California
|
94-2802192
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
Large
Accelerated Filer
|
S
|
Accelerated
Filer
|
£
|
|
Non-accelerated
Filer
|
£
|
(Do
not check if a smaller reporting company)
|
Smaller
Reporting Company
|
£
|
PART
I.
|
Financial
Information
|
Page
|
|
ITEM
1.
|
|||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
ITEM
2.
|
21
|
||
ITEM
3.
|
30
|
||
ITEM
4.
|
31
|
||
PART
II.
|
Other
Information
|
||
ITEM
1.
|
31
|
||
ITEM
1A.
|
31
|
||
ITEM
2.
|
31
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||
ITEM
4.
|
32
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||
ITEM
6.
|
33
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34
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June 27,
|
December 28,
|
|||||||
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 79,823 | $ | 103,202 | ||||
Accounts
receivable, net
|
267,200 | 239,884 | ||||||
Other
receivables
|
9,985 | 10,201 | ||||||
Inventories,
net
|
153,369 | 143,018 | ||||||
Deferred
income taxes
|
42,257 | 44,333 | ||||||
Other
current assets
|
17,004 | 15,661 | ||||||
Total
current assets
|
569,638 | 556,299 | ||||||
Property
and equipment, net
|
51,615 | 51,444 | ||||||
Goodwill
|
713,010 | 675,850 | ||||||
Other
purchased intangible assets, net
|
186,971 | 197,777 | ||||||
Other
non-current assets
|
62,598 | 57,989 | ||||||
Total
assets
|
$ | 1,583,832 | $ | 1,539,359 | ||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of long-term debt
|
$ | 137 | $ | 126 | ||||
Accounts
payable
|
73,581 | 67,589 | ||||||
Accrued
compensation and benefits
|
56,149 | 55,133 | ||||||
Deferred
revenue
|
59,077 | 49,416 | ||||||
Accrued
warranty expense
|
11,942 | 10,806 | ||||||
Income
taxes payable
|
14,060 | 14,802 | ||||||
Other
current liabilities
|
36,333 | 51,980 | ||||||
Total
current liabilities
|
251,279 | 249,852 | ||||||
Non-current
portion of long-term debt
|
432 | 60,564 | ||||||
Non-current
deferred revenue
|
10,719 | 15,872 | ||||||
Deferred
income taxes
|
59,976 | 47,917 | ||||||
Other
non-current liabilities
|
52,503 | 56,128 | ||||||
Total
liabilities
|
374,909 | 430,333 | ||||||
Commitments
and contingencies
|
||||||||
Shareholders'
equity:
|
||||||||
Preferred
stock no par value; 3,000 shares authorized; none
outstanding
|
-- | -- | ||||||
Common
stock, no par value; 180,000 shares authorized; 121,652 and 121,596 shares
issued and outstanding at June 27, 2008 and December 28, 2007,
respectively
|
683,274 | 660,749 | ||||||
Retained
earnings
|
447,806 | 388,557 | ||||||
Accumulated
other comprehensive income
|
77,843 | 59,720 | ||||||
Total
shareholders' equity
|
1,208,923 | 1,109,026 | ||||||
Total
liabilities and shareholders' equity
|
$ | 1,583,832 | $ | 1,539,359 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
27,
|
June
29,
|
June
27,
|
June
29,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except per share data)
|
||||||||||||||||
Revenue (1)
|
$ | 377,767 | $ | 327,732 | $ | 733,063 | $ | 613,464 | ||||||||
Cost
of sales (1)
|
190,668 | 160,563 | 371,588 | 303,165 | ||||||||||||
Gross
margin
|
187,099 | 167,169 | 361,475 | 310,299 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Research
and development
|
39,405 | 33,867 | 76,750 | 65,030 | ||||||||||||
Sales
and marketing
|
51,904 | 47,546 | 103,062 | 89,693 | ||||||||||||
General
and administrative
|
25,289 | 24,278 | 47,979 | 45,920 | ||||||||||||
Restructuring
charges
|
2,414 | 333 | 2,414 | 3,025 | ||||||||||||
Amortization
