Logitech Increases Fiscal Year 2021 Outlook, Raises Long-Term Financial Model
February 28 2021 - 9:00PM
Business Wire
Strong Secular Growth Trends Expected to
Continue
In advance of a meeting to be held with financial analysts and
investors, Logitech International (SIX:LOGN) (Nasdaq:LOGI)
today:
- Raised its Fiscal Year 2021 annual outlook to approximately 63
percent sales growth in constant currency, and approximately $1.1
billion in non-GAAP operating income. The Company’s previous
outlook was between 57 and 60 percent sales growth in constant
currency, and approximately $1.05 billion in non-GAAP operating
income.
- Announced its Fiscal Year 2022 annual outlook. Sales growth in
constant currency is expected to be approximately flat, plus or
minus 5 percent, and non-GAAP operating income is expected to be
between $750 million and $800 million. This outlook reflects the
Company’s ongoing investments in marketing, hardware and software
innovation and go-to-market capabilities, as well as confidence in
its ability to execute following an exceptional Fiscal Year
2021.
- Announced improvements in its long-term business model.
Expectations of long-term sales growth in constant currency have
increased to 8 to 10 percent, up from high-single digits. The
non-GAAP gross margin target has been raised to between 39 and 44
percent, up from 36 to 40 percent. The non-GAAP operating margin
target has improved to between 14 and 17 percent, up from 11 to 14
percent.
“We’re delivering an extremely strong fiscal year,” said Bracken
Darrell, Logitech president and chief executive officer. “Several
years ago, we set out to become a design company and positioned our
business against long-term growth trends in remote work, video
collaboration, esports, and digital content creation. These trends
have accelerated over the course of the fiscal year and have seen a
coming of age for Logitech. Looking ahead, we see strong growth
opportunities and will continue to invest behind these secular
trends, as well as others where we have opportunities to lead.
We’re committed to sustainability and positively impacting the
communities in which we operate.”
Analyst and Investor Day Videoconference and
Livestream
At Logitech's Analyst and Investor Day, Company executives will
present how capabilities such as go-to-market, operations,
sustainability, marketing and more are contributing to current and
future growth. The event will be held on March 1 at 9:00 a.m.
Eastern Standard Time and 3:00 p.m. Central European Time through
videoconference. A livestream and replay of the event 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, acquisition-related costs, change in fair value of
contingent consideration for business acquisition, restructuring
charges (credits), loss (gain) on investments, and non-GAAP income
tax adjustment, and other items detailed in our “GAAP to Non-GAAP
Reconciliation” under “Supplemental Financial Information” in our
quarterly earnings press release and posted to our website at
http://ir.logitech.com. 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 Years 2021 or 2022.
About Logitech
Logitech designs products that have an everyday place in
people's lives, connecting them to the digital experiences they
care about. Almost 40 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, Logitech G,
ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears and
Jaybird. 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 outlook for Fiscal Years 2021
and 2022, long-term business model, long-term growth trends, our
growth potential, growth and leadership opportunities, investments
for growth, and leadership in sustainability and positively
impacting our communities. 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; the COVID-19 pandemic and
its potential impact; 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, 2020 and our Quarterly Report on Form 10-Q for
the fiscal quarter ended December 31, 2020, 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.
(LOGIIR)
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version on businesswire.com: https://www.businesswire.com/news/home/20210228005048/en/
Editorial Contacts: Ben Lu, CFA Vice President, Investor
Relations - USA (510) 713-5568
Nicole Kenyon Head of Global Corporate & Employee
Communications - USA (510) 988-8553
Ben Starkie Corporate Communications - Europe +41 (0)
79-292-3499
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