8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2007 (July 31, 2007)

Trimble Navigation Limited

(Exact name of registrant as specified in its charter)

California	0-18645	94-2802192
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer I.D. No.)
935 Stewart Drive, Sunnyvale, California, 94085 (Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:(408) 481-8000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 31, 2007, the Company announced its financial results for the quarter ended June 29, 2007.  A copy of the press release dated July 31, 2007 relating to this announcement is furnished as Exhibit 99.1. 

Item 9.01 Financial Statements and Exhibits.

Ex. 99.1 Text of Company Press Release dated July 31, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TRIMBLE NAVIGATION LIMITED a California corporation
Dated: July 31, 2007	/s/ Irwin Kwatek
	Irwin Kwatek
	Vice President

EXHIBIT INDEX

Exhibit Number Description

Exhibit No.	Description
99.1	Text of Company Press Release dated July 31, 2007

EX-99.1

Exhibit 99.1

Trimble Reports Second Quarter 2007 Revenue Growth of 34 Percent

o  Revenue $327.7 Million

o  GAAP Earnings Per Share $0.28; Non-GAAP Earnings Per Share $0.35

SUNNYVALE, Calif., July 31, 2007 - Trimble (Nasdaq: TRMB) today announced results for its second quarter 2007, ended June 29, 2007. Revenue for the second quarter of 2007 was $327.7 million, up approximately 34 percent from revenue of $245.3 million in the second quarter of 2006.

Operating income for the second quarter of 2007 was $56.0 million, up 45 percent from the second quarter of 2006. Operating margins in the second quarter of 2007 were 17.1 percent, compared to 15.8 percent in the second quarter of 2006. It should be noted in year-over-year comparisons that amortization of intangibles increased from $3.7 million in the second quarter of 2006 to $10.4 million in the second quarter of 2007. Additionally, the impact of stock-based compensation expense was $3.8 million in the second quarter of 2007, compared to $3.3 million in the second quarter of 2006. In-process research and development expense was $1.0 million in the second quarter of 2006; there was no in-process research and development expense in the second quarter of 2007. Restructuring expense was $333 thousand in the second quarter of 2007; there was no restructuring expense in the second quarter of 2006. Excluding these impacts, non-GAAP operating income of $70.5 million grew by 51 percent compared to the second quarter of 2006. Non-GAAP operating income margins were 21.5 percent in the second quarter of 2007, up from 19.0 percent in the second quarter of 2006.

Net income for the second quarter of 2007 was up approximately 23 percent, to $35.0 million, compared to net income of $28.5 million in the second quarter of 2006. Diluted earnings per share for the second quarter of 2007 were $0.28, compared to diluted earnings per share of $0.25 in the second quarter of 2006. The tax rate for the second quarter of 2007 was 38 percent, compared to 31 percent in the second quarter of 2006. GAAP earnings per share in the second quarter of 2007 were negatively impacted by approximately $0.05 due to amortization of intangibles and by $0.02 due to stock-based compensation expense.

Adjusting for the amortization of intangibles, in-process research and development, restructuring, and the impact of stock-based compensation expenses, non-GAAP net income for the second quarter of 2007 was up 29 percent, to $44.1 million, compared to non-GAAP net income of $34.1 million in the second quarter of fiscal 2006. Non-GAAP earnings per share for the second quarter of 2007 were $0.35, up approximately 21 percent from non-GAAP earnings per share of $0.29 in the second quarter of 2006.

"Second quarter growth in revenue and profit was strong across all segments with some segments reflecting particularly strong international growth,” said Steven W. Berglund, Trimble’s president and chief executive officer. “The @Road transition continued as planned and produced meaningful earnings for the Mobile Solutions segment in the quarter. Overall market conditions continue to be positive.”

Trimble Results by Business Segment

Segment operating income is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, amortization of intangibles, in-process research and development, and restructuring expenses. In addition, for each segment, non-GAAP operating income excludes the impact of stock-based compensation expense.

Engineering and Construction

Second quarter 2007 Engineering and Construction (E&C) revenue was $198.9 million, up approximately 18 percent when compared to revenue of $168.0 million in the second quarter of 2006. E&C revenue was driven by growth in most product categories and particularly strong international sales.

Operating income in E&C was $52.4 million, or 26.3 percent of revenue compared to $38.8 million, or 23.1 percent of revenue, in the second quarter of 2006.

Non-GAAP operating income in E&C was $53.2 million, or 26.7 percent of revenue, in the second quarter of 2007 compared to $39.9 million, or 23.7 percent of revenue, in the second quarter of 2006.

