Professional Land Surveyor News: Trimble Posts $319 Million In First Quarter Revenue

Professional Land Surveyor News

Professional Land Surveyor News

Professional Land Surveyor News: Trimble Posts $319.0 Million In First Quarter Revenue

On April 29th, Trimble (Nasdaq: TRMB) announced that for the first quarter, which ended on April 2, 2010, its revenue increased approximately 10% when compared to the first quarter of 2009. The total revenue reported by Trimble for the first quarter of 2010 is $319.0 million. The first quarter revenue for the first quarter of 2009 was $289.0 million.

About Trimble

Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location--including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies, such as GPS, lasers and optics, Trimble solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1978, Trimble is headquartered in Sunnyvale, Calif.

Statements by Steven W. Berglund, Trimble's President and Chief Executive Officer:

"First quarter results reflected growing momentum in our markets, led by the Engineering and Construction segment," said Steven W. Berglund, Trimble's president and chief executive officer. "While the shape of the recovery in some economic sectors remains uncertain, our confidence is growing that we can deliver double digit revenue growth in 2010 with disproportionately higher earnings growth. We also believe we have improved our strategic position during the economic downturn and can take full advantage of the recovery as it gains strength."

Professional Land Surveyor Source - TRIMBLE

Trimble Reported Financials:

  • Trimble First Quarter 2010 Revenue of $319.0 Million Up 10 Percent.
  • Non-GAAP EPS of $0.34 Up 21 Percent As Compared to the First Quarter of 2009.
  • Non-GAAP Operating Margin of 17.9 Percent.
  • Operating income for the first quarter of 2010 was $36.1 million, up approximately 49 percent as compared to the first quarter of 2009. Operating margin in the first quarter of 2010 was 11.3 percent, as compared to an operating margin of 8.4 percent in the first quarter of 2009.
  • Amortization of intangibles was $13.8 million in the first quarter of 2010, as compared to $12.3 million in the first quarter of 2009. The impact of stock-based compensation expense was $5.6 million, as compared to $4.2 million in the first quarter of 2009. There was also $0.7 million of restructuring expense, a $71 thousand acquisition-related inventory step-up charge, and $0.7 million of non-recurring acquisition costs in the first quarter of 2010. This compares to a $4.5 million restructuring expense, a $0.2 million acquisition-related inventory step-up charge, and $0.5 million of non-recurring acquisition costs in the first quarter of 2009.
  • Excluding these items, first quarter 2010 non-GAAP operating income of $57.1 million was up 24 percent, as compared to the first quarter of 2009. Non-GAAP operating margin was 17.9 percent in the first quarter of 2010, as compared to 15.9 percent in the first quarter of 2009.
  • First quarter 2010 net income was $27.9 million, up 60 percent, as compared to the first quarter of 2009. Diluted earnings per share for the first quarter of 2010 were $0.23, as compared to diluted earnings per share of $0.14 for the first quarter of 2009.
  • Adjusting for the items noted above, non-GAAP net income of $42.6 million for the first quarter of 2010 was up 26 percent, as compared to the first quarter of 2009. Non-GAAP earnings per share for the first quarter of 2010 were $0.34, as compared to non-GAAP earnings per share of $0.28 in the first quarter of 2009. The tax rate for the first quarter of 2010 was 29 percent.
  • Cash flow from operations for the first quarter of 2010 was $55.0 million.

Trimble Results by Business Segment

Segment operating income is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, restructuring expenses, amortization of intangibles, amortization of acquisition-related inventory step-up charges, non-recurring acquisition costs, and the impact of stock-based compensation expense.

  • Engineering and Construction (E&C)

First quarter 2010 E&C revenue was $157.6 million, up approximately 23 percent as compared to the first quarter of 2009, due to stronger sales in most regions.
Operating income in E&C for the first quarter 2010 was $18.8 million, or 11.9 percent of revenue, as compared to $2.5 million, or 2.0 percent of revenue, in the first quarter of 2009. Non-GAAP operating income in the first quarter of 2010 was $20.5 million, or 13.0 percent of revenue, as compared to $3.8 million, or 3.0 percent of revenue, in the first quarter of 2009. The improvement in non-GAAP operating margin was due to increased revenue and reductions in operating expenses.

