Editorial Contacts:
Ben Lu, CFA, Vice President, Investor Relations - lir@logitech.com
Nicole Kenyon, Head of Global Corporate & Employee Communications - USA (510) 988-8553 Ben Starkie, Corporate Communications - Europe +41 (0) 79-292-3499
Logitech Delivers Strong Start to Fiscal Year 2022
Company's Q1 Sales Grow 66% and Profits Double
LAUSANNE, Switzerland, July 27, 2021 and NEWARK, Calif., July 26, 2021 - SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR -
Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the first quarter of Fiscal Year 2022.
- Q1 sales were $1.31 billion, up 66 percent in US dollars and 58 percent in constant currency, compared to Q1 of the prior year.
- Q1 GAAP operating income grew 143 percent to $203 million, compared to $83 million in the same quarter a year ago. Q1 GAAP earnings per share (EPS) grew 160 percent to $1.09, compared to $0.42 in the same quarter a year ago.
- Q1 non-GAAP operating income grew 100 percent to $235 million, compared to $117 million in the same quarter a year ago. Q1 non-GAAP EPS grew 91 percent to $1.22, compared to $0.64 in the same quarter a year ago.
"We've started strong in Fiscal Year 2022, with Q1 sales up 58% in constant currency and profits doubling versus last year," said Bracken Darrell, Logitech president and chief executive officer. "Our key categories grew high double digits. This performance demonstrates the strength of our capabilities, excellent operational execution, and ability to capitalize on long-term trends, like gaming, streaming and creating, hybrid work and video everywhere."
Outlook
Logitech confirmed its Fiscal Year 2022 outlook of flat sales growth in constant currency, plus or minus five percent, and $800 million to $850 million in non-GAAP operating income.
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results videoconference available online on the Logitech corporate website at http://ir.logitech.com.
Financial Results Videoconference and Webcast
Logitech will hold a financial results videoconference to discuss the results for Q1 Fiscal Year 2022 on Tuesday, July 27, 2021 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. A livestream of the event will be available on the Logitech corporate website at http://ir.logitech.com.
Use of Non-GAAP Financial Information and Constant Currency
To facilitate comparisons to Logitech's historical results, Logitech has included non-GAAP adjusted measures, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under "Supplemental Financial Information" after the tables below. Logitech also presents percentage sales growth in constant currency, a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period's average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance and trends in its business. With respect to the Company's outlook for non-GAAP operating income, most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for the Fiscal Year 2022 outlook.
About Logitech
Logitech helps all people pursue their passions by designing experiences so everyone can create, achieve, and enjoy more. Logitech designs and creates products that bring people together through computing, gaming, video, streaming and creating, and music. Brands of Logitech include Logitech,Logitech G,ASTRO Gaming,Streamlabs,Blue Microphones,Ultimate Earsand Jaybird. Founded in 1981, and headquartered in Lausanne, Switzerland, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech at www.logitech.com, the company blogor @Logitech.
# # #
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three months ended June 30, 2021, long-term growth trends, Logitech's potential, and outlook for Fiscal Year 2022 operating income and sales growth. The forward-looking statements in this press release involve risks and uncertainties that could cause Logitech's actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: if our product offerings, marketing activities and investment prioritization decisions do not result in the sales, profitability or profitability growth we expect, or when we expect it; if we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories; if we do not successfully execute on our growth opportunities or our growth opportunities are more limited than we expect; the effect of demand variability and supply shortages; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; if we are not able to maintain and enhance our brands; if our products and marketing strategies fail to separate our products from competitors' products; the COVID-19 pandemic and its potential impact; if we do not efficiently manage our spending; if there is a deterioration of business and economic conditions in one or more of our sales regions or product categories, or significant fluctuations in exchange rates; changes in trade regulations, policies and agreements and the imposition of tariffs that affect our products or operations and our ability to mitigate; risks associated with acquisitions; and the effect of changes to our effective income tax rates. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech's periodic filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2021 and our subsequent reports filed with the SEC, available at www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements to reflect new information or events or circumstances occurring after the date of this press release.
