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February 4th, 2009
Trimble Reports Fiscal 2008 Revenue Growth of 9 Percent

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PR – Trimble  today announced revenue of $268.1 million for its fourth quarter ended Jan. 2, 2009, down approximately 14 percent from revenue of $312.8 million in the fourth quarter of 2007. For fiscal 2008, Trimble had revenue of $1.33 billion dollars, up approximately 9 percent over fiscal 2007. Operating income for the fourth quarter of 2008 was $10.4 million, down approximately 73 percent from the fourth quarter of 2007. Operating margins in the fourth quarter of 2008 were 3.9 percent, compared to operating margins of 12.6 percent in the fourth quarter of 2007.

Amortization of intangibles was $12.0 million in the fourth quarter of 2008 compared to $10.1 million in the fourth quarter of 2008. The impact of stock-based compensation expense was $4.6 million compared to $4.1 million in the fourth quarter of 2007.

There was an $846 thousand restructuring expense and an $813 thousand inventory step-up charge related to acquisitions in the fourth quarter of 2008. Excluding these impacts, non-GAAP operating income of $28.7 million was down 46 percent compared to the fourth quarter of 2007. Non-GAAP operating margins were 10.7 percent in the fourth quarter of 2008, down from 17.1 percent in the fourth quarter of 2007. For fiscal 2008, operating income was $185.5 million, up approximately four percent from fiscal 2007.

Fiscal 2008 operating margins were 14.0 percent, compared to operating margins of 14.6 percent in fiscal 2007. In fiscal 2008, amortization of intangibles was $44.9 million compared to $38.6 million in fiscal 2007. The impact of stock-based compensation expense was $16.2 million compared to $15.0 million in fiscal 2007. In 2008, there was $4.6 million in restructuring expense and $1.4 million in inventory step-up charges related to acquisitions compared to $3.0 million in restructuring expense and no inventory step-up charges related to acquisitions in fiscal 2007. During 2008 there was no in-process research and development compared to $2.1 million in 2007. Excluding these impacts, fiscal 2008 non-GAAP operating income of $252.6 million was up approximately 7 percent compared to fiscal 2007. Non-GAAP operating margins were 19.0 percent in fiscal 2008, the same as fiscal 2007. Fourth quarter 2008 net income was $13.7 million, down 48 percent compared to the fourth quarter of 2007. Diluted earnings per share for the fourth quarter of 2008 were $0.11 compared to diluted earnings per share of $0.21 in the fourth quarter of 2007.

