LAUSANNE, Switzerland & NEWARK, Calif.–(BUSINESS WIRE)–SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR —
Logitech International (SIX: LOGN) (Nasdaq: LOGI) at this time introduced monetary outcomes for the primary quarter of Fiscal Year 2022.
Q1 gross sales have been $1.31 billion, up 66 p.c in US {dollars} and 58 p.c in fixed foreign money, in contrast to Q1 of the prior 12 months.
Q1 GAAP working earnings grew 143 p.c to $203 million, in contrast to $83 million in the identical quarter a 12 months in the past. Q1 GAAP earnings per share (EPS) grew 160 p.c to $1.09, in contrast to $0.42 in the identical quarter a 12 months in the past.
Q1 non-GAAP working earnings grew one hundred pc to $235 million, in contrast to $117 million in the identical quarter a 12 months in the past. Q1 non-GAAP EPS grew 91 p.c to $1.22, in contrast to $0.64 in the identical quarter a 12 months in the past.
“We’ve began robust in Fiscal Year 2022, with Q1 gross sales up 58% in fixed foreign money and earnings doubling versus final 12 months,” stated Bracken Darrell, Logitech president and chief government officer. “Our key classes grew excessive double digits. This efficiency demonstrates the power of our capabilities, wonderful operational execution, and talent to capitalize on long-term traits, like gaming, streaming and creating, hybrid work and video in all places.”
Outlook
Logitech confirmed its Fiscal Year 2022 outlook of flat gross sales progress in fixed foreign money, plus or minus 5 p.c, and $800 million to $850 million in non-GAAP working earnings.
Prepared Remarks Available Online
Logitech has made its ready written remarks for the monetary outcomes videoconference out there on-line on the Logitech company web site at http://ir.logitech.com.
Financial Results Videoconference and Webcast
Logitech will maintain a monetary outcomes videoconference to focus on the outcomes for Q1 Fiscal Year 2022 on Tuesday, July 27, 2021 at 8:30 a.m. Eastern Daylight Time and a couple of:30 p.m. Central European Summer Time. A livestream of the occasion might be out there on the Logitech company web site at http://ir.logitech.com.
Use of Non-GAAP Financial Information and Constant Currency
To facilitate comparisons to Logitech’s historic outcomes, Logitech has included non-GAAP adjusted measures, which exclude share-based compensation expense, amortization of intangible belongings, acquisition-related prices, change in honest worth of contingent consideration for enterprise acquisition, restructuring fees (credit), loss (achieve) on investments, non-GAAP earnings tax adjustment, and different objects detailed beneath “Supplemental Financial Information” after the tables beneath. Logitech additionally presents proportion gross sales progress in fixed foreign money, a non-GAAP measure, to present efficiency unaffected by fluctuations in foreign money alternate charges. Percentage gross sales progress in fixed foreign money is calculated by translating prior interval gross sales in every native foreign money on the present interval’s common alternate price for that foreign money and evaluating that to present interval gross sales. Logitech believes this info, used along with the GAAP monetary info, will assist traders to consider its present interval efficiency and traits in its enterprise. With respect to the Company’s outlook for non-GAAP working earnings, most of those excluded quantities pertain to occasions that haven’t but occurred and are usually not presently doable to estimate with an inexpensive diploma of accuracy. Therefore, no reconciliation to the GAAP quantities has been offered for the Fiscal Year 2022 outlook.
About Logitech
Logitech helps all individuals pursue their passions by designing experiences so everybody can create, obtain, and luxuriate in extra. Logitech designs and creates merchandise that deliver individuals collectively by computing, gaming, video, streaming and creating, and music. Brands of Logitech embody Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears and Jaybird. Founded in 1981, and headquartered in Lausanne, Switzerland, Logitech International is a Swiss public firm listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech at www.logitech.com, the corporate weblog or @Logitech.
