Garmin Reports Record Third Quarter, Raises Guidance; Announces Management Appointment; Announces Intention to Make Offer to Purchase all the Outstanding Shares of Tele Atlas N.V.

Cayman Islands (ots/PRNewswire) -

Garmin Ltd. (Nasdaq: GRMN) today announced a record quarter ended
September 29, 2007.

Third Quarter 2007 Financial highlights:
-- Total revenue of US$729 million, up 79% from US$408 million in third
quarter 2006
-- Automotive/Mobile segment revenue increased 118% to US$519 million in
third quarter 2007
-- Aviation segment revenue increased 27% to US$74 million in third
quarter 2007
-- Outdoor/Fitness segment revenue increased 24% to US$88 million in
third quarter 2007
-- Marine segment revenue increased 17% to US$48 million in third quarter
2007
-- All geographic areas experienced significant growth:
- North America revenue was US$454 million compared to US$265 million,
up 71%
- Europe revenue was US$227 million compared to US$120 million, up 89%
- Asia revenue was US$48 million compared to US$23 million, up 109%
-- Revenue from our automotive/mobile segment continued to become a
larger portion of total company revenues when compared with the same
quarter in 2006, at 71% of total revenues.
-- Diluted earnings per share increased 57% to US$0.88 from US$0.56 in
third quarter 2006; excluding foreign exchange, EPS increased 78% to
US$0.89 from US$0.50 in the same quarter in 2006.
Year-to-Date 2007 Financial highlights:
-- Total revenue of US$1.96 billion, up 69% from US$1.16 billion year-to-
date 2006
-- Automotive/Mobile segment revenue increased 109% to US$1.34 billion in
year-to-date 2007
-- Aviation segment revenue increased 30% to US$224 million in year-to-
date 2007
-- Outdoor/Fitness segment revenue increased 10% to US$225 million in
year-to-date 2007
-- Marine segment revenue increased 21% to US$170 million in year-to-date
2007
-- All geographic areas experienced significant growth:
- North America revenue was US$1.23 billion compared to US$700
million, up 76%
- Europe revenue was US$631 million compared to US$400 million, up 58%
- Asia revenue was US$101 million compared to US$63 million, up 60%
-- Diluted earnings per share increased 64% to US$2.50 from US$1.52 in
year-to-date 2006; excluding foreign exchange, EPS increased 68% to
US$2.48 from US$1.48 in the same period in 2006.
Business highlights:
-- Strong sales in our automotive/mobile segment continue to exceed our
expectations and drive our increased guidance for the remainder of
2007.
-- Aviation and marine segment results put them on track to meet or
exceed earlier full year guidance for these segments. Given
improving sales in our outdoor/fitness segment, we continue to
anticipate this segment will reach our full year guidance with
seasonally strong holiday sales.
-- 2.69 million units sold in the third quarter of 2007, up 119% from the
same quarter in 2006; year-to-date units sold increased 97% from the
same period in 2006.
-- Completed the initial build-out of our third Taiwan manufacturing
facility, increasing the number of production lines from 31 to 37, and
production capacity at the end of the third quarter to an annual run
rate of approximately 16 million units. Expansion of our R&D and
other office space in Taiwan continues.
-- Expansion of our North American warehouse in Olathe, Kansas continues,
with expected completion in Q1 2008.
-- We continued to work to increase our retail penetration and broaden
our distribution as retailers laid the groundwork for the upcoming
holiday selling season. Our initial order book for the holiday
season is strong, as PNDs are positioned to be a popular item during
the holiday season.
-- Due diligence work continues on previously announced acquisitions of
distributors in Spain, Italy, and Denmark. These activities are part
of our ongoing efforts to improve our market share in Europe.

(Logo: http://www.newscom.com/cgi-bin/prnh/20061026/CGTH082LOGO)

Executive overview from Dr. Min Kao, Chairman and Chief Executive
Officer:

"Garmin experienced a solid third quarter. Our continued strong
growth in the automotive/mobile segment demonstrated that our
products are well-positioned to take advantage of the growing
interest in portable navigation devices. Independent market research
indicates we have maintained a strong leadership position in North
America with approximately fifty percent PND market share, and our
market position in Europe continues to improve as well.