of purchased intangible assets
|
5,163 | 5,195 | 10,306 | 9,301 | ||||||||||||
In-process
research and development
|
-- | -- | -- | 2,112 | ||||||||||||
Total
operating expenses
|
124,175 | 111,219 | 240,511 | 215,081 | ||||||||||||
Operating
income
|
62,924 | 55,950 | 120,964 | 95,218 | ||||||||||||
Non-operating
income, net
|
||||||||||||||||
Interest
income
|
508 | 593 | 965 | 1,837 | ||||||||||||
Interest
expense
|
(413 | ) | (2,459 | ) | (1,175 | ) | (3,860 | ) | ||||||||
Foreign
currency transaction gain (loss), net
|
1,253 | (430 | ) | 2,221 | (73 | ) | ||||||||||
Income
from joint ventures
|
2,618 | 2,080 | 4,633 | 4,502 | ||||||||||||
Other
income (expense ), net
|
153 | 487 | (754 | ) | 722 | |||||||||||
Total
non-operating income, net
|
4,119 | 271 | 5,890 | 3,128 | ||||||||||||
Income
before taxes
|
67,043 | 56,221 | 126,854 | 98,346 | ||||||||||||
Income
tax provision
|
18,444 | 21,195 | 38,188 | 34,637 | ||||||||||||
Net
income
|
$ | 48,599 | $ | 35,026 | $ | 88,666 | $ | 63,709 | ||||||||
Basic
earnings per share
|
$ | 0.40 | $ | 0.29 | $ | 0.73 | $ | 0.54 | ||||||||
Shares
used in calculating basic earnings per share
|
121,523 | 119,621 | 121,495 | 117,535 | ||||||||||||
Diluted
earnings per share
|
$ | 0.39 | $ | 0.28 | $ | 0.71 | $ | 0.52 | ||||||||
Shares
used in calculating diluted earnings per share
|
125,712 | 124,584 | 125,435 | 122,539 |
Six
Months Ended
|
||||||||
June 27,
|
June 29,
|
|||||||
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
Cash
flow from operating activities:
|
||||||||
Net
income
|
$
|
88,666
|
$
|
63,709
|
||||
Adjustments to
reconcile net income to net cash provided
by operating activities:
|
||||||||
Depreciation
expense
|
9,274
|
8,426
|
||||||
Amortization
expense
|
21,811
|
18,394
|
||||||
Provision
for doubtful accounts
|
119
|
358
|
||||||
Amortization
of debt issuance cost
|
113
|
105
|
||||||
Deferred
income taxes
|
(2,791
|
) |
(8,636
|
) | ||||
Non-cash
restructuring charges
|
--
|
1,725
|
||||||
Stock-based
compensation
|
7,777
|
7,145
|
||||||
In-process
research and development
|
--
|
2,112
|
||||||
Equity
gain from joint venture
|
(4,633
|
) |
(4,503
|
) | ||||
Excess
tax benefit for stock-based compensation
|
(5,249
|
) |
(5,929
|
) | ||||
Provision
for excess and obsolete inventories
|
3,283
|
1,941
|
||||||
Other
non-cash items
|
1
|
140
|
||||||
Add
decrease (increase) in assets:
|
||||||||
Accounts
receivable
|
(26,832
|
) |
(41,832
|
) | ||||
Other
receivables
|
481
|
2,968
|
||||||
Inventories
|
(8,997
|
) |
(11,760
|
) | ||||
Other
current and non-current assets
|
(464
|
) |
9,414
|
|||||
Add
increase (decrease) in liabilities:
|
||||||||
Accounts
payable
|
4,637
|
(6,298
|
) | |||||
Accrued
compensation and benefits
|
(303
|
) |
80
|
|||||
Accrued
liabilities
|
(597
|
) |
3,136
|
|||||
Deferred
revenue
|
3,974
|
12,132
|
||||||
Income
taxes payable
|
10,093
|
33,630
|
||||||
Net
cash provided by operating activities
|
100,363
|
86,457
|
||||||
Cash
flow from investing activities:
|
||||||||
Acquisitions
of businesses, net of cash acquired
|
(45,082
|
) |
(277,743
|
) | ||||
Acquisitions
of property and equipment
|
(7,932
|
) |
(6,270)
|
|||||
Other
|
137
|
|
959
|
|||||
Net
cash used in investing activities
|
(52,877
|
)
|
(283,054
|
)
|
||||
Cash
flow from financing activities:
|
||||||||
Issuances
of common stock
|
15,425
|
15,761
|
||||||
Excess
tax benefit for stock-based compensation
|
5,249
|
5,929
|
||||||
Repurchase