This press launch incorporates forward-looking statements throughout the that means of the federal securities legal guidelines, together with, with out limitation, statements concerning: our preliminary monetary outcomes for the three months ended June 30, 2021, long-term progress traits, Logitech’s potential, and outlook for Fiscal Year 2022 working earnings and gross sales progress. The forward-looking statements on this press launch contain dangers and uncertainties that would trigger Logitech’s precise outcomes and occasions to differ materially from these anticipated in these forward-looking statements, together with, with out limitation: if our product choices, advertising actions and funding prioritization selections don’t end result within the gross sales, profitability or profitability progress we count on, or after we count on it; if we fail to innovate and develop new merchandise in a well timed and cost-effective method for our new and current product classes; if we don’t efficiently execute on our progress alternatives or our progress alternatives are extra restricted than we count on; the impact of demand variability and provide shortages; the impact of pricing, product, advertising and different initiatives by our rivals, and our response to them, on our gross sales, gross margins and profitability; if we aren’t in a position to keep and improve our manufacturers; if our merchandise and advertising methods fail to separate our merchandise from rivals’ merchandise; the COVID-19 pandemic and its potential affect; if we don’t effectively handle our spending; if there’s a deterioration of enterprise and financial situations in a number of of our gross sales areas or product classes, or important fluctuations in alternate charges; modifications in commerce laws, insurance policies and agreements and the imposition of tariffs that have an effect on our merchandise or operations and our skill to mitigate; dangers related to acquisitions; and the impact of modifications to our efficient earnings tax charges. An in depth dialogue of those and different dangers and uncertainties that would trigger precise outcomes and occasions to differ materially from such forward-looking statements is included in Logitech’s periodic filings with the Securities and Exchange Commission (SEC), together with our Annual Report on Form 10-Ok for the fiscal 12 months ended March 31, 2021 and our subsequent studies filed with the SEC, out there at www.sec.gov, beneath the caption Risk Factors and elsewhere. Logitech doesn’t undertake any obligation to replace any forward-looking statements to replicate new info or occasions or circumstances occurring after the date of this press launch.
Note that until famous in any other case, comparisons are 12 months over 12 months.
Logitech and different Logitech marks are logos or registered logos of Logitech Europe S.A. and/or its associates within the U.S. and different international locations. All different logos are the property of their respective homeowners. For extra details about Logitech and its merchandise, go to the corporate’s web site at www.logitech.com.
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In 1000’s, besides per share quantities) – unaudited
Three Months Ended
June 30,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
2021
2020
Net gross sales
$
1,312,058
$
791,894
Cost of products bought
739,066
482,638
Amortization of intangible belongings
4,066
3,523
Gross revenue
568,926
305,733
Operating bills:
Marketing and promoting
252,314
133,238
Research and growth
69,246
49,725
General and administrative
40,542
29,071
Amortization of intangible belongings and acquisition-related prices
5,217
4,609
Change in honest worth of contingent consideration for enterprise acquisition
(1,474)
5,716
Restructuring credit, web
—
(53)
Total working bills
365,845
222,306
Operating earnings
203,081
83,427
Interest earnings
316
620
Other earnings, web
8,435
2,029
Income earlier than earnings taxes
211,832
86,076
Provision for earnings taxes
24,991
14,003
Net earnings
$
186,841
$
72,073
Net earnings per share:
Basic
$
1.11
$
0.43
Diluted
$
1.09
$
0.42
Weighted common shares used to compute web earnings per share:
