Trimble Navigation Limited (NASDAQ:TRMB) Q3 2019 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 08:00 pm ET


Trimble Navigation Limited (NASDAQ:TRMB) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Trimble Third Quarter 2019 Earnings Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Michael Leyba. Thank you. Please go ahead.

Michael Leyba

Thank you. Good afternoon, everyone, and thanks for joining us on the call. I'm here today with Steve Berglund, our CEO and Rob Painter, our CFO. I would like to point out that our earnings release and the slide presentation supplementing today's call are available on our website at as well as within the webcast, and we will be referring to the presentation today.

In addition, we will also be posting our prepared remarks on our Investor Relations website at shortly after the completion of this call.

Turning to Slide 2 of the presentation, I would like to remind you that the forward-looking statements made in today's call and the subsequent question-and-answer period are subject to risks and uncertainties. Trimble's actual results may differ materially from those currently anticipated due to a number of factors detailed in the Company's Form 10-K and 10-Q or other documents filed with the Securities and Exchange Commission. The non-GAAP measures that we discuss in today's call are fully reconciled to GAAP measures in the tables from our press release.

First, Steve will start with an overview. After that, Rob will take us through the remainder of the slides, including an in-depth review of the quarter, our guidance and then we will go to Q&A. With that, I will turn the call over to Steve.

Steven W. Berglund

Good afternoon. This will be my 83rd and final quarterly conference call. To put things in context, my first call for Trimble for the first fiscal quarter of 1999 reported revenue of $68.8 million and operating income of $3.7 million. Today, I will leave the discussion of the quarter to Rob and I will focus on today's CEO succession announcement. Rob's appointment represents the outcome of a multiyear process. Virtually every board meeting for years has featured a discussion and evaluation of talent, with an emphasis on individuals with short and long-term CEO role capabilities. The evolution of the Company has made this a dynamic process. As the Company has changed, so has the CEO specification. This progression has included the shift from product to solutions, increasing role of software and most recently, the emphasis on recurring revenue and services. As a result of the process, the Board came to the conclusion that an inside candidate would generally be preferable for two reasons. First, we are a relatively complex Company with a nuanced strategy and growing numbers of common platforms that would be a challenge for an outsider to assimilate. Second, our Company culture is central to our success and it was important to find an individual that represented both the continuity of that culture while acting as an agent of healthy change.

Both the Board and I believe we have found the right blend in Rob. In