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Empresas y finanzas

Logitech Delivers New Sales Record and Sixth Consecutive Year of Growth


    - Business Wire

    Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2019, ended March 31, 2019.

    For Fiscal Year 2019:

    • Sales were the highest ever at $2.79 billion, up 9 percent in US dollars and 10 percent in constant currency compared to the prior year, the sixth consecutive year of growth.
    • GAAP operating income grew 15 percent to $263 million, compared to $230 million a year ago. GAAP earnings per share (EPS) grew 24 percent to $1.52, compared to $1.23 a year ago.
    • Non-GAAP operating income grew 23 percent to $352 million, compared to $287 million a year ago. Non-GAAP EPS grew 26 percent to $2.01, compared to $1.60 a year ago.

    For Q4 Fiscal Year 2019:

    • Sales grew to $624 million, up 5 percent in US dollars and 9 percent in constant currency compared to Q4 of the prior year.
    • GAAP operating income grew 8 percent to $42 million, and non-GAAP operating income grew 16 percent to $64 million, compared to Q4 of the prior year.

    "We've delivered our third consecutive year of double-digit growth in constant currency and our highest fiscal year sales ever," said Bracken Darrell, Logitech president and chief executive officer. "Our innovative, diverse product portfolio delivered, led by strong, sustainable growth in our major categories of Gaming, Video Collaboration, and Creativity & Productivity. And we are not just growing topline, but also systematically delivering strong leverage on the bottom line. In fact, we achieved our plan to double non-GAAP EPS to $2.00 a full year early. Our strategy is working, and we are excited for our future as the world's leading cloud peripheral company."

    Outlook

    Logitech confirmed its Fiscal Year 2020 outlook of mid to high single-digit sales growth in constant currency and $375 million to $385 million in non-GAAP operating income.

    Management Update

    Additionally, Logitech announced today that Vincent Pilette, Logitech's chief financial officer, is leaving the Company. Vincent will leave, and cease to be a member of the Group Management Team, at the end of May, 2019, to pursue a senior leadership role at another company. Logitech has named Nate Olmstead interim chief financial officer following Vincent's departure. Nate joined Logitech in 2019 as vice president of finance, and brings over 16 years of financial management experience, most recently as the vice president of finance for global operations at Hewlett Packard Enterprise. Nate has a BA from Stanford and an MBA from Harvard.

    "When I joined Logitech, I had a vision to turn Logitech into a design company, pursuing opportunities in the many new market opportunities enabled by the cloud," said Bracken Darrell. "We needed financial and operational strength to support the ambition of that vision. Vincent has been a terrific partner for this pursuit these past six years, and we've made great progress. But more important than his partnership and leadership is the team he built and the culture of rigor and discipline he helped instill throughout the company. We now have a strong, seasoned finance team across every area and a proven track record of operational excellence. That is his most important legacy. I'm excited for him in his next challenge. And I'm even more energized by our continued progress toward our design company vision."

    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 2019 on Tuesday, April 30, 2019 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), 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 2020.

    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 months and full fiscal year ended March 31, 2019, innovation, product portfolio, brand leadership, growth, profitability and leverage, sustainability, market leadership, position for the future, focus, vision ability to be a design company, outlook for Fiscal Year 2020 operating income and sales growth, and our executive officers. 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 we are not able to maintain and enhance our brands; 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 December 31, 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   Fiscal Years Ended       March 31,   March 31, GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS     2019   2018   2019   2018                     Net sales (A)     $ 624,308     $ 592,426     $ 2,788,322     $ 2,566,863   Cost of goods sold     388,028     377,617     1,737,969     1,648,744   Amortization of intangible assets and purchase accounting effect on inventory     3,305     2,574     13,342     8,878   Gross profit     232,975     212,235     1,037,011     909,241   Operating expenses:                   Marketing and selling     119,628     109,572     488,263     435,489   Research and development     42,110     37,616     161,230     143,760   General and administrative     23,557     23,387     98,732     96,353   Amortization of intangible assets and acquisition-related costs     3,913     2,553     14,290     8,930   Change in fair value of contingent consideration for business acquisition     —     —     —     (4,908 ) Restructuring charges (credits), net     1,540     —     11,302     (116 )