Basic
168,372
167,612
Diluted
172,020
170,127
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In 1000’s) – unaudited
June 30,
March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS
2021
2021
Current belongings:
Cash and money equivalents
$
1,497,721
$
1,750,327
Accounts receivable, web
545,907
612,225
Inventories
778,596
661,116
Other present belongings
158,130
135,650
Total present belongings
2,980,354
3,159,318
Non-current belongings:
Property, plant and tools, web
114,693
114,060
Goodwill
449,732
429,604
Other intangible belongings, web
112,229
115,148
Other belongings
338,485
324,248
Total belongings
$
3,995,493
$
4,142,378
Current liabilities:
Accounts payable
$
709,741
$
823,233
Accrued and different present liabilities
702,589
858,617
Total present 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’ fairness:
Registered shares, CHF 0.25 par worth:
30,148
30,148
Issued shares — 173,106 at June 30 and March 31, 2021
Additional shares which may be issued out of conditional capitals — 50,000 at June 30 and March 31, 2021
Additional shares which may be issued out of approved capital — 17,311 at June 30 and March 31, 2021
Additional paid-in capital
74,948
129,519
Shares in treasury, at value — 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 different complete loss
(107,418)
(108,915)
Total shareholders’ fairness
2,372,491
2,261,789
Total liabilities and shareholders’ fairness
$
3,995,493
$
4,142,378
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In 1000’s) – unaudited
Three Months Ended
June 30,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
2021
2020
Cash flows from working actions:
Net earnings
$
186,841
$
72,073
Adjustments to reconcile web earnings to web money offered by/ (utilized in) working actions:
Depreciation
20,462
11,747
Amortization of intangible belongings
8,843
8,132
Gain on investments
(1,071)
(174)
Share-based compensation expense
23,651
20,115
Deferred earnings taxes
(4,158)
3,589
Change in honest worth of contingent consideration for enterprise acquisition
(1,474)
5,716
Other
1,045
9
Changes in belongings and liabilities, web of acquisitions:
Accounts receivable, web
73,308
(102,092)
Inventories
(115,166)
(40,385)
Other belongings
(30,796)
(15,770)
Accounts payable
(115,620)
168,346
Accrued and different liabilities
(160,835)
(12,459)
Net money offered by / (utilized in) working actions
(114,970)
118,847
Cash flows from investing actions:
Purchases of property, plant and tools
(24,514)
(12,308)
Investment in privately held corporations
(501)
(30)
Acquisition, web of money acquired
(15,586)
—
Purchases of buying and selling investments
(1,091)
(2,424)
Proceeds from gross sales of buying and selling investments
1,345
2,362
Net money utilized in investing actions
(40,347)
(12,400)
Cash flows from financing actions:
Purchases of registered shares
(54,872)
—
Proceeds from workouts of inventory choices and buy rights
2,750
9,992
Tax withholdings associated to web share settlements of restricted inventory models
(50,411)
(23,121)
Net money utilized in financing actions
(102,533)
(13,129)
Effect of alternate price modifications on money and money equivalents
5,244
511
Net improve / (lower) in money and money equivalents
(252,606)
93,829
Cash and money equivalents, starting of the interval
1,750,327
715,566
Cash and money equivalents, finish of the interval
$
1,497,721
$
809,395
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In 1000’s) – unaudited
SUPPLEMENTAL FINANCIAL INFORMATION
Three Months Ended
June 30,
NET SALES
2021
2020
Change
Net gross sales by product class:
Pointing Devices
$
182,878
$
120,469
52
%
Keyboards & Combos
218,357
145,360
50
PC Webcams
109,918
60,851
81
Tablet & Other Accessories
79,272
46,048
72
Gaming (1)
335,397
181,903
84
Video Collaboration
234,885
130,074
81
Mobile Speakers
28,484
29,009
(2)
Audio & Wearables
116,607
71,365
63
Smart Home
6,172
6,810
(9)
Other (2)
88
5
1,660
Total Sales
$
1,312,058
$
791,894
66
%
(1) Gaming consists of streaming providers income generated by Streamlabs.
(2) Other consists of merchandise that the Company presently intends to part out, or has already phased out, as a result of they’re not strategic to the Company’s enterprise.