  • Field Solutions

First quarter 2010 Field Solutions revenue was $95.9 million, down approximately 3 percent as compared to the first quarter of 2009.

Operating income in Field Solutions for the first quarter 2010 was $39.3 million, or 41.0 percent of revenue, as compared to $42.2 million, or 42.6 percent of revenue, in the first quarter of 2009. Non-GAAP operating income for the first quarter of 2010 was $39.8 million, or 41.5 percent of revenue, as compared to $42.4 million, or 42.8 percent of revenue, in the first quarter of 2009. The decrease in non-GAAP operating margin was due to slightly lower revenue compared to the prior year.

  • Mobile Solutions

First quarter 2010 Mobile Solutions revenue was $38.0 million, approximately flat as compared to the first quarter of 2009.

Operating income in Mobile Solutions for the first quarter 2010 was $1.9 million, or 5.0 percent of revenue, as compared to $3.1 million, or 8.2 percent of revenue, in the first quarter of 2009. Non-GAAP operating income in Mobile Solutions for the first quarter of 2010 was $3.1 million, or 8.2 percent of revenue, as compared to $4.3 million or 11.2 percent of revenue, in the first quarter of 2009. The decline in non-GAAP operating margin was due to product mix and a decline in sales of public safety products.

  • Advanced Devices

First quarter 2010 Advanced Devices revenue was $27.5 million, up approximately 15 percent as compared to the first quarter of 2009.

Operating income in Advanced Devices for the first quarter 2010 was $5.6 million, or 20.4 percent of revenue, as compared to $4.3 million, or 18.1 percent of revenue, in the first quarter of 2009. Non-GAAP operating income in Advanced Devices was $6.1 million, or 22.0 percent of revenue, as compared to $4.6 million, or 19.4 percent of revenue, in the first quarter of 2009. The higher non-GAAP operating margin was due to increased revenue and product mix.

Stock Repurchase Program

In January of 2008, Trimble announced a stock repurchase program for up to $250 million. To date, the company has used $125.9 million of the $250 million to repurchase stock. After placing the program on hold in late 2008 due to the economic downturn, Trimble will resume the program in 2010.

Trimble Use of Non-GAAP Financial Information

To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The specific non-GAAP measures which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why management chose to exclude selected items and the additional purposes for which these non-GAAP measures are used can be found at the end of this release. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, and to make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Management generally compensates for the limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure or measures. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to this earnings release. Additional financial information about our use of non-GAAP results can be found on the investor relations page of our Web site at http://investor.trimble.com.

Trimble Forward Looking Guidance

For the second quarter of 2010 Trimble expects revenue between $320 million and $325 million, with GAAP earnings per share of $0.22 to $0.24 and non-GAAP earnings per share of $0.34 to $0.36. Non-GAAP guidance for the second quarter of 2010 excludes the amortization of intangibles of $13.9 million related to previous acquisitions and the anticipated impact of stock-based compensation expense of $5.6 million. Both GAAP and non-GAAP earnings per share assume a 28 to 30 percent tax rate and 124.0 million shares outstanding.

Professional Land Surveyor Source

TRIMBLE

Read the following for The Trimble Safe Harbor Statement and Complete Financial Details.

Safe Harbor

Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations for future financial market and economic conditions, the ability to deliver the operating margins, revenue, and earnings per share that Trimble has guided for the second quarter and full year 2010, changes in tax-rate, the anticipated impact of stock-based compensation expense, the amortization of intangibles related to previous acquisitions, and the amount and timing of repurchases under the stock repurchase program. The Company may suspend its stock repurchase plan at any time and for any reason without further notice. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. If the current economic conditions in the U.S. and Europe worsen it may negatively impact our customers' purchasing decisions worldwide, including in emerging markets. In addition, the Company's results may be adversely affected if the Company is unable to market, manufacture, and ship new products. Any weakening of our accounts receivable or write-off of goodwill could also impair our financial results. Any failure to achieve predicted results could negatively impact the Company's revenues, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors, including the risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10- K. Undue reliance should not be placed on any forward-looking statement contained herein, especially in light of greater uncertainty than normal in the economy in general. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.