and retirement of common stock
|
(36,293
|
) |
--
|
|||||
Proceeds
from long-term debt and revolving credit lines
|
--
|
250,000
|
||||||
Payments
on long-term debt and revolving credit lines
|
(60,314)
|
(127,517
|
) | |||||
Net
cash provided by (used in) financing activities
|
(75,933
|
)
|
144,173
|
|||||
Effect
of exchange rate changes on cash and cash equivalents
|
5,068
|
(3,437
|
) | |||||
Net
decrease in cash and cash equivalents
|
(23,379
|
) |
(55,861
|
) | ||||
Cash
and cash equivalents, beginning of period
|
103,202
|
129,621
|
||||||
Cash
and cash equivalents, end of period
|
$
|
79,823
|
$
|
73,760
|
Cash
consideration
|
$ | 327,370 | ||
Common
stock consideration
|
161,947 | |||
Merger
costs *
|
5,712 | |||
Total
Purchase price
|
$ | 495,029 |
Value
to be allocated to assets, based upon merger consideration
|
$ | 495,029 | ||
Less:
value of @Road’s assets acquired:
|
||||
Net
tangible assets acquired
|
138,132 | |||
Amortizable
intangibles assets:
|
||||
Developed
product technology
|
66,600 | |||
Customer
relationships
|
75,300 | |||
Trademarks
and tradenames
|
5,200 | |||
Subtotal
|
147,100 | |||
In-process
research and development
|
2,100 | |||
Deferred
tax liability
|
(56,855 | ) | ||
Goodwill
|
$ | 264,552 |
As
of
|
||||
February 16,
|
||||
(in
thousands)
|
2007
|
|||
Cash
and cash equivalents
|
$ | 74,729 | ||
Accounts
receivable, net
|
14,255 | |||
Other
receivables
|
8,774 | |||
Inventories,
net
|
15,272 | |||
Other
current assets
|
12,627 | |||
Property
and equipment, net
|
5,854 | |||
Deferred
income taxes
|
42,147 | |||
Other
non-current assets
|
7,935 | |||
Total
assets acquired
|
$ | 181,593 | ||
Accounts
payable
|
19,285 | |||
Deferred
revenue
|
7,365 | |||
Other
current liabilities
|
16,811 | |||
Total
liabilities assumed
|
$ | 43,461 | ||
Total
net assets acquired
|
$ | 138,132 |
Six
Months Ended
|
||||
June 29,
|
||||
2007
(a)
|
||||
(in
thousands, except per share data)
|
||||
Pro-forma
revenue
|
$ | 627,582 | ||
Pro-forma
net income
|
60,964 | |||
Pro-forma
basic net income per share
|
$ | 0.51 | ||
Pro-forma
diluted net income per share
|
$ | 0.51 |
(a)
|
The
pro-forma results of operations represent the Company’s results for the
six months ended June 29, 2007 together with @Road’s historical results
through the acquisition date of February 16, 2007 as though they had been
combined as of December 31, 2005. Pro-forma adjustments have
been made based on the fair values of assets acquired and liabilities
assumed as of February 16, 2007. Pro-forma revenue includes a
$0.1
million decrease due to the timing of recognizing deferred revenue
write-downs and customer contracts where the product was delivered prior
to the acquisition date. Pro-forma net income includes a $0.3 million
increase due to the timing of recognizing revenue write-downs and related
deferred cost of sales write-downs, amortization of intangible assets
related to the acquisition of $2.2 million, and interest expense for
debt used to purchase @Road of $1.4 million. The pro-forma amounts
provided herein include adjustments to previously filed pro-forma numbers
in the Company’s 10-Q’s.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June 27,
|
June 29,
|
June 27,
|
June 29,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Cost of
sales
|
$ | 487 | $ | 429 | $ | 980 | $ | 771 | ||||||||
Research
and development
|
916 | 1,022 | 1,833 | 1,751 | ||||||||||||
Sales and
marketing
|
931 | 974 | 1,961 | 1,741 | ||||||||||||
General and
