Trimble has announced financial results for the first quarter of 2016.
First Quarter 2016 Financial Summary
First quarter 2016 revenue of $583.0 million was flat as compared to the first quarter of 2015. Engineering and Construction revenue was $309.8 million, up 4%. Field Solutions revenue was $106.0 million, down 8%. Mobile Solutions revenue was $136.3 million, up 6%. Advanced Devices revenue was $30.9 million, down 22%. Foreign currency translation unfavorably impacted company revenue by approximately 1% as compared to the first quarter of 2015.
GAAP operating income was $29.9 million, down 24% as compared to the first quarter of 2015. GAAP operating margin was 5.1% of revenue as compared to 6.8% of revenue in the first quarter of 2015.
GAAP net income was $19.8 million, down 42% as compared to the first quarter of 2015. Diluted GAAP earnings per share were $0.08 as compared to diluted GAAP earnings per share of $0.13 in the first quarter of 2015.
Non-GAAP operating income of $88.5 million was down 9% as compared to the first quarter of 2015. Non-GAAP operating margin was 15.1% of revenue as compared to 16.6% of revenue in the first quarter of 2015.
Non-GAAP net income of $64.5 million was down 11% as compared to the first quarter of 2015. Diluted non-GAAP earnings per share were $0.25 as compared to diluted non-GAAP earnings per share of $0.28 in the first quarter of 2015.
The GAAP tax rate for the quarter was 33% as compared to 23% in the first quarter of 2015, and the non-GAAP tax rate was 24%, unchanged from the first quarter of 2015.
Operating cash flow for the first quarter of 2016 was $113.2 million, up 6% as compared to the first quarter of 2015. Deferred revenue for the first quarter of 2016 was $319.5 million, up 13% as compared to the first quarter of 2015.
"Revenue for all segments in the quarter came within expectations and deferred revenue grew to a record level," says Steven W. Berglund, Trimble's President and Chief Executive Officer. "Earnings were impacted by product and geographic mix as well as operating expenses associated with recent acquisitions. We remain on track for revenue growth for the full year, with particular strength in the Mobile Solutions segment and from the heavy civil and buildings businesses in the Engineering and Construction segment. We anticipate achieving our operating margin goals during the year due to gross margin improvement and cost containment initiatives."
Forward Looking Guidance
For the second quarter of 2016, Trimble expects revenue to be between $595 million and $625 million with GAAP earnings per share of $0.08 to $0.13 and non-GAAP earnings per share of $0.26 to $0.31. Non-GAAP guidance excludes the amortization of intangibles of $40 million related to previous acquisitions, anticipated acquisition costs of $2 million, the anticipated impact of stock-based compensation expense of $14 million, and $4 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 27% and non-GAAP guidance assumes a tax rate of 24%. Both GAAP and non-GAAP earnings per share assume approximately 255 million shares outstanding.