FTRMB

                      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                         (In thousands, except per share data)
                                      (Unaudited)

                                            Three Months Ended
                                            ------------------

                                      Apr-2,                 Apr-3,
                                             2010                   2009
                                             ----                   ----

    Revenue                              $319,015               $288,954
    Cost of sales                         160,018                144,996
                                          -------                -------
    Gross margin                          158,997                143,958
                                          -------                -------
    Gross margin (%)                         49.8%                  49.8%

    Operating expenses
        Research and development           35,890                 34,137
        Sales and marketing                49,768                 48,935
        General and administrative         28,547                 26,042
        Restructuring                         631                  3,623
        Amortization of purchased
         intangible assets                  8,046                  6,969
           Total operating expenses       122,882                119,706
                                          -------                -------

    Operating income                       36,115                 24,252

    Non-operating income
     (loss), net
        Interest income                       399                    199
        Interest expense                     (398)                  (493)
        Foreign currency transaction
         gain, net                            746                    184
        Income (loss) from equity
         method investments, net            2,474                   (107)
        Other income (expense), net           314                   (439)
           Total non-operating income
            (loss), net                     3,535                   (656)
                                            -----                   ----

    Income before taxes                    39,650                 23,596

    Income tax provision                   11,498                  5,899
    Net income                             28,152                 17,697
      Less: Net income
       attributable to
       noncontrolling interests               254                    232
    Net income attributable to
     Trimble Navigation Ltd.              $27,898                $17,465
                                          =======                =======

    Earnings per share
     attributable to Trimble
     Navigation Ltd.
         Basic                              $0.23                  $0.15
                                            -----                  -----
         Diluted                            $0.23                  $0.14
                                            -----                  -----

    Shares used in calculating
     earnings per share:
        Basic                             120,760                119,260
        Diluted                           123,829                120,926
                                          -------                -------

                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                 (Unaudited)

                                         Apr-2,      Jan-1,
                                                2010       2010
                                                ----       ----
    Assets

    Current assets:
       Cash and cash equivalents            $307,073   $273,848
       Accounts receivables, net             236,788    202,293
       Other receivables                       3,893     11,856
       Inventories, net                      150,657    144,012
       Deferred income taxes                  39,504     39,686
       Other current assets                   21,106     18,383
                                              ------     ------
          Total current assets               759,021    690,078

    Property and equipment, net               45,250     44,635
    Goodwill                                 771,046    764,193
    Other purchased intangible
     assets, net                             201,105    202,782
    Other non-current assets                  57,231     51,589
                                              ------     ------

          Total assets                    $1,833,653 $1,753,277
                                          ========== ==========

    Liabilities

    Current liabilities:
       Current portion of long-term
        debt                                    $394       $445
       Accounts payable                       81,082     53,775
       Accrued compensation and benefits      47,661     43,272
       Deferred revenue                       71,582     68,968
       Accrued warranty expense               14,375     14,744
       Other accrued liabilities              39,383     42,041
                                              ------     ------
          Total current liabilities          254,477    223,245

    Non-current portion of long-
     term debt                               151,059    151,038
    Non-current deferred revenue              16,365     15,599
    Deferred income taxes                     41,658     38,857
    Other non-current liabilities             65,184     59,983
          Total liabilities                  528,743    488,722
                                             -------    -------

    Commitments and contingencies

    Equity

    Shareholders' equity:
       Common stock                          735,126    720,248
       Retained earnings                     519,265    491,367
       Accumulated other comprehensive
        income                                40,793     48,297
                                              ------     ------
    Total Trimble Navigation Ltd.
     shareholders' equity                  1,295,184  1,259,912
    Noncontrolling interests                   9,726      4,643
          Total equity                     1,304,910  1,264,555

          Total liabilities and equity    $1,833,653 $1,753,277
                                          ========== ==========

                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (In thousands)
                                     (Unaudited)

                                           Three Months Ended
                                           ------------------
                                              Apr-2,          Apr-3,
                                                    2010            2009
                                                    ----            ----

    Cash flow from operating
     activities:
        Net Income                               $28,152         $17,697

        Adjustments to reconcile net
         income  to net cash provided
         by
           operating activities:
             Depreciation expense                  4,451           4,463
             Amortization expense                 13,817          12,298
             Provision for doubtful
              accounts                             1,038           2,212
             Amortization of debt issuance
              cost                                    57              56
             Deferred income taxes                   103          (1,606)
             Stock-based compensation              5,641           4,226
             (Income) loss from equity
              method investments                  (2,474)            107
             Excess tax benefit for stock-
              based compensation                    (482)            (21)
             Provision for excess and
              obsolete inventories                 1,902             904
             Other non-cash items                 (1,817)         (2,333)