    Total operating expenses

        190,748     173,128     773,817     679,508   Operating income     42,227     39,107     263,194     229,733   Interest income     2,666     1,872     8,375     4,969   Other income (expense), net     493     (1,543 )   (436 )   (2,437 ) Income before income taxes     45,386     39,436     271,133     232,265   Provision for income taxes     3,265     5,032     13,560     23,723   Net income     $ 42,121     $ 34,404     $ 257,573     $ 208,542                       Net income per share :                   Basic     $ 0.25     $ 0.21     $ 1.56     $ 1.27   Diluted     $ 0.25     $ 0.20     $ 1.52     $ 1.23                       Weighted average shares used to compute net income per share:                   Basic     165,776     164,374     165,609     164,038   Diluted     168,956     169,387     168,965     168,971                                           LOGITECH INTERNATIONAL S.A. PRELIMINARY RESULTS*           (In thousands) - unaudited                   March 31,   March 31, CONDENSED CONSOLIDATED BALANCE SHEETS     2019   2018             Current assets:           Cash and cash equivalents     $ 604,516     $ 641,947   Accounts receivable, net (A)     383,309     214,885   Inventories     293,495     259,906   Other current assets (A)     69,116     56,362   Total current assets     1,350,436     1,173,100   Non-current assets:           Property, plant and equipment, net     78,552     86,304   Goodwill     343,684     275,451   Other intangible assets, net     118,999     87,547   Other assets     132,453     120,755   Total assets     $ 2,024,124     $ 1,743,157               Current liabilities:           Accounts payable     $ 283,922     $ 293,988   Accrued and other current liabilities (A)     433,897     281,732   Total current liabilities     717,819     575,720   Non-current liabilities:           Income taxes payable     36,384     34,956   Other non-current liabilities     93,582     81,924   Total liabilities     847,785     692,600               Shareholders´ equity:           Registered shares, CHF 0.25 par value:     30,148     30,148   Issued shares—173,106 at March 31, 2019 and 2018          

    Additional shares that may be issued out of conditional capitals — 50,000 at March 31, 2019 and March 31, 2018

              Additional shares that may be issued out of authorized capital — 34,621 at March 31, 2019 and none at March 31, 2018           Additional paid-in capital     56,655     47,234   Shares in treasury, at cost— 7,244 and 8,527 shares at March 31, 2019 and 2018, respectively     (169,802 )   (165,686 ) Retained earnings (A)     1,365,036     1,232,316   Accumulated other comprehensive loss     (105,698 )   (93,455 ) Total shareholders´ equity     1,176,339     1,050,557   Total liabilities and shareholders´ equity     $ 2,024,124     $ 1,743,157                                           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     2019   2018   2019   2018                     Cash flows from operating activities:                   Net income     $ 42,121     $ 34,404     $ 257,573     $ 208,542   Adjustments to reconcile net income to net cash provided by operating activities:                   Depreciation     10,816     11,077     43,471     41,295   Amortization of intangible assets     6,944     4,954     24,180     15,607   Share-based compensation expense     13,102     10,899     50,265     44,138   Gain on investments     (227 )   (119 )   (816 )   (669 ) Deferred income taxes     (2,535 )   413     (12,257 )   7,141   Change in fair value of contingent consideration for business acquisition     —     —     —     (4,908 ) Other     148     (18 )   (230 )   (11 ) Changes in assets and liabilities, net of acquisitions:                   Accounts receivable, net     100,146     137,665     (58,798 )   (26,363 ) Inventories     47,612     21,739     (21,551 )   16,047   Other assets     2,298     2,045     (8,800 )   (16,908 ) Accounts payable     (152,791 )   (134,016 )   (19,134 )   17,695   Accrued and other liabilities     (35,896 )   1,134     51,278     44,655   Net cash provided by operating activities     31,738     90,177     305,181     346,261   Cash flows from investing activities:                   Purchases of property, plant and equipment     (7,626 )   (12,155 )   (35,930 )   (39,748 ) Acquisitions, net of cash acquired     94     —     (133,814 )   (88,323 ) Investment in privately held companies     (175 )   (360 )   (2,717 )   (1,240 ) Proceeds from return of investments     124     —     124     237   Purchases of short-term investments     —     —     (1,505 )   (6,789 ) Sales of short-term investments     —     —     —     6,789   Purchases of trading investments     (868 )   (3,211 )   (5,203 )   (6,053 ) Proceeds from sales of trading investments     862     3,214     5,700     6,423   Net cash used in investing activities     (7,589 )   (12,512 )   (173,345 )   (128,704 ) Cash flows from financing activities:                   Payment of cash dividends     —     —     (113,971 )   (104,248 ) Payment of contingent consideration for business acquisition     —     —     —     (5,000 ) Purchases of registered shares     (9,995 )   (10,314 )   (32,449 )   (30,722 ) Proceeds from exercises of stock options and purchase rights     7,922     10,963     18,057     41,910   Tax withholdings related to net share settlements of restricted stock units     (1,659 )   (4,308 )   (30,770 )   (29,813 ) Net cash used in financing activities     (3,732 )   (3,659 )   (159,133 )   (127,873 ) Effect of exchange rate changes on cash and cash equivalents     (389 )   3,053     (10,134 )   4,730   Net increase (decrease) in cash and cash equivalents     20,028     77,059     (37,431 )