Fiscal 2008 net income was $141.5 million, up 21 percent compared to fiscal 2007. Diluted earnings per share for fiscal 2008 were $1.14, up from diluted earnings per share of $0.94 in the fiscal 2007. The tax rate for 2008 was 26 percent as compared to 36 percent in 2007 due primarily to a reduction in the tax rate driven by the global supply chain project. Adjusting for the items noted above, non-GAAP net income of $28.9 million for the fourth quarter of 2008 was down 18 percent compared to the fourth quarter of 2007. Non-GAAP earnings per share for the fourth quarter of 2008 were $0.24, down 14 percent from non-GAAP earnings per share of $0.28 in the fourth quarter of 2007. Non-GAAP net income of $190.9 million for fiscal 2008 was up 23 percent compared to the fourth quarter of 2007. Non-GAAP earnings per share for fiscal 2008 were $1.54, up 23 percent from fiscal 2007. “In our October call we described an abrupt drop in demand in our Engineering and Construction segment in mid-September. This trend worsened during the fourth quarter,” said Steven W. Berglund, Trimble’s president and chief executive officer. “During this time of market volatility we will continue to take efforts to maintain our financial model, utilize this period of uncertainty as an opportunity to improve our strategic position, support those businesses with growth potential in the current environment, and adapt quickly to changing circumstances. For example, actions we have already taken will result in a reduction in the Trimble workforce of approximately ten percent, excluding acquisitions.” “Our visibility into 2009 is extremely limited. We currently expect the first quarter to reflect the confusion of the fourth quarter. We hope to see a transition to more rational business decision making in the second quarter with the second half of the year in a difficult recession, but one in which we can begin to market our ROI message,” Berglund continued. “Our focus will be on managing through the recession as flexibly and opportunistically as we can while anticipating the inflection point when we can return to our historical growth trend.” 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 inventory step-up charge, in- process research and development and the impact of stock-based compensation expense. Engineering and Construction Fourth quarter 2008 E&C revenue was $142.6 million, down approximately 24 percent when compared to the fourth quarter of 2007. For 2008, E&C revenue was $741.7 million, down less than one percent compared to 2007. During 2008, the E&C segment experienced declining demand due primarily to recessionary conditions in the U.S. and Europe. Operating income in E&C for the fourth quarter 2008 was $2.3 million, or 1.6 percent of revenue, compared to $36.8 million, or 19.7 percent of revenue, in the fourth quarter of 2007. For 2008 operating income in E&C was $126.0 million, or 17.0 percent of revenue, compared to $174.2 million or 23.4 percent of revenue, in 2007. In the fourth quarter of 2008, non-GAAP operating income in E&C was $3.9 million, or 2.7 percent of revenue, compared to $37.9 million, or 20.3 percent of revenue, in the fourth quarter of 2007. For fiscal 2008, non-GAAP operating income was $130.7 million, or 17.6 percent of revenue, compared to $177.8 million, or 23.9 percent of revenue, in 2007. The decline in operating margins was primarily due to the revenue decline and product mix. Field Solutions Fourth quarter 2008 Field Solutions revenue was $58.2 million, up 17.4 percent when compared to the fourth quarter of 2007. Fiscal 2008 revenue in Field Solutions was $300.7 million, up 50 percent from 2007. Strong sales of agriculture products drove Field Solutions growth in the quarter and for the year. Operating income in Field Solutions for the fourth quarter 2008 was $17.5 million, or 30.1 percent of revenue, compared to $14.0 million, or 28.2 percent of revenue, in the fourth quarter of 2007. For 2008 operating income was $109.5 million, or 36.4 percent of revenue, compared to $60.9 million, or 30.4 percent of revenue, in 2007. In the fourth quarter of 2008, non-GAAP operating income in Field Solutions was $17.7 million, or 30.5 percent of revenue, compared to 28.6 percent of revenue in the fourth quarter of 2007. For fiscal 2008, non-GAAP operating income in Field Solutions was $110.3 million, or 36.7 percent of revenue, up from 30.8 percent of revenue in fiscal 2007. Growth in Field Solutions’ margin was driven by operating leverage resulting from increased revenue, as well as improvements in product costs. Mobile Solutions Fourth quarter 2008 Mobile Solutions revenue was $40.0 million, down approximately 16 percent when compared to the fourth quarter of 2007. Fiscal 2008 Mobile Solutions revenue was $167.1 million, up six percent compared to 2007. The fourth quarter of 2007 benefitted from the completion of deliverables for two large contracts. Operating income in Mobile Solutions for the fourth quarter 2008 was $3.3 million, or 8.3 percent of revenue, compared to 12.0 percent of revenue in the fourth quarter of 2007. For 2008 operating income in Mobile Solutions was $11.3 million, or 6.8 percent of revenue, compared to 7.9 percent of revenue in 2007. In the fourth quarter of 2008, non-GAAP operating income in Mobile Solutions was $4.5 million, or 11.2 percent of revenue, down from 14.8 percent of revenue in the fourth quarter of 2007. For fiscal 2008, non-GAAP operating income in Mobile Solutions was $16.1 million, or 9.6 percent of revenue compared to 11.1 percent of revenue in fiscal 2007. As mentioned above, margins in the fourth quarter of 2007 benefitted from of the completion of deliverables for two large contracts. Advanced Devices Fourth quarter 2008 Advanced Devices revenue was $27.2 million, down approximately 5 percent when compared to the fourth quarter of 2007. Fiscal 2008 Advanced Devices revenue was $119.7 million down approximately one percent compared to 2007. The decline in fourth quarter revenue was due mainly to slower sales of component technology products which are sold to OEMs. Operating income in Advanced Devices for the fourth quarter 2008 was $6.3 million, or 23.3 percent of revenue, compared to $3.7 million, or 12.7 percent of revenue, in the fourth quarter of 2007. For 2008 operating income in Advanced Devices was $24.4 million, or 20.4 percent of revenue, compared to $17.3 million, or 14.3 percent of revenue, in 2007. In the fourth quarter of 2008, non-GAAP operating income in Advanced Devices was $6.7 million, or 24.7 percent of revenue, compared to 14.0 percent of revenue in the fourth quarter of 2007. For fiscal 2008, non-GAAP operating income in Advanced Devices was $25.8 million, or 21.6 percent of revenue compared to 15.4 percent of revenue in fiscal 2007. For both the quarter and the full year margin improvement was the result of increased licensing revenue and product mix. Stock Repurchase Program As part of its stock repurchase program, in the fourth quarter of 2008, Trimble repurchased 536,000 shares of Trimble stock at an average price of $18.69.

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