OLATHE, KS (BRAIN) Wednesday May 2 2012 11:38 AM MT—Strong demand for its fitness and outdoor GPS products helped Garmin Ltd. post a 10 percent increase in revenue to $557 million for the first quarter ended March 31, exceeding analyst expectations for a third consecutive quarter.
The company reported revenue gains across all its business sectors, which also include automotive/mobile, up 6 percent to $280 million; marine, up 9 percent to $56 million; and aviation, up 5 percent to $73 million.
“The fitness segment posted revenue growth of 26 percent (to $71 million) in the quarter as the much anticipated Forerunner 910XT (watch), designed for multi‐sport operation, began to ship. We believe the fitness category remains under‐penetrated at both the high end and low end, which represent significant growth opportunities going forward,” Garmin chairman and CEO Min Kao said in an executive summary.
Outdoor revenue rose 16 percent to $77 million on the strength of golf and dog tracking and training products.
Garmin also reported growth in all geographic regions, led by Europe with a 16 percent jump in revenue to $171 million.
The company also announced Wednesday that it had reached the milestone of 100 million products sold. “This is a tremendous milestone for Garmin. In just 23 years, we’ve gone from a startup company into one that is a global consumer brand – and one that continues to extend its reach by creating new markets and product categories that focus on location technology,” Cliff Pemble, Garmin president and chief operating officer, said in a statement.