台灣國際航電 (GRMN) 2003 Q4 法說會逐字稿

(OPERATOR INSTRUCTIONS). Ms. Schwerdt, you may begin your conference.

（操作員說明）。 Schwerdt 女士，您可以開始會議了。

Thank you. Good morning. We would like to welcome you to Garmin Limited's 2003 fourth-quarter earnings call.

謝謝。早安.歡迎您參加 Garmin Limited 2003 年第四季財報電話會議。

Please note that a copy of the press release concerning this earnings call is available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. Additionally this call is being broadcast live on the Internet, and a replay of the webcast will be available until March 10, 2004. A telephone recording will be available for 24 hours after this call, and a transcript of the call will be available on the Website within 24 hours at www.garmin.com/about Garmin/INV relations/IRcalendar.HTML.

請注意，有關本次財報電話會議的新聞稿副本可在互聯網上的 Garmin 投資者關係網站 www.garmin.com/stock 上取得。此外，這次電話會議正在網路上進行現場直播，而且網路廣播的重播將在 2004 年 3 月 10 日之前提供。電話錄音將在此次電話會議後 24 小時內提供，並且電話記錄將在24 小時內造訪www.garmin.com/about Garmin/INVrelations/IRcalendar.HTML。

This earnings call includes projections and other forward-looking statements regarding Garmin Limited and its business. Any statements regarding our future financial position, revenues, earnings, market shares, product introductions, future demand for our products and our plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K for the fiscal year ended December 28, 2002 filed with the Securities and Exchange Commission.

本次財報電話會議包括有關 Garmin Limited 及其業務的預測和其他前瞻性聲明。任何有關我們未來財務狀況、收入、收益、市場份額、產品推出、對我們產品的未來需求以及我們的計劃和目標的陳述均為前瞻性陳述。本次財報電話會議中討論的前瞻性事件和情況可能不會發生，並且由於影響 Garmin 的風險因素，實際結果可能會出現重大差異。有關這些風險因素的資訊包含在我們向美國證券交易委員會提交的截至 2002 年 12 月 28 日的財政年度的 10-K 表格中。

Attending on behalf of Garmin Limited this morning are Dr. Min Kao, co-Chairman and CEO; Kevin Rauckman, Chief Financial Officer; Cliff Pemble, Director of Engineering, and Andrew Etkind, General Counsel. The presenters for this morning's call are Dr. Min Kao and Kevin Rauckman.

今天上午代表 Garmin Limited 出席的有聯席董事長兼首席執行官 Min Kao 博士；凱文·勞克曼，財務長；工程總監 Cliff Pemble 和總法律顧問 Andrew Etkind。今天早上電話會議的主持人是 Min Kao 博士和 Kevin Rauckman。

At this time, I would like to turn the call over to Dr. Kao.

這時我想把電話轉給高醫師。

Good morning. From the press release issued this morning, you can see that in the first quarter in fiscal 2003 we again experienced record revenue and earnings. Total revenue for the year increased 23 percent, and earnings per share increased 24 percent relative to 2002. Excluding the effect of foreign currency, earnings per share increased 28 percent relative to 2002.

早安.從今天早上發布的新聞稿中可以看出，2003財年第一季我們的營收和利潤再次創下歷史新高。與 2002 年相比，當年總收入成長了 23%，每股盈餘成長了 24%。排除外匯影響，每股盈餘比 2002 年成長了 28%。

2003 was another good year for Garmin. We were able to achieve many significant accomplishments. We recorded our 13th consecutive year of revenue growth with over 20 percent growth in both on our North American and European geographical regions. Over 2 million of our products were shipped in 2003, raising our total to approximately 9 million shipped today. (inaudible) a benchmark (inaudible) of our team and the trends of the Garmin brand.

2003 年對 Garmin 來說又是個豐收的一年。我們取得了許多重大成就。我們連續 13 年實現營收成長，北美和歐洲地理區域的營收成長均超過 20%。 2003 年，我們的產品出貨量超過 200 萬件，如今，我們的出貨總量已達到約 900 萬件。 （聽不清楚）我們團隊的基準（聽不清楚）以及 Garmin 品牌的趨勢。

We delivered 15 new products in 2003 and experienced strong demand across all product lines. We introduced the iQue 3600 and the 400-201 (ph). Both products have been well-received. The (inaudible) these two products has enabled Garmin to expand into the PDA and personal Internet markets. With the deal (inaudible) products -- 2610 and 2650 -- the success of these two products has contributed to significant growth in our automotive product category. We continued to expand our patented portfolio with 136 (inaudible) to date and 415 applications still pending.

2003 年，我們推出了 15 種新產品，所有產品線都受到了強勁的需求。我們推出了 iQue 360​​0 和 400-201 (ph)。這兩款產品均受到好評。 （聽不清楚）這兩款產品使 Garmin 能夠擴展到 PDA 和個人網路市場。憑藉交易（聽不清楚）產品——2610 和 2650——這兩種產品的成功促進了我們汽車產品類別的顯著增長。我們繼續擴大我們的專利組合，迄今已有 136 項（聽不清楚），還有 415 項申請仍在審理中。

We continued to expand our global distribution network by adding top tier retailers such as Office Max and Radio Shack. Both new and established distributors continue to be (inaudible).

我們透過增加 Office Max 和 Radio Shack 等頂級零售商來繼續擴大我們的全球分銷網絡。新的和已建立的經銷商仍然是（聽不清楚）。

Lastly, the response to our G1000 integrated (inaudible) continued to be very positive. Cessna, Diamond and Mooney were offering discounted for 2004 and future aircraft models.

最後，對我們的 G1000 整合（聽不清楚）的反應仍然非常積極。 Cessna、Diamond 和 Mooney 為 2004 年及未來的飛機型號提供折扣。

2003 was a year of significant investment in Garmin's future. We continued -- our continued business trend enabled us to undertake a number of important growth initiatives, which include the acquisition of UPS Aviation Technologies, which provided Garmin with additional engineering, marketing and the (inaudible) results, allowing us to significantly enhance our ability to serve the aviation market. The addition of over 400 new associates (inaudible) new engineers associates. We (inaudible) our research and development group to 400 and to over 2000 total employees worldwide.

2003 年是 Garmin 對未來進行重大投資的一年。我們繼續——我們持續的業務趨勢使我們能夠採取許多重要的成長舉措，其中包括收購UPS Aviation Technologies，這為Garmin 提供了額外的工程、行銷和（聽不清楚）結果，使我們能夠顯著增強我們的能力服務航空市場。增加了 400 多名新員工（聽不清楚）、新工程師員工。我們（聽不清楚）的研發團隊在全球擁有 400 名員工和 2000 多名員工。

Continued progress on the implementation of Oracle's CRP, the enterprises research primary system, to provide improved integration of Garmin's major business units in Taiwan, UK and the U.S., and continued progress on the $50 million expansion of Garmin's facility in Olathe, Kansas to support current and future needs.

Oracle CRP（企業研究主係統）的實施繼續取得進展，以改進Garmin 在台灣、英國和美國的主要業務部門的集成，並繼續推進耗資5,000 萬美元擴建Garmin 位於堪薩斯州奧拉西的工廠，以支持當前的業務和未來的需求。

As we go forward in 2004, we anticipate another year of (inaudible) success. Consumer awareness and interest in GPS technology continues to grow, and we believe that our opportunities to serve customers for GPS-enabled product remains strong. With a significant investment in our R&D resources that we have made in the past couple of years, our new product development pipeline is robust. We expect to introduce approximately 45 products in 2004. We will introduce new products that provide innovative features and capabilities for not only (inaudible) our marine, aviation and (inaudible) markets, but also for the automotive PDA and personal fitness markets.

當我們邁向 2004 年時，我們期待著另一個（聽不清楚）成功的一年。消費者對 GPS 技術的認識和興趣持續增長，我們相信我們為客戶提供 GPS 產品的機會仍然很高。過去幾年我們對研發資源進行了大量投資，我們的新產品開發管道非常強大。我們預計在2004 年推出約45 種產品。我們將推出新產品，不僅為（聽不清楚）我們的船舶、航空和（聽不清楚）市場提供創新的特性和功能，而且還為汽車PDA 和個人健身市場提供創新的特性和功能。

We will also increase the number of TV commercials in major (inaudible) that were success given the 2003 holiday season to further promote Garmin's brand name in the customer market.

我們還將增加在 2003 年假期期間取得成功的主要（聽不清楚）電視廣告的數量，以進一步在客戶市場上推廣 Garmin 的品牌。

On the aviation side, we expect to complete the development and certification of the G1000 in the next couple of months, and we look forward to our initial revenues from this revolutionary system early in the second quarter. In addition to the Cessna, Diamond and Mooney programs that have already been announced, we are in ongoing discussions with other aviation OEMs and hope to have more progress to report throughout the year.

在航空方面，我們預計在未來幾個月內完成 G1000 的開發和認證，並期待在第二季初從這個革命性系統中獲得初步收入。除了已經宣布的塞斯納、戴蒙德和穆尼計劃外，我們正在與其他航空原始設備製造商進行持續討論，並希望全年能夠報告更多進展。

In summary, we are pleased with our 2003 results and look forward to another year of growth in 2004. Since the formation of the Company, our plan has to be become a global warcraft supplier of communication, aviation and information devices. Towards this goal, we continue to maintain our focus on growing the business through continuous product innovation, expanding and broadening our target markets and expanding the Garmin brand.

