SCHAFFHAUSEN, Switzerland — (BUSINESS WIRE) — February 23, 2011 — Garmin Ltd. (Nasdaq: GRMN) today announced fourth quarter results for the period ended December 25, 2010.

Fourth Quarter 2010 Financial Summary:

• Total revenue of $838 million, down 21% from $1.059 billion in fourth quarter 2009
  • Automotive/Mobile segment revenue decreased 31% to $559 million
  • Outdoor/Fitness segment revenue increased 15% to $171 million
  • Aviation segment revenue increased 10% to $71 million
  • Marine segment revenue increased 9% to $37 million
• Asia experienced year-over-year revenue growth while North America and Europe declined:
  • North America revenue was $537 million compared to $768 million, down 30%
  • Europe revenue was $235 million compared to $246 million, down 4%
  • Asia revenue was $66 million compared to $45 million, up 46%
• Gross margin declined slightly to 45% compared to 46% in fourth quarter 2009
• Operating margin declined to 22% compared to 28% in fourth quarter 2009
• Effective tax rate increased to 15.0% in fourth quarter of 2010 compared to 4.7% in fourth quarter 2009
• Diluted earnings per share decreased to $0.68 from $1.38 in fourth quarter 2009; pro forma earnings per share decreased 42% to $0.83 from $1.43 in the same quarter in 2009. (Pro forma earnings per share excludes the impact of foreign currency translation gain or loss.)
• Generated $175 million of free cash flow in fourth quarter 2010 for a cash and marketable securities balance of over $2 billion.

Fiscal Year 2010 Financial Summary:

• Total revenue of $2.69 billion, down 9% from $2.95 billion in 2009
  • Automotive/Mobile segment revenue decreased 19% to $1.67 billion
  • Outdoor/Fitness segment revenue increased 19% to $560 million
  • Aviation segment revenue increased 7% to $263 million
  • Marine segment revenue increased 12% to $199 million
• Asia revenues increased while Europe was stable and North America declined:
  • North America revenue was $1.65 billion compared to $1.97 billion, down 17%
  • Europe revenue was $823 million compared to $824 million, flat year-over-year
  • Asia revenue was $220 million compared to $150 million, up 47%
• Gross margin improved to 50% compared to 49% in 2009
• Operating margin declined to 24% from 27% in 2009
• Effective normalized tax rate (excluding one-time tax adjustments ⁽¹⁾) increased to 15.8% in 2010 compared to 12.9% in 2009
• Diluted earnings per share decreased 16% to $2.95 from $3.50 in fiscal year 2009; pro forma EPS decreased 20% to $2.83 from $3.53 in fiscal year 2009. (Pro forma earnings per share excludes the impact of foreign currency translation gain or loss and one-time tax adjustments in 2010.)
• Generated over $738 million of free cash flow in 2010.