Garmin reported revenue for the fiscal year was $762.5 million, an increase of 33.1% over $573.0 million generated last year. This beats guidance given for revenue to be in the range of $742-$746 million. The Consumer segment reported revenue for the fiscal year of $591.0 million, up 31% compared to fiscal 2003. Recreation GPS products are still the largest part of the consumer segment of Garmins business, but sales of automotive GPS systems are growing faster.
During fiscal 2004, gross margin dropped 380 basis points to 53.9% of sales compared to 57.7% last year. This brought net income up 15.2% to $205.7 million compared to $178.6 million last year. Diluted EPS was $1.89 per share versus $1.64 per share last year.
Garmin Chairman & CEO, Dr. Min Kao, said that the company plans to expand production this year so that, when running at full capacity, Garmin can produce 3.7 million units per year. 2.3 million Garmin products were shipped in 2004. Dr. Kao also said that Garmin overcame most of its production shortfalls in the fourth quarter and the company was able to replenish inventory in anticipation of Q1 demand.