總而言之，我們對2003年的業績感到滿意，並期待2004年又是一個成長的一年。公司自成立以來，我們的目標是成為全球通訊、航空和資訊設備的魔獸供應商。為了實現這一目標，我們繼續專注於透過持續的產品創新、擴大和拓寬我們的目標市場以及擴大 Garmin 品牌來發展業務。

As a final note, I would like to take this opportunity to thank all of our employees, customers, suppliers, investors, (inaudible) and distributors for making 2003 another successful year for Garmin. We are grateful.

最後，我想藉此機會感謝我們所有的員工、客戶、供應商、投資者（聽不清楚）和分銷商，感謝他們讓 2003 年成為 Garmin 又一個成功的一年。我們很感激。

With that, I would like to turn the call over to Kevin to discuss our financial results and year 2004 results guidance.

說到這裡，我想將電話轉給 Kevin，討論我們的財務表現和 2004 年業績指導。

Thanks, Min. Good morning everyone. As typical, my plan is to walk through the fourth-quarter results and also full year 2003 results, and then also talk about some detailed guidance for both the current quarter and the full year 2004.

謝謝，敏。大家，早安。通常，我的計劃是介紹第四季度的業績以及 2003 年全年的業績，然後討論當前季度和 2004 年全年的一些詳細指導。

So let me start with the fourth-quarter financial summary. The revenue for the fourth-quarter 2003 came in at 170.1 million, which was above the range of our guidance -- earlier guidance of 155 to 160 million -- and that is a 27 percent increase from the year ago quarter. When we look at the way the revenue broke down within the different geographies, U.S. revenue during the quarter was 130.0 million, a 30 percent increase from 100.1 million in 2002. European revenue, also significant growth. We achieved 34 million, up 25 percent from 27.1 million a year ago. And the Asian revenue was 6.1 million, down 6 percent from the year ago quarter of 6.5 million.

讓我從第四季的財務摘要開始。 2003 年第四季的營收為 1.701 億美元，高於我們的指導範圍（先前的指導值為 155 至 1.6 億美元），比去年同期成長了 27%。當我們查看不同地區的收入細分情況時，會發現該季度美國的收入為 1.3 億美元，比 2002 年的 1.001 億美元增長了 30%。歐洲的收入也大幅增長。我們實現了 3,400 萬，比一年前的 2,710 萬成長了 25%。亞洲營收為 610 萬美元，比去年同期的 650 萬美元下降 6%。

Our gross margin increased 90 basis points, up to 56.1 percent compared to the 55.2 percent we achieved in fourth quarter '02, and this number is in line with our earlier guidance of 55 to 56 percent. Operating margins were 36.8 percent compared to 39.7 in Q4 '02, again in line with our earlier guidance of 37 to 38 percent. Net income results for the quarter were 54.6 million, and when we exclude Japan currency, that number is 51.1 million, exceeding the guidance of $47 to $49 million.

與 2002 年第四季的 55.2% 相比，我們的毛利率增加了 90 個基點，達到 56.1%，這一數字與我們先前 55% 至 56% 的指導一致。營業利益率為 36.8%，而 02 年第四季為 39.7%，再次符合我們先前 37% 至 38% 的指導。該季度淨利潤為 5,460 萬美元，如果排除日元，該數字為 5,110 萬美元，超出了 4,700 至 4,900 萬美元的指導值。

Our earnings per share results for the quarter were 50 cent per share, and when we exclude foreign currency, 47 cents per-share, which was up 15 percent from the year ago quarter and also exceeded our earlier guidance of 43 to 45 cents per-share. The total units sold for the quarter increased 24 percent, up to 591,000 units across both the consumer and aviation segment, and that compares again favorably to the Q4 of '02 of about 478,000 units. So again, as we report the gross margin of 56.1 percent that compares favorably to the Q4 of '02, we continue to experience strong acceptance of our new products, and in fact, approximately 25 percent of our fourth-quarter sales were generated from products introduced within the last 12 months.

我們本季的每股收益為每股 50 美分，如果排除外幣，每股收益為 47 美分，比去年同期增長 15%，也超出了我們之前每股 43 至 45 美分的指導值。分享。該季度消費和航空領域的總銷量增長了 24%，達到 591,000 輛，這與 02 年第四季度的約 478,000 輛相比再次表現良好。因此，當我們報告的毛利率為 56.1%，與 02 年第四季度相比，我們的新產品繼續受到強烈接受時，事實上，我們第四季度銷售額的大約 25% 來自產品過去12 個月內推出。

Looking in detail at the operating margin performance, Garmin achieved operating profit margin of 62.7 million, which is 36.8 percent of sales, again in line with our earlier guidance of 36 to 37 percent. Our operating margin decreased 290 basis points compared to the fourth quarter of '02. When we look at SG&A as a percentage of sales during the fourth quarter of '03, that increased 230 basis points, up to 11.3 percent of sales. Our SG&A dollars actually increased 60 percent over the fourth quarter of '02, and when we exclude the Garmin AT business, which we acquired in August of this year, that number is 48 percent. Keep in mind, revenues during this period actually grew 27 percent, and the increase was primarily driven by increased advertising during the holiday season -- Oracle consulting costs, increased call center expenses, and finally, we had a full quarter of Garmin AT SG&A costs during the fourth quarter of 2000.

詳細觀察營運利潤率表現，Garmin 實現了 6,270 萬美元的營運利潤率，佔銷售額的 36.8%，再次符合我們先前 36% 至 37% 的指引。與 02 年第四季相比，我們的營業利潤率下降了 290 個基點。當我們將 03 年第四季的 SG&A 佔銷售額的百分比視為成長了 230 個基點，達到銷售額的 11.3% 時。我們的銷售、管理及行政費用實際上比 02 年第四季成長了 60%，當我們排除今年 8 月收購的 Garmin AT 業務時，這個數字是 48%。請記住，這段期間的營收實際上成長了 27%，而成長主要是由於假日季節廣告增加所致——Oracle 諮詢成本、呼叫中心費用增加，最後，我們有整整一個季​​度的 Garmin AT SG&A 成本2000年第四季期間。

Looking next to our R&D expenses. R&D increased 140 basis points, up to 8 percent of sales which compares to 6.6 percent of sales during the fourth quarter of '02. On an absolute expense dollar investment basis, the R&D dollars increased 55 percent over the prior period. If we backed out the Garmin AT acquisition, that number is actually 28 percent growth year-over-year.

看看我們的研發費用。研發增加了 140 個基點，佔銷售額的 8%，而 2002 年第四季佔銷售額的 6.6%。以絕對費用美元投資計算，研發費用比上一期增加了 55%。如果我們放棄收購 Garmin AT，這個數字實際上年增 28%。

The R&D increase was due to the hiring of new engineering staff and other engineering program costs associated with our new product introductions. During the quarter, we hired 30 new engineers and engineering associates, and now we employee in total 515 engineers around the world. Overall the total operating expenses for our total business as a percentage of sales increased 370 basis points, up to 19.3 percent from 15.6 percent in the prior year period.

研發費用的增加是由於僱用了新的工程人員以及與我們的新產品推出相關的其他工程項目成本。本季度，我們聘用了 30 名新工程師和工程助理，目前我們在全球共有 515 名工程師。整體而言，我們總業務的總營運費用佔銷售額的百分比增加了 370 個基點，從去年同期的 15.6% 上升至 19.3%。

We did experience a $4.4 million foreign currency gain during the fourth quarter as the U.S. dollar strengthened compared to the Taiwan dollar from 33.79 at the end of September '03, up to 34.05 at the end of December 2003 -- just under 1 percent change in that exchange rate.

我們在第四季度確實獲得了 440 萬美元的外匯收益，因為美元兌新台幣匯率從 2003 年 9 月底的 33.79 上升到 2003 年 12 月末的 34.05——匯率變化略低於 1%。那個匯率。

We need to talk a little bit about the continued reason we talked about foreign currency within and without the business. The majority of our company's consolidated foreign currency translation gain or loss results from the translation into New Taiwan dollars at the end of each reporting period of the significant cash that we hold in U.S. dollars by our Taiwan subsidiary. This translation is required under GAAP because of the functional currency of our Taiwan operations and New Taiwan dollars. However, as we have said before, there is a minimal cash impact from the foreign currency translation, and we expect that our Taiwan subsidiary will continue to hold the majority of its cash balances in U.S. dollars.

我們需要談談我們在業務內部和外部談論外幣的持續原因。我們公司的大部分綜合外幣換算損益是由於我們在每個報告期末將我們台灣子公司持有的大量美元現金換算成新台幣而產生的。由於我們台灣業務的功能貨幣是新台幣，因此根據公認會計原則需要進行此換算。然而，正如我們之前所說，外幣換算對現金的影響很小，我們預計我們的台灣子公司將繼續以美元持有大部分現金餘額。

Looking next at the other income. The interest income for the quarter was $2.1 million. We had no interest expense. We are currently earning approximately 2 percent -- 2.0 percent pretax on our marketable securities, and our overall cash balance is generating about 1.6 percent on a consolidated basis.

接下來看看其他收入。該季度的利息收入為 210 萬美元。我們沒有利息費用。目前，我們的有價證券稅前利潤約為 2% 至 2.0%，綜合現金餘額約為 1.6%。

You may have seen that our effective tax rate came in at 21.0 percent, which was in line with our earlier guidance. However, that was 440 basis points higher than the fourth quarter of '02 rate, which was 16.6 percent. You may recall that the year-over-year change would have been caused by the favorable tax rate during the fourth quarter last year that resulted in our overall tax rate of 21 percent last year as well. We expect that our effective tax rate for 2004 -- and I will talk a little bit more about this in detail -- will remain at approximately 21 percent in the current year.