administrative
|
1,461 | 1,367 | 3,003 | 2,882 | ||||||||||||
Total operating
expenses
|
3,308 | 3,363 | 6,797 | 6,374 | ||||||||||||
Total stock-based compensation
expense
|
3,795 | 3,792 | 7,777 | 7,145 | ||||||||||||
Tax benefit
(1)
|
(458 | ) | (520 | ) | (552 | ) | (868 | ) | ||||||||
Total stock-based compensation
expense, net of tax
|
$ | 3,337 | $ | 3,272 | $ | 7,225 | $ | 6,277 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
June 27,
2008
|
June 29,
2007
|
June
27,
2008
|
June 29,
2007
|
|||||||||
Expected
dividend yield
|
--
|
--
|
--
|
--
|
||||||||
Expected
stock price volatility
|
39.8%
|
36.9%
|
39.7%
|
37.2%
|
||||||||
Risk
free interest rate
|
2.7%
|
|
4.5%
|
2.7%
|
4.5%
|
|||||||
Expected
life of option
|
4.1
years
|
3.9
years
|
4.1
years
|
3.9
years
|
June 27,
2008
|
||||||||||||
Gross
|
||||||||||||
Carrying
|
Accumulated
|
Net
Carrying
|
||||||||||
(in
thousands)
|
Amount
|
Amortization
|
Amount
|
|||||||||
Developed
product technology
|
$ | 165,246 | $ | (72,074 | ) | $ | 93,172 | |||||
Trade
names and trademarks
|
19,486 | (12,839 | ) | 6,647 | ||||||||
Customer
relationships and other intellectual properties
|
129,358 | (42,206 | ) | 87,152 | ||||||||
$ | 314,090 | $ | (127,119 | ) | $ | 186,971 |
December 28,
2007
|
||||||||||||
Gross
|
||||||||||||
Carrying
|
Accumulated
|
Net
Carrying
|
||||||||||
(in
thousands)
|
Amount
|
Amortization
|
Amount
|
|||||||||
Developed
product technology
|
$ | 157,394 | $ | (58,273 | ) | $ | 99,121 | |||||
Trade
names and trademarks
|
19,192 | (12,490 | ) | 6,702 | ||||||||
Customer
relationships and other intellectual properties
|
124,281 | (32,327 | ) | 91,954 | ||||||||
$ | 300,867 | $ | (103,090 | ) | $ | 197,777 |
Amortization
Expense
|
||||
(in
thousands)
|
||||
2008
(Remaining)
|
$ | 21,704 | ||
2009
|
40,134 | |||
2010
|
37,887 | |||
2011
|
33,033 | |||
2012
|
25,010 | |||
Thereafter
|
29,203 | |||
Total
|
$ | 186,971 |
Engineering
and Construction
|
Field
Solutions
|
Mobile
Solutions
|
Advanced
Devices
|
Total
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Balance
as of December 28, 2007
|
$ | 317,886 | $ | 5,224 | $ | 337,661 | $ | 15,079 | $ | 675,850 | ||||||||||
Additions
due to acquisitions
|
14,963 | -- | -- | -- | 14,963 | |||||||||||||||
Purchase
price adjustments
|
5,578 | 2,046 | 1,218 | -- | 8,842 | |||||||||||||||
Foreign
currency translation adjustments
|
13,612 | -- | (77 | ) | (180 | ) | 13,355 | |||||||||||||
Balance
as of June 27, 2008
|
$ | 352,039 | $ | 7,270 | $ | 338,802 | $ | 14,899 | $ | 713,010 |
June 27,
|
December 28,
|
|||||||
As
of
|
2008
|
2007
|
||||||
(in
thousands)
|
||||||||
Raw
materials
|
$ | 66,743 | $ | 63,465 | ||||
Work-in-process
|
7,739 | 9,267 | ||||||
Finished
goods
|
78,887 | 70,286 | ||||||
Total
inventories, net
|
$ | 153,369 | $ | 143,018 |
June 27,
|
December 28,
|
|||||||
As
of
|
2008
|
2007
|
||||||
(in
thousands)
|
||||||||
Deferred
compensation
|
$ | 8,240 | $ | 8,646 | ||||
Unrecognized
tax benefits
|
28,103 | 25,774 | ||||||
Other
non-current liabilities
|
16,160 | 21,708 | ||||||
Total
other non-current liabilities
|
$ | 52,503 | $ | 56,128 |
|
·
|
Engineering
and Construction — Consists of products currently used by survey and
construction professionals in the field for positioning, data collection,
field computing, data management, and machine guidance and control. The
applications served include surveying, road, runway, construction, site
preparation and building
construction.
