Editorial Contacts:
Nicole Noutsios, Investor Relations - lir@logitech.com
Nicole Kenyon, Head of Global Corporate & Employee Communications - USA +1 (510) 988-8553 Ben Starkie, Corporate Communications - Europe +41 (0) 79-292-3499
Logitech Announces Q3 Results
Company Raises FY 2022 Outlook For Both Sales and Profitability
LAUSANNE, Switzerland, Jan. 25, 2022 and NEWARK, Calif., Jan. 24, 2022 - SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR - Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the third quarter of Fiscal Year 2022, with strong growth in Pointing Devices, Keyboards & Combos and Gaming, and share gains in the majority of key categories. The Company raised annual guidance for both sales and profitability.
Q3 financial highlights:
- Sales were $1.63 billion, down 2 percent in US dollars and constant currency, compared to Q3 of the prior year. This performance nearly sustains last year's record Q3 sales which grew 85 percent in US dollars and 80 percent in constant currency.
- Category sales in US dollars grew 29 percent in Keyboards & Combos and 8 percent in Pointing Devices and Gaming, compared to Q3 of the prior year. Video Collaboration grew 24 percent quarter over quarter and was down 2 percent compared to Q3 of the prior year in which sales grew more than 200 percent.
- GAAP operating income declined 41 percent to $263 million, compared to $448 million in the same quarter a year ago. Non-GAAP operating income declined 37 percent to $302 million, compared to $476 million in the same quarter a year ago. This reflects the Company's planned, strategic investments in marketing and innovation to drive future growth. Non-GAAP operating income almost doubled versus two years ago.
- GAAP earnings per share (EPS) declined 44 percent to $1.24, compared to $2.22 in the same quarter a year ago. Non-GAAP EPS declined 37 percent to $1.55, compared to $2.45 in the same quarter a year ago.
- Cash flow from operations was $377 million. The Company returned $116 million of cash to shareholders through share repurchases. Year to date, the Company has returned a total of $450 million to shareholders through dividends and share repurchases, more than twice the amount over the same period last year.
"I'm excited to now have in sight a fiscal year of growth for FY 2022, on top of last year's remarkable performance," said Bracken Darrell, Logitech president and chief executive officer. "Our Q3 results reflect the strength of our operational capabilities, innovation engine, and the choices we made to position ourselves in line with the long-term trends affecting work, play, and creating."
Outlook
Logitech raised its Fiscal Year 2022 annual outlook to between 2 and 5 percent sales growth in constant currency, and between $850 million and $900 million in non-GAAP operating income. The Company's previous outlook was 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 Q3 Fiscal Year 2022 on Tuesday, January 25, 2022 at 8:30 a.m. Eastern Standard Time and 2:30 p.m. Central European 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, impairment 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.
Public Dissemination of Certain Information
Logitech webcasts its earnings calls, and certain events Logitech participates in or hosts, with members of the investment community on its investor relations website at https://ir.logitech.com. Additionally, Logitech provides notifications of news or announcements regarding its operations and financial
performance, including its filings with the Securities and Exchange Commission (SEC), investor events, and press and earnings releases as part of its investor relations website. Logitech intends to use its investor relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Logitech's corporate governance information also is available on its investor relations website.
