Logitech?s Q4 FY 2014 Sales, Profit and Cash from Operations Exceed Expectations

Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2014. Q4 FY 2014 sales were $485 million, up 3 percent over the prior year.

• Q4 GAAP operating income was $7 million, with GAAP earnings per share (EPS) of $0.07, compared to a loss a year ago.
• Q4 non-GAAP operating income was $23 million, with non-GAAP EPS of $0.14, compared to $0.01 in the same quarter a year ago.

For the full 2014 fiscal year, ended March 31, 2014, sales were $2.12 billion, up 1 percent year over year – the Company’s first year of sales growth since FY 2011.

• FY 2014 GAAP operating income was $77 million, with GAAP EPS of $0.46, compared to an operating loss in the prior year.
• FY 2014 non-GAAP operating income more than doubled to $140 million, with non-GAAP EPS of $0.76, up from $0.31 a year ago.
• Cash flow from operations on a trailing twelve-month basis was $202 million, up 72 percent.

“Our Q4 performance was strong, with sales, profit and cash generation better than expected,” said Bracken Darrell, Logitech president and chief executive officer. “Q4 sales in our Growth category – PC Gaming, Tablet and Other Accessories, and Mobile Speakers – were up nearly 50 percent.

“At the start of our fiscal year we said we would deliver strong sales in our Growth category, reduce operating expenses and improve profitability. We delivered on our commitments across the board, concluding FY 2014 ahead of our turnaround plan.”

Outlook

Logitech confirmed its current FY 2015 outlook of $2.16 billion in sales and $145 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 Web site at http://ir.logitech.com, in the Calendar section.

Financial Results Teleconference and Webcast

Logitech will hold a financial results teleconference to discuss the results for Q4 and full-year FY 2014 on Thurs., April 24, 2014 at 8:30 a.m. Eastern Standard Time and 14:30 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

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), other restructuring-related charges, investment impairment (recovery), benefit from (provision for) income taxes and other items detailed under “Supplemental Financial Information” after the tables below. Logitech believes this information will help investors to evaluate its current period performance and trends in its business. With respect to our 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 GAAP amount has been provided for FY 2015.

About Logitech

Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning multiple computing, communication and entertainment platforms, Logitech’s combined hardware and software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. 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).

This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding: the Company’s turnaround and growth categories, as well as Fiscal Year 2015 revenue and operating income. 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 and sales in emerging market geographies; if sales of PC peripherals in mature markets 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 there is a deterioration of business and economic conditions in one or more of our sales regions or operating segments, 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, 2013 and our Amended Annual Report on Form 10-K/A for the fiscal year ended March 31, 2013, 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, the Logitech logo, and other Logitech marks are registered in Switzerland 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 Web site at www.logitech.com.

LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
			Three Months Ended										Fiscal Years Ended
			March 31,										March 31,
CONSOLIDATED STATEMENTS OF CASH FLOWS			2014					2013					2014					2013
								(A)
Operating activities:
Net income (loss)			$	11,584				$	(33,639	)			$	75,528				$	(225,567	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation				14,978					10,558					43,734					44,419
Amortization of other intangible assets				2,781					5,159					17,771					23,571
Share-based compensation expense				8,134					6,539					25,546					25,198
Goodwill impairment				-					5,688					-					216,688
Impairment of investment				56					-					624					3,600
Loss on disposal of property, plant and equipment				533					-					4,411					-
Gain on sale of securities				-					-					-					(831	)
Excess tax benefits from share-based compensation				(1,674	)				-					(2,246	)				(26	)
Deferred income taxes and other				(815	)				2,154					(4,374	)				11,552
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net				134,998					86,238					4,733					44,667
Inventories				27,361					23,602					42,013					23,954
Other assets				2,227					1,012					(741	)				(1,420	)
Accounts payable				(83,182	)				(75,962	)				(20,251	)				(34,069	)
Accrued and other liabilities				(23,007	)				(18,555	)				15,111					(14,594	)
Net cash provided by operating activities				93,974					12,794					201,859					117,142
Investing activities:
Purchases of property, plant and equipment				(11,000	)				(7,208	)				(43,096	)				(49,240	)
Purchase of strategic investment				(300	)				(450	)				(300	)				(4,420	)
Acquisitions, net of cash acquired				-					-					(650	)				-
Proceeds from sales of available-for-sale securities				-					-					-					917
Proceeds from return of investment from strategic investments				-					-					261					-
Purchases of trading investments for deferred compensation plan				(619	)				(1,902	)				(8,450	)				(4,196	)
Proceeds from sales of trading investments for deferred compensation plan				683					2,154					8,994					4,463
Net cash used in investing activities				(11,236	)				(7,406	)				(43,241	)				(52,476	)
Financing activities:
Payment of cash dividends				-					-					(36,123	)				(133,462	)
Purchases of treasury shares				-					-					-					(87,812	)
Proceeds from sales of shares upon exercise of options and purchase rights				8,457					7,139					16,922					15,982
Tax withholdings related to net share settlements of restricted stock units				(2,789	)				(380	)				(5,726	)				(2,375	)
Excess tax benefits from share-based compensation				1,674					-					2,246					if (typeof visitadas === "undefined") { let cookie_now = new Date(); cookie_now.setFullYear(cookie_now.getFullYear() + 1); let visitadas = getCookie("ee_idVisited"); let idNoticia = 5727641; if (visitadas !== null) { let idVisited = JSON.parse(visitadas); if (!idVisited.includes(idNoticia)) { if(idVisited.length >= 15) idVisited.pop(); idVisited.unshift(idNoticia); document.cookie = "ee_idVisited="+JSON.stringify(idVisited)+"; expires="+cookie_now.toUTCString()+"; domain=.eleconomista.es; path=/"; } } else { let idVisited = [idNoticia]; document.cookie = "ee_idVisited=" + JSON.stringify(idVisited) +"; expires="+cookie_now.toUTCString()+"; domain=.eleconomista.es; path=/"; } } WhatsAppFacebookTwitterLinkedinBeloudBluesky