        Add decrease (increase) in
         assets:
             Accounts receivables                (31,546)        (18,712)
             Other receivables                     8,060           5,486
             Inventories                          (9,441)         (7,327)
             Other current and non-
              current assets                      (2,103)            730

        Add increase (decrease) in
         liabilities:
             Accounts payable                     27,319          12,682
             Accrued compensation and
              benefits                             4,741           2,391
             Accrued liabilities                   2,677           5,801
             Deferred revenue                      5,468           4,107
             Income taxes payable                   (583)              -
     Net cash provided by
      operating activities                        54,980          43,161
                                                  ------          ------

     Cash flow from investing
      activities:
          Acquisitions of businesses,
           net of cash acquired                  (21,571)        (17,294)
          Acquisition of property and
           equipment                              (5,299)         (3,261)
          Acquisitions of intangible
           assets                                   (297)        (26,001)
          Purchases of equity method
           investments                            (2,750)              -
          Purchases of short-term
           investments                                 -          (1,999)
          Other                                        1              14
                                                     ---
     Net cash used in investing
      activities                                 (29,916)        (48,541)
                                                 -------         -------

     Cash flow from financing
      activities:
          Issuance of common stock                 9,172           4,602
          Excess tax benefit for stock-
           based compensation                        482              21
          Payments on long-term debt
           and revolving credit lines                (54)              -
     Net cash provided by
      financing activities                         9,600           4,623
                                                   -----           -----

     Effect of exchange rate
      changes on cash and cash
      equivalents                                 (1,439)         (1,946)
                                                  ------          ------

     Net increase in cash and cash
      equivalents                                 33,225          (2,703)
     Cash and cash equivalents -
      beginning of period                        273,848         142,531
                                                 -------         -------

     Cash and cash equivalents -
      end of period                             $307,073        $139,828
                                                ========        ========

                                             REPORTING SEGMENTS
                                           (Dollars in thousands)
                                                 (Unaudited)

                                                      Reporting Segments
                                                      ------------------
                                                Engineering
                                                     and             Field
                                                Construction      Solutions
                                                ------------      ---------

    THREE MONTHS ENDED APRIL 2, 2010:
      Revenue                                       $157,618         $95,901

      Operating income before corporate
       allocations:                                  $18,807         $39,313
        Operating margin (% of segment external
         net revenues)                                  11.9%           41.0%

    THREE MONTHS ENDED APRIL 3, 2009:
      Revenue                                       $127,651         $99,157

      Operating income before corporate
       allocations:                                   $2,509         $42,203
        Operating margin (% of segment external
         net revenues)                                   2.0%           42.6%

                                                Reporting Segments
                                                ------------------

                                                  Mobile         Advanced
                                                Solutions         Devices
                                                ---------         -------

    THREE MONTHS ENDED APRIL 2, 2010:
      Revenue                                      $37,959         $27,537

      Operating income before corporate
       allocations:                                 $1,899          $5,625
        Operating margin (% of segment external
         net revenues)                                 5.0%           20.4%

    THREE MONTHS ENDED APRIL 3, 2009:
      Revenue                                      $38,288         $23,858

      Operating income before corporate
       allocations:                                 $3,148          $4,312
        Operating margin (% of segment external
         net revenues)                                 8.2%           18.1%

                   GAAP TO NON-GAAP RECONCILIATION
           (Dollars in thousands, except per share data)
                              (Unaudited)

                                                 Three Months Ended
                                                 ------------------
                                                       Apr-2,
                                                                     2010
                                                                     ----
                                               Dollar            % of
                                               Amount           Revenue
                                               ------           -------
    GROSS MARGIN:
      GAAP gross margin:                           $158,997          49.8%
        Restructuring                    ( A )           43           0.0%
        Amortization of purchased
         intangibles                     ( B )        5,769           1.8%
        Stock-based compensation         ( C )          501           0.2%
        Amortization of acquisition-
         related inventory step-up       ( D )           71           0.0%
                                                        ---           ---
      Non-GAAP gross margin:                       $165,381          51.8%
                                                   --------          ----

