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Logitech Announces Q4 and Full Fiscal Year 2024 Results

SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full Fiscal Year 2024 ended March 31, 2024.

For Q4 Fiscal Year 2024:

  • Sales were $1.01 billion, up 5 percent in US dollars and 5 percent in constant currency, compared to Q4 of the prior year.
  • GAAP operating income was $130 million, up 235 percent, compared to Q4 of the prior year. Non-GAAP operating income was $159 million, up 93 percent, compared to Q4 of the prior year.
  • GAAP earnings per share (EPS) was $1.07, up 312 percent compared to Q4 prior year. Non-GAAP EPS was $0.99, up 98 percent compared to the prior year.
  • Cash flow from operations was $239 million, up 10 percent compared to Q4 of the prior year.

For Fiscal Year 2024:

  • Sales were $4.30 billion, down 5 percent in US dollars and 6 percent in constant currency, compared to the prior year.
  • GAAP operating income was $587 million, up 28 percent compared to the prior year. Non-GAAP operating income was $699 million, up 19 percent compared to the prior year.
  • GAAP earnings per share (EPS) was $3.87, up 74 percent compared to the prior year. Non-GAAP EPS was $4.25, up 32 percent compared to the prior year.
  • Cash flow from operations was $1.1 billion, up 114 percent compared to the prior year. The year-ending cash balance was more than $1.5 billion. The Company returned $686 million of cash to shareholders through its annual dividend payment and share repurchases.

“We delivered a strong fourth quarter, with a return to growth and expanded gross margins,” said Hanneke Faber, Logitech chief executive officer. “Growth was broad-based across all regions and key categories.

“We start Fiscal Year 2025 with a focus on sustainable, profitable growth supported by several long-term trends that present opportunities for our business: new ways of working, gaming, and transformational AI. Our new, ambitious mission of extending human potential in work and play expands our addressable market and our innovation opportunities. We’re excited for the journey to come.”

Outlook

Logitech announced its full-year outlook for Fiscal Year 2025:

 

 

 

Sales

 

$4.3 - $4.4 billion

Sales growth (in US dollars, year over year)

 

0% - 2%

Non-GAAP operating income

 

$685 - $715 million

Non-GAAP op. inc. growth/ (decline) (year over year)

 

(2)% - 2%

Financial Results Videoconference and Webcast

Logitech will hold a financial results videoconference to discuss the results for Q4 and the full Fiscal Year 2024 on Tuesday, April 30, 2024 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. This will also be an opportunity to hear strategic insights from Logitech chief executive officer, Hanneke Faber, on her first 100 days.

A livestream of the event will be available on the Logitech corporate website at https://ir.logitech.com. This press release and the Q4 Fiscal Year 2024 Shareholder Letter are also available there.

CFO Search and Annual Investor Day

Last month, Logitech announced that Charles ‘Chuck’ Boynton, chief financial officer (CFO), will be departing the Company to pursue another career opportunity. Boynton will remain with the Company as CFO through mid-May to ensure a seamless transition for the end of the 2024 fiscal year. His successor will be named at a later date.

Logitech plans to hold its Annual Investor Day (AID) later this year.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures in this press release, which exclude share-based compensation expense, amortization and impairment of intangible assets, acquisition-related costs and change in fair value of contingent consideration for business acquisition, restructuring charges, net, loss on investments, pension curtailment gains, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below and posted to our website at https://ir.logitech.com. Logitech also presents percentage sales growth in constant currency (“cc”), 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, outlook 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 the full Fiscal Year 2025 non-GAAP operating income outlook.

Public Dissemination of Certain Information

Recordings of Logitech’s earnings videoconferences and certain events Logitech participates in or hosts, with members of the investment community are posted on the company’s investor relations website at https://ir.logitech.com. Additionally, Logitech provides notifications of news or announcements regarding its operations and financial performance, including its filings with the Securities and Exchange Commission (SEC), investor events, and press and earnings releases as part of its investor relations website. Logitech intends to use its investor relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Logitech’s corporate governance information also is available on its investor relations website.

About Logitech

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming. As the point of connection between people and the digital world, our purpose is to extend human potential in work and play, in a way that is good for people and the planet. 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 and its other brands, including Logitech G, at www.logitech.com or company blog.