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 Microphonesand Ultimate Ears. 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 and nine months ended December 31, 2021, long- term trends, and outlook for Fiscal Year 2022 sales growth and non-GAAP operating income. 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, supply shortages and other supply chain challenges; 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 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 SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2021, our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 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 | Nine Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | 2021 | 2020 | 2021 | 2020 | ||||||||
Net sales | $1,632,782 | $1,667,302 | $4,251,107 | $3,716,354 | ||||||||
Cost of goods sold | 971,646 | 914,851 | 2,470,980 | 2,082,088 | ||||||||
Amortization of intangible assets | 3,126 | 3,441 | 11,028 | 9,800 | ||||||||
Gross profit | 658,010 | 749,010 | 1,769,099 | 1,624,466 | ||||||||
Operating expenses: | ||||||||||||
Marketing and selling | 269,941 | 204,485 | 778,882 | 496,520 | ||||||||
Research and development | 75,529 | 53,910 | 213,436 | 157,014 | ||||||||
General and administrative | 38,478 | 37,606 | 112,291 | 98,341 | ||||||||
Amortization of intangible assets and acquisition-related costs | 3,662 | 4,946 | 13,986 | 13,886 | ||||||||
Impairment of intangible assets | 7,000 | - | 7,000 | - | ||||||||
Change in fair value of contingent consideration for business acquisition | (1,110) | - | (3,509) | 5,716 | ||||||||
Restructuring charges (credits), net | 1,759 | - | 1,770 | (54) | ||||||||
Total operating expenses | 395,259 | 300,947 | 1,123,856 | 771,423 | ||||||||
Operating income | 262,751 | 448,063 | 645,243 | 853,043 | ||||||||
Interest income | 278 | 311 | 795 | 1,444 | ||||||||
Other income (expense), net | (3,673) | 6,483 | (1,941) | 9,661 | ||||||||
Income before income taxes | 259,356 | 454,857 | 644,097 | 864,148 | ||||||||
Provision for income taxes | 49,345 | 72,334 | 107,789 | 142,638 | ||||||||
Net income | $ | 210,011 | $ | 382,523 | $ | 536,308 | $ | 721,510 | ||||
Net income per share: | ||||||||||||
Basic | $ | 1.26 | $ | 2.26 | $ | 3.19 | $ | 4.28 | ||||
Diluted | $ | 1.24 | $ | 2.22 | $ | 3.14 | $ | 4.21 | ||||
Weighted average shares used to compute net income per share: | ||||||||||||
Basic | 167,090 | 169,050 | 167,953 | 168,448 | ||||||||
Diluted | 169,707 | 172,587 | 171,027 | 171,378 | ||||||||
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
December 31, | March 31, | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | 2021 | 2021 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,364,411 | $ | 1,750,327 | ||||
Accounts receivable, net | 845,836 | 612,225 | ||||||
Inventories | 834,534 | 661,116 | ||||||
Other current assets | 145,001 | 135,650 | ||||||
Total current assets | 3,189,782 | 3,159,318 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 109,601 | 114,060 | ||||||
Goodwill | 448,731 | 429,604 | ||||||
Other intangible assets, net | 89,878 | 115,148 | ||||||
Other assets | 323,605 | 324,248 | ||||||
Total assets | $ | 4,161,597 | $ | 4,142,378 | ||||
Current liabilities: | ||||||||
Accounts payable | $ | 738,992 | $ | 823,233 | ||||
Accrued and other current liabilities | 813,684 | 858,617 | ||||||
Total current liabilities | 1,552,676 | 1,681,850 | ||||||
Non-current liabilities: | ||||||||
Income taxes payable | 85,610 | 59,237 | ||||||
Other non-current liabilities | 155,369 | 139,502 | ||||||
Total liabilities | 1,793,655 | 1,880,589 | ||||||
Shareholders' equity: | ||||||||
Registered shares, CHF 0.25 par value: | 30,148 | 30,148 | ||||||
Issued shares - 173,106 at December 31 and March 31, 2021 | ||||||||
Additional shares that may be issued out of conditional capitals - 50,000 at | ||||||||
December 31 and March 31, 2021 | ||||||||
Additional shares that may be issued out of authorized capital - 17,311 at | ||||||||
December 31 and March 31, 2021 | ||||||||
Additional paid-in capital | 115,994 | 129,519 | ||||||
Shares in treasury, at cost - 6,639 at December 31, 2021 and 4,799 at March 31, | (526,480) | (279,541) | ||||||
2021 | ||||||||
Retained earnings | 2,867,476 | 2,490,578 | ||||||
Accumulated other comprehensive loss | (119,196) | (108,915) | ||||||
Total shareholders' equity | 2,367,942 | 2,261,789 | ||||||
Total liabilities and shareholders' equity | $ | 4,161,597 | $ | 4,142,378 | ||||
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Logitech International SA published this content on 25 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2022 02:36:08 UTC.