Empresas y finanzas
Logitech Delivers Best Quarter Ever
Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced
its best-ever quarterly results, posting record profits and margins,
and the Company's thirty-third consecutive quarter of double-digit
revenue growth. Sales for the third quarter of Fiscal Year 2007, ended
Dec. 31, 2006, were $659 million, up 15 percent from $574 million for
the same quarter one year ago.
GAAP operating income was $100 million, an increase of 23 percent
over Q3 last year, and includes $4.6 million in costs for stock-based
compensation. GAAP net income, including $4.4 million in costs for
stock-based compensation (net of related tax benefit), was $94 million
($0.49 per share), up 32 percent year over year. GAAP gross margin was
36.2 percent.
Non-GAAP operating income, which excludes stock-based
compensation, was $104.2 million, up 29 percent from last year's
operating income of $80.7 million. Non-GAAP net income for Q3 was
$98.7 million ($0.51 per share), up 38 percent compared with net
income of $71.3 million ($0.36 per share) in the prior year. Non-GAAP
gross margin was 36.3 percent, compared to 32.3 percent for the same
quarter last year - a year-over-year improvement of 400 basis points.
(See Note 1.)
Logitech's retail sales for the quarter increased by 16 percent,
with growth of 19 percent in EMEA, 14 percent in the Americas and 2
percent in Asia Pacific. Retail sales were driven by year-over-year
growth across most product categories, with particular strength in
audio (up 27 percent), and remote controls (up 42 percent). The
Company's OEM sales grew by 4 percent.
Cash flow from operations for the quarter was $171 million, an
increase of $126 million compared to the prior year and the highest
cash flow from operations for a single quarter in the Company's
history.
"This was our best quarter ever, reflecting significantly improved
margins across all major product categories, strong demand for our
holiday lineup, and effective management of our working capital," said
Guerrino De Luca, Logitech president and chief executive officer. "We
have been increasingly successful in bringing a wealth of innovation
to our product categories. And our record-setting gross margin is a
clear indication of the value consumers place on that innovation.
"One highlight for the quarter was our outstanding year-over-year
growth in audio, demonstrating the continued consumer appetite for
iPod(R) and PC speakers that enhance the digital music experience, as
well as the impact of our strongly differentiated offering. We're also
very pleased by the continued growth in our line of universal remote
controls, as consumers continue to simplify and enrich their living
room entertainment systems with the unique benefits of a Harmony
remote control."
Outlook
While Logitech continues to expect FY 2007 sales growth of 17
percent year over year, the Company now expects FY 2007 non-GAAP
operating income growth of between 25 and 30 percent compared with
last year; previously the company estimated non-GAAP operating income
to increase between 20 and 25 percent. FY 2007 gross margin is
expected to be at or above the high end of the Company's long-term
range of 32-34 percent; previously the company estimated gross margin
to be above the mid point of the range. Logitech now expects its
non-GAAP effective tax rate for the year to be between 11 percent and
12 percent (previously 13 percent). Non-GAAP operating income and
effective tax rate exclude the costs of stock-based compensation. The
Company now expects the net costs of stock-based compensation for FY
2007, reflected in net income, to be at the low end of the previously
stated range of $16 to $19 million.
The Company also provided preliminary financial targets of 15
percent growth in sales and operating income for Fiscal Year 2008,
ending March 31, 2008.
Earnings Teleconference
Logitech will hold an earnings teleconference on Jan. 18, 2007 at
14:00 Central European Time/8:00 a.m. Eastern Standard Time/5:00 a.m.
Pacific Standard Time to discuss these results as well as guidance for
Fiscal Year 2007 and Fiscal Year 2008. A live webcast and replay of
the teleconference, including presentation slides, will be available
on the Logitech corporate Web site at http://ir.logitech.com. Please
visit the Web site at least 10 minutes early to register for the
teleconference webcast.
About Logitech
Logitech is a world leader in personal peripherals, driving
innovation in PC navigation, Internet communications, digital music,
home-entertainment control, gaming and wireless devices. Founded in
1981, Logitech International is a Swiss public company traded on the
SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market
(LOGI).
Note 1. A reconciliation between non-GAAP operating income, net
income, and gross margin, and GAAP operating income, net income, and
gross margin is set forth in the second supplemental schedule of the
attached tables along with additional information regarding the use of
these non-GAAP measures.