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three months and fiscal year ended March 31, 2024, Fiscal Year 2025 outlook for sales and non-GAAP operating income, strategic priorities, trends in our business, and related assumptions. The forward-looking statements in this press release are subject to 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, for example the resilience of overall consumer demand, B2B and IT spending levels, changes in inflation levels and monetary policies, governments’ fiscal policies, and geopolitical conflicts; our expectations regarding our expense reduction efforts, including the timing thereof; changes in secular trends that impact our business; 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; issues relating to development and use of artificial intelligence; 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, supply shortages and other supply chain challenges; the effect of logistics challenges, including disruptions in logistics; 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, 2023, our Quarterly Report on Form 10-Q for the quarter ended December 31, 2023, and other 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.

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands, except per share amounts) - unaudited

 

 

 

Three Months Ended

 

Fiscal Years Ended

 

 

March 31,

 

March 31,

GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,011,487

 

 

$

960,077

 

$

4,298,467

 

 

$

4,538,818

 

Cost of goods sold

 

 

572,051

 

 

 

612,703

 

 

2,509,418

 

 

 

2,806,438

 

Amortization of intangible assets

 

 

2,459

 

 

 

3,510

 

 

11,028

 

 

 

12,865

 

Gross profit

 

 

436,977

 

 

 

343,864

 

 

1,778,021

 

 

 

1,719,515

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Marketing and selling

 

 

185,594

 

 

 

181,060

 

 

730,310

 

 

 

809,182

 

Research and development

 

 

75,421

 

 

 

70,630

 

 

287,243

 

 

 

280,796

 

General and administrative

 

 

38,510

 

 

 

32,437

 

 

155,056

 

 

 

124,652

 

Amortization of intangible assets and acquisition-related costs

 

 

2,655

 

 

 

2,791

 

 

10,934

 

 

 

11,843

 

Impairment of intangible assets

 

 

3,526

 

 

 

 

 

3,526

 

 

 

 

Change in fair value of contingent consideration for business acquisition

 

 

(250

)

 

 

 

 

(250

)

 

 

 

Restructuring charges, net

 

 

1,304

 

 

 

18,102

 

 

3,866

 

 

 

34,573

 

Total operating expenses

 

 

306,760

 

 

 

305,020

 

 

1,190,685

 

 

 

1,261,046

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

130,217

 

 

 

38,844

 

 

587,336

 

 

 

458,469

 

Interest income

 

 

16,128

 

 

 

8,758

 

 

50,636

 

 

 

18,331

 

Other income (expense), net

 

 

(2,549

)

 

 

5,089

 

 

(16,376

)

 

 

(13,278

)

Income before income taxes

 

 

143,796

 

 

 

52,691

 

 

621,596

 

 

 

463,522

 

Provision for (benefit from) income taxes

 

 

(23,819

)

 

 

11,196

 

 

9,453

 

 

 

98,947

 

Net income

 

$

167,615

 

 

$

41,495

 

$

612,143

 

 

$

364,575

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

1.09

 

 

$

0.26

 

$

3.90

 

 

$

2.25

 

Diluted

 

$

1.07

 

 

$

0.26

 

$

3.87

 

 

$

2.23

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to compute net income per share:

 

 

 

 

 

 

 

 

Basic

 

 

154,452

 

 

 

160,073

 

 

156,776

 

 

 

162,302

 

Diluted

 

 

156,204

 

 

 

161,524

 

 

158,171

 

 

 

163,704

 

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands, except per share amounts) - unaudited

 

 

 

March 31,

 

March 31,

CONDENSED CONSOLIDATED BALANCE SHEETS

 

2024

 

2023

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,520,842

 

 

$

1,149,023

 

Accounts receivable, net

 

 

541,715

 

 

 

630,382

 

Inventories

 

 

422,513

 

 

 

682,893

 

Other current assets

 

 

146,270

 

 

 

142,876

 

Total current assets

 

 

2,631,340

 

 

 

2,605,174

 

 

 

 

 

 

Non-current assets:

 

 

 

 

Property, plant and equipment, net

 

 

116,589

 

 

 

121,503

 

Goodwill

 

 

461,978

 

 

 

454,610

 

Other intangible assets, net

 

 

44,603

 

 

 

63,173

 

Other assets

 

 