Note that unless noted otherwise, comparisons are year over year.
Logitech and other Logitech marks are trademarks or registered trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company's website at www.logitech.com.
(LOGIIR)
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
Three Months Ended | ||||||
June 30, | ||||||
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | 2021 | 2020 | ||||
Net sales | $ | 1,312,058 | $ | 791,894 | ||
Cost of goods sold | 739,066 | 482,638 | ||||
Amortization of intangible assets | 4,066 | 3,523 | ||||
Gross profit | 568,926 | 305,733 | ||||
Operating expenses: | ||||||
Marketing and selling | 252,314 | 133,238 | ||||
Research and development | 69,246 | 49,725 | ||||
General and administrative | 40,542 | 29,071 | ||||
Amortization of intangible assets and acquisition-related costs | 5,217 | 4,609 | ||||
Change in fair value of contingent consideration for business acquisition | (1,474) | 5,716 | ||||
Restructuring credits, net | - | (53) | ||||
Total operating expenses | 365,845 | 222,306 | ||||
Operating income | 203,081 | 83,427 | ||||
Interest income | 316 | 620 | ||||
Other income, net | 8,435 | 2,029 | ||||
Income before income taxes | 211,832 | 86,076 | ||||
Provision for income taxes | 24,991 | 14,003 | ||||
Net income | $ | 186,841 | $ | 72,073 | ||
Net income per share: | ||||||
Basic | $ | 1.11 | $ | 0.43 | ||
Diluted | $ | 1.09 | $ | 0.42 | ||
Weighted average shares used to compute net income per share: | ||||||
Basic | 168,372 | 167,612 | ||||
Diluted | 172,020 | 170,127 |
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
June 30, | March 31, | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | 2021 | 2021 | ||||
Current assets: | ||||||
Cash and cash equivalents | $ | 1,497,721 | $ | 1,750,327 | ||
Accounts receivable, net | 545,907 | 612,225 | ||||
Inventories | 778,596 | 661,116 | ||||
Other current assets | 158,130 | 135,650 | ||||
Total current assets | 2,980,354 | 3,159,318 | ||||
Non-current assets: | ||||||
Property, plant and equipment, net | 114,693 | 114,060 | ||||
Goodwill | 449,732 | 429,604 | ||||
Other intangible assets, net | 112,229 | 115,148 | ||||
Other assets | 338,485 | 324,248 | ||||
Total assets | $ | 3,995,493 | $ | 4,142,378 | ||
Current liabilities: | ||||||
Accounts payable | $ | 709,741 | $ | 823,233 | ||
Accrued and other current liabilities | 702,589 | 858,617 | ||||
Total current liabilities | 1,412,330 | 1,681,850 | ||||
Non-current liabilities: | ||||||
Income taxes payable | 62,968 | 59,237 | ||||
Other non-current liabilities | 147,704 | 139,502 | ||||
Total liabilities | 1,623,002 | 1,880,589 | ||||
Shareholders' equity: | ||||||
Registered shares, CHF 0.25 par value: | 30,148 | 30,148 | ||||
Issued shares - 173,106 at June 30 and March 31, 2021 | ||||||
Additional shares that may be issued out of conditional capitals - 50,000 at June 30 and | ||||||
March 31, 2021 | ||||||
Additional shares that may be issued out of authorized capital - 17,311 at June 30 and | ||||||
March 31, 2021 | ||||||
Additional paid-in capital | 74,948 | 129,519 | ||||
Shares in treasury, at cost - 4,407 at June 30, 2021 and 4,799 at March 31, 2021 | (302,606) | (279,541) | ||||
Retained earnings | 2,677,419 | 2,490,578 | ||||
Accumulated other comprehensive loss | (107,418) | (108,915) | ||||
Total shareholders' equity | 2,372,491 | 2,261,789 | ||||
Total liabilities and shareholders' equity | $ | 3,995,493 | $ | 4,142,378 | ||
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Logitech International SA published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 13:39:02 UTC.