您可能已經看到，我們的有效稅率為 21.0%，這與我們先前的指導一致。然而，這比 02 年第四季的 16.6% 高出 440 個基點。您可能還記得，同比變化是由於去年第四季的優惠稅率造成的，這導致我們去年的整體稅率也達到了 21%。我們預計 2004 年的有效稅率——我將詳細討論這一點——今年將保持在 21% 左右。

Looking next at our segment results, the fourth-quarter consumer segment. Our consumer revenue was 136.8 million during the quarter, and that represents a 34 percent increase over Q4 of '02. So the consumer business segment came in at 80 percent of our total revenues, and it was the eighth consecutive quarter of our year-over-year revenue growth in excess of 20 percent within that segment.

接下來看看我們的部門業績，也就是第四季的消費者部門。本季我們的消費者營收為 1.368 億美元，比 02 年第四季成長了 34%。因此，消費者業務部門占我們總營收的 80%，這是我們該部門營收較去年同期成長連續第八個季度超過 20%。

We experienced growth across most consumer product lines, but especially within our automotive and our recently released PDA product line, and this to us is a demonstration of continued demand for consumers UPS products. As I said earlier, the total unit sales for the quarter were up 24 percent from the 478 to 591,000, and the unit growth occurred primarily in the consumer segment within our consumer segment of our business.

我們在大多數消費性產品線中都經歷了成長，特別是在我們的汽車和最近發布的 PDA 產品線中，這對我們來說表明了消費者對 UPS 產品的持續需求。正如我之前所說，本季的總銷量從 478 輛成長到 591,000 輛，成長了 24%，銷量成長主要發生在我們業務的消費者細分市場中。

The consumer gross margins improved to 55.1 percent in the quarter, and that is an increase from 52.9 percent in the Q4 2002 timeframe. Our consumer gross margin improvement was driven by higher sales volume during the quarter and favorable product mix within the quarter as well. So the consumer operating margin then improved 80 basis points, up to 39.5 percent from 38.7 percent year the year ago quarter. This operating margin was driven by improved gross margins, partially offset by our increased SG&A expenses during the quarter.

本季消費者毛利率提高至 55.1%，高於 2002 年第四季的 52.9%。我們的消費者毛利率改善是由於本季銷量增加以及本季有利的產品組合所推動的。因此，消費者營業利潤率提高了 80 個基點，從去年同期的 38.7% 升至 39.5%。這一營業利潤率是由毛利率提高所推動的，但部分被本季銷售、管理及行政費用增加所抵銷。

Looking next at the aviation segment. Our aviation revenue during the fourth quarter increased 5 percent to $33.3 million compared to 31.7 million in the fourth quarter of '02. So the aviation business, therefore, is 20 percent of our total business in the fourth quarter. The revenue increase during Q4 was due to the sales that we generated from our Garmin AT business in Salem, Oregon. The aviation gross margins, however, decreased to 60.6 percent from 62.6 percent in the fourth quarter of '02, and that is due to the unfavorable product mix that we experienced during the quarter.

接下來看航空領域。我們第四季的航空收入成長了 5%，達到 3,330 萬美元，而 2002 年第四季的航空收入為 3,170 萬美元。因此，航空業務占我們第四季總業務的 20%。第四季的收入成長得益於我們位於俄勒岡州塞勒姆的 Garmin AT 業務的銷售額。然而，航空毛利率從 2002 年第四季的 62.6% 下降至 60.6%，這是由於本季我們經歷的不利的產品組合所致。

Operating margins were 26.0 percent. That is down 16 percentage points compared to the prior year of 42.8 percent. Again, this is due to our reduced gross margins and increased R&D expenses that we experienced within the segment, the aviation segment.

營業利益率為 26.0%。與前一年的 42.8% 相比，下降了 16 個百分點。同樣，這是由於我們在航空領域經歷了毛利率下降和研發費用增加。

Looking next at the fourth quarter cash flow. Cash flow from operations during the quarter was 46.4 million. Free cash flow generated was 31.5 million, and we define free cash flow as operating cash, less capital expenditures from property, plant and equipment. And we also believe that this free cash flow is an important measure because we use it -- the management team uses it as a measure of our quality of earnings at the Company and its ability, our ability to reinvest in the future of our business.

接下來看第四季的現金流。該季度營運現金流為 4,640 萬美元。產生的自由現金流量為 3,150 萬美元，我們將自由現金流量定義為營運現金減去財產、廠房和設備的資本支出。我們也相信，這種自由現金流是一個重要的衡量標準，因為我們使用它——管理團隊用它來衡量我們公司的獲利品質及其能力，以及我們對業務未來進行再投資的能力。

The cash flow from investing during the quarter was 31.7 million source of cash. Cash flow from financing was 49.9 million use of cash, driven primarily by the $54 million dividend payment in December, and capital expenditures for the fourth quarter were $14.9 million. I am sure that you are aware that Garmin Limited paid a 50 cent per share dividend on December 15, and again that total use of cash was $54 million.

本季投資產生的現金流為3,170萬現金來源。融資產生的現金流量為 4,990 萬美元，主要由 12 月份支付的 5,400 萬美元股息推動，第四季度的資本支出為 1,490 萬美元。我相信您知道 Garmin Limited 於 12 月 15 日支付了每股 50 美分的股息，現金使用總額為 5,400 萬美元。

I would like to spend just a few minutes on the overall fiscal year 2003 financial summary. As Min stated in his earlier comments, the full-year 2003 revenue was $573 million. That is a revenue growth rate of 23 percent over 2002. Our overall gross margin across the business improved up to 57.7 percent compared to 54.8 percent in 2002. Operating income results were $227 million, and our total net income for the business was $178.6 million. Operating margins improved up to 39.6 percent compared to 38.1 percent in 2002. Therefore, our GAAP diluted earnings per share was $1.64 compared to $1.32 in '02, and that represents a 24 percent increase in earnings per share during 2002. As I said, for the full year, our foreign currency loss was $6.7 million. Our earnings per share results, excluding the effects of foreign currency, therefore, were $1.69, representing a 28 percent increase compared to 2002.

我想用幾分鐘時間來概括一下 2003 財年的整體財務摘要。正如 Min 在先前的評論中所說，2003 年全年收入為 5.73 億美元。與2002 年相比，營收成長率為23%。與2002 年的54.8% 相比，我們整個業務的整體毛利率提高了57.7%。營業收入為2.27 億美元，我們的總淨利潤為1.786 億美元。營業利潤率從2002 年的38.1% 提高到39.6%。因此，我們的GAAP 攤薄每股收益為1.64 美元，而02 年為1.32 美元，這意味著2002 年每股收益增長了24%。正如我所說，對於全年我們的外匯損失為 670 萬美元。因此，排除外匯影響，我們的每股盈餘為 1.69 美元，比 2002 年成長了 28%。

Evaluating our revenue by geographic region throughout the full year of 2003, our U.S. revenue was up 22 percent to 414.6 million from 339.4 million. Europe revenue was 133.2, up 29 percent from 103 million in 2002, and our Asian revenue came in at 25.2 million, up 11 percent from 22.7 million in 2002.

以地理區域評估我們 2003 年全年的收入，我們在美國的收入從 3.394 億美元增長了 22%，達到 4.146 億美元。歐洲營收為 133.2，比 2002 年的 1.03 億成長了 29%，亞洲營收為 2,520 萬，比 2002 年的 2,270 萬成長了 11%。

Segment results at consumer revenue segment for the full year, 452.4 million, a 29 percent increase over 2002, and the consumer segment, therefore, for the full year was 79 percent of our total revenue. Our consumer gross margin improved to 56.0 percent from 52.6 percent in 2002 due to raw material and overhead cost improvements and also favorable product mix within the year.

全年消費者收入部門的表現為 4.524 億美元，比 2002 年增長 29%，因此，消費者部門全年收入占我們總收入的 79%。由於原材料和管理成本的改善以及年內有利的產品組合，我們的消費者毛利率從 2002 年的 52.6% 提高到 56.0%。

Our aviation revenue achieved 120.6 million during fiscal year 2003, which is a 5 percent increase when compared to the fiscal year 2002. 21 percent of our total revenues came from our aviation segment, and the aviation gross margin improved for the full year up to 64.2 percent from 61.6 percent in 2002, again due to favorable product mix within the segment. So overall our total consumer and aviation units increased to over 2 million -- 2,066,000 units from 1,557,000 units, an increase of 33 percent.

2003財年，我們的航空收入達到1.206億美元，比2002財年增長了5%。我們總收入的21%來自航空部門，全年航空毛利率提高到64.2%百分比從2002 年的61.6% 上升，同樣是由於該細分市場內有利的產品組合。因此，總體而言，我們的消費類和航空類總銷量從 1,557,000 輛增至超過 200 萬輛，即 2,066,000 輛，增長了 33%。

Our fiscal year 2003 operating margin. Operating profit was 227.0 million or 39.6 percent of sales, which compares favorably to 38.1 percent in fiscal year 2002. During the full year of 2003, SG&A as a percentage of sales increased to 10.4 percent from 9.8 percent during the prior year 2002, primarily due to increased advertising within our consumer segment.

我們 2003 財年的營業利益率。營業利潤為2.27 億美元，佔銷售額的39.6%，與2002 財年的38.1% 相比，表現良好。2003 年全年，SG&A 佔銷售額的百分比從2002 年的9.8% 增加到10.4%，這主要是由於增加我們消費者群體中的廣告。

Now because we owned Garmin AT for only the last four months in 2003, we have broken out our operating expenses both with and without that business. Excluding Garmin AT, our SG&A expenses for the full year increased 27 percent compared to 2002. Including Garmin AT, our SG&A expenses increased 32 percent over fiscal year 2002.