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In 1000’s, besides per share quantities) – unaudited
SUPPLEMENTAL FINANCIAL INFORMATION
Three Months Ended
June 30,
GAAP TO NON GAAP RECONCILIATION (A)
2021
2020
Gross revenue – GAAP
$
568,926
$
305,733
Share-based compensation expense
1,369
1,400
Amortization of intangible belongings
4,066
3,523
Gross revenue – Non-GAAP
$
574,361
$
310,656
Gross margin – GAAP
43.4
%
38.6
%
Gross margin – Non-GAAP
43.8
%
39.2
%
Operating bills – GAAP
$
365,845
$
222,306
Less: Share-based compensation expense
22,282
18,715
Less: Amortization of intangible belongings and acquisition-related prices
5,217
4,609
Less: Change in honest worth of contingent consideration for enterprise acquisition
(1,474)
5,716
Less: Restructuring credit, web
—
(53)
Operating bills – Non-GAAP
$
339,820
$
193,319
% of web gross sales – GAAP
27.9
%
28.1
%
% of web gross sales – Non – GAAP
25.9
%
24.4
%
Operating earnings – GAAP
$
203,081
$
83,427
Share-based compensation expense
23,651
20,115
Amortization of intangible belongings and acquisition-related prices
9,283
8,132
Change in honest worth of contingent consideration for enterprise acquisition
(1,474)
5,716
Restructuring credit, web
—
(53)
Operating earnings – Non – GAAP
$
234,541
$
117,337
% of web gross sales – GAAP
15.5
%
10.5
%
% of web gross sales – Non – GAAP
17.9
%
14.8
%
Net earnings – GAAP
$
186,841
$
72,073
Share-based compensation expense
23,651
20,115
Amortization of intangible belongings and acquisition-related prices
9,283
8,132
Change in honest worth of contingent consideration for enterprise acquisition
(1,474)
5,716
Restructuring credit, web
—
(53)
Gain on investments
(1,071)
(174)
Non-GAAP earnings tax adjustment
(7,416)
3,048
Net earnings – Non – GAAP
$
209,814
$
108,857
Net earnings per share:
Diluted – GAAP
$
1.09
$
0.42
Diluted – Non – GAAP
$
1.22
$
0.64
Shares used to compute web earnings per share:
Diluted – GAAP and Non – GAAP
172,020
170,127
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In 1000’s) – unaudited
SUPPLEMENTAL FINANCIAL INFORMATION
Three Months Ended
June 30,
SHARE-BASED COMPENSATION EXPENSE
2021
2020
Share-based Compensation Expense
Cost of products bought
$
1,369
$
1,400
Marketing and promoting
8,530
8,792
Research and growth
5,061
3,103
General and administrative
8,691
6,820
Total share-based compensation expense
23,651
20,115
Income tax profit
(16,594)
(8,111)
Total share-based compensation expense, web of earnings tax profit
$
7,057
$
12,004
*Note: These preliminary outcomes for the three months ended June 30, 2021 are topic to changes, together with subsequent occasions that will happen by the date of submitting our Quarterly Report on Form 10-Q.
(A) Non-GAAP Financial Measures
To complement our condensed consolidated monetary outcomes ready in accordance with GAAP, we use quite a few monetary measures, each GAAP and non-GAAP, in analyzing and assessing our general enterprise efficiency, for making working selections and for forecasting and planning future durations. We take into account the usage of non-GAAP monetary measures useful in assessing our present monetary efficiency, ongoing operations and prospects for the long run in addition to understanding monetary and enterprise traits relating to our monetary situation and outcomes of operations.
While we use non-GAAP monetary measures as a device to improve our understanding of sure elements of our monetary efficiency and to present incremental perception into the underlying elements and traits affecting each our efficiency and our cash-generating potential, we don’t take into account these measures to be an alternative to, or superior to, the knowledge offered by GAAP monetary measures. Consistent with this strategy, we imagine that disclosing non-GAAP monetary measures to the readers of our monetary statements gives helpful supplemental information that, whereas not an alternative to GAAP monetary measures, can supply perception within the overview of our monetary and operational efficiency and allows traders to extra absolutely perceive traits in our present and future efficiency. In assessing our enterprise through the quarter ended June 30, 2021 and former durations, we excluded objects within the following basic classes, every of that are described beneath:
Share-based compensation expense. We imagine that offering non-GAAP measures excluding share-based compensation expense, as well as to the GAAP measures, permits for a extra clear comparability of our monetary outcomes from interval to interval. We put together and keep our budgets and forecasts for future durations on a foundation in step with this non-GAAP monetary measure. Further, corporations use a wide range of sorts of fairness awards in addition to a wide range of methodologies, assumptions and estimates to decide share-based compensation expense. We imagine that excluding share-based compensation expense enhances our skill and the flexibility of traders to perceive the affect of non-cash share-based compensation on our working outcomes and to evaluate our outcomes in opposition to the outcomes of different corporations.