This press release contains forward-looking statements, including
the statements regarding expected sales, operating income, gross
margin and effective tax rate for Fiscal Year 2007, and expected sales
and operating income growth in Fiscal Year 2008. These forward-looking
statements involve risks and uncertainties that could cause Logitech's
actual performance to differ materially from that anticipated in these
forward-looking statements. Factors that could cause actual results to
differ materially include if we fail to successfully innovate in our
current and emerging product categories and identify new feature or
product opportunities; consumer demand for our products and our
ability to accurately forecast it; the effect of pricing, product,
marketing and other initiatives by our competitors, and our reaction
to them, on our sales, gross margins and profitability; our ability to
match production to demand and to coordinate the worldwide
manufacturing and distribution of our products in a timely and
cost-effective manner; the sales mix among our lower- and
higher-margin products; as well as those additional factors set forth
in our periodic filings with the Securities and Exchange Commission,
including our annual report on Form 20-F for the Fiscal Year ended
March 31, 2006 and our quarterly reports on Form 6-K available at
www.sec.gov. Logitech does not undertake to update any forward-looking
statements.
Logitech, the Logitech logo, and other Logitech marks are
registered in the United States 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 Web
site at www.logitech.com.
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LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
Quarter Ended December 31,
CONSOLIDATED STATEMENTS OF INCOME 2006 2005
----------------------------------------------------------------------
Net sales $ 658,512 $ 573,856
Cost of goods sold 419,855 388,349
---------------------------
Gross profit 238,657 185,507
---------------------------
% of net sales 36.2% 32.3%
Operating expenses:
Marketing and selling 84,146 66,067
Research and development 28,778 22,380
General and administrative 26,137 16,387
---------------------------
Total operating expenses 139,061 104,834
---------------------------
Operating income 99,596 80,673
Interest income, net 2,045 1,182
Other income, net 2,593 1,108
---------------------------
Income before income taxes 104,234 82,963
Provision for income taxes 9,930 11,615
---------------------------
Net income $ 94,304 $ 71,348
===========================
Shares used to compute net income per
share:
Basic 182,652 185,794
Diluted 191,145 200,380
Net income per share:
Basic $ 0.52 $ 0.38
Diluted $ 0.49 $ 0.36
Note:
Share and per-share data for all periods presented have been
adjusted to give effect to the two-for-one stock split that took
effect on July 14, 2006.
Net income for the three months ended December 31, 2006 included
share-based compensation expense under SFAS 123R of $4.4 million,
net of tax, or $0.02 per diluted share, related to employee stock
options and employee stock purchases. Net income for the three
months ended December 31, 2005 does not include the effect of
share-based compensation expense, because Logitech implemented SFAS
123R effective April 1, 2006.
Please refer to the supplemental schedule that summarizes the
share-based compensation expense and related tax benefit recognized
in accordance with SFAS 123R for the three months ended December
31, 2006.
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LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
Nine Months Ended December 31,
CONSOLIDATED STATEMENTS OF INCOME 2006 2005
----------------------------------------------------------------------
Net sales $ 1,553,835 $ 1,330,659
Cost of goods sold 1,021,301 905,418
-------------------------------
Gross profit 532,534 425,241
-------------------------------
% of net sales 34.3% 32.0%
Operating expenses:
Marketing and selling 205,789 169,473
Research and development 79,824 64,889
General and administrative 71,357 46,739
-------------------------------
Total operating expenses 356,970 281,101
-------------------------------
Operating income 175,564 144,140
Interest income, net 5,521 2,460
Other income, net 12,431 4,545
-------------------------------
Income before income taxes 193,516 151,145
Provision for income taxes 19,861 21,163
-------------------------------
Net income $ 173,655 $ 129,982
===============================
Shares used to compute net income per
share:
Basic 182,601 180,533
Diluted 190,655 200,080
Net income per share:
Basic $ 0.95 $ 0.72
Diluted $ 0.91 $ 0.66
Note:
Share and per-share data for all periods presented have been
adjusted to give effect to the two-for-one stock split that took
effect on July 14, 2006.
Net income for the nine months ended December 31, 2006 included
share-based compensation expense under SFAS 123R of $12.7 million,
net of tax, or $0.07 per diluted share, related to employee stock
options and employee stock purchases. Net income for the nine
months ended December 31, 2005 does not include the effect of
share-based compensation expense, because Logitech implemented SFAS
123R effective April 1, 2006.
Please refer to the supplemental schedule that summarizes the
share-based compensation expense and related tax benefit recognized
in accordance with SFAS 123R for the nine months ended December 31,
2006.
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LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
CONSOLIDATED BALANCE SHEETS December 31, March 31, December 31,
2006 2006 2005
----------------------------------------------------------------------
Current assets
Cash and cash equivalents $ 263,089 $ 245,014 $ 276,872
Short term investments 104,950 - -
Accounts receivable 416,195 289,849 370,048
Inventories 234,944 196,864 257,577
Other current assets 59,024 34,479 49,631
------------ ----------- ------------
Total current assets 1,078,202 766,206 954,128
Investments 11,131 36,414 16,703
Property, plant and equipment 85,435 74,810 68,886
Intangible assets
Goodwill 146,186 135,396 135,399
Other intangible assets 20,510 11,175 12,335
Other assets 30,345 33,063 1,856
------------ ----------- ------------
Total assets $1,371,809 $1,057,064 $1,189,307
============ =========== ============
Current liabilities
Short-term debt $ 12,185 $ 14,071 $ 14,061
Accounts payable 293,085 181,290 242,641
Accrued liabilities 220,985 162,922 174,864
------------ ----------- ------------
Total current liabilities 526,255 358,283 431,566
Long-term debt - 4 16
Other liabilities 18,190 13,601 949
------------ ----------- ------------
Total liabilities 544,445 371,888 432,531
Shareholders' equity 827,364 685,176 756,776
------------ ----------- ------------
Total liabilities and
shareholders' equity $1,371,809 $1,057,064 $1,189,307
============ =========== ============
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LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
Quarter Ended Nine Months Ended
December 31 December 31
SUPPLEMENTAL FINANCIAL
INFORMATION 2006 2005 2006 2005
----------------------------------------------------------------------
Depreciation $ 10,029 $ 7,720 $ 26,295 $ 23,475
Amortization of other
acquisition-related
intangibles 1,380 1,160 3,285 3,481
Operating income 99,596 80,673 175,564 144,140
Operating income before
depreciation and
amortization 111,005 89,553 205,144 171,096
Capital expenditures 10,583 13,531 36,641 37,617
Net sales by channel:
Retail $ 599,142 $ 516,575 $1,387,190 $1,169,645
OEM 59,370 57,281 166,645 161,014
---------- ---------- ----------- ------------
Total net sales $ 658,512 $ 573,856 $1,553,835 $1,330,659
========== ========== =========== ============
Net sales by product
family:
Retail - Cordless $ 162,549 $ 148,336 $ 385,775 $ 333,706
Retail - Corded 95,061 86,821 246,858 233,126
Retail - Video 95,692 82,401 258,958 192,238
Retail - Audio 149,487 117,602 306,740 247,000
Retail - Gaming 57,791 56,552 106,957 108,136
Retail - Other 38,562 24,863 81,902 55,439
OEM 59,370 57,281 166,645 161,014
---------- ---------- ----------- ------------
Total net sales $ 658,512 $ 573,856 $1,553,835 $1,330,659
========== ========== =========== ============
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LOGITECH INTERNATIONAL S.A.
(In thousands, except per share) - Unaudited
SUPPLEMENTAL FINANCIAL INFORMATION Quarter Ended Nine Months Ended
December 31 December 31
Reconciliation of GAAP to non-GAAP
Financial Measures 2006 2006
----------------------------------------------------------------------
GAAP gross margin 36.2% 34.3%
Adjustments:
Effect of stock-based compensation 0.1% 0.1%
--------------- -----------------
Non-GAAP gross margin 36.3% 34.4%
=============== =================
GAAP operating income $ 99,596 $ 175,564
Adjustments:
Effect of stock-based compensation 4,642 14,994
--------------- -----------------
Non-GAAP operating income $ 104,238 $ 190,558
=============== =================
GAAP net income $ 94,304 $ 173,655
Adjustments:
Effect of stock-based compensation 4,363 12,684
--------------- -----------------
Non-GAAP net income $ 98,667 $ 186,339
=============== =================
Quarter Ended Nine Months Ended
December 31 December 31
Stock-based Compensation Expense for
Employee Stock Options and Employee
Stock Purchases 2006 2006
----------------------------------------------------------------------
Cost of goods sold $ 628 $ 2,077
Marketing and selling 1,633 5,394
Research and development 721 2,327
General and administration 1,660 5,196
Income tax benefit (279) (2,310)
--------------- -----------------
Total stock-based compensation
expense after income taxes $ 4,363 $ 12,684
=============== =================
Stock-based compensation expense for
employee stock options and employee
stock purchases, net of tax, per
share (diluted) $ 0.02 $ 0.07
We sometimes use information derived from consolidated financial
information but not presented in our financial statements prepared in
accordance with U.S. generally accepted accounting principles (GAAP).
Certain of these data are considered "non-GAAP financial measures"
under the U.S. Securities and Exchange Commission rules. The
adjustments between the GAAP and non-GAAP financial measures
presented above consist of share-based compensation expense for
employee stock options and employee stock purchases, and the related
income tax effect, as recognized in accordance with SFAS 123R.
Because we implemented SFAS 123R effective April 1, 2006, our
financial results for the three and nine months ended December 31,
2005 do not include the effect of share-based compensation expense
and are presented in the accompanying earnings release only on a GAAP
basis. Our management uses these non-GAAP measures in its financial
and operational decision-making. Our management believes these non-
GAAP measures, when considered in conjunction with the corresponding
GAAP measures, facilitate the comparison by our investors of results
for periods subsequent to our adoption of SFAS 123R, with
corresponding prior periods for which SFAS 123R was not effective.
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(LOGI - IR)