    OPERATING EXPENSES:
      GAAP operating expenses:                     $122,882
        Restructuring                    ( A )         (631)
        Amortization of purchased
         intangibles                     ( B )       (8,046)
        Stock-based compensation         ( C )       (5,140)
        Non-recurring acquisition costs  ( E )         (738)
                                                       ----
      Non-GAAP operating expenses:                 $108,327
                                                   --------

    OPERATING INCOME:
      GAAP operating income:                        $36,115          11.3%
        Restructuring                    ( A )          674           0.2%
        Amortization of purchased
         intangibles                     ( B )       13,815           4.4%
        Stock-based compensation         ( C )        5,641           1.8%
        Amortization of acquisition-
         related inventory step-up       ( D )           71           0.0%
        Non-recurring acquisition costs  ( E )          738           0.2%
                                                        ---           ---
      Non-GAAP operating income:                    $57,054          17.9%
                                                    -------          ----

    NET INCOME:
      GAAP net income attributable to
       Trimble Navigation Ltd.                      $27,898
        Restructuring                    ( A )          674
        Amortization of purchased
         intangibles                     ( B )       13,815
        Stock-based compensation         ( C )        5,641
        Amortization of acquisition-
         related inventory step-up       ( D )           71
        Non-recurring acquisition costs  ( E )          538
        Income tax effect on non-GAAP
         adjustments                     ( F )       (6,014)
                                                     ------
      Non-GAAP net income attributable
       to Trimble Navigation Ltd.                   $42,623
                                                    -------

    DILUTED NET INCOME PER SHARE:
      GAAP diluted net income per share
       attributable to Trimble
       Navigation Ltd.                                $0.23
        Restructuring                    ( A )         0.01
        Amortization of purchased
         intangibles                     ( B )         0.11
        Stock-based compensation         ( C )         0.04
        Amortization of acquisition-
         related inventory step-up       ( D )            -
        Non-recurring acquisition costs  ( E )            -
        Income tax effect on non-GAAP
         adjustments                     ( F )        (0.05)
                                                      -----
      Non-GAAP diluted net income per
       share attributable to Trimble
       Navigation Ltd.                                $0.34
                                                      -----

    OPERATING LEVERAGE:
      Increase (decrease) in non-GAAP
       operating income                             $11,146
      Increase (decrease) in revenue                $30,061
      Operating leverage (increase in
       non-GAAP operating
      income as a % of increase in
       revenue)                                        37.1%

                                                             % of Segment
    SEGMENT OPERATING INCOME:                                   Revenue
                                                                -------
      Engineering and Construction
        GAAP operating income before
         corporate allocations:                     $18,807          11.9%
          Stock-based compensation       ( G )        1,726           1.1%
        Non-GAAP operating income before
         corporate allocations:                     $20,533          13.0%
                                                    -------          ----

      Field Solutions
        GAAP operating income before
         corporate allocations:                     $39,313          41.0%
          Stock-based compensation       ( G )          455           0.5%
        Non-GAAP operating income before
         corporate allocations:                     $39,768          41.5%
                                                    -------          ----

      Mobile Solutions
        GAAP operating income before
         corporate allocations:                      $1,899           5.0%
          Stock-based compensation       ( G )        1,202           3.2%
        Non-GAAP operating income before
         corporate allocations:                      $3,101           8.2%
                                                     ------           ---

      Advanced Devices
        GAAP operating income before
         corporate allocations:                      $5,625          20.4%
          Stock-based compensation       ( G )          443           1.6%
        Non-GAAP operating income before
         corporate allocations:                      $6,068          22.0%
                                                     ------          ----

                                         Three Months Ended
                                         ------------------
                                                       Apr-3,
                                                                     2009
                                                                     ----
                                               Dollar            % of
                                               Amount           Revenue
                                               ------           -------
    GROSS MARGIN:
      GAAP gross margin:                           $143,958          49.8%
        Restructuring                    ( A )          865           0.3%
        Amortization of purchased
         intangibles                     ( B )        5,285           1.8%
        Stock-based compensation         ( C )          438           0.2%
        Amortization of acquisition-
         related inventory step-up       ( D )          223           0.1%
                                                        ---           ---
      Non-GAAP gross margin:                       $150,769          52.2%
                                                   --------          ----

