Trimble Inc. has announced financial results for the third quarter of 2018.
Third Quarter 2018 Financial Summary
Third quarter 2018 GAAP revenue of $795.2 million was up 18% as compared to the third quarter of 2017. Third quarter 2018 non-GAAP revenue of $804.7 million was up 19% as compared to the third quarter of 2017.
Buildings and Infrastructure revenue was $295.8 million, up 36%. Geospatial revenue was $185.4 million, up 9%. Resources and Utilities revenue was $133.2 million, up 13%. Transportation revenue was $190.3 million, up 11%. Segment revenues reflect the results of Trimble's reportable segments under its management reporting system and are non-GAAP measures.
GAAP operating income was $77.4 million, up 17% as compared to the third quarter of 2017. GAAP operating margin was 9.7% of revenue as compared to 9.8% of revenue in the third quarter of 2017.
GAAP net income was $73.7 million, up 29% as compared to the third quarter of 2017. Diluted GAAP earnings per share were $0.29 as compared to diluted GAAP earnings per share of $0.22 in the third quarter of 2017.
Non-GAAP operating income of $167.0 million was up 32% as compared to the third quarter of 2017. Non-GAAP operating margin was 20.8% of revenue as compared to 18.7% of revenue in the third quarter of 2017.
Non-GAAP net income of $125.2 million was up 23% as compared to the third quarter of 2017. Diluted non-GAAP earnings per share were $0.49 as compared to diluted non-GAAP earnings per share of $0.39 in the third quarter of 2017.
The GAAP tax rate for the quarter resulted in a benefit of 15% as compared to an expense of 20% in the third quarter of 2017, and the non-GAAP tax rate was 19% as compared to 23% in the third quarter of 2017.
Operating cash flow for the first three quarters of 2018 was $384.8 million, up 19% as compared to the first three quarters of 2017. Deferred revenue for the third quarter of 2018 was $364.3 million, up 28% as compared to the third quarter of 2017.
"Third quarter revenue was consistent with expectations and income exceeded expectations, with software revenue and gross margin performance providing much of the momentum," says Steven W. Berglund, Trimble's President and Chief Executive Officer. "Although trade, currency and geopolitical considerations have introduced incremental uncertainties, we anticipate continuing improvement in both revenue and profitability in 2019."
Forward Looking Guidance
For the fourth quarter of 2018, Trimble expects to report GAAP revenue between $784 million and $814 million and GAAP earnings per share of $0.22 to $0.26, and non-GAAP revenue between $791 million and $821 million and non-GAAP earnings per share of $0.44 to $0.48. Non-GAAP guidance excludes purchase accounting adjustments to acquired deferred revenue of $7 million, purchase accounting adjustments for amortization of commission expense of $2 million, the amortization of intangibles of $46 million, anticipated acquisition costs of $2 million, the anticipated impact of stock-based compensation expense of $22 million, and $2 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 6% and non-GAAP guidance assumes a tax rate of 19%. Both GAAP and non-GAAP earnings per share assume approximately 255 million shares outstanding.