350,194

 

 

 

316,293

 

Total assets

 

$

3,604,704

 

 

$

3,560,753

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

448,627

 

 

$

406,968

 

Accrued and other current liabilities

 

 

637,262

 

 

 

643,139

 

Total current liabilities

 

 

1,085,889

 

 

 

1,050,107

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

Income taxes payable

 

 

112,572

 

 

 

106,391

 

Other non-current liabilities

 

 

172,590

 

 

 

146,695

 

Total liabilities

 

 

1,371,051

 

 

 

1,303,193

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

Registered shares, CHF 0.25 par value:

 

 

30,148

 

 

 

30,148

 

Issued shares —173,106 at March 31, 2024 and 2023

 

 

 

 

Additional shares that may be issued out of conditional capital — 50,000 at March 31, 2024 and 2023

 

 

 

 

Additional shares that may be issued out of authorized capital — 17,311 at March 31, 2024 and 2023

 

 

 

 

Additional paid-in capital

 

 

63,524

 

 

 

127,380

 

Shares in treasury, at cost — 19,243 and 13,763 shares at March 31, 2024 and 2023, respectively

 

 

(1,351,336

)

 

 

(977,266

)

Retained earnings

 

 

3,602,519

 

 

 

3,177,575

 

Accumulated other comprehensive loss

 

 

(111,202

)

 

 

(100,277

)

Total shareholders' equity

 

 

2,233,653

 

 

 

2,257,560

 

Total liabilities and shareholders' equity

 

$

3,604,704

 

 

$

3,560,753

 

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands) - unaudited

 

 

 

Three Months Ended

 

Fiscal Years Ended

 

 

March 31,

 

March 31,

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

167,615

 

 

$

41,495

 

 

$

612,143

 

 

$

364,575

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

14,191

 

 

 

19,611

 

 

 

63,065

 

 

 

76,309

 

Amortization of intangible assets

 

 

5,098

 

 

 

6,234

 

 

 

21,681

 

 

 

24,407

 

Impairment of intangible assets

 

 

3,526

 

 

 

 

 

 

3,526

 

 

 

 

Loss on investments

 

 

2,461

 

 

 

1,008

 

 

 

14,674

 

 

 

14,073

 

Share-based compensation expense

 

 

18,697

 

 

 

19,042

 

 

 

82,889

 

 

 

70,782

 

Deferred income taxes

 

 

(32,909

)

 

 

6,486

 

 

 

(42,424

)

 

 

30,714

 

Change in fair value of contingent consideration for business acquisition

 

 

(250

)

 

 

 

 

 

(250

)

 

 

 

Pension curtailment gains

 

 

 

 

 

(4,225

)

 

 

 

 

 

(4,225

)

Other

 

 

43

 

 

 

(406

)

 

 

379

 

 

 

1,005

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

138,305

 

 

 

174,732

 

 

 

91,519

 

 

 

51,185

 

Inventories

 

 

21,827

 

 

 

121,000

 

 

 

259,796

 

 

 

247,309

 

Other assets

 

 

7,062

 

 

 

(15,284

)

 

 

10,760

 

 

 

5,634

 

Accounts payable

 

 

(81,047

)

 

 

(84,203

)

 

 

39,336

 

 

 

(219,051

)

Accrued and other liabilities

 

 

(25,514

)

 

 

(68,647

)

 

 

(11,978

)

 

 

(128,707

)

Net cash provided by operating activities

 

 

239,105

 

 

 

216,843

 

 

 

1,145,116

 

 

 

534,010

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(10,312

)

 

 

(23,231

)

 

 

(55,897

)

 

 

(92,353

)

Investment in privately held companies

 

 

(211

)

 

 

(1,731

)

 

 

(617

)

 

 

(4,357

)

Acquisitions, net of cash acquired

 

 

(286

)

 

 

 

 

 

(14,424

)

 

 

(8,527

)

Purchases of deferred compensation investments

 

 

(3,678

)

 

 

(1,516

)

 

 

(11,571

)

 

 

(6,702

)

Proceeds from sales of deferred compensation investments

 

 

3,981

 

 

 

1,459

 

 

 

12,174

 

 

 

6,209

 

Net cash used in investing activities

 

 

(10,506

)

 

 

(25,019

)

 

 

(70,335

)