    OPERATING EXPENSES:
      GAAP operating expenses:                     $119,706
        Restructuring                    ( A )       (3,623)
        Amortization of purchased
         intangibles                     ( B )       (6,969)
        Stock-based compensation         ( C )       (3,788)
        Non-recurring acquisition costs  ( E )         (465)
                                                       ----
      Non-GAAP operating expenses:                 $104,861
                                                   --------

    OPERATING INCOME:
      GAAP operating income:                        $24,252           8.4%
        Restructuring                    ( A )        4,488           1.5%
        Amortization of purchased
         intangibles                     ( B )       12,254           4.2%
        Stock-based compensation         ( C )        4,226           1.5%
        Amortization of acquisition-
         related inventory step-up       ( D )          223           0.1%
        Non-recurring acquisition costs  ( E )          465           0.2%
                                                        ---           ---
      Non-GAAP operating income:                    $45,908          15.9%
                                                    -------          ----

    NET INCOME:
      GAAP net income attributable to
       Trimble Navigation Ltd.                      $17,465
        Restructuring                    ( A )        4,488
        Amortization of purchased
         intangibles                     ( B )       12,254
        Stock-based compensation         ( C )        4,226
        Amortization of acquisition-
         related inventory step-up       ( D )          223
        Non-recurring acquisition costs  ( E )          465
        Income tax effect on non-GAAP
         adjustments                     ( F )       (5,414)
                                                     ------
      Non-GAAP net income attributable
       to Trimble Navigation Ltd.                   $33,707
                                                    -------

    DILUTED NET INCOME PER SHARE:
      GAAP diluted net income per share
       attributable to Trimble
       Navigation Ltd.                                $0.14
        Restructuring                    ( A )         0.04
        Amortization of purchased
         intangibles                     ( B )         0.10
        Stock-based compensation         ( C )         0.04
        Amortization of acquisition-
         related inventory step-up       ( D )            -
        Non-recurring acquisition costs  ( E )            -
        Income tax effect on non-GAAP
         adjustments                     ( F )        (0.04)
                                                      -----
      Non-GAAP diluted net income per
       share attributable to Trimble
       Navigation Ltd.                                $0.28
                                                      -----

    OPERATING LEVERAGE:
      Increase (decrease) in non-GAAP
       operating income                            $(27,101)
      Increase (decrease) in revenue               $(66,342)
      Operating leverage (increase in
       non-GAAP operating
      income as a % of increase in
       revenue)                                         N/A

                                                             % of Segment
    SEGMENT OPERATING INCOME:                                   Revenue
                                                                -------
      Engineering and Construction
        GAAP operating income before
         corporate allocations:                      $2,509           2.0%
          Stock-based compensation       ( G )        1,308           1.0%
        Non-GAAP operating income before
         corporate allocations:                      $3,817           3.0%
                                                     ------           ---

      Field Solutions
        GAAP operating income before
         corporate allocations:                     $42,203          42.6%
          Stock-based compensation       ( G )          222           0.2%
        Non-GAAP operating income before
         corporate allocations:                     $42,425          42.8%
                                                    -------          ----

      Mobile Solutions
        GAAP operating income before
         corporate allocations:                      $3,148           8.2%
          Stock-based compensation       ( G )        1,144           3.0%
        Non-GAAP operating income before
         corporate allocations:                      $4,292          11.2%
                                                     ------          ----

      Advanced Devices
        GAAP operating income before
         corporate allocations:                      $4,312          18.1%
          Stock-based compensation       ( G )          325           1.3%
        Non-GAAP operating income before
         corporate allocations:                      $4,637          19.4%
                                                     ------          ----

                FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION
                           (Dollars in thousands)
                                 (Unaudited)

    The non-GAAP financial measures included in the previous table are
     non-GAAP gross margin, non-GAAP operating expenses, non-GAAP
     operating income, non-GAAP net income, non-GAAP diluted net
     income per share and operating leverage, and non-GAAP segment
     operating income before corporate allocations.  These non-GAAP
     measures can be used to evaluate the Company's historical and
     prospective financial performance, as well as its performance
     relative to competitors.  The Company believes some of its
     investors track the Company's "core operating performance" as a
     means of evaluating the Company's performance in the ordinary,
     ongoing, and customary course of its operations.  Management also
     believes that looking at its core operating performance provides a
     supplemental way to provide consistency in period to period
     comparisons.  Accordingly, management excludes from non-GAAP those
     items relating to restructuring, amortization of purchased
     intangibles, stock based compensation, amortization of acquisition-
     related inventory step-up and non-recurring acquisition costs,
     which the Company believes are not indicative of its core operating
     performance.

