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Empresas y finanzas

Logitech Delivers Record Q3 Sales, Raises Full-Year Profit Outlook


    - Business Wire

    Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the third quarter of Fiscal Year 2019.

    • Q3 sales were $864 million, up 6 percent in US dollars and 8 percent in constant currency, compared to Q3 of the prior year.
    • Q3 GAAP operating income reached $123 million, compared to $100 million in the same quarter a year ago. Q3 GAAP earnings per share (EPS) grew 40 percent to $0.67, compared to $0.48 in the same quarter a year ago.
    • Q3 non-GAAP operating income grew 22 percent to $143 million, compared to $117 million in the same quarter a year ago. Q3 non-GAAP EPS grew 22 percent to $0.79, compared to $0.65 in the same quarter a year ago.
    • Year-to-date cash flow from operations was $273 million, compared to $256 million in the same period a year ago.

    "We delivered record sales and profits in our biggest quarter of the year," said Bracken Darrell, Logitech president and chief executive officer. "Our innovative, diverse portfolio drove double-digit growth across Gaming, Video Collaboration, and Creativity & Productivity. On the back of this powerful performance, we are raising our profit outlook for the year."

    Outlook

    Logitech raised its Fiscal Year 2019 profit outlook to between $340 million and $345 million in non-GAAP operating income, up from between $325 million and $335 million, on an annual sales outlook of 9 to 11 percent growth in constant currency.

    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 Q3 FY 2019 on Tuesday, January 22, 2019 at 8:30 a.m. Eastern Standard Time and 2:30 p.m. Central European 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), loss (gain) on investments in privately held companies, 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, Blue Microphones, ASTRO Gaming and Logitech G. 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 and nine months ended December 31, 2018, 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; changes in trade policies and agreements and the imposition of tariffs that affect our products or operations and our ability to mitigate; risks associated with acquisitions. 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, 2018 and our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2018, 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   Nine Months Ended       December 31,   December 31, GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (A)     2018   2017   2018   2017                     Net sales (B)     $ 864,388     $ 812,021     $ 2,164,014     $ 1,974,437   Cost of goods sold     535,707     533,631     1,349,941     1,271,127   Amortization of intangible assets and purchase accounting effect on inventory     4,699     2,789     10,037     6,304   Gross profit     323,982     275,601     804,036     697,006                       Operating expenses:                   Marketing and selling     132,250     116,153     368,635     325,917   Research and development     40,591     34,398     119,120     106,144   General and administrative     24,496     22,291     75,175     72,966   Amortization of intangible assets and acquisition-related costs     3,539     2,496     10,377     6,377   Change in fair value of contingent consideration for business acquisition     —     —     —     (4,908 ) Restructuring charges (credits), net     (278 )   —     9,762     (116 ) Total operating expenses     200,598     175,338     583,069     506,380                       Operating income     123,384     100,263     220,967     190,626   Interest income     1,482     874     5,709     3,097   Other expense, net     (2,747 )   (324 )   (929 )   (894 ) Income before income taxes     122,119     100,813     225,747     192,829   Provision for income taxes     9,309     20,040     10,295     18,691   Net income     $ 112,810     $ 80,773     $ 215,452     $ 174,138                       Net income per share:                   Basic     $ 0.68     $ 0.49     $ 1.30     $ 1.06   Diluted     $ 0.67     $ 0.48     $ 1.28     $ 1.03                       Weighted average shares used to compute net income per share:                   Basic     165,707     164,248     165,552     163,924   Diluted     168,907     169,079     168,966     168,832             LOGITECH INTERNATIONAL S.A.         PRELIMINARY RESULTS * (In thousands) - unaudited                      

    December 31,
    2018

     

