quarter of 2015. GAAP operating margin was 9.4 percent of revenue as compared to 5.9 percent of revenue in the fourth quarter of 2015.

GAAP net income was $37.7 million, up 57 percent as compared to the fourth quarter of 2015. Diluted GAAP earnings per share were $0.15 as compared to diluted GAAP earnings per share of $0.09 in the fourth quarter of 2015.

Non-GAAP operating income of $107.2 million was up 18 percent as compared to the fourth quarter of 2015. Non-GAAP operating margin was 18.3 percent of revenue as compared to 16.3 percent of revenue in the fourth quarter of 2015.

Non-GAAP net income of $79.8 million was up 19 percent as compared to the fourth quarter of 2015. Diluted non-GAAP earnings per share were $0.31 as compared to diluted non-GAAP earnings per share of $0.27 in the fourth quarter of 2015. The GAAP tax rate for the quarter was 34 percent as compared to 16 percent in the fourth quarter of 2015, and the non-GAAP tax rate was 24 percent, unchanged from the fourth quarter of 2015.

During the fourth quarter, Trimble repurchased approximately 0.6 million shares of its common stock for $17 million.

"Both the fourth quarter and full year performances demonstrated progression," said Steve Berglund, Trimble's president and chief executive officer. "For the second half of the year, every segment reported both organic revenue growth and margin expansion. We anticipate 2017 will demonstrate continued growth and margin improvement."

Fiscal 2016 Financial Summary

Fiscal 2016 revenue of $2.4 billion was up 3 percent as compared to fiscal 2015. Engineering and Construction revenue was $1.3 billion, up 2 percent. Field Solutions revenue was $354.3 million, down slightly. Mobile Solutions revenue was $559.7 million, up 8 percent. Advanced Devices revenue was $134.6 million, up 2 percent.

GAAP operating income was $181.0 million, up 17 percent as compared to fiscal 2015. GAAP operating margin was 7.7 percent of revenue as compared to 6.7 percent of revenue in fiscal 2015.

GAAP net income was $132.4 million, up 9 percent as compared to fiscal 2015. Diluted GAAP earnings per share were $0.52 as compared to diluted GAAP earnings per share of $0.47 in fiscal 2015.

Non-GAAP operating income of $405.5 million was up 4 percent as compared to fiscal 2015. Non-GAAP operating margin was 17.2 percent of revenue as compared to 17.0 percent of revenue in fiscal 2015.

Non-GAAP net income of $302.4 million was up 4 percent as compared to fiscal 2015. Diluted non-GAAP earnings per share were $1.19 as compared to diluted non-GAAP earnings per share of $1.13 in fiscal 2015. The GAAP tax rate for the year was 25 percent as compared to 20 percent in fiscal 2015, and the non-GAAP tax rate was 24 percent, unchanged from fiscal 2015.

Operating cash flow for fiscal 2016 was $407.1 million, up 15 percent as compared to fiscal 2015. Deferred revenue for fiscal 2016 was $284.2 million, up 8 percent as compared to fiscal 2015.

During fiscal 2016, Trimble repurchased approximately 4.9 million shares of its common stock for $119 million. Approximately $130 million remains under the current share repurchase authorization.

Forward Looking Guidance

For the first quarter of 2017 Trimble expects revenue to be between $585 million and $615 million with GAAP earnings per share of $0.12 to $0.17 and non-GAAP earnings per share of $0.27 to $0.32. Non-GAAP guidance excludes the amortization of intangibles of $32 million related to previous acquisitions, anticipated acquisition costs of $3 million, the anticipated impact of stock-based compensation expense of $14 million, and $2 million in anticipated restructuring charges. GAAP and non-GAAP guidance assumes a tax rate of 24 percent. Both GAAP and non-GAAP earnings per share assume approximately 256 million shares outstanding.

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