Trimble Inc. announces financial results for the first quarter of 2018.
First Quarter 2018 Financial Summary
First quarter 2018 revenue of $742.2 million was up 22% as compared to the first quarter of 2017. Buildings and Infrastructure revenue was $224.7 million, up 20%. Geospatial revenue was $174.5 million, up 17%. Resources and Utilities revenue was $159.2 million, up 32%. Transportation revenue was $183.8 million, up 19%.
GAAP operating income was $64.2 million, up 17% as compared to the first quarter of 2017. GAAP operating margin was 8.6% of revenue as compared to 9.0% of revenue in the first quarter of 2017.
GAAP net income was $58.5 million, up 17% as compared to the first quarter of 2017. Diluted GAAP earnings per share were $0.23 as compared to diluted GAAP earnings per share of $0.19 in the first quarter of 2017.
Non-GAAP operating income of $139.5 million was up 30% as compared to the first quarter of 2017. Non-GAAP operating margin was 18.8% of revenue as compared to 17.6% of revenue in the first quarter of 2017.
Non-GAAP net income of $112.5 million was up 35% as compared to the first quarter of 2017. Diluted non-GAAP earnings per share were $0.44 as compared to diluted non-GAAP earnings per share of $0.33 in the first quarter of 2017.
The GAAP tax rate for the quarter was 12% as compared to 22% in the first quarter of 2017, and the non-GAAP tax rate was 19% as compared to 23% in the first quarter of 2017.
Operating cash flow for the first quarter of 2018 was $82.9 million, down 20% as compared to the first quarter of 2017. Deferred revenue for the first quarter of 2018 was $360.4 million, up 19% as compared to the first quarter of 2017.
During the first quarter, Trimble repurchased approximately 1.3 million shares of its common stock for $50.0 million. Approximately $392 million remains under the current share repurchase authorization as of the end of the first quarter. As previously announced, Trimble has temporarily suspended its stock buyback program.
"The strength of the first quarter reflects our improving competitive position and strong execution in every segment," says Steven W. Berglund, Trimble's President and Chief Executive Officer. "Our strategic evolution, which is expected to accelerate with the recently announced Viewpoint and e-Builder acquisitions, will lead to higher value added solutions and higher revenue growth. These acquisitions are expected to be accretive to operating margins and cash flow in 2019."
Forward Looking Guidance
For the second quarter of 2018, Trimble expects revenue to be between $755 million and $785 million with GAAP earnings per share of $0.21 to $0.26 and non-GAAP earnings per share of $0.42 to $0.46. Non-GAAP guidance excludes the amortization of intangibles of $42 million related to previous acquisitions, anticipated acquisition costs of $8 million, the anticipated impact of stock-based compensation expense of $15 million, and $2 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 15% and non-GAAP guidance assumes a tax rate of 19%. Both GAAP and non-GAAP earnings per share assume approximately 253 million shares outstanding.