            Restructuring. Included in our GAAP presentation of cost of
            sales and operating expenses, restructuring costs recorded are
            primarily for employee compensation resulting from reductions
            in employee headcount in connection with our company
            restructurings.  We exclude restructuring from our non-GAAP
            measures because we believe they are not indicative of our
    ( A )   core operating performance.

            Amortization of purchased intangibles.  Included in our GAAP
            presentation of cost of sales and operating expenses,
            amortization of purchased intangibles recorded arise from
            prior acquisitions and are non-cash in nature.  We exclude
            these expenses from our non-GAAP measures because we believe
    ( B )   they are not indicative of our core operating performance.

            Stock-based compensation. Included in our GAAP presentation of
            cost of sales and operating expenses, stock-based
            compensation consists of expenses for employee stock options
            and awards and purchase rights under our employee stock
            purchase plan determined in accordance with SFAS 123(R).  We
            exclude stock-based compensation expense from our non-GAAP
            measures because some investors may view it as not reflective
            of our core operating performance as it is a non-cash
            expense.   For the three months ended April 2, 2010 and April
    ( C )   3, 2009, stock-based compensation was allocated as follows:

                                        Three Months Ended
                                        ------------------
                                Apr-2,                     Apr-3,
                                         2010                       2009
                                         ----                       ----
     Cost of sales                       $501                       $438
     Research and development             947                        784
     Sales and Marketing                1,383                      1,004
     General and administrative         2,810                      2,000
                                       $5,641                     $4,226
                                       ------                     ------

            Amortization of acquisition-related inventory step-up.  The
            purchase accounting entries associated with our business
            acquisitions require us to record inventory at its fair value,
            which is sometimes greater than the previous book value of the
            inventory.  Included in our GAAP presentation of cost of
            sales, the increase in inventory value is amortized to cost of
            sales over the period that the related product is sold.  We
            exclude inventory step-up amortization from our non-GAAP
            measures because we do not believe it is indicative of our
    ( D )   core operating performance.

            Non-recurring acquisition costs.  Included in our GAAP
            presentation of operating expenses and non-operating income
            (loss), net, non-recurring acquisition costs consist of
            external and incremental costs resulting directly from merger
            and acquisition activities such as legal, due diligence and
            integration costs.  Also included are unusual acquisition
            related items such as adjustments to the fair value of earnout
            liabilities and payments made to settle earnout and holdback
            disputes.  We exclude these items because they are non-
            recurring and unique to specific acquisitions and are not
    ( E )   indicative of our core operating performance.

            Income tax effect on non-GAAP adjustments. This amount adjusts
            the provision for income taxes to reflect the effect of the
    ( F )   non-GAAP adjustments on non-GAAP net income.

            Stock-based Compensation. The amounts consist of expenses for
            employee stock options and awards and purchase rights under
            our employee stock purchase plan determined in accordance with
            SFAS 123(R). As referred to above we exclude stock-based
            compensation here because investors may view it as not
            reflective of our core operating performance.  However,
            management does include stock-based compensation for
            budgeting and incentive plans as well as for reviewing
            internal financial reporting. We discuss our operating results
            by segment with and without stock-based compensation expense,
            as we believe it is useful to investors to understand the
            impact of the application of SFAS 123(R) to our results of
            operations.  Stock-based compensation not allocated to the
            reportable segments was approximately $1,815 and $1,227 for
            the three months ended April 2, 2010 and April 3, 2009,
    ( G )   respectively.

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Eric D. Colburn, PLS, "The Geo-Business Innovator", helps geo-professionals improve through innovative solutions, mastery of marketing and business growth strategies, and coaching/training. Eric is a successful, serial entrepreneur, podcaster, industry writer, product development consultant, and RI licensed professional land surveyor.

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