Trimble today announced financial results for the first quarter of 2015.

First Quarter 2015 Financial Summary

First quarter 2015 revenue of $582.6 million was down 4% as compared to the first quarter of 2014. Engineering and Construction revenue was $299.3 million, down 3%. Field Solutions revenue was $115.3 million, down 17%. Mobile Solutions revenue was $128.2 million, up 8%. Advanced Devices revenue was $39.8 million, up 3%. Foreign currency translation unfavorably impacted company revenue by approximately 4% as compared to the first quarter of 2014.

GAAP operating income was $39.5 million, down 48% as compared to the first quarter of 2014. GAAP operating margin was 6.8% of revenue as compared to 12.5% of revenue in the first quarter of 2014.   

GAAP net income was $34.1 million, down 50% as compared to the first quarter of 2014. Diluted GAAP earnings per share were $0.13 as compared to diluted GAAP earnings per share of $0.26 in the first quarter of 2014.

Non-GAAP operating income of $96.8 million was down 24% as compared to the first quarter of 2014. Non-GAAP operating margin was 16.6% of revenue as compared to 21.2% of revenue in the first quarter of 2014.

Non-GAAP net income of $72.7 million was down 29% as compared to the first quarter of 2014. Diluted non-GAAP earnings per share were $0.28 as compared to diluted non-GAAP earnings per share of $0.39 in the first quarter of 2014.

The GAAP tax rate for the quarter was 23% and the non-GAAP tax rate was 24%. 

Operating cash flow in the quarter was $107.2 million, up 29% as compared to the first quarter of 2014.   

"We continued to face the same headwinds we encountered in late 2014, primarily associated with the agriculture market, the fallout from the oil price decline, and the strong dollar," said Steven W. Berglund, Trimble's president and chief executive officer. "On the positive side, we had several meaningful competitive wins that validate our strategy in construction and transportation.  We continue to see a challenge in the first half of 2015 with a return to growth and improved margins in the second half."

Forward Looking Guidance

For the second quarter of 2015 Trimble expects revenue to be between $570 million and $600 million with GAAP earnings per share of $0.04 to $0.12 and non-GAAP earnings per share of $0.23 to $0.30. Non-GAAP guidance excludes the amortization of intangibles of $40 million related to previous acquisitions, anticipated acquisition costs of $4 million, the anticipated impact of stock-based compensation expense of $13 million, and $5 million in anticipated restructuring charges.  GAAP guidance assumes a tax rate of 28% and non-GAAP guidance assumes a tax rate of 24%. Both GAAP and non-GAAP earnings per share assume approximately 262 million shares outstanding.