As we head into the holiday season, we believe we are prepared to
meet the growing demand for our products. We have increased our
manufacturing capacity and grown total inventories over US$200
million since the end of the second quarter of 2007. Our order book
is strong, and we believe our strategy of extensive market
segmentation using both our popular nuvi(TM) and c-series product
offerings will drive positive results. Useful content and competitive
features integrated into reliable, easy-to-use products at attractive
price points are what customers want - and what they receive when
they choose Garmin.

Our aviation segment continued to grow steadily during the
quarter. Positive response to our WAAS and GMX200 product offerings
and growth in the sale of our G1000 cockpit continued. In the third
quarter we announced additional wins for our G1000 cockpit for future
Cessna Caravan, Socata TBM 850 as well as the new PiperJet and a
G1000 retrofit for the King Air 200/B200. Also during the 3rd
quarter, Cessna announced that our new G300 cockpit display system
was selected for its new Skycatcher light sport aircraft. We continue
to believe the aviation segment is positioned to meet our 2007
guidance for this segment.

Our marine segment also showed steady growth, as customer interest
in our revolutionary new marine products and cartography continued to
drive revenues for the quarter. While typical marine segment revenues
decline sequentially in third and fourth quarter each year, results
remain seasonally strong. We continue to believe the marine segment
is positioned to meet our 2007 guidance.

Third quarter revenue for our outdoor/fitness segment was strong
compared to the year ago quarter. Increased sales generated by the
new Astro dog tracking product, as well as new eTrex and Rino
products with high-sensitivity GPS drove this growth. We see
continued growth opportunities for this segment and believe the
outdoor/fitness segment is positioned to meet our 2007 guidance for
the segment."

Financial overview from Kevin Rauckman, Chief Financial Officer:

"Our financial results for the third quarter were strong and in
line with our expectations. Our retail orders are strong, and we look
forward to a solid 2007 holiday season," said Kevin Rauckman, chief
financial officer of Garmin Ltd. "Our revenue and earnings per share
during the quarter grew 79% and 57% respectively, exceeding our
expectations. Excluding the impact of foreign exchange, EPS for the
quarter grew 78%, from US$0.50 to US$0.89.

Gross margin for the overall business declined modestly in the
third quarter, down 180 basis points from the year-ago quarter. The
automotive/mobile segment gross margin improved 70 basis points
during the quarter due to a seasonal, favorable product mix shift
towards higher-margin North American product, and PND pricing
declined more slowly than we expected. The aviation segment also
improved 180 basis points as a function of favorable product mix.
Gross margin for the marine segment declined 50 basis points during
the quarter when compared to the year-ago quarter as a function of
product mix, and the outdoor/fitness segments declined 320 basis
points, reflecting a product mix shift and the transition of the
eTrex product line.

Operating margin remained relatively stable, declining just 30
basis points from the year-ago quarter. This stability reflected an
anticipated decline in gross margin offset by operating leverage as
revenues outpaced increased spending in advertising and research and
development expenses during the quarter. While we are pleased with
these results, we anticipate more significant margin compression
during the fourth quarter of 2007.

We also generated US$117 million of free cash flow in the third
quarter of 2007, resulting in a cash and marketable securities
balance of US$1.03 billion at the end of the quarter."

Fiscal 2007 Outlook

We remain optimistic about the future success of our business and
our ability to serve customers and distributors around the world.
With this in mind, we are updating our guidance as follows:

-- We anticipate overall revenue to exceed US$2.9 billion in 2007, and
earnings per share to exceed US$3.40.
-- We anticipate segment revenue growth rates for our automotive/mobile,
aviation, marine, and outdoor/fitness segments to be 90%, 30%, 20%,
and 10%, respectively
-- We anticipate operating margins to be approximately 27% for the full
year 2007
-- Our effective tax rate should remain approximately 13%

Announcement of Management Appointment

Given our anticipated ongoing business growth, Cliff Pemble will
be assuming the new positions of Chief Operating Officer (COO) and
President of Garmin Ltd. In addition, he will assume direct
supervision of all North American Garmin subsidiaries, including
Garmin AT, Dynastream, and Digital Cyclone. Dr. Kao will continue in
his role as Chairman and CEO of Garmin Ltd. but will now be able to
devote more time to business development, strategic planning, and the
development of our Asia-Pacific business initiatives.