    March 31,
    2018

    CONDENSED CONSOLIDATED BALANCE SHEETS (A)               Current assets:         Cash and cash equivalents   $ 584,488     $ 641,947   Accounts receivable, net (B)   484,204     214,885   Inventories   342,031     259,906   Other current assets (B)   73,174     56,362   Total current assets   1,483,897     1,173,100   Non-current assets:         Property, plant and equipment, net   81,577     86,304   Goodwill   347,369     275,451   Other intangible assets, net   123,643     87,547   Other assets   129,287     120,755   Total assets   $ 2,165,773     $ 1,743,157             Current liabilities:         Accounts payable   $ 435,764     $ 293,988   Accrued and other current liabilities (B)   478,632     281,732   Total current liabilities   914,396     575,720   Non-current liabilities:         Income taxes payable   36,245     34,956   Other non-current liabilities   83,044     81,924   Total liabilities   1,033,685     692,600             Shareholders' equity:         Registered shares, CHF 0.25 par value:   30,148     30,148   Issued shares — 173,106 at December 31 and March 31, 2018         Additional shares that may be issued out of conditional capitals — 50,000 at December 31 and March 31, 2018         Additional shares that may be issued out of authorized capital — 34,621 at December 31, 2018 and none at March 31, 2018         Additional paid-in capital   42,250     47,234   Shares in treasury, at cost — 7,355 at December 31, 2018 and 8,527 at March 31, 2018   (164,932 )   (165,686 ) Retained earnings (B)   1,322,915     1,232,316   Accumulated other comprehensive loss   (98,293 )   (93,455 ) Total shareholders' equity   1,132,088     1,050,557   Total liabilities and shareholders' equity   $ 2,165,773     $ 1,743,157                       LOGITECH INTERNATIONAL S.A.                   PRELIMINARY RESULTS * (In thousands) - unaudited                         Three Months Ended   Nine Months Ended       December 31,   December 31, CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (A)     2018   2017   2018   2017                     Cash flows from operating activities:                   Net income     $ 112,810     $ 80,773     $ 215,452     $ 174,138   Adjustments to reconcile net income to net cash provided by operating activities:                   Depreciation     10,760     10,850     32,655     30,218   Amortization of intangible assets     6,895     4,415     17,236     10,653   Gain on investments in privately held companies     (207 )   (114 )   (589 )   (550 ) Share-based compensation expense     11,855     11,556     37,163     33,239   Deferred income taxes     93     18,661     (9,722 )   6,728   Change in fair value of contingent consideration for business acquisition     —     —     —     (4,908 ) Other     (453 )   (5 )   (378 )   7   Changes in assets and liabilities, net of acquisitions:                   Accounts receivable, net     (25,469 )   (72,310 )   (158,944 )   (164,028 ) Inventories     15,238     52,386     (69,163 )   (5,692 ) Other assets     (42 )   (10,463 )   (11,098 )   (18,953 ) Accounts payable     (4,529 )   41,575     133,657     151,711   Accrued and other liabilities     49,272     51,260     87,174     43,521   Net cash provided by operating activities     176,223     188,584     273,443     256,084   Cash flows from investing activities:                   Purchases of property, plant and equipment     (9,936 )   (10,405 )   (28,304 )   (27,593 ) Investment in privately held companies     (2,036 )   (360 )   (2,542 )   (880 ) Acquisitions, net of cash acquired     —     (3,323 )   (133,908 )   (88,323 ) Proceeds from return of investment in privately held companies     —     —     —     237   Purchases of short-term investments     —     —     (1,505 )   (6,789 ) Sales of short-term investments     —     6,789     —     6,789   Purchases of trading investments     (613 )   (1,843 )   (4,335 )   (2,842 ) Proceeds from sales of trading investments     644     2,152     4,838     3,209   Net cash used in investing activities     (11,941 )   (6,990 )   (165,756 )   (116,192 ) Cash flows from financing activities:                   Payment of cash dividends     —     —     (113,971 )   (104,248 ) Payment of contingent consideration for business acquisition     —     (5,000 )   —     (5,000 ) Purchases of registered shares     (2,553 )   (9,726 )   (22,454 )   (20,408 ) Proceeds from exercises of stock options and purchase rights     128     947     10,135     30,947   Tax withholdings related to net share settlements of restricted stock units     (1,731 )   (1,799 )   (29,111 )   (25,505 ) Net cash used in financing activities     (4,156 )   (15,578 )   (155,401 )   (124,214 ) Effect of exchange rate changes on cash and cash equivalents     (588 )   24     (9,745 )   1,677   Net increase (decrease) in cash and cash equivalents     159,538     166,040     (57,459 )   17,355   Cash and cash equivalents, beginning of the period     424,950     398,848     641,947     547,533   Cash and cash equivalents, end of the period     $ 584,488     $ 564,888     $ 584,488     $ 564,888