現在，由於我們在 2003 年擁有 Garmin AT 的時間只有最後四個月，因此我們已經對擁有和不擁有該業務的營運支出進行了細分。不包括 Garmin AT 在內，我們全年的 SG&A 費用比 2002 年增加了 27%。包括 Garmin AT 在內，我們的 SG&A 費用比 2002 財年增加了 32%。

Looking next at R&D. Our R&D increased to 7.6 percent of sales from 6.9 percent of sales during the fiscal year 2002 due primarily to the hiring of the 100 engineers that I mentioned earlier during fiscal year 2003. Excluding Garmin AT, our R&D expenses increased 26 percent, which is in line with our earlier expectations compared to the fiscal year 2003. And then including Garmin AT, our R&D expenses increased 36 percent over fiscal year 2002.

接下來看研發。我們的研發費用佔銷售額的比例從2002 財年的6.9% 增加到7.6%，這主要是由於我之前提到的2003 財年聘用了100 名工程師。不包括Garmin AT，我們的研發費用增加了26%，相當於與 2003 財年相比，這符合我們先前的預期。如果算上 Garmin AT，我們的研發費用比 2002 財年增加了 36%。

As I mentioned earlier, we did experience a 6.7 million foreign currency loss during the year as the dollar weakened -- U.S. dollar weakened versus the Taiwan dollar, about a 3 percent reduction. The Taiwan dollar compared to the U.S. dollar went from 35.10 at the end of 2002 down to 34.05 at the end of 2003. Fiscal year 2003 interest income was $7.6 million, and our fiscal year interest expense rose $500,000 related to the long-term debt that we retired in the second quarter.

正如我之前提到的，由於美元貶值，我們這一年確實經歷了670萬美元的外匯損失——美元兌新台幣貶值，大約減少了3%。新台幣對美元匯率從2002年底的35.10跌至2003年底的34.05。2003財年利息收入為760萬美元，與長期債務相關的本財年利息支出增加了50萬美元。我們在第二季度退休了。

Looking next at the balance sheet. The cash and the investments that we have at the end of the quarter and at the end of the year amounted to $495.7 million. The marketable securities or investments that we currently had made up $221.4 million of the total cash position. Our Accounts Receivable balance came in at $82.7 million at the end of 2003, and that represents an increase of 24.5 million from 58.3 million AR at the end of 2002, primarily due to the strong increase and the strong 2003 sales.

接下來看資產負債表。截至本季末和年底，我們擁有的現金和投資總計 4.957 億美元。我們目前持有的有價證券或投資佔現金部位總額 2.214 億美元。 2003 年底，我們的應收帳款餘額為 8,270 萬美元，比 2002 年底的 5,830 萬應收帳款增加了 2,450 萬美元，這主要是由於強勁的增長和 2003 年的強勁銷售。

Shipments during the fourth quarter of 2003 were slightly more back-end loaded than normal, and we measure our day sales outstanding, our DSO at the end of the year was 51 days, which compares to 35 days at the fourth quarter at the end of 2002. Inventory increased to 96.8 million at year-end 2003. That is up from 57.5 million at year-end 2002. As expected, we have communicated an expectation of increased inventory during the year. The increase in inventory during Q4 was primarily due to raw materials increases as we prepare for many new product launches in the first half of 2004. And we also experienced some leadtime increases of certain electronic components during the second half of 2003, which caused an increase in inventory balances at the end of the year. Overall our balance sheet, we believe, remains very strong and positions us well for future growth in the business.

2003 年第四季的出貨量後端負載比正常情況稍多，我們衡量了我們的日銷售額，年底的 DSO 為 51 天，而 2003 年第四季末的 DSO 為 35 天。2002 年。庫存從2002 年底的5,750 萬增加到2003 年年底的9,680 萬。正如預期的那樣，我們已經傳達了這一年庫存增加的預期。第四季庫存增加主要是因為我們為2004年上半年推出許多新產品做準備而導致原材料增加。而且我們在2003年下半年也經歷了某些電子元件交貨期的增加，導致庫存增加年末庫存餘額。我們相信，總體而言，我們的資產負債表仍然非常強勁，為我們未來的業務成長奠定了良好的基礎。

Looking next at the fiscal year 2003 cash flow. Our cash flow from operations was 172.5 million during the full year of 2003, and free cash flow generated was 139.7 million for the full year. Cash flow from investing for fiscal year 2003 was 50.4 million use of cash, cash flow from financing activities, 67.1 million use of cash. Our capital expenditures are in line with our earlier guidance for the full year. We came in at 32.8 million of CapEx for the year.

接下來來看看2003財年的現金流。 2003年全年我們的經營現金流為1.725億，全年產生的自由現金流為1.397億。 2003財年投資產生的現金流量為5,040萬使用現金，融資活動產生的現金流量為6,710萬使用現金。我們的資本支出與我們先前的全年指導一致。今年我們的資本支出為 3,280 萬美元。

And then briefly on the Garmin AT acquisition. Garmin AT for the quarter contributed $7 million of revenue and approximately 300,000 net loss to the financial results of our overall consolidated financial results during the quarter. But for the full four months of activity since the acquisition, Garmin AT contributed 10 million in sales at a breakeven net income level right in line with our expectations.

然後簡單介紹一下 Garmin AT 的收購。 Garmin AT 本季為我們整體合併財務表現貢獻了 700 萬美元的收入和約 30 萬美元的淨虧損。但自收購以來的整整四個月的活動中，Garmin AT 貢獻了 1000 萬美元的銷售額，而盈虧平衡的淨利潤水平完全符合我們的預期。

Looking forward, we expect that the Garmin AT business will generate incremental sales of approximately $20 million -- I should not say incremental -- but generate sales of approximately 20 million of revenue during fiscal year 2004. The impact on Garmin's earnings per share from this business will continue to be neutral or slightly accretive through 2004. So we we have now completed the consolidation of Garmin AT into our total business, allowing our customers to interface with one point-of-sale. We have also begun to expand the aviation R&D team at this location.

展望未來，我們預計Garmin AT 業務將產生約2000 萬美元的增量銷售額（我不應該說是增量），但在2004 財年將產生約2000 萬美元的銷售額。這對Garmin 每股收益的影響到 2004 年，我們的業務將繼續保持中性或略有成長。因此，我們現在已經完成了 Garmin AT 到我們整體業務的整合，使我們的客戶能夠與一個銷售點進行互動。我們也開始擴大該地點的航空研發團隊。

Then finally, I would like to conclude my remarks with first-quarter 2004 guidance and full-year guidance as we had in the press release. I am sure you noticed that our revenue for the first quarter will come in between the revenue range of $137 and $140 million at the top-end being a 13 percent growth rate. We expect gross margins for the first quarter to be between 56 and 57 percent. We expect our operating margins to come in between 34 and 35 percent of sales. As I stated earlier, our effective tax rate will be 21 percent. That is driving a net income within the range of $38 to $41 million, excluding any foreign currency effects. The EPS range for the first quarter is expected to be 35 to 37 cents per share, and we based that on an outstanding diluted share count of 109.1 million shares. Our capital expenditures estimate for the first quarter will be right around $20 million, and that is driven by approximately 15 million due to the U.S. facility expansion here in Kansas, as well as about 5 million of maintenance CapEx for the business.

最後，我想用 2004 年第一季指導和全年指導來結束我的發言，就像我們在新聞稿中所做的那樣。我相信您已經注意到，我們第一季的營收將在 137 美元到 1.4 億美元之間，最高成長率為 13%。我們預計第一季的毛利率將在 56% 至 57% 之間。我們預計營業利潤率將達到銷售額的 34% 至 35%。正如我之前所說，我們的有效稅率將為 21%。這使得淨收入在 38 至 4,100 萬美元之間，不包括任何外匯影響。第一季的每股盈餘預計為每股 35 至 37 美分，我們的基礎是稀釋後流通股數為 1.091 億股。我們第一季的資本支出預計約為 2000 萬美元，其中約 1500 萬美元是由於美國堪薩斯州的設施擴建以及約 500 萬美元的業務維護資本支出所推動的。

Finally, the fiscal year 2004 guidance, we expect revenue to come in between $660 and $690 million. That is a 20 percent growth at the top-end of the range. Gross margins will be between 55 and 57 percent according to our expectations, and operating margins between 36 and 37 percent of sales. Effective tax rate will continue to be 21 percent for the full year. Therefore, we expect our net income to come in between $195 and $211 million for the year, excluding FX, and the earnings per share range, therefore, would be $1.80, up to $1.94, excluding FX. The top-end of that range representing a 15 percent EPS growth rate. Outstanding diluted shares for the year, 109.1 million, and we expect our total CapEx for the year to come in right around 60 million, 40 million of which will come from our facility expansion and about 20 million just from maintenance level CapEx in the business.

最後，根據 2004 財年的指導，我們預計營收將在 6.6 至 6.9 億美元之間。這是該範圍上限 20% 的增長。根據我們的預期，毛利率將在 55% 至 57% 之間，營業利潤率將在銷售額的 36% 至 37% 之間。全年有效稅率仍為21%。因此，我們預計今年的淨利潤將在 195 美元至 2.11 億美元之間（不包括外匯），因此每股收益範圍將為 1.80 美元至 1.94 美元（不包括外匯）。此範圍的上限代表每股收益成長率為 15%。今年已發行的稀釋後股份為 1.091 億股，我們預計今年的總資本支出約為 6000 萬股，其中 4000 萬股將來自我們的設施擴建，約 2000 萬股來自業務的維護水平資本支出。

So I know there was a lot of detail there, but we wanted to walk through both quarter and year. At this time, we would like to open up the call to questions.

所以我知道那裡有很多細節，但我們想詳細介紹季度和年度。此時，我們想開放提問。

(OPERATOR INSTRUCTIONS). John Bucher, Harris Nesbitt.

