Good day, ladies and gentlemen, and welcome to the Garmin Ltd. Third Quarter 2018 Earnings Conference Call. At this time all participants are in the listen-only mode. Later we'll conduct a question-and-answer session and instructions will be given at that time. And as a reminder, this conference call is being recorded. I would now like to introduce your host for today's call, Ms. Teri Seck, Manager of Investor Relations. Ma'am, you may begin.

Good morning. We would like to welcome you to Garmin Limited third quarter 2018 earnings call. Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcript will also be available on our website. As a reminder, we adopted the new U.S. GAAP revenue standards in the first quarter 2018. The prior periods presented here have been restated to reflect adoption of this new standard. This earnings call includes projections and other forward-looking statements regarding Garmin Limited and its business. Any statements regarding our future financial position, revenues, earnings, gross and operating margins, and future dividends, market shares, product introductions, future demand for our products and plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission. Presenting on behalf of Garmin Limited this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer. At this time, I would like to turn the call over to Cliff Pemble.

Thank you, Teri, and good morning, everyone. I'd like to begin by mentioning a couple of important milestones we recently celebrated. During the third quarter, we shipped our 200 millionth product, which is a testament to our ability to design, manufacture and sell unique applications of technology for active lifestyles. Equally as exciting, we started production in our new aviation manufacturing facility located in Olathe, Kansas. This new facility more than doubles our production capacity, allowing us to serve our growing aviation business for many years to come. Moving now to the quarterly results, earlier today Garmin reported strong third quarter consolidated revenue of $810 million, up 8% over the prior year. Marine, aviation, fitness and outdoor collectively increased 16% year-over-year and contributed 80% of total revenues. Gross margin improved to 59.4% compared to the prior year, operating income improved to $196 million, up 13% over the prior year. This resulted in GAAP EPS of $0.97, and pro forma EPS of $1 in the quarter. We are pleased with our performance in the first three quarters of 2018, and these strong results give us confidence to raise our full year EPS guidance. Doug will discuss our financial results in greater detail in a few minutes. But first, I'd like to provide a few brief remarks on the performance of our business segments. Starting with the marine segment, revenue increased 28% as we saw strong sales continue well into the summer boating season. Approximately half of the growth was organic, while the other half came from acquisitions. Gross and operating margins were 59% and 14% respectively. We recently announced our GPSMAP 8600 series of chartplotters. This is the first product line to use our new G3 maps, which combine the best of Garmin and Navionics content. We've been very intentional about…

Thanks Cliff. Good morning everyone. Let's begin by reviewing our third quarter financial results (09:06) comments on the balance sheet, cash flow statement and taxes. We posted revenue of $810 million for the third quarter, representing an 8% increase year over year. Gross margin was 59.4%, a 120-basis-point increase from the prior year. Operating expense as a percentage of sales was 35.2%, consistent with the prior year. Operating income was $196 million, a 13% increase year-over-year. Operating margin was 24.2%, 110-basis-point increase from the prior year. Our GAAP EPS was $0.97, pro forma EPS was $1, a 30% increase from the prior year. Next, look at our third quarter revenue by segment. During the quarter, we achieved 8% consolidated growth led by double-digit growth in four of our five segments. This growth was partially offset by decline in our auto segment as a result of continued decline in the auto PND business. Combined basis, marine, aviation, fitness and outdoor were up 16% compared to the prior-year quarter. Looking next at third quarter revenue and operating income. On a combined basis, marine, aviation, fitness, and outdoor segments contributed 80% of total revenue in the third quarter of 2018 compared to 74% in the prior-year quarter. Auto declined from 26% to 20%, while every other segment grew. Marine grew from 10% to 12%, and fitness grew from 22% to 24%. As you can see from the charts illustrate our profit mix by segment, combined basis, the marine, aviation, fitness and outdoor segments delivered 92% operating income in third quarter of 2018 compared to 89% in third quarter of 2017. The aviation and outdoor segments had year-over-year increase in both operating income dollars and operating margin. Looking next to operating expenses. Our third quarter operating expenses increased by $21 million, or 8%. Research…

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I'm showing no further questions at this time. I would now like to turn the call back over to Teri Seck for closing remarks.

Thanks, everyone, and have a great day. Doug and I will be available for your calls the rest of the day. Thank you. Bye.