Garmin 2008 Annual Report Download - page 4

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2
D E A R S H A R E H O L D E R S ,
In this time of global economic uncertainty, Garmin is pleased to have a
balance sheet that remains strong, coupled with an even stronger desire to
create innovative products for our customers. Twenty years ago, co-founder
Gary Burrell and I started this company with $5 million in seed money. At
the end of 2008, we held $973 million in cash and marketable securities and
remained debt-free while paying a dividend of $0.75 per share, repurchasing
17.1 million shares and completing the acquisition of six European distributors
during the year. Our policy has been to remain conservative in our spending
and aggressive in our development of products and technology.
Our vision remains what it was from the very beginning — to be a full-line
supplier of navigation and communication equipment to multiple markets
including aviation, automotive and mobile, fitness and outdoor recreation,
and marine. Within these markets, we strive to create products that cover
a range of price points and feature sets, from good to better to best.
Diversification is a wise strategy regardless of economic conditions, but we
believe it is especially true today. We are closely monitoring the global
economic impact on all of our business segments, and we are prepared to
make necessary adjustments according to market demand.
We believe that Garmin’s vertical integration philosophy has been a powerful
business tool. From the beginning, we have taken pride in our culture of
creating core competencies in areas that are typically outsourced to third
parties. This model allowed us to quickly scale our production outputs to
match demand, significantly reduce inventory and maintain healthy margins
at the end of 2008.
Now, more than ever, we intend to rededicate ourselves to Garmin’s
mission: to enrich the lives of our customers, suppliers, distributors, employees
and stockholders by designing, manufacturing and selling navigation and
communication products that provide superior quality, safety and operational
features, a lower cost of manufacturing and ownership, and sufficient profits
to support desired company growth.
Our goal is not just to survive this challenging economic environment,
but also to thrive as a market leader in each of our segments, becoming a
healthier and stronger company than ever.
Dr. Min H. Kao, Chairman and CEO