Garmin has recorded second-quarter revenue down 9% to EUR870m.
“Garmin delivered strong second quarter financial results in a period filled with unprecedented challenges,” said Garmin president and CEO, Cliff Pemble.
“Business conditions rapidly improved from April lows driven by popular fitness, marine and outdoor products. We believe these results affirm the resilient nature of our business and the strong utility of our products.”
Revenue from the auto segment declined 46% during the second quarter, as the pandemic significantly impacted driving activity and production of new vehicles. Gross margin was 47% and auto experienced an operating loss of US$10m in the quarter.
Additional Financial Information:
Total operating expenses in the second quarter were US$327m, a 2% increase. Research and development increased 11%, primarily due to engineering personnel costs. Selling, general and administrative expenses increased 3%, driven primarily by personnel related expenses. Advertising decreased 29%, driven by lower media spend in the quarter.
In the second quarter of 2020, Garmin generated around US$142m of free cash flow and paid a quarterly dividend of approximately US$109m.
It ended the quarter with cash and marketable securities of around US$2.7bn.