|
|
·
|
Field
Solutions — Consists of products that provide solutions in a variety of
agriculture and geographic information systems (GIS) applications. In
agriculture these include precise land leveling and machine guidance
systems. In GIS these include handheld devices and software that enable
the collection of data on assets for a variety of governmental and private
entities.
|
|
·
|
Mobile
Solutions — Consists of products that enable end users to monitor and
manage their mobile assets by communicating location and activity-relevant
information from the field to the office. The Company offers a range of
products that address a number of sectors of this market including truck
fleets, security, and public safety
vehicles.
|
|
·
|
Advanced
Devices — The various operations that comprise this segment were
aggregated on the basis that no single operation accounted for more than
10% of the Company’s total revenue, operating income and assets. This
segment is comprised of the Component Technologies, Military and Advanced
Systems, Applanix and Trimble Outdoors
businesses.
|
Reporting
Segments
|
||||||||||||||||||||
Engineering
and
|
Field
|
Mobile
|
Advanced
|
|||||||||||||||||
Construction
|
Solutions
|
Solutions
|
Devices
|
Total
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Three
Months Ended June 27, 2008
|
||||||||||||||||||||
Segment
revenue
|
$ | 213,019 | $ | 90,070 | $ | 42,285 | $ | 32,393 | $ | 377,767 | ||||||||||
Operating
income
|
45,161 | 34,808 | 1,942 | 6,578 | 88,489 | |||||||||||||||
Three
Months Ended June 29, 2007
|
||||||||||||||||||||
Segment
revenue
|
$ | 198,853 | $ | 55,273 | $ | 40,927 | $ | 32,679 | $ | 327,732 | ||||||||||
Operating
income
|
52,371 | 18,398 | 2,906 | 5,384 | 79,059 | |||||||||||||||
Six
Months Ended June 27, 2008
|
||||||||||||||||||||
Segment
revenue
|
$ | 407,199 | $ | 178,107 | $ | 86,296 | $ | 61,461 | $ | 733,063 | ||||||||||
Operating
income
|
82,115 | 69,903 | 4,395 | 11,270 | 167,683 | |||||||||||||||
Six
Months Ended June 29, 2007
|
||||||||||||||||||||
Segment
revenue
|
$ | 374,457 | $ | 106,235 | $ | 70,784 | $ | 61,988 | $ | 613,464 | ||||||||||
Operating
income
|
94,535 | 35,026 | 3,923 | 8,727 | 142,211 | |||||||||||||||
As
of June 27, 2008
|
||||||||||||||||||||
Accounts
receivable (1)
|
$ | 170,728 | $ | 48,471 | $ | 27,812 | $ | 20,189 | $ | 267,200 | ||||||||||
Inventories
|
99,725 | 18,618 | 17,829 | 17,197 | 153,369 | |||||||||||||||
As
of December 28, 2007
|
||||||||||||||||||||
Accounts
receivable (1)
|
$ | 158,913 | $ | 37,294 | $ | 25,469 | $ | 18,208 | $ | 239,884 | ||||||||||
Inventories
|
89,780 | 15,745 | 18,781 | 18,712 | 143,018 |
(1)
|
As
presented, accounts receivable represents trade receivables, net, which
are specified between segments.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June 27,
|
June 29
|
June 27,
|
June 29
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Consolidated
segment operating income
|
$ | 88,489 | $ | 79,059 | $ | 167,683 | $ | 142,211 | ||||||||
Unallocated
corporate expense
|
(11,303 | ) | (12,344 | ) | (21,653 | ) | (23,529 | ) | ||||||||
Amortization
of purchased intangible assets
|
(10,918 | ) | (10,432 | ) | (21,722 | ) | (18,327 | ) | ||||||||
In-process
research and development expense
