(RTTNews) - Tuesday after the bell, Trimble Navigation Ltd. (TRMB: News ) reported a sharp decline in profit for the third quarter from the year-ago period on a 18% decline in revenue. Looking ahead, Trimble provided its fourth quarter outlook, with both revenues and earnings expected to come in short of analysts' estimates.

Trimble's profit decreased 60% to $15.57 million from $39.06 million in the year-ago period. On a per share basis, net income declined to $0.13 from $0.31 in the prior-year period.

For the quarter, amortization of intangibles was $13.6 million, stock-based compensation expense $4.5 million, restructuring charges $1.1 million and non-recurring acquisition costs at $0.6 million. For the year-ago period, amortization of intangibles was $11.1 million, stock-based compensation expense $3.8 million, restructuring charge $0.5 million and acquisition-related inventory step-up at $0.4 million.

Adjusting for these items, non-GAAP net income decreased 40% to $30.2 million from the year-ago period. On a per share basis, non-GAAP net income declined to $0.25 from $0.40 a year ago.

On an average, 12 analysts polled by Thomson Reuters expected earnings of $0.26 for the quarter. Analysts' estimates typically exclude one-time items.

Operating income decreased 63% to $20.2 million from $54.05 million with operating margins of 7.5%, down from 16.5% in the year-earlier quarter. Non-GAAP operating income was $40.0 million, down 43% from the year-ago period with operating margins coming down to 14.8% from 21.3%.
Revenue for the quarter decreased 18% to $269.7 million from $328.1 million last year. Analysts' expected revenues of $271.77 million for the quarter.

Segment-wise, engineering and construction revenue was $149.4 million, down 22% from the year-ago period due to the recession in Europe and North America. Field Solutions revenue was $55.7 million, down 14%, driven by lower agriculture product sales. Mobile Solutions revenue was $39.6 million, down 3% due to lower sales of ready mix hardware, while Advanced Devices revenue was $25.1 million, down 19% with lower sales of embedded, timing and Applanix products.

Steven Berglund, President and CEO, Trimble, said, "Although economic conditions remain volatile and uncertain, we now believe we have the capability to provide double digit revenue growth in 2010 with significantly higher earnings growth."

For the nine-month period of 2009, the company posted net income attributable to Trimble of $53.90 million or $0.44 per share, compared to $127.73 million or $1.02 per share in the same period last year.

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