Trimble Navigation Ltd. (TRMB) recently launched a number of products for engineering and construction contractors.
The company’s AllTrak Asset Management System helps in tracking and management of both owned and rented resources. It can be used to track the location and condition of equipment, tools, consumables and other portable assets, facilitating activity related to their maintenance, service and replacement. Users of rented assets can also set up visual or email alerts to remind them of return dates and make financial calculations. The product, which uses existing Trimble hardware in combination with a new tracking software, is now available at select North American distributors.
The family of Digital Pen Solutions includes Trimble DPS200 forms for Microsoft (MSFT) Office Excel, Trimble DPS200 Markup forms for PDF and Trimble DPS100 forms for Microsoft Office OneNote. Data collected on pen and paper can thus be converted to digital form by harnessing the well-established Capturx technology. Shipment of the product is expected to begin in the current quarter.
The Spectra Precision Laser DDS300 Depth Display System is a seven-inch, color touchscreen that enables real-time display of depth in construction activity. It promises to improve accuracy and efficiency of trenching, excavating and grading operations. Since its sensors and control box are wirelessly connected, the product facilitates quick and easy installation and movement between construction equipment. Shipment of this product is also expected in the current quarter.
Engineering and Construction is Trimble’s largest operating unit, contributing more than half of its total revenue. The segment has performed badly this year, recording double-digit declines in both the first and second quarters compared to the respective year-ago quarters.
Considering that this is seasonally a strong period for the company, we do not expect much improvement through the rest of the year. However, we do believe that the poor performance is due to the recession and Trimble has not lost position at key customers.
We consider new product introductions to improve efficiencies and return on investment as a step in the right direction. We also believe that a return to growth may be expected as soon as the big construction companies regain confidence in the lending market.
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