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Empresas y finanzas

Logitech Delivers Best Annual Retail Sales Growth in Five Years


    Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2016.

    Q4 closed a strong fiscal year with sales for the quarter reaching $431 million. Q4 retail sales (total sales excluding OEM and Lifesize) grew 6 percent in constant currency, GAAP operating income was $10 million and non-GAAP operating income was $22 million.

    For the full Fiscal Year 2016, ended March 31, 2016:

    • Sales were $2.02 billion, up 1 percent compared to the previous fiscal year. Full-year retail sales were $1.95 billion and grew 9 percent in constant currency.
    • GAAP operating income was $129 million, with GAAP earnings per share (EPS) of $0.77, compared to $0.89 a year ago.
    • Non-GAAP operating income was $179 million, with non-GAAP EPS of $0.98, down from $1.10 a year ago.
    • Cash flow from operations was $183 million, and the Company returned $156 million to shareholders in the form of dividends and share repurchases.

    “In FY 2016, we delivered our best annual retail sales growth in five years and better-than-expected profitability,” said Bracken Darrell, Logitech president and chief executive officer. “Sales in our Gaming category grew 23 percent, Mobile Speakers grew 37 percent and Video Collaboration grew 51 percent, all in constant currency. Together, our Mice and Keyboard categories also grew 6 percent in constant currency. This demonstrates our ability to innovate across a diverse portfolio - strong innovation that, when combined with disciplined cost management, drives profitable growth.

    “Looking forward to Fiscal Year 2017, we now have a strong foundation upon which to build. We will continue to develop our balanced portfolio of businesses and brands to address a number of big and growing markets - Gaming, Home, Music, Video Collaboration and Creativity & Productivity. We look forward to delivering another year of fantastic new products and are optimistic for the solid growth and profitability they will generate.”

    Outlook

    Logitech confirmed its FY 2017 outlook of $185 million to $200 million in non-GAAP operating income and constant currency retail sales growth in the mid-single digits.

    Prepared Remarks Available Online

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

    Financial Results Teleconference and Webcast

    Logitech will hold a financial results teleconference to discuss the results for Q4 and full-year FY 2016 on Thurs., April 28, 2016 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. A live webcast of the call will be available on the Logitech corporate website at http://ir.logitech.com.

    Continued Operations

    Logitech separated its Lifesize division from the Company on Dec. 28, 2015. Except as otherwise noted, all of the results reported in this press release as well as comparisons between periods are focused on results from continuing operations and do not address the performance of Lifesize, which is now reported in the Company’s financial statements under discontinued operations or total Logitech including discontinued operations. For more information on the impact of the Lifesize separation on Logitech’s historical results, please refer to the Financial Reporting section of Logitech’s Financial History, available on the Logitech corporate website at http://ir.logitech.com.

    Use of Non-GAAP Financial Information

    To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures, which exclude share-based compensation expense, amortization of other intangible assets, restructuring charges (credits), investment impairment (recovery), benefit from (provision for) income taxes, one-time special charges 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 Fiscal Year 2017.

    About Logitech

    Logitech designs products that have an everyday place in people´s lives, connecting them to the digital experiences they care about. Over 30 years ago Logitech started connecting people through computers, and now it’s designing products that bring people together through music, gaming, video and computing. Founded in 1981, 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 blog or @Logitech.

    This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation statements regarding: innovation, portfolio diversity, business and brand development, cost management, growth, profitability, market growth, new products, and outlook for Fiscal Year 2017 operating income and sales growth. 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; the demand of our customers and our consumers for our products and our ability to accurately forecast 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 in our new product categories or our growth opportunities are more limited than we expect; if sales of PC peripherals are less 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 our products and marketing strategies fail to separate our products from competitors’ products; 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. 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, 2015 and our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2015, 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.

    2016 Logitech, Logicool, Logi and other Logitech marks are owned by Logitech and may be registered. 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.