（操作員說明）。約翰布赫，哈里斯內斯比特。

A question on your first-quarter outlook. Just understanding I think Min mentioned that you are going to continue the advertising. Is that accounting for a significant part of the higher SG&A you're expecting in the first quarter? Also, how much of the R&D is a result of just the higher engineering headcount now with Garmin AT and the new hires that you have had versus it being higher due to the concerted new product development that you have talked about?

關於第一季前景的問題。我只是理解，我認為敏提到你將繼續做廣告。這是否佔您預計第一季 SG&A 較高的很大一部分？另外，有多少研發是由於現在 Garmin AT 的工程人員數量增加以及您所擁有的新員工與您所談到的協調一致的新產品開發而增加的？

I will attempt to answer that. There is a lot of detail there. But I think as our consumer segment becomes a larger component of our business, Q2 and Q4 are becoming larger quarters relative to the first and third quarter, and so it is as you have mentioned. The SG&A as a percentage of sales in the first quarter, we are expecting it to be higher. We will not see a sequential increase or anything like that. We would expect SG&A to come down on an absolute dollar basis. But clearly with 140 million at the top-end, SG&A will be driving some of that reason for the first-quarter estimate.

我將嘗試回答這個問題。那裡有很多細節。但我認為，隨著我們的消費者細分市場成為我們業務的更大組成部分，第二季和第四季相對於第一季和第三季來說變得更大，所以正如您所提到的。 SG&A 佔第一季銷售額的百分比，我們預計會更高。我們不會看到連續增加或類似的情況。我們預計 SG&A 以絕對美元計算將會下降。但很明顯，SG&A 的上限為 1.4 億，這將是第一季預估的部分原因。

Secondly, you may recall that we had an abnormally high gross margin of 60 percent in Q1 of last year. So with the way we looked at it, with a normal gross margin in the range of 57 percent, we would actually be experiencing a growth in our first-quarter estimates even as we stated them.

其次，大家可能還記得，去年第一季我們的毛利率高達60%，異常高。因此，從我們的角度來看，正常毛利率在 57% 的範圍內，我們第一季的預期實際上會成長，即使我們這麼說。

And then I guess finally, you talked about R&D. Clearly R&D with the acquisition of Garmin AT just on dollar for dollar basis is driving some of that increase in operating expenses as it is driving SG&A as well. So does that answer the question?

我想最後你談到研發了。顯然，以美元對美元收購 Garmin AT 的研發正在推動營運費用的部分增加，因為它也推動了銷售、管理和行政費用 (SG&A)。那麼這能回答問題嗎？

Yes, that is helpful. Shifting topics, the channel inventory levels for your boating and your outdoor and recreational products, have there been any changes in the trends that you have seen for inventory levels through the peak holiday season?

是的，這很有幫助。話題不斷轉移，您的划船以及戶外和休閒產品的渠道庫存水平，您在假期旺季期間看到的庫存水平趨勢是否有任何變化？

Not anything (inaudible).

什麼都沒有（聽不清楚）。

Then one final question. The new FAA advisory circular, 20-S138A (ph), which simplifies GPS installation, do you think that you will see a boost in your retrofit market for your G&S series product as a result of that advisory circular coming out?

然後是最後一個問題。新的 FAA 諮詢通告 20-S138A (ph) 簡化了 GPS 安裝，您認為您的 G&S 系列產品的改裝市場會因為該諮詢通告的發布而得到提振嗎？

That will definitely make life easier for installers, but I don't really anticipate that that would have a market change in terms of customer demand for the product.

這肯定會讓安裝人員的生活變得更輕鬆，但我並不真正預期這會導致客戶對產品的需求發生市場變化。

Kevin, do you still think that aviation is probably going to track to probably about a 20 percent mix of your total revenues going forward?

Kevin，您是否仍然認為航空業可能會佔您未來總收入的 20% 左右？

Yes. We would expect given the growth rate that we have, we have forecasted for 2004 that that number should not drastically change during 2004.

是的。鑑於目前的成長率，我們預計 2004 年這一數字不會發生太大變化。

Okay. Thank you very much.

好的。非常感謝。

Neil Miller, Fidelity Investment.

尼爾·米勒，富達投資。

I was wanting to explore the number of new product introductions. 45 (inaudible) versus consumer, and I am wondering why the step-up, and also what constitutes a new product? In other words, like on a car navigation, if you put the entire memory into the system and map the U.S., is that a new product?

我想探索新產品推出的數量。 45（聽不清楚）與消費者相比，我想知道為什麼要升級，以及新產品的組成是什麼？換句話說，就像汽車導航一樣，如果你把整個記憶體放入系統中並繪製出美國地圖，那是一個新產品嗎？

Let me attempt to answer this question. Cliff might have something else to add. The 45 products will be across product lines, which include a good number of newly handheld for recreation in customers products. And also, two new marine product lines and aviation handheld and also a number of (inaudible) products into the automotive PDA and personal fitness markets. The automotive products you just mentioned, definitely they are in our plans.

讓我嘗試回答這個問題。克里夫可能還有其他要補充的內容。這45款產品將跨越產品線，其中包括大量新推出的手持式娛樂產品。此外，還有兩條新的航海產品線和航空手持設備，以及一些進入汽車 PDA 和個人健身市場的（聽不清楚）產品。你剛才提到的汽車產品，肯定也在我們的計畫中。

I appreciate that. So I guess the earlier question related to inventory and inventory transition, I am just wondering to the extent that a product improvements occur, do you protect the channel, or how do you orchestrate those kinds of transitions?

我很感激。所以我猜前面的問題與庫存和庫存轉換有關，我只是想知道產品改進的程度，你是否保護渠道，或者你如何協調這些類型的轉換？

I think we have gone through this type of transition periodically throughout the history of our company. What we have tended to do is work very closely with the dealers and the distributors in the actual channels to communicate to them timing of new introductions so that they can plan and not get surprised with too high of inventory levels on the shelf. So I think it will continue to be as we have done in the past to again work tightly with those major retailers that have significant inventory levels to plan for new product introductions and phase-out of older products.

我認為，在我們公司的歷史上，我們定期經歷過這種類型的轉變。我們傾向於做的是與實際通路中的經銷商和分銷商密切合作，向他們傳達新產品推出的時間，以便他們能夠制定計劃，而不會對貨架上的庫存水平過高感到驚訝。因此，我認為我們將繼續像過去所做的那樣，再次與那些擁有大量庫存水平的主要零售商密切合作，以計劃新產品的推出和舊產品的逐步淘汰。

In the marine area, I was hoping for a better year this year than last year, which was awful. But the West Marine last quarterly report I guess was really favorable toward electronics. I am just wondering in view of that, why that did not encourage you to have a little better guidance on revenues in the first quarter?

在海洋領域，我希望今年能比去年好，但結果很糟。但我認為西海軍上一季報告對電子產品非常有利。有鑑於此，我只是想知道，為什麼這沒有鼓勵您對第一季的收入做出更好的指導？

(inaudible) that our two new marine two new product lines will come out in the next couple of months so that the impact would be mostly on the second part of the P&L.

（聽不清楚）我們的兩條新船用兩條新產品線將在未來幾個月內推出，因此影響將主要集中在損益表的第二部分。

I was thinking less on the new product side there -- in other words, if the comps are so strong, I would think that there would be good basic orders coming from that source, and maybe to the extent that marine was strong generally and will be strong hopefully if there is a decent spring, that that would impact things.

我對新產品方面的考慮較少——換句話說，如果競爭如此強大，我認為該來源將會有良好的基本訂單，也許在某種程度上，海洋總體上很強大，並且將會如果有一個像樣的春天，希望能堅強起來，那會影響事情。

We expect to have it as soon we start delivering our new products.

我們希望在我們開始交付新產品後立即獲得它。

And the first-quarter guidance, I am just wondering to the extent that you have to spend in advance like advertising to broaden the market, does that suggest -- I know you gave a range for the year on gross margin as being 57 percent or something -- but I am just kind of wondering whether you're getting into a new era with lob numbers as well as necessary to spend in advance to broaden the market?

第一季的指導，我只是想知道你必須提前花費廣告費來拓寬市場，這是否表明——我知道你給出的今年毛利率範圍為 57% 或一些東西- 但我只是想知道你是否正在進入一個高吊球數量的新時代以及是否有必要提前花錢來擴大市場？

I think the increased SG&A in the first quarter is not accelerating into the promotional. As I mentioned in my earlier comments, 2003 was a year of significant investment in Garmin's future. So I expect (inaudible) reaching the top we make an investment and the results are realized. (inaudible) we are seeing an increase in SG&A and R&D expenses as a percentage of our revenues at this time. But we feel that with as many new products in our (inaudible) lines and many of which will be delivered in the next couple of months, it is our hope and our belief -- it is our hope and our expectation that that will drive our growth in the second quarter of (inaudible) and reduce our spending of SG&A and R&D accordingly.

我認為第一季增加的銷售管理費用並沒有加速進入促銷。正如我在先前的評論中提到的，2003 年是 Garmin 對未來進行重大投資的一年。因此，我希望（聽不清楚）達到頂峰，我們進行投資並實現結果。 （聽不清楚）我們目前看到 SG&A 和研發費用占我們收入的百分比增加。但我們認為，隨著我們（聽不清楚）產品線中的許多新產品的出現，其中許多將在未來幾個月內交付，這是我們的希望和信念- 這是我們的希望和期望，這將推動我們的發展第二季度的成長（聽不清楚），並相應減少我們的 SG&A 和研發支出。

Thanks. It is nice to your comments.

謝謝。很高興收到你的評論。

Rich Valera, Needham & Co..

