As companies grow, it’s not at all uncommon for them to branch into new, complementary lines of business.

For instance, when Trimble Inc. (NSDQ: TRMB) was founded in 1978, it was focused on making navigational systems for ships using LORAN-C, a now defunct predecessor of GPS. The company quickly adapted to the newly launched GPS system though, introducing surveying technology that used the system to take precise measurements. Since then it has launched everything from self-driving systems for tractors, leveling and positioning equipment for the construction industry, and tracking systems for the trucking industry just to name a few.

Trimble also launched an unmanned aircraft system, which married Trimble’s software with two basic types of drones. Depending on the drone’s sensor arrays, they can perform surveys, map vegetation, monitor crop performance or a host of other functions. The problem there is that the drone business has gotten to be incredibly competitive, with dozens of companies hawking hundreds of types of drones. Nobody wants to have a hanger full of drones though, each of which can only perform a very specific function.

Trimble doesn’t break out its revenue or earnings from the drone business, opting to lump those results in with its Engineering and Construction segment, so I don’t think it’s a huge moneymaker for the company. Offering the hardware itself also doesn’t make much sense for Trimble since it’s primarily in the business of systems. In fact, whether we’re talking about auto-piloting farm tractors or automated mining equipment, most all of that hardware is made by someone else and just integrates Trimble’s navigation and mapping systems.

That makes the recent announcement that Trimble is getting out of the drone business unsurprising. But instead of totally abandoning a growing market – I live in a fairly rural part of Virginia and it’s not usual to see drones buzzing the fields around my house anymore – it has sold its drone engineering and manufacturing business to France-based Delair-Tech, which will still use Trimble’s software in the drones. That’s going to be a much more profitable arrangement for Trimble, boosting its margins since it won’t have the overhead of actually making drones anymore.

While it has sold off a few other business lines over the past year, working to tighten the company’s product lines and focus, that’s just one step in Trimble’s evolution.

Trimble has also announced in the past week that it is changing its name, dropping the “Navigation” from its moniker, to mark the fact that it is now more of an integrated systems company than a purer GPS play. And while its corporate headquarters will remain in California, it has been reincorporated in Delaware in order to reduce its taxes and take advantage of the business-friendly court system there, should the need arise.

The markets are clearly happy with the results of Trimble’s reinvention, bidding its shares up by more than 30% so far this year and driving our own 15% gain on the company. While no single step it has taken will really have a huge impact on its performance, in sum they will help boost its margins and profitability going forward, especially as it launches new products that are a better fit with its business.

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