Worldwide provider of navigation, communications and
) has recently launched a remote-mount transponder, the GTX 3000.
The new device satisfies the operational needs of transport
A transponder is an electronic device used to wirelessly
receive and transmit electrical signals in aircraft. The device
is mainly used for location, identification and navigation
systems for commercial and private aircraft. Other applications
include optical communications, aviation, marine, motorsport and
in under-water equipment.
Garmin's GTX 3000 transponder is sleeker and lighter, and
fulfills the TSO/DO-260B compatibility requirements. It comes
with higher transmitting power than the ones from others like
Texas Instruments Inc.
). Garmin's commitment in launching hi-tech products in aviation
segment shows that this segment is up for rebound, which can be
positive for Garmin going forward.
According to IBIS World, revenue for the Global Airlines
industry is estimated to increase at a compounded annual growth
rate (CAGR) of 2.8% from 2007-2012 to $633.0 billion. In
addition, the Federal Aviation Administration (FAA) expects the
number of commercial aircraft being produced to increase from
7,096 in 2010 to 10,523 in 2031, an average annual growth rate of
1.9% or 163 aircraft annually.
Garmin is well positioned in the aviation market, although
recessionary pressures have affected this business. Garmin has
continued with its product launches right through the year,
including the GTN TM 650 and 750 series touchscreen-controlled
integrated VHF navigation receiver, G1000H TM integrated glass
flight deck system, and aera 795 and 796 touchscreen portable
aviation navigation devices among others.
In the first quarter of fiscal 2012, Garmin's revenue from the
aviation segment was $73.0 million (13.0% of revenue), up 2.1%
sequentially and 5.4% year over year.
Currently, Garmin Ltd. has a Zacks #4 Rank, implying a
short-term 'Sell' rating.
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