里奇·瓦萊拉，李約瑟公司

With respect to the G1000, I noticed in your most recent release that I think Mooney had already been OEMing your G&S (ph) 530 and 430 products. Can you talk about how much substitution you think there will be between the very low end of the G1000 line, which seems to be replacing some of the G&S 530 and 430, and how much that limits the incremental revenue opportunity for the G1000?

關於 G1000，我在你們最近發布的版本中註意到，我認為 Mooney 已經為你們的 G&S (ph) 530 和 430 產品進行 OEM 生產。您能否談談您認為極低端 G1000 系列（似乎正在取代部分 G&S 530 和 430）之間會有多少替代品，以及這在多大程度上限制了 G1000 的增量收入機會？

I think (inaudible) is probably doubtful in terms of the content of the avionics and ultimate revenue.

我認為（聽不清楚）就航空電子設備的內容和最終收入而言可能值得懷疑。

Do you think the revenue is actually similar for the G1000 versus the G&S product?

您認為 G1000 與 G&S 產品的收入實際上相似嗎？

No, it is double.

不，是雙倍的。

It is double.

它是雙的。

It is double? Okay. Would you agree there is a one-to-one substitution there, you would see a doubling of revenue for that particular product area? Is that fair?

是雙的嗎？好的。您是否同意存在一對一的替代，您會看到該特定產品領域的收入翻倍？這樣公平嗎？

Keep in mind that our OEM business on the aviation segment is approximately 25 percent of our revenue stream right now.

請記住，我們在航空領域的 OEM 業務目前約占我們收入來源的 25%。

Okay. 25 percent of your aviation revenue?

好的。航空收入的 25%？

Aviation revenue, right. I am sorry.

航空收入，對吧。對不起。

I am sure you guys are aware that recently Nokia introduced a phone, their 5140 that has a GPS navigation overlay that flips onto the phone. I was wondering if you see this as an area as something Garmin might get into, the (inaudible) seems to de-emphasize that, but do you see the potential to may be work with some handset providers to bring some of the higher level of functionality that Garmin has in the handheld GPS to the handset by maybe creating something like this overlay on the 5140 onto conventional handsets?

我相信你們都知道諾基亞最近推出了一款手機，他們的 5140，具有可翻轉到手機上的 GPS 導航覆蓋層。我想知道您是否認為這是 Garmin 可能涉足的一個領域，（聽不清楚）似乎不再強調這一點，但您是否認為有可能與一些手機提供商合作，帶來一些更高水平的服務Garmin 在手持式GPS 中的功能是否可以透過在5140 上創建類似的覆蓋到傳統手機上來實現？

I think we are always open to the opportunities and the possibilities, but right now that is not our area of focus.

我認為我們始終對機會和可能性持開放態度，但現在這不是我們關注的領域。

Okay. Thank you.

好的。謝謝。

Mark Roberts, Wachovia Capital Markets.

馬克羅伯茨，美聯銀行資本市場。

Thank you. Good morning. Kevin, you mentioned that the increase in inventories in the fourth quarter was mainly due to a buildup of raw materials. I do not have the 10-K right in front of me to look at the footnotes. Could you give us a breakdown of the year-end inventories between raw material, work-in-process and finished goods last year compared to this year?

謝謝。早安. Kevin，您提到第四季度庫存增加主要是由於原材料的增加。我面前沒有 10-K 來檢查腳註。您能否為我們介紹去年與今年相比原料、在製品和產成品的年末庫存明細？

Well, actually we have never given that detail out. I can just say that I commented on the reasons for inventory. It is really the rise is threefold. I mentioned the increased sales obviously requiring higher inventories, but the raw materials purchases as I mentioned as we prepare for the many new products coming out and also the LCDs and Flash memory in particular, which were some of the global shortages that we have come in place on.

嗯，實際上我們從未透露過這個細節。我只能說我評論的是庫存的原因。確實是上漲了三倍。我提到銷量的增加顯然需要更高的庫存，但正如我所提到的，當我們為許多新產品的推出做準備時，原材料的採購，特別是液晶顯示器和閃存，這是我們遇到的一些全球短缺問題放在。

But our strategy on inventory is to not try to hold zero inventory on a finished good basis. We would rather hold sizable amounts of finished goods to be able to respond to customer demand. I know I am not giving you an exact number, but there is a significant amount of raw material and finished goods we have very little in assembly and with. It is pretty evenly broken down between those two components.

但我們的庫存策略是不要試圖在成品基礎上保持零庫存。我們寧願持有大量的成品，以便能夠回應客戶的需求。我知道我沒有給你一個確切的數字，但有大量的原材料和成品，我們在組裝和使用中卻很少。這兩個組件之間的分解相當均勻。

Okay. Let me ask the question a little differently. on A sequential basis September to December, did finished goods inventories rise?

好的。讓我以稍微不同的方式來問這個問題。 9-12月產成品庫存較上月上升嗎？

Not as high as the raw materials inventories did.

不像原料庫存那麼高。

Okay, but they did rise?

好吧，但他們確實崛起了嗎？

I would rather look at that before I comment. I can get back to you on the one.

在發表評論之前我寧願先看一下。我可以第一時間回覆你。

Because the reason is I am wondering because typically you are going into your seasonal down quarter, I am just trying to understand why inventories would have risen going into a seasonally weak quarter?

因為原因是我想知道，因為通常你會進入季節性下降季度，我只是想了解為什麼庫存會在進入季節性疲軟季度時上升？

Predominately due to raw materials, but I honestly don't have the finished good number from Q3 to Q4 right in front of me, so I could check that and get back to you.

主要是由於原材料的原因，但老實說，我面前沒有從第三季度到第四季度的成品數量，所以我可以檢查一下並回覆給您。

I was a little bit confused on the SG&A. Is the higher level of SG&A spending in the Q1, are there onetime marketing expenses in that that will go away, or are you saying that you are ramping up the SG&A a quarter or two in front of the expected revenues, but that level of SG&A spending is going to continue?

我對 SG&A 有點困惑。第一季的 SG&A 支出水準是否較高，是否存在一次性行銷費用將會消失，或者您是說您正在比預期收入提前一兩個季度提高 SG&A 支出，但 SG&A 的水平支出還會繼續嗎？

I think the two or three major areas are dollars that -- let me just say Oracle for one would be dollars that would be invested that would eventually go away. So we still have the Oracle consulting expenses as we get closer to go live here in the first half.

我認為這兩三個主要領域都是美元——讓我說甲骨文的其中一個領域是投資的美元，但最終會消失。因此，隨著上半年我們即將上線，我們仍然有 Oracle 諮詢費用。

We also have our Garmin AT business, which just on an absolute dollar basis we did not have before. So that generated about 1.5 million of SG&A in a quarter. Finally, we are still ramping up call center for our product support. So those are the three major areas that we see in Q1.

我們還有 Garmin AT 業務，這是我們以前沒有的。因此，一個季度產生了約 150 萬的 SG&A。最後，我們仍在加強呼叫中心的產品支援。這些是我們在第一季看到的三個主要領域。

But as far as some of the advertising and promotional dollars, those are somewhat volume dependent. So sales will come down sequentially, but those absolute dollars will come down also.

但就一些廣告和促銷費用而言，這些在某種程度上取決於數量。因此，銷售額將依次下降，但絕對金額也會下降。

Last question. To revisit the channel inventory issue, what kind of general mechanisms do you use to follow your channel inventories? Dr. Kao said that he did not think the channel inventories had risen at the end of December. How do you all monitor and track your channel inventories?

最後一個問題。重新審視通路庫存問題，您使用什麼樣的通用機制來追蹤通路庫存？高博士表示，他並不認為12月底通路庫存上升。你們如何監控和追蹤你們的渠道庫存？

We have from the major electronic retailers, for example, we get in some cases weekly and at minimum monthly data on sell-through data by SKU and also inventory levels by SKU. So that really gives us a good feel for what is happening in the channel in the marketplace.

例如，我們從主要電子零售商處獲得，在某些情況下，我們每週或至少每月獲得按 SKU 劃分的銷售數據以及按 SKU 劃分的庫存水平。因此，這確實讓我們對市場通路中正在發生的事情有了很好的了解。

So your channel inventory data is pretty hard and real-time?

那麼您的通路庫存數據非常硬且即時？

It is for the large retailers. I am not saying we have solid data at the small to medium-sized dealers, but we definitely do for the larger top 10.

它適用於大型零售商。我並不是說我們擁有中小型經銷商的​​可靠數據，但我們確實擁有較大的前 10 名經銷商的可靠數據。

Okay. And actually on that note, I guess I have one more last question, sorry. Was the West Marine still your largest distributor or seller of recreational GPS products in the fourth quarter?

好的。事實上，我想我還有最後一個問題，抱歉。第四季度，West Marine 仍然是你們最大的休閒 GPS 產品經銷商或銷售商嗎？

Yes, that is still the case.

是的，情況仍然如此。

Okay. Thank you very much.

好的。非常感謝。

Peter Friedland, W.R. Hambrecht.

彼得‧弗里德蘭，W.R.漢布雷希特。

A couple of questions. First, if you could talk about the iQue 3600? Initially going into the product launch, you talked about 50,000 units in terms of an expectation for the second half of '03? Could you just comment on that? Secondly, if you could talk about trends in market share, particularly in the consumer segment and the portable automotive application segment?

有幾個問題。首先，您能談談iQue 360​​0嗎？剛開始產品發佈時，您談了03年下半年的預期是5萬台？你能對此發表評論嗎？其次，您能否談談市場佔有率的趨勢，特別是在消費領域和便攜式汽車應用領域？

I can make a comment on the iQue. We had talked about 50,000 units as you suggested, and we were able to achieve that, and so the PDA for the back-half came in at above or expectations.