 

 

(105,730

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Payment of cash dividends

 

 

 

 

 

 

 

 

(182,305

)

 

 

(158,680

)

Payment of contingent consideration for business acquisition

 

 

 

 

 

 

 

 

(5,002

)

 

 

(5,954

)

Purchases of registered shares

 

 

(127,428

)

 

 

(90,615

)

 

 

(504,203

)

 

 

(418,346

)

Proceeds from exercises of stock options and purchase rights

 

 

16,878

 

 

 

12,726

 

 

 

32,197

 

 

 

28,790

 

Tax withholdings related to net share settlements of restricted stock units

 

 

(1,148

)

 

 

(429

)

 

 

(29,744

)

 

 

(29,163

)

Other financing activities

 

 

 

 

 

 

 

 

(1,116

)

 

 

 

Net cash used in financing activities

 

 

(111,698

)

 

 

(78,318

)

 

 

(690,173

)

 

 

(583,353

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(8,709

)

 

 

(614

)

 

 

(12,789

)

 

 

(24,620

)

Net increase (decrease) in cash and cash equivalents

 

 

108,192

 

 

 

112,892

 

 

 

371,819

 

 

 

(179,693

)

Cash and cash equivalents at beginning of the period

 

 

1,412,650

 

 

 

1,036,131

 

 

 

1,149,023

 

 

 

1,328,716

 

Cash and cash equivalents at end of the period

 

$

1,520,842

 

 

$

1,149,023

 

 

$

1,520,842

 

 

$

1,149,023

 

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands) - unaudited

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

Three Months Ended

 

Fiscal Years Ended

 

 

March 31,

 

March 31,

NET SALES

 

2024

 

2023 (1)

 

Change

 

2024

 

2023 (1)

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales by product category:

 

 

 

 

 

 

 

 

 

 

 

 

Gaming (2)

 

$

273,487

 

$

256,437

 

 

7

%

 

$

1,231,063

 

$

1,288,313

 

 

(4

)%

Keyboards & Combos

 

 

216,240

 

 

187,800

 

 

15

 

 

 

821,441

 

 

836,432

 

 

(2

)

Pointing Devices

 

 

170,677

 

 

160,768

 

 

6

 

 

 

742,987

 

 

728,357

 

 

2

 

Video Collaboration

 

 

148,104

 

 

143,576

 

 

3

 

 

 

609,361

 

 

677,923

 

 

(10

)

Webcams

 

 

75,952

 

 

73,156

 

 

4

 

 

 

325,225

 

 

378,688

 

 

(14

)

Tablet Accessories

 

 

55,808

 

 

68,429

 

 

(18

)

 

 

254,060

 

 

254,374

 

 

 

Headsets

 

 

45,455

 

 

39,147

 

 

16

 

 

 

168,478

 

 

176,576

 

 

(5

)

Other (3)

 

 

25,764

 

 

30,764

 

 

(16

)

 

 

145,852

 

 

198,155

 

 

(26

)

Total Net Sales

 

$

1,011,487

 

$

960,077

 

 

5

%

 

$

4,298,467

 

$

4,538,818

 

 

(5

)%

(1) The Company has reclassified certain prior period amounts to conform to the current period presentation.
(2) Gaming includes streaming services revenue generated by Streamlabs.
(3) Other primarily consists of mobile speakers and PC speakers.

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands, except per share amounts) - unaudited

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

Three Months Ended

 

Fiscal Years Ended

 

 

March 31,

 

March 31,

GAAP TO NON-GAAP RECONCILIATION (A)

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Gross profit - GAAP

 

$

436,977

 

 

$

343,864

 

 

$

1,778,021

 

 

$

1,719,515

 

Share-based compensation expense

 

 

1,938

 

 

 

1,407

 

 

 

8,004

 

 

 

5,635

 

Amortization of intangible assets

 

 

2,459

 

 

 

3,510

 

 

 

11,028

 

 

 

12,865

 

Gross profit - Non-GAAP

 

$

441,374

 

 

$

348,781

 

 

$

1,797,053

 

 

$

1,738,015

 

 

 

 

 

 

 

 

 

 

Gross margin - GAAP

 

 

43.2

%

 

 

35.8

%

 

 

41.4

%

 

 