Field Solutions

Second quarter 2007 Field Solutions (TFS) revenue was $55.3 million, up 52 percent compared to $36.3 million in revenue in the second quarter of 2006. Revenue growth was driven by positive agricultural market conditions and robust new agriculture and GIS product sales.

Operating income in TFS was $18.4 million, or 33.3 percent of revenue, for the second quarter of 2007 compared to $11.3 million, or 31.1 percent of revenue, in the second quarter of 2006.

Non-GAAP operating income was $18.6 million, or 33.6 percent of revenue, for the second quarter of 2007 compared to $11.5 million, or 31.8 percent of revenue, in the second quarter of 2006.

Mobile Solutions

Second quarter 2007 Mobile Solutions revenue (TMS) was $40.9 million, up 176 percent from revenue of $14.9 million in the second quarter of 2006.

Operating income in TMS was $2.9 million, or 7.1 percent of revenue, for the second quarter of 2007 compared to $374 thousand, or 2.5 percent of revenue, in the second quarter of 2006.

Non-GAAP operating income in TMS was $4.4 million, or 10.8 percent of revenue, for the second quarter of 2007 compared to $538 thousand, or 3.6 percent of revenue, in the second quarter of 2006.

Advanced Devices

Second quarter 2007 Advanced Devices revenue was $32.7 million, up approximately 25 percent from revenue of $26.1 million in the second quarter of 2006 primarily due to strong sales of embedded products.

Operating income in Advanced Devices was $5.4 million, or 16.5 percent of revenue, for the second quarter of 2007 compared to $2.2 million, or 8.6 percent of revenue, in the second quarter of 2006.

Non-GAAP operating income in Advanced Devices was $5.7 million, or 17.4 percent of revenue, for the second quarter of 2007 compared to $2.7 million, or 10.4 percent of revenue, in the second quarter of 2006.

Use of Non-GAAP Financial Information

Our results of operations have undergone significant change primarily due to the impact of acquisitions and FAS 123(R). To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The specific non-GAAP measures which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why management chose to exclude selected items and the additional purposes for which these non-GAAP measures are used can be found at the end of this release. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Management generally compensates for the limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure or measures. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information, on the investor relations page of our Web site at www.investor.trimble.com.

Forward Looking Guidance

In the third quarter of 2007, Trimble expects revenue to grow 25 to 27 percent compared to the third quarter of 2006, with revenue between $294 million and $299 million. At a 38 percent tax rate, with approximately 125.1 million shares outstanding, Trimble expects third quarter 2007 GAAP earnings per share between $0.18 and $0.20.

Trimble expects third quarter 2007 non-GAAP earnings per share between $0.26 and $0.28, compared to actual split-adjusted non-GAAP earnings per share of $0.25 in the third quarter of 2006. Non-GAAP guidance for the third quarter of 2007 uses a 38 percent tax rate and excludes the amortization of intangibles of $10.5 million related to previous acquisitions, and the anticipated impact of stock-based compensation expense of $4.5 million.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on July 31, 2007 at 1:30 p.m. PDT to review its second quarter 2007 results. It will be broadcast live on the Web at http://investor.trimble.com. Investors without Internet access may dial into the call at (800) 528-9198 (U.S.) or (706) 634-6089 (international). A replay of the call will be available for seven days at (800) 642-1687 (U.S.) or ((706) 645-9291 (international) and the passcode is 4917771. The replay will also be available on the Web at the address above.

About Trimble

Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location—including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies such as GPS, lasers and optics, Trimble solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1978 and headquartered in Sunnyvale, Calif., Trimble has a worldwide presence with more than 3,400 employees in over 18 countries.

For more information visit Trimble’s Web site at www.trimble.com.

Safe Harbor

Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include the revenue, effective tax rate, stock-based compensation, the impact from in-process research and development expense, amortization of purchased intangibles and earnings per share estimates for the second quarter and full year 2007. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. For example, strong demand for the Company's products may not continue because of a decline in the overall health of the economy and international markets, which may result in reduced capital spending. In addition, the Company's results may be adversely affected if the growth rates and profitability expectations for each of its four segments are not achieved, or its joint ventures and recent acquisitions do not achieve anticipated results, or if the Company is unable to market, manufacture and ship new products. The Company’s results would also be negatively impacted by unforeseen costs associated with the integration of @Road or delays in integrating the two companies. Any failure to achieve predicted results could negatively impact the Company's revenues, gross margin and other financial results. Whether the Company achieves its guidance for the second quarter of 2007 and fiscal 2007 will also depend on a number of other factors, including the risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10- K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.

