Give us a window into your demand?
“In the first half of the year – we’ve seen very strong growth in the U.S.” replies Rauckman. “We’ve seen a 300% increase on units sold in Q2 and in the second half we’re expecting continued growth.”
How pervasive will this product be?
“In North America and Europe combined we’re looking at 25 million units of personal navigation devices just this year alone,” replies Rauckman. “The good thing about this market is.. there’s very low penetration.”
Can you control your profit margins?
“The price is coming down and as we enter the holiday we expect the price to drop due to competition,” explains Rauckman. “But we’re prepared for it.” He adds "The good thing about this market is that the units are growing rapidly.”
Can you keep up with demand?
“We’ve recently spent $100 million… to buy a third factory,” says Rauckman. “So we’re putting adding new production lines..to meet the demand for the growing market.”
Is that new factory in Asia?
“It’s our third Taiwan factory,” Rauckman says.
What’s your outlook?
“We’ve been conservative with our outlook and when we talk to The Street it’s with a number that we’re confident (we can meet),” replies Rauckman. “(Although) we’re expecting pricing to come down.. we’re also expecting considerable growth.”
Dylan asks the guys if they have a Garmin GPS?
Jeff Macke says he does and it’s terrific.
Dylan asks the guys what they think about Garmin as well asTrimble (TRMB) and NAVTEQ (NVT).
All the guys say own these stocks!
