Garmin 2001 Annual Report Download - page 5

To our shareholders
We are grateful to our customers, suppliers, employees, distributors/dealers, original and new investors for making 2001 a year of record revenues and
net income and our 11th year of consecutive growth. During the year we faced the decline of the economy and consumer confidence, the aftermath
of terrorist attacks on America, restrictions on the general aviation industry, disruption of air shipments from our Taiwan factory and Typhoon Nari,
which dumped 30 inches of rainfall on Taiwan. Despite these challenges, our customers’ zeal for our products continued to fuel our growth, enabling
Garmin to achieve several significant accomplishments and maintain our leadership position in both the consumer and general aviation markets.
In 2001 we introduced 25 new products – the most Garmin has ever brought to market in one year – and reached the 5 million mark in product ship-
ments. We expanded research and development investments by 29 percent to support the introduction of an expanding array of products in the future.
Revenue increased 7 percent to $369.1 million with net income of $113.4 million, up from $105.7 million in 2000. Inventory was reduced by $29 million.
Cash and securities grew to $324 million. We acquired the assets of Sequoia Instruments, Inc. and will utilize their Attitude Heading and Reference System
(AHRS) technology in the development of Garmin’s integrated cockpit system for general aviation aircraft.
The expansion of our Olathe, Kansas facility from 103,000 square feet to 240,000 square feet was completed, which will facilitate future growth. We broke
ground on construction of a 25,000 square foot aircraft maintenance and flight certification facility located at New Century Airport near our Olathe,
Kansas campus. Our Taiwan factory received QS 9000 certification in November 2001, which will support our efforts to leverage our high-tech manu-
facturing capabilities to pursue potential relationships with automotive OEMs (original equipment manufacturers). And we maintained the ISO 9001
certification of our Olathe, Kansas factory.
We are committed to maintaining our customer-focused approach to product design with the goal of providing superior product innovation, operational
features, quality and lower cost of ownership. Approximately 25 new products are planned for introduction in 2002. Included are GPS-enabled marine
chartplotters and fishfinders, aviation satellite weather and transponder systems, Family Radio Service (FRS) transceivers, Personal Digital Assistants (PDAs),
a GPS-based speed and distance tracker for the Timex Sport Watch, and other products.
We will strive to maintain our relationships and expand our business with our global network of dealers and original equipment manufacturers. Many of
our long-term distributors and dealers around the world have experienced growth through the years that reflects the growth of Garmin and our product
line. In 2001 we continued to selectively expand our global distribution network with the addition of OEMs such as BMW Motorcycles, Cessna and
Eurocopter, and distributors such as Radio Shack Canada, The Sharper Image, Good Guys, Dixons, Staples Europe and others.
In summary, we are generally pleased with our results during 2001 and are looking forward to 2002 as another year of growth. We continue to maintain
our strategic focus by growing the business through continuous product innovation, expanding and broadening our target markets and extending
the Garmin brand.
Dr. Min H. Kao
Co-Chairman & Co-CEO
Gary L. Burrell
Co-Chairman & Co-CEO
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