|
-- | -- | -- | (2,112 | ) | |||||||||||
Restructuring
charges
|
(3,344 | ) | (333 | ) | (3,344 | ) | (3,025 | ) | ||||||||
Consolidated
operating income
|
62,924 | 55,950 | 120,964 | 95,218 | ||||||||||||
Non-operating
income (expense), net
|
4,119 | 271 | 5,890 | 3,128 | ||||||||||||
Consolidated
income before income taxes
|
$ | 67,043 | $ | 56,221 | $ | 126,854 | $ | 98,346 |
June
27,
|
December
28,
|
|||||||
As
of
|
2008
|
2007
|
||||||
(In
thousands)
|
||||||||
Credit
Facilities:
|
||||||||
Term
loan
|
$ | - | $ | 60,000 | ||||
Promissory
notes and other
|
569 | 690 | ||||||
Total
debt
|
569 | 60,690 | ||||||
|
||||||||
Less
current portion of long-term debt
|
137 | 126 | ||||||
Non-current
portion
|
$ | 432 | $ | 60,564 |
2008
(Remaining)
|
$ | 9,806 | ||
2009
|
17,819 | |||
2010
|
12,007 | |||
2011
|
7,571 | |||
2012
|
5,920 | |||
Thereafter
|
1,501 | |||
Total
|
$ | 54,624 |
Fair Values as of June 27, 2008
|
||||||||||||||||
(In
thousands)
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Assets
|
||||||||||||||||
Deferred
compensation plan assets (1)
|
8,340 | — | — | 8,340 | ||||||||||||
Derivative
assets (2)
|
— | 172 | — | 172 | ||||||||||||
Total
|
8,340 | 172 | — | 8,512 | ||||||||||||
Liabilities
|
||||||||||||||||
Deferred
compensation plan liabilities (1)
|
8,240 | — | — | 8,240 | ||||||||||||
Derivative
liabilities (2)
|
— | — | — | — | ||||||||||||
Total
|
8,240 | — | — | 8,240 |
(1)
|
Deferred compensation plan assets
and liabilities: The Company maintains a self-directed,
non-qualified deferred compensation plan for certain executives and other
highly compensated employees. The investment assets and liabilities
included in Level I are valued using quoted market
prices.
|
(2)
|
Derivative assets and
liabilities: Derivative assets and liabilities included
in Level II primarily represent forward currency exchange
contracts. The fair values are determined
using inputs based on observable quoted
prices.
|
Balance
as of December 28, 2007
|
$ | 10,806 | ||
Accruals
for warranties issued
|
10,683 | |||
Changes
in estimates
|
-- | |||
Warranty
settlements (in cash or in kind)
|
(9,547 | ) | ||
Balance
as of June 27, 2008
|
$ | 11,942 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June 27,
|
June 29,
|
June 27,
|
June 29,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Income
available to common shareholders:
|
||||||||||||||||
Used
in basic and diluted earnings per share
|
$
|
48,599
|
$
|
35,026
|
$
|
88,666
|
$
|
63,709
|
||||||||
Denominator:
|
||||||||||||||||
Weighted
average number of common shares used in basic earnings per
share
|
121,523
|
119,621
|
121,495
|
117,535
|
||||||||||||
Effect
of dilutive securities (using treasury stock method):
|
||||||||||||||||
Common
stock options and restricted stock units
|
4,189
|
4,713
|
3,929
|
4,757
|
||||||||||||
Common
stock warrants
|
--
|
250
|
11
|
247
|
||||||||||||
Weighted
average number of common shares and dilutive potential common shares used
in diluted earnings per share
|
125,712
|
124,584
|
125,435
|
122,539
|
||||||||||||
Basic
earnings per share
|
$
|
0.40
|
$
|
0.29
|
$
|
0.73
|
$
|
0.54
|
||||||||
Diluted
earnings per share
|
$
|
0.39
|
$
|
0.28
|
$
|
0.71
|
$
|
0.52
