Logitech International S A : Q3 2021 Press Release

Editorial Contacts:

Ben Lu, CFA, Vice President, Investor Relations - USA [phone]

Nicole Kenyon, Head of Global Corporate & Employee Communications - USA [phone] Ben Starkie, Corporate Communications - Europe [phone]

Logitech's Q3 Sales Grow 85%, Operating Income Triples

Company Raises Annual Outlook On Strong Momentum

LAUSANNE, Switzerland, Jan. 19, 2021 and NEWARK, Calif., Jan. 18, 2021 - Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the third quarter of Fiscal Year 2021.

• Q3 sales were $1.67 billion, up 85 percent in US dollars and 80 percent in constant currency, compared to Q3 of the prior year.
• Q3 GAAP operating income grew 248 percent to $448 million, compared to $129 million in the same quarter a year ago. Q3 GAAP earnings per share (EPS) grew 222 percent to $2.22, compared to $0.69 in the same quarter a year ago.
• Q3 non-GAAP operating income grew 214 percent to $476 million, compared to $152 million in the same quarter a year ago. Q3 non-GAAP EPS grew 192 percent to $2.45, compared to $0.84 in the same quarter a year ago.
• Cash flow from operations was $530 million, compared to $181 million in the same period a year ago.

"This quarter's record results demonstrate the strength of our portfolio, addressing long-term growth trends in remote work and education, video collaboration, esports, and digital content creation," said Bracken Darrell, Logitech president and chief executive officer. "We are increasingly investing in our capabilities and people for the growth potential we see in the future. Logitech has never been more relevant to our customers' work, play and creativity."

Outlook

Logitech raised its Fiscal Year 2021 annual outlook to between 57 and 60 percent sales growth in constant currency, and approximately $1.05 billion in non-GAAP operating income. The Company's previous outlook was between 35 and 40 percent sales growth in constant currency, and a range of $700 million to $725 million in non-GAAP operating income.

Prepared Remarks Available Online

Logitech has made its prepared written remarks for the financial results videoconference and livestream available online on the Logitech corporate website at http://ir.logitech.com.

Financial Results Videoconference and Livestream

Logitech will hold a financial results videoconference to discuss the results for Q3 FY 2021 on Tuesday, January 19, 2021 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, 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 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 Fiscal Year 2021.

About Logitech

Logitech designs products that have an everyday place in people's lives, connecting them to the digital experiences they care about. Almost 40 years ago, Logitech started connecting people through computers, and now it's a multi-brand company designing products that bring people together through music, gaming, video, and computing. 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 December 31, 2020, long-term growth trends, our investment in our capabilities and people, growth potential, our relevance to our customers, and outlook for Fiscal Year 2021 sales growth and non-GAAP operating income. The forward-looking statements in this 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 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 fully realize our goals to lower our costs and improve our operating leverage; 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 policies and agreements and the imposition of tariffs that affect our products or operations and our ability to mitigate; risks associated with acquisitions. 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, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 and our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020, 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

GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended		Nine Months Ended
December 31,		December 31,
2020	2019	2020	2019

Net sales		$	1,667,302			$	902,687			$	3,716,354			$	2,266,603
Cost of goods sold			914,851				564,283				2,082,088				1,410,605
Amortization of intangible assets			3,441				3,951				9,800				10,493
Gross profit			749,010				334,453				1,624,466				845,505
Operating expenses:
Marketing and selling			204,485				134,950				496,520				392,138
Research and development			53,910				43,292				157,014				127,499
General and administrative			37,606				22,344				98,341				68,551
Amortization of intangible assets and acquisition-related costs			4,946				5,084				13,886				12,898
Change in fair value of contingent consideration for business
acquisition			-				-				5,716				-
Restructuring charges (credits), net			-				(45)				(54)				69
Total operating expenses			300,947				205,625				771,423				601,155
Operating income			448,063				128,828				853,043				244,350
Interest income			311				2,063				1,444				7,006
Other income, net			6,483				1,101				9,661				2,852
Income before income taxes			454,857				131,992				864,148				254,208
Provision for income taxes			72,334				14,467				142,638				18,405
Net income		$	382,523			$	117,525			$	721,510			$	235,803
Net income per share:
Basic		$	2.26			$	0.70			$	4.28			$	1.41
Diluted	$	2.22	$	0.69	$	4.21	$	1.39
Weighted average shares used to compute net income per share:
Basic			169,050				167,063				168,448				166,678
Diluted			172,587				169,685				171,378				169,173