Garmin 2001 Annual Report Download - page 25

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Results of Operations
The following table sets forth our results of operations as a percentage of net sales during the periods shown:
Fiscal Years Ended
Dec. 29, 2001 Dec. 30, 2000 Dec. 25, 1999
Net sales 100.0% 100.0% 100.0%
Cost of goods sold 46.3% 46.9% 45.4%
Gross profit 53.7% 53.1% 54.6%
Operating expenses:
Selling, general and administrative 10.5% 9.4% 11.6%
Research and development 7.6% 6.3% 7.5%
Total operating expenses 18.1% 15.7% 19.1%
Operating income 35.6% 37.4% 35.5%
Other income, net 5.6% 3.4% 0.7%
Income before income taxes 41.2% 40.8% 36.2%
Provision for income taxes 10.5% 10.2% 8.6%
Net income 30.7% 30.6% 27.6%
The following table sets forth our results of operations for each of our two segments through income before income taxes during
the periods shown. For each line item in the table, the total of the consumer and aviation segments’ amounts equals the amount
in the consolidated statements of income included in this annual report.
Fiscal Years Ended
Dec. 29, 2001 Dec. 30, 2000 Dec. 25, 1999
Consumer Aviation Consumer Aviation Consumer Aviation
(in thousands)
Net sales $263,358 $105,761 $230,183 $115,558 $169,164 $63,422
Cost of goods sold 130,836 40,124 114,656 47,359 78,088 27,566
Gross profit 132,522 65,637 115,527 68,199 91,076 35,856
Operating expenses:
Selling, general and administrative 29,018 9,691 23,756 8,913 20,486 6,577
Research and development 18,197 9,967 14,210 7,554 11,431 5,908
Total operating expenses 47,215 19,658 37,966 16,467 31,917 12,485
Operating income 85,307 45,979 77,561 51,732 59,159 23,371
Other income, net 17,204 3,545 10,542 1,087 1,290 312
Income before income taxes $102,511 $49,524 $88,103 $52,819 $60,449 $23,683
Comparison of Fiscal Years Ended December 29, 2001 and December 30, 2000
Net Sales
Net sales increased $23.4 million, or 6.8%, to $369.1 million for fiscal year ended December 29, 2001, from $345.7 million for fiscal
year ended December 30, 2000. The increase during fiscal 2001 was primarily due to the introduction of 25 new products and overall
demand for our consumer products. Sales from our consumer products accounted for 71.3% of net revenues for fiscal 2001 compared
to 66.6% during fiscal 2000. Sales from our aviation products accounted for 28.7% of net revenues for fiscal 2001 compared to 33.4%
during fiscal 2000. Total consumer and aviation units increased 8.8% to 1,331,000 in 2001 from 1,223,000 in 2000. In general,
management believes that continuous innovation and the introduction of new products are essential for future revenue growth.
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