Announcement of Intent to Make an Offer to Acquire all the
Outstanding Shares in Tele Atlas N.V.

Early this morning we announced our intention to make an offer to
acquire all the outstanding shares in Tele Atlas N.V. Garmin has
established itself as a leader in navigation technology by
consistently delivering award-winning, reliable, easy to use products
with rich content and competitive features at attractive prices. This
acquisition is consistent with our vision as a leader in our market
and our vertical integration strategy. Advanced mapping data is an
essential ingredient for the continued growth of the navigation
industry and this acquisition provides a means for Garmin to
contribute more broadly to the development and growth of this market.
We will discuss this important announcement more fully on our
earnings call this morning.

Non-GAAP Measures

CAYMAN ISLANDS, October 31 /PRNewswire/ --

Net income (earnings) per share, excluding foreign currency

Management believes that net income per share before the impact of
foreign currency translation gain or loss is an important measure.
The majority of the company's consolidated foreign currency
translation gain or loss results from translation into New Taiwan
dollars at the end of each reporting period of the significant cash
and marketable securities, receivables and payables held in U.S.
dollars by the company's Taiwan subsidiary. Such translation is
required under GAAP because the functional currency of this
subsidiary is New Taiwan dollars. However, there is minimal cash
impact from such foreign currency translation and management expects
that the Taiwan subsidiary will continue to hold the majority of its
cash, cash equivalents and marketable securities in U.S. dollars.
Accordingly, earnings per share before the impact of foreign currency
translation gain or loss allows an assessment of the company's
operating performance before the non-cash impact of the position of
the U.S. dollar versus the New Taiwan dollar, which permits a
consistent comparison of results between periods.

The following table contains a reconciliation of GAAP net income
per share to net income per share excluding the impact of foreign
currency translation gain or loss.

Garmin Ltd. And Subsidiaries
Net income per share, excluding FX
(in thousands, except per share information)
(all amounts in USD unless otherwise specified)
13-Weeks Ended 39-weeks Ended
September 29, September 30, September 29, September 30,
2007 2006 2007 2006
Net Income (GAAP) $193,507 $122,978 $547,744 $333,778
Foreign currency
(gain) / loss,
net of tax
effects $3,151 ($12,569) ($3,036) ($8,776)
Net income,
excluding FX $196,658 $110,409 $544,708 $325,002
Net income per share (GAAP):
Basic $0.89 $0.57 $2.53 $1.54
Diluted $0.88 $0.56 $2.50 $1.52
Net income per share, excluding FX:
Basic $0.91 $0.51 $2.52 $1.50
Diluted $0.89 $0.50 $2.48 $1.48
Weighted average common shares outstanding:
Basic 216,773 216,317 216,456 216,502
Diluted 220,644 218,866 219,482 218,878

Free cash flow

Management believes that free cash flow is an important financial
measure because it represents the amount of cash provided by
operations that is available for investing and defines it as
operating cash flow less capital expenditures for property and
equipment.

The following table contains a reconciliation of GAAP net cash
provided by operating activities to free cash flow.

Garmin Ltd. And Subsidiaries
Free Cash Flow
(in thousands)
(all amounts in USD unless otherwise specified)
13-Weeks Ended 39-Weeks Ended
September 29, September 30, September 29, September 30,
2007 2006 2007 2006
Net cash provided
by operating
activities $133,766 $116,750 $555,905 $249,125
Less: purchases
of property and
equipment ($16,873) ($18,865) ($128,893) ($45,476)
Free Cash Flow $116,893 $97,885 $427,012 $203,649

Earnings Call Information

The information for Garmin Ltd.'s earnings call is as follows:

When: Wednesday, October 31, 2007 at 11:00 a.m. Eastern
Where: http://www.garmin.com/aboutGarmin/invRelations/irCalendar.html
How: Simply log on to the web at the address above or call to listen
in at +1-800-883-9537.
Contact: investor.relations@garmin.com

A phone recording will be available for five business days
following the earnings call and can be accessed by dialing
+1-800-642-1687 or +1-706-645-9291 and utilizing the access code
19218207. An archive of the live webcast will be available until
November 30, 2007 on the Garmin website at http://www.garmin.com. To
access the replay, click on the Investor Relations link and click
over to the Events Calendar page.

