), a worldwide provider of navigation, communications, and
information devices, most of which are enabled by global
positioning system (GPS) technology has launched a new affordable
weather radar called GWX 70 for the general avionics market.
GWX 70 radar is better than its predecessors due to its enhanced
range of readings, which coupled with real-time weather analysis in
the cockpit makes it a reliable device in aircraft. The main
enhancement is with respect to its ability to detect and warn
against turbulence. This would therefore increase the safety and
comfort of journeys.
The technology is not new -- it was earlier available on
high-end commercial aircraft, personal and business jets. Garmin
has changed all that, extending the technology to all kinds of
aircraft that can easily fit the advanced weather radar.
The new radar device is an addition to Garmin's product
portfolio which already includes traffic advisory systems and
traffic collision avoidance systems, terrain awareness and warning
systems, instrument landing system (ILS) receivers, surveillance
products, audio panels and cockpit datalink systems.
As per 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 to grow 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. But 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, aera® 795 and 796 touchscreen portable aviation
navigation devices among others.
For the first quarter of fiscal 2012, revenue from the aviation
segment was $73.0 million (13.0% of revenue), which was up 2.1%
sequentially, and 5.4% year over year.
Currently, Garmin Ltd. has a Zacks Rank of #4, implying a
short-term Sell recommendation.
GARMIN LTD (GRMN): Free Stock Analysis Report
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