GPS developer Garmin Ltd. this morning reported lower quarterly profits and revenue as the economy took a toll on consumer spending for navigational equipment.
Still the company topped Wall Street estimates, and shares were up 22 percent in early trading.
For the three months ended June 27, Garmin earned $162 million, or 81 cents a share, compared with $256 million, or $1.19, for the same period a year ago.
A poll of analysts by Thomson Reuters had esimated earnings of 51 cents a share.
Revenue fell to $669 million from $912 million in the second quarter of 2008.
Despite the shortfall, Garmin chief financial officer Kevin Rauckman said the company was "pleased with our financial results...given the tough economic conditions facing the consumer today."
Garmin reported that its operating margin was up to 29.8 percent for the quarter, compared to 13.3 percent in the first quarter of 2009, and 26.2 percent in the second quarter of last year.
Chairman and chief executive Min Kao said he was "encouraged by the 53 percent sequential improvement in revenues in the second quarter. We are also pleased with the solid margins and earnings" in the quarter.
Other highlights:
-- North America and Europe markets continued to experience year-over-year revenue declines, while Asia improved.
--Revenue decreased in Garmin's four main business segments.
-- The company sold 3.7 million GPS units in the second quarter.
--Garmin expanded its North American market leadership position to 57 percent, from 53 percent in the first quarter. The company maintained a market share of 20 percent in Europe.
For more on Garmin's financial results, go to the company's Web site.
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