Logitech Expects Seventh Consecutive Year of Growth in Fiscal Year 2020
March 05 2019 - 9:00PM
Business Wire
In advance of a meeting to be held with financial analysts and
investors in Zurich, Logitech
International (SIX:LOGN) (Nasdaq:LOGI) today:
- Reaffirmed its Fiscal Year 2019 outlook
of 9 to 11 percent sales growth in constant currency and $340
million to $345 million in non-GAAP operating income.
- Announced a 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, an increase
of approximately 10 to 12 percent from the midpoint of the
Company’s profitability outlook for Fiscal Year 2019.
- Revised elements of its long-term
business model upward. Expectations of long-term sales growth in
constant currency continue to be in the high single digits. The
gross margin target is now 36 to 40 percent, revised upward from
the previous target of 35 to 37 percent. The operating margin
target is now 11 to 14 percent, up from the previous target of 10
to 12 percent.
“Logitech grew up with the PC. Now we are becoming the leading
cloud peripherals company,” said Bracken Darrell,
Logitech president and chief executive officer. “Our diverse
and innovative portfolio continues to deliver, driven by the
horsepower of our Gaming, Video Collaboration and Creativity &
Productivity market opportunities. We are sustaining our investment
in future growth and in our long-term vision of Logitech, the
multi-category, multi-brand design company.”
Logitech's Analyst and Investor Day will be held today
at 9:00 a.m. Central European Time. A live webcast and
replay of the meeting 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), gain (loss) on investments in privately held companies,
investigation and related expenses, non-GAAP income tax adjustment,
and other items detailed under “Supplemental Financial Information”
in our quarterly earnings press releases and posted to our website
at http://ir.logitech.com. Historical GAAP and corresponding
non-GAAP measures are provided with our earnings releases and
presentations in the Investors section of our website. 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 2019 or 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: growth, profitability, our
outlook for Fiscal Year 2019 operating income and sales growth, our
outlook for Fiscal Year 2020 operating income and sales growth, our
long-term business model, sales growth, gross margin and operating
margin, our consecutive years of growth, our position among cloud
peripherals companies, our product portfolio and its ability to
drive growth,, our growth in various product categories, our market
opportunities, our long-term vision, and investments in our
business. 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 are not
able to maintain and enhance our brands; 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;the effect of changes to our effective income tax
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, 2018 and our Annual Report on
Form 10-K for the fiscal year ended March 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.
(LOGIIR)
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version on businesswire.com: https://www.businesswire.com/news/home/20190305006019/en/
Logitech InternationalBen LuVice President, Investor Relations -
USA+1 (510) 713-5568
Krista ToddVice President, Global Communications - USA+1 (510)
713-5834
Ben StarkieCorporate Communications - Europe+41 (0)
79-292-3499
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