Logitech Hosts Annual Analyst and Investor Day
March 07 2023 - 09:01PM
Business Wire
SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR
— Logitech International (SIX:LOGN) (Nasdaq:LOGI), in advance
of a meeting to be held with financial analysts and investors,
today confirmed its financial outlook for fiscal year 2023 and
provided its outlook for the first half of fiscal year 2024.
- Current Fiscal Year 2023 Outlook: Logitech confirmed its
current Fiscal Year 2023 outlook of between 15 percent and 13
percent sales decline in constant currency, and between $550
million and $600 million in non-GAAP operating income.
- First Half Fiscal Year 2024 Outlook: Logitech announced
its outlook for the first half of Fiscal Year 2024. Revenue is
expected to be between $1.8 billion and $1.9 billion, a decline in
US dollars of between 22 percent and 18 percent. Non-GAAP operating
income is expected to be between $160 million and $190
million.
- Long-Term Business Model: Logitech maintains its
long-term non-GAAP model. Long-term, the expectation for sales
growth in constant currency continues to be from 8 to 10 percent.
The expected long-term non-GAAP gross margin target is maintained
at between 39 and 44 percent. The expected long-term non-GAAP
operating margin target is maintained at between 14 and 17
percent.
“Fiscal Year 2023 has been a year of transition for Logitech as
we continue to navigate a series of external headwinds,” said
Bracken Darrell, Logitech president and chief executive officer.
“While our recent results were disappointing, we have always taken
a long-term perspective and our long-term strategies remain
unchanged. Short term we continue to gain market share in our key
categories while we adjust our cost structure to the market size.
We are encouraged by the opportunities in front of us and as a
leader in our markets, we are well positioned to take advantage of
the trends that fuel our business - in video, hybrid work, gaming
and content creation.”
Analyst and Investor Day Videoconference and
Livestream
At Logitech's Analyst and Investor Day, Company executives will
present a view of the Company’s long-term strategy and
industry-leading innovation. The event will be held on March 8 at
9:00 a.m. Eastern Standard Time and 3:00 p.m. Central European Time
through videoconference. A livestream, replay of the event, and
slide presentation 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
primarily share-based compensation expense, amortization of
intangible assets, acquisition-related costs, impairment of
intangible assets, change in fair value of contingent consideration
for business acquisition, restructuring charges (credits), loss
(gain) on investments, 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 (decline) in
constant currency, a non-GAAP measure, 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 financial
outlooks for Fiscal Year 2023 or first half of fiscal year 2024,
and for the long-term non-GAAP model.
About Logitech
Logitech helps all people pursue their passions and is committed
to doing so in a way that is good for people and the planet. We
design hardware and software solutions that help businesses thrive
and bring people together when working, creating, gaming and
streaming. Brands of Logitech include Logitech, Logitech G, ASTRO
Gaming, Streamlabs, Blue Microphones and Ultimate Ears. 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 outlooks for fiscal year
2023, for first half of fiscal year 2024, and for the long-term
non-GAAP model, and related assumptions, market share and business
opportunities, and market trends. The forward-looking statements in
this press 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: macroeconomic and geopolitical conditions and
other factors and their impact, including the COVID-19 pandemic and
changes in the COVID-19 pandemic controls and infection levels in
China, the war in Ukraine, changes in inflation levels and monetary
policies; 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 demand variability; 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 efficiently manage our
spending; our expectations regarding our restructuring efforts,
including the timing thereof; 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 regulations, policies and
agreements and the imposition of tariffs that affect our products
or operations and our ability to mitigate; if we do not
successfully execute on strategic acquisitions and investments;
risks associated with acquisitions; and 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 (SEC), including our Annual Report on Form 10-K
for the fiscal year ended March 31, 2022, our Quarterly Report on
Form 10-Q for the fiscal quarter ended December 31, 2022, and our
subsequent reports filed with the SEC, 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/20230307006067/en/
Nate Melihercik, Head of Global Investor Relations -
lir@logitech.com 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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