Logitech International (SIX:LOGN) (NASDAQ:LOGI) today announced financial results for the second quarter of Fiscal Year 2017.
- Q2 sales were $564 million, up 9 percent compared to Q2 of the prior year. Q2 retail sales grew 14 percent, reaching a record level for Q2.
- Q2 GAAP operating income was $53 million compared to $37 million a year ago. Q2 GAAP earnings per share (EPS) from continuing operations were $0.28 compared to $0.18 a year ago.
- Q2 non-GAAP operating income was $65 million compared to $47 million a year ago, with non-GAAP EPS of $0.35 compared to $0.25 a year ago.
- Q2 cash flow from operations was $74 million compared to $11 million a year ago.
“We’ve delivered an outstanding quarter – the highest Q2 retail sales in Logitech’s history – and a first half ahead of expectations,” said Bracken Darrell, Logitech president and chief executive officer. “Once more this quarter shows our strategy clearly: new product launches that again demonstrate the power of our innovation engine, ongoing operational excellence, and profitable growth across all our regions and in almost all our market opportunities. As we enter the second half of the year and our biggest quarter, we’ve got momentum, a winning product portfolio and a terrific team.”
Outlook
Logitech’s Fiscal Year 2017 outlook is 8 to 10 percent retail sales growth in constant currency and $195 million to $205 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 Q2 FY 2017 on Weds., October 26, 2016 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. Except as otherwise noted, all 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 now reported in the Company’s financial statements under discontinued operations or total Logitech including discontinued operations. 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, 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 2017.
About Logitech
Logitech designs products that have an everyday place in people´s lives, connecting them to the digital experiences they care about. Over 30 years ago Logitech started connecting people through computers, and now it’s designing products that bring people together through music, gaming, video and computing. 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). 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, new product launches, product portfolio, innovation, operations, profitability, growth, momentum, and outlook for Fiscal Year 2017 operating income and sales growth as well as the size of our fiscal third quarter. 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 June 30, 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.
2016 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. | ||||||||||||||||
| (In thousands, except per share amounts) - unaudited | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (A) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Net sales | $ | 564,304 | $ | 518,494 | $ | 1,044,168 | $ | 966,180 | ||||||||
| Cost of goods sold | 356,268 | 345,977 | 665,893 | 635,730 | ||||||||||||
| Amortization of intangible assets and purchase accounting effect on inventory | 1,163 | — | 2,776 | — | ||||||||||||
| Gross profit | 206,873 | 172,517 | 375,499 | 330,450 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing and selling | 93,792 | 78,833 | 177,664 | 154,629 | ||||||||||||
| Research and development | 32,632 | 28,725 | 64,583 | 56,727 | ||||||||||||
| General and administrative | 25,216 | 25,074 | 50,956 | 53,886 | ||||||||||||
| Amortization of intangible assets and acquisition-related costs | 1,748 | 168 | 3,041 | 336 | ||||||||||||
| Restructuring charges (credits), net | 74 | 3,146 | (11 | ) | 14,684 | |||||||||||
| Total operating expenses | 153,462 | 135,946 | 296,233 | 280,262 | ||||||||||||
| Operating income | 53,411 | 36,571 | 79,266 | 50,188 | ||||||||||||
| Interest income (expense), net | (90 | ) | 189 | 61 | 444 | |||||||||||
| Other expense, net | (683 | ) | (737 | ) | (1,691 | ) | (1,756 | ) | ||||||||
| Income before income taxes | 52,638 | 36,023 | 77,636 | 48,876 | ||||||||||||
| Provision for income taxes | 5,593 | 5,571 | 8,650 | 5,564 | ||||||||||||
| Net income from continuing operations | 47,045 | 30,452 | 68,986 | 43,312 | ||||||||||||
| Loss from discontinued operations, net of taxes | — | (12,355 | ) | — | (17,778 | ) | ||||||||||
| Net income | $ | 47,045 | $ | 18,097 | $ | 68,986 | $ | 25,534 | ||||||||
| Net income (loss) per share - basic: | ||||||||||||||||
| Continuing operations | $ | 0.29 | $ | 0.19 | $ | 0.43 | $ | 0.26 | ||||||||
| Discontinued operations | — | (0.08 | ) | — | (0.10 | ) | ||||||||||
| Net income per share - basic | $ | 0.29 | $ | 0.11 | $ | 0.43 | $ | 0.16 | ||||||||
| Net income (loss) per share - diluted: | ||||||||||||||||
| Continuing operations | $ | 0.28 | $ | 0.18 | $ | 0.42 | $ | 0.26 | ||||||||
| Discontinued operations | — | (0.07 | ) | — | (0.11 | ) | ||||||||||