FTRMB

  

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	Jun-29,			Jun-30,			Jun-29,			Jun-30,
	2007			2006			2007			2006
Revenue	$	327,732		$	245,326		$	613,464		$	471,180
Cost of sales		160,563			123,670			303,165			242,061
Gross margin		167,169			121,656			310,299			229,119
Gross margin (%)		51.0	%		49.6	%		50.6	%		48.6	%
Operating expenses
Research and development		33,867			27,607			65,030			52,053
Sales and marketing		47,546			35,747			89,693			68,453
General and administrative		24,278			16,205			45,920			31,966
Restructuring		333			-			3,025			-
Amortization of purchased intangible assets		5,195			2,408			9,301			3,893
In-process research and development		-			1,020			2,112			1,020
Total operating expenses		111,219			82,987			215,081			157,385
Operating income		55,950			38,669			95,218			71,734
Non-operating income (expense), net
Interest income		593			763			1,837			1,275
Interest expense		(2,459	)		(165	)		(3,860	)		(243	)
Income from joint ventures		2,080			1,575			4,502			3,191
Other income, net		57			352			649			1,109
Total non-operating income (expense), net		271			2,525			3,128			5,332
Income before taxes		56,221			41,194			98,346			77,066
Income tax provision		21,195			12,691			34,637			22,735
Net income	$	35,026		$	28,503		$	63,709		$	54,331
Earnings per share :
Basic	$	0.29		$	0.26		$	0.54		$	0.50
Diluted	$	0.28		$	0.25		$	0.52		$	0.47
Shares used in calculating earnings per share :
Basic		119,621			109,694			117,535			109,088
Diluted		124,584			116,256			122,539			115,522

  

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

Unaudited

	Jun-29,		Dec-29,
	2007		2006
Assets
Current assets:
Cash and cash equivalents	$	73,760	$	129,621
Accounts receivables, net		235,192		177,054
Other receivables		11,939		6,014
Inventories, net		137,664		112,552
Other current assets		55,265		38,931
Total current assets		513,820		464,172
Property and equipment, net		52,271		47,998
Goodwill		657,746		374,510
Other purchased intangible assets, net		202,693		67,172
Other non-current assets		47,844		29,625
Total assets	$	1,474,374	$	983,477
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt	$	11,250	$	-
Accounts payable		63,795		49,194
Deferred revenue		41,440		28,060
Deferred income taxes		3,291		4,525
Income taxes payable		30,963		23,814
Other accrued liabilities		90,577		80,586
Total current liabilities		241,316		186,179
Non-current portion of long-term debt		111,739		481
Non-current deferred revenue		10,105		-
Deferred income taxes		45,584		21,633
Other non-current liabilities		54,877		27,519
Total liabilities		463,621		235,812
Commitments and contingencies
Shareholders' equity:
Common stock		628,624		435,371
Retained earnings		334,892		271,183
Accumulated other comprehensive income		47,237		41,111
Total shareholders' equity		1,010,753		747,665
Total liabilities and shareholders' equity	$	1,474,374	$	983,477

  

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Unaudited

	Six Months Ended
	Jun-29,			Jun-30,
	2007			2006
Cash flow from operating activities:
Net Income	$	63,709		$	54,331
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation expense		8,426			6,489
Amortization expense		18,394			6,145
Provision for doubtful accounts		358			95
Amortization of debt issuance cost		105			90
Deferred income taxes		(8,636	)		(1,678	)
Non-Cash Restructuring expense		1,725			-
Stock-based compensation		7,145			6,489
In-process research and development		2,112			1,020
Equity gain from joint ventures		(4,503	)		(3,191	)
Excess tax benefit for stock-based compensation		(5,929	)		(4,770	)
Provision for excess and obsolete inventories		1,941			4,196
Other noncash items		140			463
Add decrease (increase) in assets:
Accounts receivables		(41,832	)		(19,417	)
Other receivables		2,968			341
Inventories		(11,760	)		(6,933	)
Other current and non-current assets		9,414			(2,097	)
Add increase (decrease) in liabilities:
Accounts payable		(6,298	)		1,386
Accrued liabilities		3,216			(1,076	)
Deferred revenue		12,132			9,862
Income taxes payable		33,630			7,624
Net cash provided by operating activities		86,457			59,369
Cash flows from investing activities:
Acquisitions, net of cash acquired		(277,743	)		(38,137	)
Acquisition of property and equipment		(6,270	)		(10,943	)
Proceeds from dividends		581			-
Other		378			-
Net cash used in investing activities		(283,054	)		(49,080	)
Cash flow from financing activities:
Issuance of common stock		15,761			17,162
Excess tax benefit for stock-based compensation		5,929			4,770
Proceeds from long-term debt and revolving credit lines		250,000			-
Payments on long-term debt and revolving credit lines		(127,517	)		-
Other		-			(777	)
Net cash provided by financing activities		144,173			21,155
Effect of exchange rate changes on cash and cash equivalents		(3,437	)		2,429
Net increase (decrease) in cash and cash equivalents		(55,861	)		33,873
Cash and cash equivalents - beginning of period		129,621			73,853
Cash and cash equivalents - end of period	$	73,760		$	107,726