This release includes projections and other forward-looking
statements regarding Garmin Ltd. and its business. Any statements
regarding the company's estimated earnings and revenue for fiscal
2007, the Company's expected segment revenue growth rate, margins,
the number of new products to be introduced in 2007 and the company's
plans and objectives are forward-looking statements. The
forward-looking events and circumstances discussed in this release
may not occur and actual results could differ materially as a result
of risk factors affecting Garmin, including, but not limited to, the
risk factors that are described in the Annual Report on Form 10-K for
the year ended December 30, 2006 filed by Garmin with the Securities
and Exchange Commission (Commission file number 0-31983). A copy of
Garmin's 2006 Form 10-K can be downloaded from
http://www.garmin.com/aboutGarmin/invRelations/finReports.html.

Through its operating subsidiaries, Garmin Ltd. designs,
manufactures, and markets navigation, communications and information
devices, most of which are enabled by GPS technology. Garmin is a
leader in the general aviation and consumer markets and its products
serve aviation, marine, outdoor, fitness, automotive, mobile and OEM
applications. Garmin Ltd. is incorporated in the Cayman Islands, and
its principal subsidiaries are located in the United States, Taiwan
and United Kingdom. For more information, visit the investor
relations site of Garmin Ltd. at www.garmin.com or contact the
Investor Relations department at +1-913-397-8200. Garmin and
Forerunner are registered trademarks, and Edge is a trademark of
Garmin Ltd. or its subsidiaries.

Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share information)
(all amounts in USD unless otherwise specified)
September 29, December 30,
2007 2006
Assets
Current assets:
Cash and cash equivalents $703,749 $337,321
Marketable securities 58,668 73,033
Accounts receivable, net 520,538 403,524
Inventories, net 493,739 271,008
Deferred income taxes 57,700 55,996
Prepaid expenses and other current assets 23,538 28,202
Total current assets 1,857,932 1,169,084
Property and equipment, net 358,578 250,988
Marketable securities 263,735 407,843
Restricted cash 1,580 1,525
Licensing agreements, net 14,398 3,307
Other intangible assets, net 149,277 64,273
Total assets $2,645,500 $1,897,020
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $236,044 $88,375
Salaries and benefits payable 32,524 16,268
Warranty reserve 55,225 37,639
Other accrued expenses 209,136 100,732
Income taxes payable 35,033 94,668
Total current liabilities 567,962 337,682
Long-term debt, less current portion 603 248
Deferred income taxes 1,219 1,191
Other liabilities 90,505 -
Stockholders' equity:
Common stock 1,086 1,082
Additional paid-in capital 123,025 83,438
Retained earnings 1,863,867 1,478,654
Accumulated other comprehensive loss (2,767) (5,275)
Total stockholders' equity 1,985,211 1,557,899
Total liabilities and stockholders' equity $2,645,500 $1,897,020

Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
(all amounts in USD unless otherwise specified)
13-Weeks Ended 39-Weeks Ended
September 29, September 30, September 29, September 30,
2007 2006 2007 2006
Net sales $728,673 $407,997 $1,963,298 $1,162,776
Cost of goods sold 386,822 209,137 1,009,028 584,843
Gross profit 341,851 198,860 954,270 577,933
Selling, general and
administrative
expenses 87,060 47,489 248,358 140,167
Research and development
expense 40,634 30,399 111,863 82,105
127,694 77,888 360,221 222,272
Operating income 214,157 120,972 594,049 355,661
Other income (expense):
Interest income 11,798 9,622 31,997 25,464
Interest expense (273) (2) (328) (14)
Foreign currency (3,626) 14,874 3,493 10,386
Other 570 70 959 3,507
8,469 24,564 36,121 39,343
Income before income
taxes 222,626 145,536 630,170 395,004
Income tax provision 29,119 22,558 82,426 61,226
Net income $193,507 $122,978 $547,744 $333,778
Net income per share:
Basic $0.89 $0.57 $2.53 $1.54
Diluted $0.88 $0.56 $2.50 $1.52
Weighted average common
shares outstanding:
Basic 216,773 216,317 216,456 216,502
Diluted 220,644 218,866 219,482 218,878

Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
(all amounts in USD unless otherwise specified
39-Weeks Ended
September 29, September 30,
2007 2006
Operating Activities:
Net income $547,744 $333,778
Adjustments to reconcile net income
to net cash
provided by operating activities:
Depreciation 22,786 15,447
Amortization 18,803 19,844
Loss (gain) on sale of property
and equipment 71 (8)
Provision for doubtful accounts 3,467 796
Deferred income taxes (1,157) (29,867)
Foreign currency transaction
gains/losses 3,232 (19,724)
Provision for obsolete and slow
moving inventories 21,502 15,260
Stock compensation expense 8,830 8,378
Realized gains on marketable
securities - (3,852)
Changes in operating assets and
liabilities:
Accounts receivable (90,497) (79,648)
Inventories (234,920) (148,891)
Other current assets 4,510 (1,192)
Accounts payable 117,034 48,720
Other current and non-current
liabilities 147,608 69,704
Income taxes 9,486 22,866
Purchase of licenses (22,594) (2,486)
Net cash provided by operating
activities 555,905 249,125
Investing activities:
Purchases of property and equipment (128,893) (45,476)
Purchase of intangible assets (2,481) (1,513)
Purchase of marketable securities (983,716) (348,621)
Redemption of marketable securities 1,141,431 197,008
Change in restricted cash (56) (104)
Proceeds from asset sale 4 75
Net cash paid for acquisition of
businesses and other intangibles (84,126) -
Net cash used in investing activities (57,837) (198,631)
Financing activities:
Proceeds from issuance of common
stock 15,358 10,042
Dividends (162,531) -
Stock repurchase - (50,451)
Payments on long term debt (218) -
Tax benefit related to stock option
exercise 15,776 7,453
Net cash used in financing activities (131,615) (32,956)
Effect of exchange rate changes on
cash and cash equivalents (25) (167)
Net increase in cash and cash
equivalents 366,428 17,371
Cash and cash equivalents at
beginning of period 337,321 334,352
Cash and cash equivalents at end of
period $703,749 $351,723

Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment (Unaudited)
(all amounts in USD unless otherwise specified)
Reporting Segments
Outdoor/ Auto/
Fitness Marine Mobile Aviation Total
13-Weeks Ended
September 29, 2007
Net sales $87,747 $47,659 $518,939 $74,328 $728,673
Gross profit $46,553 $25,170 $221,148 $48,980 $341,851
Operating income $30,178 $15,623 $141,855 $26,501 $214,157
13-Weeks Ended
September 30, 2006
Net sales $70,651 $40,588 $237,981 $58,777 $407,997
Gross profit $39,803 $21,645 $99,708 $37,704 $198,860
Operating income $28,817 $13,659 $59,517 $18,979 $120,972
39-Weeks Ended
September 29, 2007
Net sales $225,437 $170,433 $1,343,460 $223,968 $1,963,298
Gross profit $123,616 $92,704 $591,400 $146,550 $954,270
Operating income $79,986 $60,033 $370,448 $83,582 $594,049
39-Weeks Ended
September 30, 2006
Net sales $205,412 $141,406 $644,097 $171,861 $1,162,776
Gross profit $118,615 $79,484 $269,855 $109,979 $577,933
Operating income $85,116 $53,718 $155,782 $61,045 $355,661

Web site: http://www.garmin.com

ots Originaltext: Garmin Ltd.
Im Internet recherchierbar: http://www.presseportal.de

Contact:
INVESTOR CONTACT: Polly Schwerdt, +1-913-397-8200,
investor.relations@garmin.com, or MEDIA CONTACT: Ted Gartner,
+1-913-397-8200, media.relations@garmin.com, both of Garmin Ltd.;
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