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Empresas y finanzas

Logitech Delivers Highest Retail Sales Growth in Six Years; Profit Hits Nine-Year High


    Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2017.

    Q4 closed a strong fiscal year with sales for the quarter reaching $496 million. Q4 retail sales grew 17 percent in constant currency, GAAP operating income more than doubled to $22 million and non-GAAP operating income grew 61 percent to $36 million.

    For the full Fiscal Year 2017, ended March 31, 2017:

    • Retail sales grew 14 percent in constant currency, the highest annual retail sales growth in six years. Retail sales grew 13 percent in USD; also a six-year high.
    • Sales were $2.21 billion, up 9 percent in USD compared to the prior year, which still included OEM sales, the business the Company exited in Q3 of the prior fiscal year.
    • GAAP operating income grew 53 percent to $197 million - the highest in nine years - compared to $129 million a year ago. GAAP earnings per share (EPS) grew 51 percent to $1.16, compared to $0.77 a year ago.
    • Non-GAAP operating income grew 33 percent to $238 million - also the highest in nine years - compared to $179 million a year ago. Non-GAAP EPS grew 35 percent to $1.32, compared to $0.98 a year ago.
    • Cash flow from operations grew 52 percent to $279 million, the highest level in seven years.

    Bracken Darrell, Logitech president and chief executive officer, said, “Our FY 2017 performance demonstrates the strength of our strategy. For the fourth consecutive year, we accelerated growth in retail sales. We grew across almost all our product categories and in all our regions. Many categories - Video Collaboration, Mobile Speakers, Gaming, and Smart Home - grew double digits, and PC Peripherals saw solid growth too. And we’re just getting started. I’m excited by our pipeline of innovative products and the amazing world of opportunities unfolding in front of us.”

    Vincent Pilette, Logitech CFO, said, “This is a watershed year for Logitech. We improved our financial fundamentals, delivering our highest gross margin in Company history while growing the business by 14%. That, combined with our continued investment in growth initiatives, gives Logitech a strong and exciting platform for the future.”

    Outlook

    Logitech confirmed its Fiscal Year 2018 outlook of high single-digit retail sales growth in constant currency and $250 to $260 million in non-GAAP operating income.

    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 the full FY 2017 on Weds., April 26, 2017 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. Since then, the results of Lifesize have not been included in our financial statements. 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 reported in the Company’s financial statements under discontinued operations or total Logitech including discontinued operations for all the periods prior to the disposition of Lifesize. 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 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, purchase accounting effect on inventory, acquisition-related costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), gain (loss) on equity-method investment, investigation and related expenses, 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 2018.

    About Logitech

    Logitech designs products that have an everyday place in people´s lives, connecting them to the digital experiences they care about. More than 35 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 Jaybird, Logitech G and 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 blog or @Logitech.

    This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding: our strategy, pipeline of products, innovation, opportunities, investment in growth opportunities, platform for the future, future performance, and outlook for Fiscal Year 2018 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 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, 2016 and our Quarterly Report on Form 10-Q for fiscal quarter ended December 31, 2016, 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.

    2017 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.

    PRELIMINARY RESULTS (In thousands, except per share amounts) - unaudited                                 Three Months Ended     Fiscal Years Ended       March 31,     March 31,

    GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

        2017     2016     2017     2016                           Net sales     $ 496,165       $ 430,841       $ 2,207,040       $ 2,018,100   Cost of goods sold     311,303       288,741       1,395,211       1,337,053   Amortization of intangible assets and purchase accounting effect on inventory     1,470       —       6,175       —   Gross profit     183,392       142,100       805,654       681,047   Operating expenses:                         Marketing and selling     99,941       77,091       379,641       319,015   Research and development     33,658       27,287       130,525       113,176   General and administrative     24,683       23,046       100,270       101,012   Amortization of intangible assets and acquisition-related costs     1,279       537       5,814       984   Change in fair value of contingent consideration for business acquisition     1,833       —       (8,092 )     —   Restructuring charges, net     67       3,784       23       17,802   Total operating expenses     161,461       131,745       608,181       551,989   Operating income     21,931       10,355       197,473       129,058   Interest income, net     1,189       241       1,452       790   Other income, net     734       2,518       1,677       1,624   Income before income taxes     23,854       13,114       200,602       131,472   Provision for (benefit from) income taxes     (1,184 )     (3,896 )     9,113       3,110   Net income from continuing operations     25,038       17,010       191,489       128,362   Gain (loss) from discontinued operations, net of income taxes     —       11,687       —       (9,045 ) Net income     $ 25,038       $ 28,697       $ 191,489       $ 119,317                             Net income (loss) per share - basic:                         Continuing operations     $ 0.15       $ 0.10       $ 1.18       $ 0.79   Discontinued operations     —       0.08       —       (0.06 ) Net income per share - basic     $ 0.15       $ 0.18       $ 1.18       $ 0.73                             Net income (loss) per share - diluted:                         Continuing operations     $ 0.15       $ 0.10       $ 1.16       $ 0.77   Discontinued operations     —       0.07       —       (0.05 ) Net income per share - diluted     $ 0.15       $ 0.17       $ 1.16       $ 0.72                             Weighted average shares used to compute net income (loss) per share:                         Basic     162,023       162,671       162,058       163,296   Diluted     166,526       165,365       165,540       165,792                             Cash dividend per share     $ —       $ —       $ 0.57       $ 0.53                                                           LOGITECH INTERNATIONAL S.A. PRELIMINARY RESULTS (In thousands) - unaudited                     March 31,     March 31, CONDENSED CONSOLIDATED BALANCE SHEETS     2017     2016               Current assets:             Cash and cash equivalents     $ 547,533       $ 519,195   Accounts receivable, net     174,854       142,778   Inventories     253,401       228,786   Other current assets     41,732       35,488   Total current assets     1,017,520       926,247   Non-current assets:             Property, plant and equipment, net     85,408       92,860   Goodwill     249,741       218,224   Other intangible assets, net     47,564       —   Other assets     88,119       86,816   Total assets     $ 1,488,352       $ 1,324,147                 Current liabilities:             Accounts payable     $ 274,805       $ 241,166   Accrued and other current liabilities     236,432       173,764   Total current liabilities     511,237       414,930   Non-current liabilities:             Income taxes payable     51,797       59,734   Other non-current liabilities     83,691       89,535   Total liabilities     646,725       564,199                 Shareholders´ equity:             Registered shares, CHF 0.25 par value:     30,148       30,148   Issued and authorized shares—173,106 at March 31, 2017 and 2016             Conditionally authorized shares—50,000 at March 31, 2017 and 2016             Additional paid-in capital     26,596       6,616   Less shares in treasury, at cost—10,727 at March 31, 2017 and 10,697 at March 31, 2016     (174,037 )     (128,407 ) Retained earnings     1,059,723       963,576   Accumulated other comprehensive loss     (100,803 )     (111,985 ) Total shareholders´ equity     841,627       759,948   Total liabilities and shareholders´ equity     $ 1,488,352       $ 1,324,147                                                   LOGITECH INTERNATIONAL S.A. PRELIMINARY RESULTS (In thousands) – unaudited         Three Months Ended     Fiscal Years Ended       March 31,     March 31, CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS *     2017     2016     2017     2016                           Cash flows from operating activities:                         Net income     $ 25,038       $ 28,697       $ 191,489       $ 119,317   Adjustments to reconcile net income to net cash provided by operating activities:                         Depreciation     8,642       14,224       41,121       51,108   Amortization of intangible assets     2,749       349       9,367       1,885   Share-based compensation expense     9,536       7,476       35,890       27,351   Gain on equity method investment     (22 )     (645 )     (569 )     (469 ) Loss on disposal of property, plant and equipment     107       —       107       —   Net gain on divestiture of discontinued operations     —       (13,684 )     —       (13,684 ) Excess tax benefits from share-based compensation     (3,304 )     —       (9,661 )     (2,084 ) Deferred income taxes     (1,924 )     3,690       (2,397 )     6,604   Change in fair value of contingent consideration for business acquisition     1,833       —       (8,092 )     —   Changes in assets and liabilities, net of acquisitions:                         Accounts receivable, net     103,116       141,327       (36,298 )     25,513   Inventories     (234 )     13,900       (15,428 )     31,966   Other assets     1,037       7,354       (5,309 )     (1,975 ) Accounts payable     (84,636 )     (126,867 )     24,459       (58,104 )