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
27,
|
June
29,
|
June
27,
|
June
29,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Severance and
Benefits
|
$ | 3,344 | $ | 333 | $ | 3,344 | $ | 3,025 |
Balance
as of December 28, 2007
|
$ | 1,326 | ||
Charges
|
3,344 | |||
Payments
|
(2,450 | ) | ||
Adjustment
|
(909 | ) | ||
Balance
as of June 27, 2008
|
$ | 1,311 |
Three
Months Ended
|
|
Six
Months Ended
|
|
|||||||||||||
June
27,
|
June
29,
|
June
27,
|
June
29,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
income
|
$
|
48,599
|
$
|
35,026
|
$
|
88,666
|
$
|
63,709
|
||||||||
Foreign
currency translation adjustments, net of tax
|
(2,560)
|
6,210
|
18,148
|
6,099
|
||||||||||||
Net
unrealized actuarial losses
|
3
|
-
|
(24)
|
(8)
|
||||||||||||
Net
unrealized gain (loss) on investments
|
-
|
(9)
|
-
|
35
|
||||||||||||
Comprehensive
income
|
$
|
46,042
|
$
|
41,227
|
$
|
106,790
|
$
|
69,835
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June 27,
|
June 29,
|
June 27,
|
June 29,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
($
in thousands)
|
||||||||||||||||
Total
consolidated revenue
|
$ | 377,767 | $ | 327,732 | $ | 733,063 | $ | 613,464 | ||||||||
Gross
margin
|
$ | 187,099 | $ | 167,169 | $ | 361,475 | $ | 310,299 | ||||||||
Gross
margin %
|
49.5 | % | 51.0 | % | 49.3 | % | 50.6 | % | ||||||||
Total
consolidated operating income
|
$ | 62,924 | $ | 55,950 | $ | 120,964 | $ | 95,218 | ||||||||
Operating
income %
|
16.7 | % | 17.1 | % | 16.5 | % | 15.5 | % |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June 27,
|
June 29,
|
June 27,
|
June 29,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in thousands, except
percentages)
|
||||||||||||||||
Engineering
and Construction
|
||||||||||||||||
Revenue
|
$ | 213,019 | $ | 198,853 | $ | 407,199 | $ | 374,457 | ||||||||
Segment
revenue as a percent of total revenue
|
56 | % | 61 | % | 56 | % | 61 | % | ||||||||
Operating
income
|
$ | 45,161 | $ | 52,371 | $ | 82,115 | $ | 94,535 | ||||||||
Operating
income as a percent of segment revenue
|
21 | % | 26 | % | 20 | % | 25 | % | ||||||||
Field
Solutions
|
||||||||||||||||
Revenue
|
$ | 90,070 | $ | 55,273 | $ | 178,107 | $ | 106,235 | ||||||||
Segment
revenue as a percent of total revenue
|
24 | % | 17 | % | 24 | % | 17 | % | ||||||||
Operating
income
|
$ | 34,808 | $ | 18,398 | $ | 69,903 | $ | 35,026 | ||||||||
Operating
income as a percent of segment revenue
|
39 | % | 33 | % | 39 | % | 33 | % | ||||||||
Mobile
Solutions
|
||||||||||||||||
Revenue
|
$ | 42,285 | $ | 40,927 | $ | 86,296 | $ | 70,784 | ||||||||
Revenue
as a percent of total revenue
|
11 | % | 12 | % | 12 | % | 12 | % | ||||||||
Operating
income
|
$ | 1,942 | $ | 2,906 | $ | 4,395 | $ | 3,923 | ||||||||
Operating
income as a percent of segment revenue
|
5 | % | 7 | % | 5 | % | 6 | % | ||||||||
Advanced
Devices
|
||||||||||||||||
Revenue
|
$ | 32,393 | $ | 32,679 | $ | 61,461 | $ | 61,988 | ||||||||
Segment
revenue as a percent of total revenue
|
9 | % | 10 | % | 8 | % | 10 | % | ||||||||
Operating
income
|
$ | 6,578 | $ | 5,384 | $ | 11,270 | $ | 8,727 | ||||||||
Operating
income as a percent of segment revenue
|
20 | % | 16 | % | 18 | % | 14 | % |
Three
Months Ended
|
|
Six
Months Ended
|
|
|||||||||||||
June 27,
|