                              LOGITECH INTERNATIONAL S.A.                         (In thousands, except per share amounts) - Unaudited                                                         Three Months Ended     Fiscal Years Ended       March 31     March 31 GAAP CONSOLIDATED STATEMENTS OF OPERATIONS     2016     2015     2016     2015                           Net sales     $ 430,841       $ 442,283       $ 2,018,100       $ 2,004,908   Cost of goods sold       288,741         300,609         1,337,053         1,299,451   Gross profit       142,100         141,674         681,047         705,457                             Operating expenses:                         Marketing and selling       77,091         75,646         319,015         321,749   Research and development       27,288         28,297         113,624         108,306   General and administrative       23,582         29,233         101,548         125,995   Restructuring charges (credits), net       3,784         (4,742 )       17,802         (4,777 ) Total operating expenses       131,745         128,434         551,989         551,273   Operating income       10,355         13,240         129,058         154,184   Interest income, net       241         373         790         1,197   Other income (expense), net       2,518         1,404         1,624         (2,298 ) Income from continuing operations before income taxes       13,114         15,017         131,472         153,083   Provision for (benefit from) income taxes       (3,896 )       (3,801 )       3,110         4,654   Net income from continuing operations       17,010         18,818         128,362         148,429   Gain (loss) from discontinued operations, net of taxes       11,687         (128,085 )       (9,045 )       (139,146 ) Net income (loss)     $ 28,697       $ (109,267 )     $ 119,317       $ 9,283                             Net income (loss) per share - basic:                         Continuing operations     $ 0.10       $ 0.11       $ 0.79       $ 0.91   Discontinued operations     $ 0.08       $ (0.77 )     $ (0.06 )     $ (0.85 ) Net income (loss) per share - basic     $ 0.18       $ (0.66 )     $ 0.73       $ 0.06                             Net income (loss) per share - diluted:                         Continuing operations     $ 0.10       $ 0.11       $ 0.77       $ 0.89   Discontinued operations     $ 0.07       $ (0.77 )     $ (0.05 )     $ (0.83 ) Net income (loss) per share - diluted     $ 0.17       $ (0.66 )     $ 0.72       $ 0.06                             Weighted average shares used to compute net income (loss) per share:                         Basic       162,671         164,319         163,296         163,536   Diluted       165,365         166,424         165,792         166,174                             Cash dividends per share     $ —       $ —       $ 0.53       $ 0.27                                                           LOGITECH INTERNATIONAL S.A.             (In thousands) - Unaudited                                 March 31     March 31 CONSOLIDATED BALANCE SHEETS     2016     2015               Current assets:             Cash and cash equivalents     $ 519,195       $ 533,380   Accounts receivable, net       142,778         167,196   Inventories       228,786         255,980   Other current assets       35,488         63,362   Current assets of discontinued operations       —         32,102   Total current assets       926,247         1,052,020   Non-current assets:             Property, plant and equipment, net       92,860         86,478   Goodwill       218,224         218,213   Other assets       86,816         62,333   Long-term assets of discontinued operations       —         7,636   Total assets     $ 1,324,147       $ 1,426,680                 Current liabilities:             Accounts payable     $ 241,166       $ 292,797   Accrued and other current liabilities       173,764         163,344   Current liabilities of discontinued operations       —         38,766   Total current liabilities       414,930         494,907   Non-current liabilities:             Income taxes payable       59,734         72,107   Other non-current liabilities       89,535         91,195   Long-term liabilities of discontinued operations       —         10,337   Total liabilities       564,199         668,546                 Shareholders´ equity:             Registered shares, CHF 0.25 par value:       30,148         30,148   Issued and authorized shares—173,106 at March 31, 2016 and 2015             Conditionally authorized shares—50,000 at March 31, 2016 and 2015             Additional paid-in capital       6,616         —   Less shares in treasury, at cost—10,697 at March 31, 2016 and 8,625 at March 31, 2015       (128,407 )       (88,951 ) Retained earnings       963,576         930,174   Accumulated other comprehensive loss       (111,985 )       (113,237 ) Total shareholders´ equity       759,948         758,134   Total liabilities and shareholders´ equity     $ 1,324,147       $ 1,426,680                                                   LOGITECH INTERNATIONAL S.A.                         (In thousands) - Unaudited                               Three Months Ended     Fiscal Years Ended       March 31     March 31 CONSOLIDATED STATEMENTS OF CASH FLOWS *     2016     2015     2016     2015                           Operating activities:                         Net income (loss)     $ 28,697       $ (109,267 )     $ 119,317       $ 9,283   Adjustments to reconcile net income (loss) to net cash provided by operating activities:                         Depreciation       14,224         11,745         51,108         41,304   Amortization of other intangible assets       349         737         1,885         8,361   Share-based compensation expense       7,476         5,779         27,351         25,825   Impairment of goodwill and other assets       —         122,734         —         122,734   Investment impairment       —         39         —         2,298   Gain on equity method investments       (645 )       —         (469 )       —   Gain on disposal of property, plant and equipment       —         —         —         (44 ) Net gain on divestiture of discontinued operations       (13,684 )       —         (13,684 )       —   Excess tax benefits from share-based compensation       —         (298 )       (2,084 )       (2,831 ) Deferred income taxes       3,690         5,391         6,604         2,240   Changes in operating assets and liabilities, net of acquisitions:                         Accounts receivable, net       141,327         123,008         25,513         (8,018