  

NON-GAAP RECONCILIATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

( Dollars in thousands, except per share data)

(Unaudited)

		Three Months Ended						Six Months Ended
		Jun-29,			Jun-30,			Jun-29,			Jun-30,
		2007			2006			2007			2006
REVENUE:		$	327,732		$	245,326		$	613,464		$	471,180
GROSS MARGIN:
GAAP gross margin:		$	167,169		$	121,656		$	310,299		$	229,119
Amortization of purchased intangibles	( B )		5,237			1,334			9,026			2,189
Stock-based compensation	( D )		429			309			771			596
Non-GAAP gross margin:		$	172,835		$	123,299		$	320,096		$	231,904
Non-GAAP gross margin (% of revenue)			52.7	%		50.3	%		52.2	%		49.2	%
OPERATING INCOME:
GAAP operating income:		$	55,950		$	38,669		$	95,218		$	71,734
Restructuring	( A )		333			-			3,025			-
Amortization of purchased intangibles	( B )		10,432			3,742			18,327			6,082
In-process research and development	( C )		-			1,020			2,112			1,020
Stock-based compensation	( D )		3,792			3,259			7,145			6,489
Non-GAAP operating income:		$	70,507		$	46,690		$	125,827		$	85,325
Non-GAAP operating margin (% of revenue)			21.5	%		19.0	%		20.5	%		18.1	%
NET INCOME:
GAAP net income		$	35,026		$	28,503		$	63,709		$	54,331
Restructuring	( A)		333			-			3,025			-
Amortization of purchased intangibles	( B )		10,432			3,742			18,327			6,082
In-process research and development	( C )		-			1,020			2,112			1,020
Stock-based compensation	( D )		3,792			3,259			7,145			6,489
Income tax effect on non-GAAP adjustments	( E )		(5,489	)		(2,449	)		(10,610	)		(4,009	)
Non-GAAP net income		$	44,094		$	34,075		$	83,708		$	63,913
DILUTED NET INCOME PER SHARE:
GAAP diluted net income per share:		$	0.28		$	0.25		$	0.52		$	0.47
Non-GAAP diluted net income per share:		$	0.35		$	0.29		$	0.68		$	0.55
SHARES USED TO COMPUTE DILUTED NET
INCOME PER SHARE:
GAAP and Non-GAAP shares used to compute
net income per share:			124,584			116,256			122,539			115,522
OPERATING LEVERAGE:
Increase in non-GAAP operating income		$	23,817					$	40,502
Increase in revenue		$	82,406					$	142,284
Operating leverage (increase in non-GAAP operatingincome as a % of increase in revenue)			28.9	%					28.5	%

The non-GAAP financial measures included in the table above are non-GAAP gross margin, non-GAAP operating income, non-GAAP net income and non-GAAP diluted net income per share, which adjust for the following items: expenses related to acquisitions, stock-based compensation expense and restructuring charges. Management uses these non-GAAP measures to assess trends in its business and for budgeting purposes, as many of these excluded items are non-cash. In addition, we believe that the presentation of these non-GAAP financial measures is useful to investors for the reasons associated with each of the adjusting items as described below.

( A ) Restructuring. The amounts recorded are for employee compensation resulting from reductions in employee headcount in connection with our company restructurings and we believe they are not directly related to the operation of our business.