我可以對 iQue 發表評論。我們已經按照您的建議討論了 50,000 台，並且我們能夠實現這一目標，因此後半部分的 PDA 達到了高於或預期的水平。

As far as marketshare, I think we generally do not comment on marketshare. We have given some aviation marketshare in the past, and that position really has not changed. I don't know if I want -- either one of you all want to talk about consumer marketshare or any comments there?

至於市場份額，我認為我們通常不會評論市場份額。我們過去已經給予了一些航空市場份額，這一立場確實沒有改變。我不知道我是否願意——你們中的任何一位都想談論消費者市場份額或有什麼評論嗎？

That is a small market. We in general feel -- for the handheld market, in general, we feel that we are holding our market position, and it is certainly appears that there are more competitive products in a small market. But it is difficult to qualify our competitive effect on this business.

那是一個小市場。我們總體上認為，對於手持設備市場，總體而言，我們認為我們正在保持自己的市場地位，並且在小市場中肯定會出現更具競爭力的產品。但很難確定我們對這項業務的競爭影響。

The one area that we have heard about our competitor's success is promoting market. But we feel that this market is very very under-penetrated, and Garmin has always delivered product in this particular competition. So we believe opportunity in this area is very strong for Garmin.

我們聽說競爭對手成功的一個領域是推廣市場。但我們認為這個市場的滲透率非常低，而 Garmin 一直在這個特定的競爭中提供產品。因此，我們相信 Garmin 在這領域的機會非常大。

Thanks, guys.

多謝你們。

John Braatz, Kansas City Capital.

約翰‧布拉茨 (John Braatz)，堪薩斯市首府。

A couple of questions. You had mentioned in the SG&A costs your expenses associated with Oracle implementation and call center ramp up. How significant were those costs, and when do you indeed go live with Oracle?

有幾個問題。您在 SG&A 成本中提到了與 Oracle 實施和呼叫中心升級相關的費用。這些成本有多大？您什麼時候真正開始使用 Oracle？

I don't want to quantify exactly how much was the Oracle, but it was under $100 million incremental. But I've given you the exact number. We're planning on having everything completed within the first half of 2004. We did have a delay. We communicated earlier there have been some delay, but we're making good progress and feel like the Oracle project is on track for that first-half of 2004 implementation.

我不想具體量化 Oracle 的價值，但增量不到 1 億美元。但我已經給了你確切的數字。我們計劃在 2004 年上半年完成所有工作。我們確實有延遲。我們之前溝通過，出現了一些延遲，但我們正在取得良好進展，並且感覺到 Oracle 專案已步入 2004 年上半年實施的正軌。

What about the call center?

呼叫中心怎麼樣？

I think the call center is going to continue to be increases investment there as we go to more and more of a consumer business and have growth in that area. So I think we will continue to talk about call center and product support growth in order to support and give quality support of our new product and old product.

我認為，隨著我們越來越多地涉足消費業務並在該領域取得成長，呼叫中心將繼續增加在那裡的投資。因此，我認為我們將繼續討論呼叫中心和產品支援的成長，以便為我們的新產品和舊產品提供支援和品質支援。

Do you have any metrics with regard to customer service because I was on the customer service line this Christmas, and it, indeed, was a long wait. My question is do you track the waits and so on to give us an idea of how your customer service center is really servicing and how well they are servicing the customer?

你有關於客戶服務的指標嗎？因為今年聖誕節我在客戶服務熱線上，而且確實是一個漫長的等待。我的問題是，您是否會追蹤等待情況等，以便讓我們了解您的客戶服務中心的實際服務情況以及他們為客戶提供的服務品質如何？

We absolutely do. We have tracked this for years -- not only wait times, dropped calls -- we definitely track that. We are sensitive to that. We would hate for people to have to be online long times, but it has been a challenge as you grow a consumer business at 20 percent plus, then there is more and more product that we're trying to support. So the short answer is we absolutely have good data on that.

我們絕對願意。我們多年來一直在追蹤這一點——不僅是等待時間、掉線——我們確實會追蹤這一點。我們對此很敏感。我們討厭人們必須長時間上網，但隨著消費業務以 20% 以上的速度成長，這一直是一個挑戰，然後我們試圖支持越來越多的產品。所以簡短的回答是我們絕對擁有這方面的好數據。

Has it changed significantly?

有明顯變化嗎？

I want to add that since last year we had pretty much (inaudible) our call center infrastructure and have made very significant improvements. We do experience long call times, particularly on Monday and also around the Christmas season.

我想補充一點，自去年以來，我們已經擁有了相當多（聽不清楚）的呼叫中心基礎設施，並且取得了非常重大的改進。我們確實經歷了很長的通話時間，特別是在週一和聖誕節前後。

One last question, Kevin. Last year at the beginning of the year and I think at some point during the year, you had mentioned that you felt that you would introduce 20 to 25 new products. According to Min, I think he mentioned 15 new products were announced.

最後一個問題，凱文。去年年初，我想在這一年的某個時候，您曾提到您認為將推出 20 至 25 種新產品。據 Min 所說，我認為他提到了 15 種新產品的發布。

Two questions. Number one, why was there a delay in some of the new products? Secondly, how confident are you that you will, indeed, get the 45 new products out this year?

兩個問題。第一，為什麼有些新產品延遲上市？其次，您對今年推出45款新產品有多大信心？

Well, I think we definitely did have some delays, John. We are not particularly pleased with that, but we do feel like our product pipeline is very strong for 2004, and we also feel like we have a high confidence that we will definitely hit that number. I think some of the numbers in the 45 are definitely products that just fell over the edge from Q4 to Q1. So they basically were products moved from 2003 to 2004 introductions. But we do feel a high-level confidence in the 45.

好吧，我想我們確實有一些延誤，約翰。我們對此並不是特別滿意，但我們確實覺得 2004 年我們的產品線非常強勁，而且我們也非常有信心一定會達到這個數字。我認為 45 中的一些數字肯定是從第四季度到第一季剛剛跌落邊緣的產品。所以它們基本上是從 2003 年推出到 2004 年推出的產品。但我們確實對 45 充滿信心。

Is there anything that was constant in why the products were delayed? Was it lack of engineers? I can't believe it would be lack of engineers, but was it something other than that?

產品延遲的原因是否有任何固定因素？是缺工程師嗎？我不敢相信會缺少工程師，但還有其他原因嗎？

We always feel like we have all of products to do, so resources are always a challenge and we have to prioritize what we do. So that is some of the shifting that goes on is just prioritizing and making sure we are working on what gives us the most satisfaction in terms of revenue. That is one issue. I think the technology component on some products that we work on definitely had some impact, like LCD screens and so forth, which are now becoming long leadtimes in the market.

我們總覺得我們有所有的產品要做，所以資源始終是一個挑戰，我們必須優先考慮我們所做的事情。因此，正在進行的一些轉變只是確定優先順序並確保我們正在致力於讓我們在收入方面最滿意的事情。這是一個問題。我認為我們開發的某些產品的技術組件肯定會產生一些影響，例如液晶顯示器等，這些產品現在在市場上的交貨時間正在變得很長。

Thank you.

謝謝。

Adam Weiner (ph), Credit Suisse First Boston.

Adam Weiner（博士），瑞士信貸第一波士頓。

Good morning. I was wondering if you guys would care to venture some comments from a 100,000 foot view of how the competitive landscape is changing what your view is on that over the last six or nine months? I just want to look at some of the major categories and talk about what you are seeing out there in the marketplace, where some of the pressure points might be? Any comments there might be a little bit helpful.

早安.我想知道你們是否願意從 100,000 英尺的高度來看一些評論，看看競爭格局如何改變你在過去六到九個月的看法？我只想看看一些主要類別，並談談您在市場上看到的情況，一些壓力點可能在哪裡？那裡的任何評論可能會有一點幫助。

Well, as I indicated earlier, it certainly appears that there is more competition on the landscape, but it is difficult for us to quantify as I said an impact on our business. In general, we feel like our market position is still pretty strong in every area of our product categories, with the exception of the portable automotive market. In that market, we did see about our competitor's effect.

嗯，正如我之前指出的，市場上的競爭確實更加激烈，但我們很難量化我所說的對我們業務的影響。總的來說，我們認為除了便攜式汽車市場之外，我們在產品類別的每個領域的市場地位仍然相當強大。在那個市場上，我們確實看到了競爭對手的影響。

Okay. Thank you. Kevin, a little bit about CapEx. The 60 million was a bit higher than what I had in the model. I may have been off on that, but I had the maintenance CapEx running at 12-13 million. Did anything incrementally change, or was I just off on that? And then once we get through the expansion, should we think about maintenance CapEx running at roughly around 3 percent of sales going forward?

好的。謝謝。凱文，關於資本支出的一些情況。 6000 萬比我模型中的高。我可能在這一點上有所偏差，但我的維護資本支出為 12-1300 萬美元。有沒有逐漸改變的事情，還是我只是在改變？然後，一旦我們完成了擴張，我們是否應該考慮將維護資本支出維持在未來銷售的 3% 左右？

I think you may have been a little bit light on the maintenance CapEx. It is possible that we may add some additional surface mount lines in Taiwan in '04 depending on volume and new products that we bring to the market. But as we look out in the future, after we get past the facility expansion, I would venture to say 20 million is probably a closer maintenance level of CapEx, excluding any kind of facility expansion.

我認為您在維護資本支出方面可能有點輕率。根據銷售量和我們推向市場的新產品，我們可能會在 04 年在台灣增加一些額外的表面貼裝生產線。但當我們展望未來時，在我們完成設施擴建之後，我敢說 2000 萬美元可能是更接近的資本支出維護水平，不包括任何類型的設施擴建。

Okay. That is helpful. Thanks.

