- Second Quarter 2018 Revenue $785.5 millionSUNNYVALE, Calif., Aug. 1, 2018 — (PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the second quarter of 2018.
Second Quarter 2018 Financial Summary
Second quarter 2018 revenue of $785.5 million was up 19 percent as compared to the second quarter of 2017. Buildings and Infrastructure revenue was $274.3 million, up 24 percent. Geospatial revenue was $184.4 million, up 12 percent. Resources and Utilities revenue was $145.0 million, up 30 percent. Transportation revenue was $181.8 million, up 11 percent.
GAAP operating income was $89.5 million, up 52 percent as compared to the second quarter of 2017. GAAP operating margin was 11.4 percent of revenue as compared to 8.9 percent of revenue in the second quarter of 2017.
GAAP net income was $64.1 million, up 36 percent as compared to the second quarter of 2017. Diluted GAAP earnings per share were $0.25 as compared to diluted GAAP earnings per share of $0.18 in the second quarter of 2017.
Non-GAAP operating income of $159.9 million was up 36 percent as compared to the second quarter of 2017. Non-GAAP operating margin was 20.4 percent of revenue as compared to 17.8 percent of revenue in the second quarter of 2017.
Non-GAAP net income of $127.2 million was up 36 percent as compared to the second quarter of 2017. Diluted non-GAAP earnings per share were $0.50 as compared to diluted non-GAAP earnings per share of $0.36 in the second quarter of 2017.
The GAAP tax rate for the quarter was 19 percent as compared to 26 percent in the second quarter of 2017, and the non-GAAP tax rate was 19 percent as compared to 23 percent in the second quarter of 2017.
Operating cash flow for the first two quarters of 2018 was $267.8 million, up 6 percent as compared to the first two quarters of 2017. Deferred revenue for the second quarter of 2018 was $356.2 million, up 16 percent as compared to the second quarter of 2017.
"The second quarter revenue and income exceeded our expectations and continued the strong momentum that we have seen during the last year in all segments," said Steven W. Berglund, Trimble's president and chief executive officer. "The performance confirms the strength of our market position and the success of our strategy to transform those markets through technology."
Forward Looking Guidance
For the third quarter of 2018, Trimble expects to report non-GAAP revenue between $795 million and $825 million and non-GAAP earnings per share of $0.43 to $0.47. Because Trimble provided 2018 annual guidance at its investor day, Trimble is updating that guidance. Trimble now expects to report non-GAAP revenue of between $3.14 billion and $3.19 billion for the 2018 fiscal year with non-GAAP earnings per share between $1.81 and $1.89. Starting in the third quarter, Trimble's non-GAAP guidance excludes purchase accounting adjustments to acquired deferred revenue as well as the purchase accounting adjustments for commission expense, in addition to the adjustments described in the section on non-GAAP metrics located at the end of this press release. Trimble is unable to provide a quantitative reconciliation of these measures to GAAP with a reasonable degree of accuracy because Trimble has not estimated the fair value of the assets and liabilities, including intangible assets and related amortization expense, associated with the Viewpoint acquisition.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on August 1 at 2:00 p.m. PT to review its second quarter 2018 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, www.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the Web at http://investor.trimble.com. Investors without Internet access may dial into the call at (800) 528-9198 (U.S.) or (702) 928-6633 (international). The passcode is 6698397. The replay will also be available on the web at the address above.
Use of Non-GAAP Financial Information
To help investors understand Trimble's past financial performance and future results, as well as its performance relative to competitors, Trimble supplements the financial results that the Company provides in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. These non-GAAP measures can be used to evaluate Trimble's historical and prospective financial performance, as well as its performance relative to competitors. The Company's management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate the business, and to make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Trimble believes that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results, provide a more complete understanding of factors and trends affecting the business. Further, Trimble believes some of the Company's investors track "core operating performance" as a means of evaluating performance in the ordinary, ongoing, and customary course of the Company's operations. Core operating performance excludes items that are non-cash, not expected to recur or not reflective of ongoing financial results. Management also believes that looking at Trimble's core operating performance provides a supplemental way to provide consistency in period to period comparisons.
The specific non-GAAP measures, which Trimble uses along with a reconciliation to the nearest comparable GAAP measures and the explanation for why these non-GAAP measures provide useful information to investors regarding the financial condition and results of operations and why management chose to exclude selected items can be found at the end of this release. The method the Company uses to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Trimble's non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with Trimble's consolidated financial statements prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results, which is attached to this earnings release. Additional financial information about Trimble's use of non-GAAP results can be found on the investor relations page of our website at: