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Empresas y finanzas

Logitech Grows to Highest Ever Fiscal Year Sales, Up 16%


    - Business Wire

    Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2018, ended March 31, 2018.

    For Fiscal Year 2018:

    • Sales were the highest ever at $2.57 billion, up 16 percent in US dollars and 13 percent in constant currency, compared to the prior year.
    • GAAP operating income grew 8 percent to $230 million, compared to $212 million a year ago. GAAP earnings per share (EPS) was $1.23, compared to $1.24 a year ago. Fiscal Year 2018 GAAP EPS was impacted by a $22 million ($0.13 per share) one-time net tax expense following the reduction in the U.S. federal income tax rate and other reforms.
    • Non-GAAP operating income grew 14 percent to $287 million, compared to $252 million a year ago. Non-GAAP EPS grew 13 percent to $1.60, compared to $1.41 a year ago.
    • Cash flow from operations grew 20 percent to $346 million – the highest in eight years.

    For Q4 Fiscal Year 2018:

    • Sales grew to $592 million, up 16 percent in US dollars and 9 percent in constant currency, compared to the prior year.
    • GAAP operating income grew to $39 million, and non-GAAP operating income grew to a better-than-expected $55 million.
    • Cash flow from operations reached $90 million.

    "Over the past five years we've built a business with sustainable growth. We have a resilient and expanding portfolio. We are building five scalable capabilities led by design and engineering," said Bracken Darrell, Logitech president and chief executive officer. "Fiscal Year 2018 delivered broad-based, double-digit growth led by Gaming and Video Collaboration. Now, as we look to the next five years, we will go on the offense to accelerate the creation of an amazing company."

    Vincent Pilette, Logitech chief financial officer, said, "We've delivered a great fiscal year with record sales, and better-than-expected profitability and cash flow from operations. We go into Fiscal Year 2019 with strong momentum, our financial fundamentals in place, and an eye toward shaping the portfolio and reallocating resources to continuously transform."

    Outlook

    Logitech confirmed its Fiscal Year 2019 outlook of high single-digit sales growth in constant currency and $310 to $320 million in non-GAAP operating income.

    Management Update

    On May 2, 2018, L. Joseph Sullivan, the Company's senior vice president, worldwide operations, announced his retirement and, effective immediately, resigned from the Company's Group Management Team. The Company accepted this resignation. Mr. Sullivan's retirement from Logitech will be effective as of February 2, 2019, the end of his contractual notice period.

    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 Fiscal Year 2018 on Thursday, May 3, 2018 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.

    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 investments in privately held companies, 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 2019.

    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 Logitech, Ultimate Ears, Jaybird, Logitech G and ASTRO Gaming. 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 preliminary financial results for the three months and fiscal year ended March 31, 2018, ability to grow and sustain growth, product portfolio, capabilities and their scalability, transformation and creation of an amazing company and its timing, momentum, reallocation of resources, and outlook for Fiscal Year 2019 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; 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 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 Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2017 and our Annual Report on Form 10-K for the fiscal year ended March 31, 2017, 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.

                     

    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   2018   2017   2018   2017                   Net sales   $ 592,426     $ 510,552     $ 2,566,863     $ 2,221,427   Cost of goods sold   377,617     311,303     1,648,744     1,395,211   Amortization of intangible assets and purchase accounting effect on inventory   2,574     1,470     8,878     6,175   Gross profit   212,235     197,779     909,241     820,041   Operating expenses:                 Marketing and selling   109,572     99,941     435,489     379,641   Research and development   37,616     33,658     143,760     130,525   General and administrative   23,387     24,683     96,353     100,270   Amortization of intangible assets and acquisition-related costs   2,553     1,279     8,930     5,814   Change in fair value of contingent consideration for business acquisition   —     1,833     (4,908 )   (8,092 ) Restructuring charges (credits), net   —     67     (116 )   23   Total operating expenses   173,128     161,461     679,508     608,181   Operating income   39,107     36,318     229,733     211,860   Interest income   1,872     1,189     4,969     1,452   Other income (expense), net   (1,543 )   734     (2,437 )   1,677   Income before income taxes   39,436     38,241     232,265     214,989   Provision for (benefit from) income taxes   5,032     (1,184 )   23,723     9,113   Net income   $ 34,404     $ 39,425     $ 208,542     $ 205,876                     Net income per share :                 Basic   $ 0.21     $ 0.24     $ 1.27     $ 1.27   Diluted   $ 0.20     $ 0.24     $ 1.23     $ 1.24                     Weighted average shares used to compute net income per share:                 Basic   164,374     162,023     164,038     162,058   Diluted   169,387     166,526     168,971     165,540                     Cash dividend per share   $ —     $ —     $ 0.63     $ 0.57                                               LOGITECH INTERNATIONAL S.A.         PRELIMINARY RESULTS (In thousands) - unaudited                       March 31,   March 31, CONDENSED CONSOLIDATED BALANCE SHEETS   2018   2017           Current assets:         Cash and cash equivalents   $ 641,947     $ 547,533   Accounts receivable, net   214,885     185,179   Inventories   259,906     253,401   Other current assets   56,362     41,732   Total current assets   1,173,100     1,027,845   Non-current assets:         Property, plant and equipment, net   86,304     85,408   Goodwill   275,451     249,741   Other intangible assets, net   87,547     47,564   Other assets   120,755     88,119   Total assets   $ 1,743,157     $ 1,498,677             Current liabilities:         Accounts payable   $ 293,988     $ 274,805   Accrued and other current liabilities   281,732     232,273   Total current liabilities   575,720     507,078   Non-current liabilities:         Income taxes payable   34,956     51,797   Other non-current liabilities   81,924     83,691   Total liabilities   692,600     642,566             Shareholders´ equity:         Registered shares, CHF 0.25 par value:   30,148     30,148   Issued and authorized shares—173,106 at March 31, 2018 and 2017         Conditionally authorized shares—50,000 at March 31, 2018 and 2017         Additional paid-in capital   47,234     26,596   Treasury shares, at cost—8,527 and 10,727 shares at March 31, 2018 and 2017, respectively   (165,686 )   (174,037 ) Retained earnings   1,232,316     1,074,110   Accumulated other comprehensive loss   (93,455 )   (100,706 ) Total shareholders´ equity   1,050,557     856,111   Total liabilities and shareholders´ equity   $ 1,743,157     $ 1,498,677                                       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   2018   2017   2018   2017                   Cash flows from operating activities:                 Net income   $ 34,404     $ 39,425     $ 208,542     $ 205,876   Adjustments to reconcile net income to net cash provided by operating activities:                 Depreciation   11,077     8,642     41,295     41,121   Amortization of intangible assets   4,954     2,749     15,607     9,367   Share-based compensation expense   10,899     9,536     44,138     35,890   Gain on investments in privately held companies   (119 )   (22 )   (669 )   (569 ) Deferred income taxes   413     (1,924 )   7,141     (2,397 ) Change in fair value of contingent consideration for business acquisition   —     1,833     (4,908 )   (8,092 ) Other   (18 )   107     (11 )   107 Changes in assets and liabilities, net of acquisitions:                 Accounts receivable, net   137,665     92,861     (26,363 )   (46,553 ) Inventories   21,739     (234 )   16,047     (15,428 ) Other assets   2,045     1,037     (16,908 )   (5,309 ) Accounts payable   (134,016 )   (84,636 )   17,695     24,459   Accrued and other liabilities   1,134     (21,632 )   44,655     49,917   Net cash provided by operating activities   90,177  

     

      47,742     346,261     288,389   Cash flows from investing activities:                 Purchases of property, plant and equipment   (12,155 )   (8,432 )   (39,748 )   (31,804 ) Acquisitions, net of cash acquired   —     —     (88,323 )   (66,987 ) Investment in privately held companies   (360 )   (320 )   (1,240 )   (960 ) Proceeds from return of investment in privately held companies   —     —     237     —   Changes in restricted cash   —     —     —     715   Purchases of short-term investments   —     —     (6,789 )   —   Sales of short-term investments   —     —     6,789     —   Purchases of trading investments   (3,211 )   (1,184 )   (6,053 )   (7,052 ) Proceeds from sales of trading investments   3,214     1,212     6,423     7,124   Net cash used in investing activities   (12,512 )

     

      (8,724 )   (128,704 )   (98,964 ) Cash flows from financing activities:                 Payment of cash dividends   —     —     (104,248 )   (93,093 ) Payment of contingent consideration for business acquisition   —     —     (5,000 )   —   Purchases of registered shares   (10,314 )   (20,022 )   (30,722 )   (83,786 ) Proceeds from exercise of stock options and purchase rights   10,963     19,219     41,910     39,574   Tax withholdings related to net share settlements of restricted stock units   (4,308 )   (5,358 )   (29,813 )   (18,412 ) Net cash used in financing activities   (3,659 )   (6,161 )   (127,873 )   (155,717 ) Effect of exchange rate changes on cash and cash equivalents   3,053     1,098     4,730     (5,370 ) Net increase in cash and cash equivalents   77,059     33,955     94,414     28,338