( B )	Amortization of purchased intangibles. The amounts recorded as amortization of purchased intangibles arise from prior acquisitions and are non-cash in nature. We exclude these expenses because we believe they are not reflective of ongoing operating results in the period incurred and are not directly related to the operation of our business. Approximately $5,237K and $1,334K of the amortization of purchased intangibles was included in cost of sales for the three months ended June 29, 2007 and June 30, 2006, respectively, and approximately $5,195K and $2,408K was reported as a separate line within operating expenses for the three months ended June 29, 2007 and June 30, 2006, respectively. Approximately $9,026K and $2,189K of the amortization of purchased intangibles was included in cost of sales for the six months ended June 29, 2007 and June 30, 2006, respectively, and approximately $9,301K and $3,893K was reported as a separate line within operating expenses for the six months ended June 29, 2007 and June 30, 2006, respectively.
( C )	In-process research and development. The amounts recorded as in-process research and development arise from prior acquisitions and are non-cash in nature. We exclude these expenses because we believe they are not reflective of ongoing operating results in the period incurred and not directly related to the operation of our business.
( D )	Stock-based Compensation. The amounts consist of expenses for employee stock options and purchase rights under our employee stock purchase plan determined in accordance with SFAS 123(R), which became effective for us on January 1, 2006. We exclude these stock-based compensation expenses because they are non-cash expenses that we believe are not reflective of ongoing operation results. Further, we believe it is useful to investors to understand the impact of the application of SFAS 123(R) to our results of operations. For the three and six months ended June 29, 2007 and June 30, 2006, stock-based compensation was allocated as follows:

	Three Months Ended				Six Months Ended
	Jun-29,		Jun-30,		Jun-29,		Jun-30,
	2007		2006		2007		2006
Cost of sales	$	429	$	309	$	771	$	596
Research and development		1,022		667		1,751		1,306
Sales and Marketing		974		711		1,741		1,452
General and administrative		1,367		1,572		2,882		3,135
	$	3,792	$	3,259	$	7,145	$	6,489

( E ) Income tax effect on non-GAAP adjustments. This amounts adjusts the provision for income taxes to reflect the effect of the non-GAAP adjustments on non-GAAP operating income.

  

NON-GAAP RECONCILIATION

REPORTING SEGMENTS

( Dollars in thousands)

(Unaudited)

		Reporting Segments
		Engineering and Construction			Field Solutions			Mobile Solutions			Advanced Devices
THREE MONTHS ENDED JUNE 29, 2007:
Revenue		$	198,853		$	55,273		$	40,927		$	32,679
GAAP operating income before corporate allocations:		$	52,371		$	18,398		$	2,906		$	5,384
Stock-based compensation	( F )		806			164			1,527			303
Non-GAAP operating income before corporate allocations:		$	53,177		$	18,562		$	4,433		$	5,687
Non-GAAP operating margin (% of segment external net revenues)			26.7	%		33.6	%		10.8	%		17.4	%
THREE MONTHS ENDED JUNE 30, 2006:
Revenue		$	168,041		$	36,320		$	14,851		$	26,114
GAAP operating income before corporate allocations:		$	38,803		$	11,299		$	374		$	2,243
Stock-based compensation	( F )		1,062			249			164			483
Non-GAAP operating income before corporate allocations:		$	39,865		$	11,548		$	538		$	2,726
Non-GAAP operating margin (% of segment external net revenues)			23.7	%		31.8	%		3.6	%		10.4	%
SIX MONTHS ENDED JUNE 29, 2007:
Revenue		$	374,457		$	106,235		$	70,784		$	61,988
GAAP operating income before corporate allocations:		$	94,535		$	35,026		$	3,916		$	8,727
Stock-based compensation	( F )		1,678			354			2,269			667
Non-GAAP operating income before corporate allocations:		$	96,213		$	35,380		$	6,185		$	9,394
Non-GAAP operating margin (% of segment external net revenues)			25.7	%		33.3	%		8.7	%		15.2	%
SIX MONTHS ENDED JUNE 30, 2006:
Revenue		$	314,774		$	79,362		$	27,458		$	49,586
GAAP operating income before corporate allocations:		$	65,180		$	25,207		$	597		$	4,566
Stock-based compensation	( F )		2,096			494			340			968
Non-GAAP operating income before corporate allocations:		$	67,276		$	25,701		$	937		$	5,534
Non-GAAP operating margin (% of segment external net revenues)			21.4	%		32.4	%		3.4	%		11.2	%

( F ) Stock-based Compensation. The amounts consist of expenses for employee stock options and purchase rights under our employee stock purchase plan determined in accordance with SFAS 123(R), which became effective for us on January 1, 2006. We discuss our operating results by segment with and with-out stock-based compensation expense, as we believe it is useful to investors to understand the impact of the application of SFAS 123(R) to our results of operations because it facilitates trends in the business prior to the adoption of SFAS 123(R). Stock-based compensation not allocated to the reportable segments was approximately $992K and $1,301K for the three months ended June 29, 2007 and June 30, 2006, respectively and $2,177K and $2,591K for the six months ended June 29, 2007 and June 30, 2007, respectively.