| Net income per share - diluted | $ | 0.28 | $ | 0.11 | $ | 0.42 | $ | 0.15 | ||||||||
| Weighted average shares used to compute net income (loss) per share: | ||||||||||||||||
| Basic | 162,222 | 163,515 | 162,176 | 163,957 | ||||||||||||
| Diluted | 165,549 | 165,841 | 164,926 | 166,352 | ||||||||||||
| Cash dividend per share | $ | 0.57 | $ | 0.53 | $ | 0.57 | $ | 0.53 | ||||||||
| LOGITECH INTERNATIONAL S.A. | ||||||||
| (In thousands) - unaudited | ||||||||
| September 30, | March 31, | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (A) | 2016 | 2016 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 395,201 | $ | 519,195 | ||||
| Accounts receivable, net | 240,606 | 142,778 | ||||||
| Inventories | 268,110 | 228,786 | ||||||
| Other current assets | 40,201 | 35,488 | ||||||
| Total current assets | $ | 944,118 | $ | 926,247 | ||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 84,797 | 92,860 | ||||||
| Goodwill | 249,765 | 218,224 | ||||||
| Other intangible assets | 53,063 | — | ||||||
| Other assets | 84,517 | 86,816 | ||||||
| Total assets | $ | 1,416,260 | $ | 1,324,147 | ||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 333,543 | $ | 241,166 | ||||
| Accrued and other current liabilities | 213,910 | 173,764 | ||||||
| Total current liabilities | $ | 547,453 | $ | 414,930 | ||||
| Non-current liabilities: | ||||||||
| Income taxes payable | $ | 60,360 | $ | 59,734 | ||||
| Other non-current liabilities | 92,413 | 89,535 | ||||||
| Total liabilities | $ | 700,226 | $ | 564,199 | ||||
| Shareholders’ equity: | ||||||||
| Registered shares, CHF 0.25 par value: | 30,148 | 30,148 | ||||||
| Issued and authorized shares —173,106 at September 30 and March 31, 2016 | ||||||||
| Conditionally authorized shares — 50,000 at September 30 and March 31, 2016 | ||||||||
| Additional paid-in capital | 8,851 | 6,616 | ||||||
| Less shares in treasury, at cost — 11,009 at September 30, 2016 and 10,697 at March 31, 2016 | (152,070 | ) | (128,407 | ) | ||||
| Retained earnings | 937,220 | 963,576 | ||||||
| Accumulated other comprehensive loss | (108,115 | ) | (111,985 | ) | ||||
| Total shareholders’ equity | 716,034 | 759,948 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,416,260 | $ | 1,324,147 | ||||
| LOGITECH INTERNATIONAL S.A. | ||||||||||||||||
| (In thousands) - unaudited | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (A) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income | $ | 47,045 | $ | 18,097 | $ | 68,986 | $ | 25,534 | ||||||||
| Non-cash items included in net income: | ||||||||||||||||
| Depreciation | 10,511 | 11,721 | 23,616 | 22,237 | ||||||||||||
| Amortization of intangible assets | 2,159 | 494 | 3,867 | 1,226 | ||||||||||||
| Loss (gain) on equity-method investment | (171 | ) | 77 | (172 | ) | 180 | ||||||||||
| Share-based compensation expense | 8,450 | 6,508 | 16,967 | 13,257 | ||||||||||||
| Excess tax benefits from share-based compensation | (850 | ) | (498 | ) | (4,130 | ) | (1,163 | ) | ||||||||
| Deferred income taxes | 663 | 7,684 | (385 | ) | 952 | |||||||||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||||
| Accounts receivable, net | (48,340 | ) | (54,195 | ) | (97,001 | ) | (95,403 | ) | ||||||||
| Inventories | (18,310 | ) | (1,278 | ) | (28,317 | ) | (55,442 | ) | ||||||||
| Other assets | (3,567 | ) | (6,128 | ) | (4,738 | ) | (8,511 | ) | ||||||||
| Accounts payable | 40,907 | 15,820 | 83,676 | 50,361 | ||||||||||||
| Accrued and other liabilities | 35,522 | 12,435 | 25,387 | 31,910 | ||||||||||||
| Net cash provided by (used in) operating activities | 74,019 | 10,737 | 87,756 | (14,862 | ) | |||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchases of property, plant and equipment | (6,623 | ) | (15,987 | ) | (14,758 | ) | (31,277 | ) | ||||||||
| Investment in privately held companies | (160 | ) | (240 | ) | (480 | ) | (480 | ) | ||||||||
| Acquisitions, net of cash acquired | (13,000 | ) | — | (66,987 | ) | — | ||||||||||
| Release of restricted cash | — | — | 715 | — | ||||||||||||
| Purchase of trading investments | (1,042 | ) | (1,746 | ) | (5,271 | ) | (2,649 | ) | ||||||||
| Proceeds from sales of trading investments | 1,065 | 2,015 | 5,296 | 2,855 | ||||||||||||
| Net cash used in investing activities | (19,760 | ) | (15,958 | ) | (81,485 | ) | (31,551 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Payment of cash dividends | (93,093 | ) | (85,915 | ) | (93,093 | ) | (85,915 | ) | ||||||||
| Purchases of treasury shares | (18,472 | ) | (39,988 | ) | (42,894 | ) | (48,802 | ) | ||||||||
| Proceeds from sales of shares upon exercise of options and purchase rights | 13,885 | 7,037 | 14,484 |
if (typeof visitadas === "undefined") {
let cookie_now = new Date();
cookie_now.setFullYear(cookie_now.getFullYear() + 1);
let visitadas = getCookie("ee_idVisited");
let idNoticia = 7916651;
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=/";
}
}
| ||||||||||||