Amortization of intangible belongings. We incur intangible asset amortization expense, primarily in reference to our acquisitions of varied companies and applied sciences. The amortization of bought intangibles varies relying on the extent of acquisition exercise. We exclude these numerous fees in budgeting, planning and forecasting future durations and we imagine that offering the non-GAAP measures excluding these numerous non-cash fees, in addition to the GAAP measures, gives further perception when evaluating our gross revenue, working bills, and monetary outcomes from interval to interval.
Acquisition-related prices and alter in honest worth of contingent consideration for enterprise acquisition. We incurred bills and credit in reference to our acquisitions which we typically wouldn’t have in any other case incurred within the durations introduced as part of our persevering with operations. Acquisition associated prices embody all incremental bills incurred to impact a enterprise mixture. Fair worth of contingent consideration is related to our estimates of the worth of earn-outs in reference to sure acquisitions. We imagine that offering the non-GAAP measures excluding these prices and credit, in addition to the GAAP measures, assists our traders as a result of such prices are usually not reflective of our ongoing working outcomes.
Restructuring fees (credit). These bills are related to re-aligning our enterprise methods primarily based on present financial situations. We have undertaken a number of restructuring plans lately. In reference to our restructuring initiatives, we incurred restructuring fees associated to worker terminations, facility closures and early cancellation of sure contracts. We imagine that offering the non-GAAP measures excluding this stuff, in addition to the GAAP measures, assists our traders as a result of such fees (credit) are usually not reflective of our ongoing working ends in the present interval.
Loss (achieve) on investments. We acknowledge losses (good points) associated to our investments in numerous corporations, which differ relying on the operational and monetary efficiency of the businesses wherein we make investments. These quantities embody our losses (earnings) on fairness technique investments, funding impairments and losses (good points) ensuing from gross sales or different occasions associated to our investments. We imagine that offering the non-GAAP measures excluding this stuff, in addition to the GAAP measures, assists our traders as a result of such losses (good points) are usually not reflective of our ongoing operations.
Non-GAAP earnings tax adjustment. Non-GAAP earnings tax adjustment primarily measures the earnings tax impact of non-GAAP changes excluded above and different occasions; the dedication of which is predicated upon the character of the underlying objects, the combination of earnings and losses in jurisdictions and the related tax charges wherein we function.
Each of the non-GAAP monetary measures described above, and used on this press launch, shouldn’t be thought of in isolation from, or as an alternative to, a measure of economic efficiency ready in accordance with GAAP. Further, traders are cautioned that there are inherent limitations related to the usage of every of those non-GAAP monetary measures as an analytical device. In explicit, these non-GAAP monetary measures are usually not primarily based on a complete set of accounting guidelines or rules and most of the changes to the GAAP monetary measures replicate the exclusion of things which are recurring and could also be mirrored within the Company’s monetary outcomes for the foreseeable future. We compensate for these limitations by offering particular info within the reconciliation included on this press launch concerning the GAAP quantities excluded from the non-GAAP monetary measures. In addition, as famous above, we consider the non-GAAP monetary measures along with probably the most immediately comparable GAAP monetary info.
Additional Supplemental Financial Information – Constant Currency
In addition, Logitech presents proportion gross sales progress in fixed foreign money to present efficiency unaffected by fluctuations in foreign money alternate charges. Percentage gross sales progress in fixed foreign money is calculated by translating prior interval gross sales in every native foreign money on the present interval’s common alternate price for that foreign money and evaluating that to present interval gross sales.
(LOGIIR)
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