好的。這很有幫助。謝謝。

Herb Bookbinder (ph), Wachovia Securities.

Herb Bookbinder（博士），美國聯盟證券。

Kevin, can you give me roughly what you think your percentage increase in R&D expenses will be for the whole year? Should that cause some drop in overall margins?

Kevin，您能大致告訴我您認為全年研發費用的成長百分比是多少嗎？這是否會導致整體利潤率下降？

I think one comment is that we have a full year of the Garmin AT business, so that is driving some increased dollars. Last year our R&D as a percentage of sales was 7.6 percent. I would say for the full year it is going to be closer to 9 percent, excluding the Garmin AT. What our goal is to continue drive R&D growth at roughly 25 percent per year, excluding the Garmin AT business.

我認為有一個評論是，我們的 Garmin AT 業務已經持續了一整年，因此這推動了美元的成長。去年我們的研發佔銷售額的百分比為 7.6%。我想說全年的成長率將接近 9%（不包括 Garmin AT）。我們的目標是繼續推動研發以每年約 25% 的速度成長（不包括 Garmin AT 業務）。

In terms of advertising and promotion, could you give us an idea of how much of an increase there might be there versus the expected revenue increase? Would that be another source of problem margin erosion?

在廣告和促銷方面，您能否告訴我們與預期收入成長相比，可能會增加多少？這會是問題利潤侵蝕的另一個根源嗎？

I am not prepared to give you an absolute advertising dollar. It clearly increased in Q4, but what we would expect on SG&A for the full year is to stay relatively flat at 10.5 percent of sales, including the consolidated business.

我不准備給你絕對的廣告費。第四季大幅增加，但我們預計全年 SG&A 佔銷售額的 10.5% 保持相對平穩，包括合併業務。

Okay. Thanks a lot.

好的。多謝。

John Braatz, Kansas City Capital.

約翰‧布拉茨 (John Braatz)，堪薩斯市首府。

Kevin, you were talking about R&D spending going forward. Obviously you're making a lot of expenditures currently to support the G1000. Next year or when does that begin to level off and we begin to see some leveraging of the R&D expenditures a result of the G1000 being commercialized?

凱文，您談到了未來的研發支出。顯然，您目前正在花費大量支出來支援 G1000。明年或何時這種情況開始趨於平穩，我們開始看到 G1000 商業化帶來的研發支出的一些槓桿作用？

I think the G1000 will definitely start to show impact in 2004 on the revenues as the OEMs start delivering aircraft, so we will start to see that payback this year. I think in terms of ongoing activity, there is still a lot of opportunity that we see in the aviation market to leverage the effort that we have put into the G1000, so we are going to be focusing some on that. And also in order to stay competitive in the integrated cockpit market, there will have to be additional product refreshing and improvements that go on.

我認為隨著原始設備製造商開始交付飛機，G1000 肯定會在 2004 年開始對收入產生影響，因此我們今年將開始看到回報。我認為就正在進行的活動而言，我們在航空市場上仍然看到很多機會來利用我們在 G1000 上投入的努力，因此我們將重點放在這一點上。而且為了在整合駕駛艙市場保持競爭力，還必須進行額外的產品更新和改進。

Thank you, Cliff.

謝謝你，克里夫。

Mark Knobby (ph), Merrill Lynch.

馬克諾比（博士），美林證券。

Hi, guys. It is actually Ryan calling for Mark. When you guys talk about the 45 new products in 2004, could you give us an update of how many products you had at year-end '03 versus what you expect in year-end '04? In other words, how many are going to be refreshes of existing products?

嗨，大家好。實際上是瑞安在打電話給馬克。當你們談論 2004 年的 45 種新產品時，你能否向我們介紹一下你們 03 年底擁有的產品數量與 04 年底預計的產品數量的最新情況？換句話說，有多少是現有產品的更新？

I do not think we are prepared to comment specifically on that. I think we do have a lot of exciting products in the channel for 2004 that are totally new, totally revamped products. So we think the product line will be very exciting.

我認為我們不准備對此發表具體評論。我認為 2004 年我們的通路中確實有很多令人興奮的產品，它們是全新的、經過徹底改造的產品。所以我們認為該產品線將會非常令人興奮。

So you are saying there is almost like -- not just the same category -- but more of organic new opportunities?

所以你是說存在幾乎相似的——不僅僅是同一類別——而是更多的有機新機會？

There is definitely product in new categories going into the mix this year, as well as new products in existing categories such as what you saw in the GPS 60C.

今年肯定會出現新類別的產品，以及現有類別的新產品，例如您在 GPS 60C 中看到的產品。

Generally speaking, when you think about the incremental margin on a new product, in the past, Kevin, as soon as maybe three years ago, when you talked about the new products coming out, there was an incremental cost due to increases in functionality, but you are also kind of garnering a higher price for that. You're actually seeing margin expansion on the refreshes? Could you perhaps talk just directionally what you are seeing in the marketplace with respect to that trend?

一般來說，當你考慮新產品的增量利潤時，凱文，大約在三年前，當你談到新產品問世時，由於功能的增加，存在增量成本，但你也因此獲得了更高的價格。您實際上看到刷新的利潤率擴大了嗎？您能否直接談談您在市場上看到的關於這一趨勢的情況？

The way we look at the best response to competition is to introduce these new products with some of the innovative features, and so if we are able to accomplish this, as Cliff has said, we are highly confident that that will happen, we feel our gross margins should actually flatten out.

我們對競爭的最佳反應方式是推出具有一些創新功能的新產品，因此，如果我們能夠實現這一目標，正如克里夫所說，我們非常有信心這將會發生，我們覺得我們的毛利率實際上應該趨於平緩。

What we are communicating for 2004 is basically a flat gross margin. So obviously you've got competition on one side, but you've got new features and innovative products on the other. Those kind of offset in our outlook.

我們所傳達的2004 年毛利率基本上持平。顯然，一方面有競爭，但另一方面也有新功能和創新產品。這些抵消了我們的前景。

But you will confirm, though, that on the G1000 incremental margin versus the Heritage Aviation business, it is higher than the levels you're seeing today?

但您會確認，與 Heritage Aviation 業務相比，G1000 的增量利潤率高於您今天看到的水平嗎？

Really it is about the same.

確實是差不多的。

But just absolute dollars is growing because of the revenue opportunities?

但絕對美元的成長只是因為收入機會嗎？

Yes, that is right.

對就這樣。

If we can talk to -- I thought I heard you say there would be an auto PDA product. Can you just discuss that? Maybe I misheard you and perhaps talk to timing.

如果我們可以談談——我想我聽到你說將會有一款汽車 PDA 產品。能簡單討論一下嗎？也許我聽錯了，也許是在談論時機。

I think we said automotive and PDA.

我想我們說的是汽車和 PDA。

Sorry. Your 2004 guidance, have you baked in any opportunities or any discussions with expanded points of presence perhaps with the auto side -- dealerships or anything of that nature? Can you just give us an update?

對不起。在您 2004 年的指導中，您是否考慮過任何機會或任何與擴大存在點（可能是與汽車方面——經銷商或類似性質的機構）進行的討論？您能給我們更新一下嗎？

I think our guidance would exclude any new businesses there with the automotive.

我認為我們的指導意見將排除汽車領域的任何新業務。

When you guys do your planning cycle for the holiday season 2004 and you look at your full-year numbers, I see that 2610 is somewhere at the $1000 price point, but you are saying that the (inaudible) as you know it is 799. Do you have that ratcheting down and then putting new products on top of it as the cycle works through and just works on the price points?

當你們為 2004 年假期季節做計劃時，如果你們查看全年的數字，我發現 2610 的價格點在 1000 美元左右，但你們說你們知道的（聽不清）是 799。你是否會逐步降低，然後在周期結束時將新產品置於其之上，並僅在價格點上發揮作用？

We cannot comment on our plan for all pricing, but we are expecting to introduce new product.

我們無法對所有定價計劃發表評論，但我們預計會推出新產品。

Just two quick follow-ups. On your PDA you basically said in the past you do maybe 100,000 of the iQue 3600 or something of that like? Is that generally your expectation for 2004?

只需兩次快速跟進。在你的 PDA 上，你過去基本上說過你可能使用 100,000 個 iQue 360​​0 或類似的東西？這是您對 2004 年的整體期望嗎？

We would not want to give exact numbers for obvious competitive reasons. I think you can extrapolate that type of a number.

出於明顯的競爭原因，我們不想給出確切的數字。我認為你可以推斷出這種類型的數字。

Perhaps I missed it, assuming your revenue and such is on the high-end of your expectations, could you give a full-year working capital expectation?

也許我錯過了，假設您的收入等處於您預期的高端，您能否給出全年營運資金預期？

I think throughout the first half of the year, we will see continued working capital uses of cash, and then that should start coming back down depending on availability of components. But I think it is fairly neutral throughout 2004 on working capital.

我認為在今年上半年，我們將看到現金營運資金的持續使用，然後根據組件的供應情況，營運資金的使用量應該會開始下降。但我認為 2004 年全年營運資金的表現相當中性。

Great. Thanks very much.

偉大的。非常感謝。

(OPERATOR INSTRUCTIONS). There are no further questions at this time.

（操作員說明）。目前沒有其他問題。

Thanks everyone. We will be talking to you later.

感謝大家。我們稍後再與您交談。

Thank you for participating in today's Garmin fourth-quarter earnings conference call. You may now disconnect.

感謝您參加今天的 Garmin 第四季財報電話會議。您現在可以斷開連線。