37.9

%

Gross margin - Non-GAAP

 

 

43.6

%

 

 

36.3

%

 

 

41.8

%

 

 

38.3

%

 

 

 

 

 

 

 

 

 

Operating expenses - GAAP

 

$

306,760

 

 

$

305,020

 

 

$

1,190,685

 

 

$

1,261,046

 

Less: Share-based compensation expense

 

 

16,759

 

 

 

17,635

 

 

 

74,885

 

 

 

65,147

 

Less: Amortization of intangible assets and acquisition-related costs

 

 

2,655

 

 

 

2,791

 

 

 

10,934

 

 

 

11,843

 

Less: Impairment of intangible assets

 

 

3,526

 

 

 

 

 

 

3,526

 

 

 

 

Less: Change in fair value of contingent consideration for business acquisition

 

 

(250

)

 

 

 

 

 

(250

)

 

 

 

Less: Restructuring charges, net

 

 

1,304

 

 

 

18,102

 

 

 

3,866

 

 

 

34,573

 

Operating expenses - Non-GAAP

 

$

282,766

 

 

$

266,492

 

 

$

1,097,724

 

 

$

1,149,483

 

 

 

 

 

 

 

 

 

 

% of net sales - GAAP

 

 

30.3

%

 

 

31.8

%

 

 

27.7

%

 

 

27.8

%

% of net sales - Non-GAAP

 

 

28.0

%

 

 

27.8

%

 

 

25.5

%

 

 

25.3

%

 

 

 

 

 

 

 

 

 

Operating income - GAAP

 

$

130,217

 

 

$

38,844

 

 

$

587,336

 

 

$

458,469

 

Share-based compensation expense

 

 

18,697

 

 

 

19,042

 

 

 

82,889

 

 

 

70,782

 

Amortization of intangible assets and acquisition-related costs

 

 

5,114

 

 

 

6,301

 

 

 

21,962

 

 

 

24,708

 

Impairment of intangible assets

 

 

3,526

 

 

 

 

 

 

3,526

 

 

 

 

Change in fair value of contingent consideration for business acquisition

 

 

(250

)

 

 

 

 

 

(250

)

 

 

 

Restructuring charges, net

 

 

1,304

 

 

 

18,102

 

 

 

3,866

 

 

 

34,573

 

Operating income - Non-GAAP

 

$

158,608

 

 

$

82,289

 

 

$

699,329

 

 

$

588,532

 

 

 

 

 

 

 

 

 

 

% of net sales - GAAP

 

 

12.9

%

 

 

4.0

%

 

 

13.7

%

 

 

10.1

%

% of net sales - Non-GAAP

 

 

15.7

%

 

 

8.6

%

 

 

16.3

%

 

 

13.0

%

 

 

 

 

 

 

 

 

 

Net income - GAAP

 

$

167,615

 

 

$

41,495

 

 

$

612,143

 

 

$

364,575

 

Share-based compensation expense

 

 

18,697

 

 

 

19,042

 

 

 

82,889

 

 

 

70,782

 

Amortization of intangible assets and acquisition-related costs

 

 

5,114

 

 

 

6,301

 

 

 

21,962

 

 

 

24,708

 

Impairment of intangible assets

 

 

3,526

 

 

 

 

 

 

3,526

 

 

 

 

Change in fair value of contingent consideration for business acquisition

 

 

(250

)

 

 

 

 

 

(250

)

 

 

 

Restructuring charges, net

 

 

1,304

 

 

 

18,102

 

 

 

3,866

 

 

 

34,573

 

Loss on investments

 

 

2,461

 

 

 

1,008

 

 

 

14,674

 

 

 

14,073

 

Pension curtailment gains

 

 

 

 

 

(4,225

)

 

 

 

 

 

(4,225

)

Non-GAAP income tax adjustment

 

 

(44,039

)

 

 

(1,167

)

 

 

(66,073

)

 

 

22,129

 

Net income - Non-GAAP

 

$

154,428

 

 

$

80,556

 

 

$

672,737

 

 

$

526,615

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

Diluted - GAAP

 

$

1.07

 

 

$

0.26

 

 

$

3.87

 

 

$

2.23

 

Diluted - Non-GAAP

 

$

0.99

 

 

$

0.50

 

 

$

4.25

 

 

$

3.22

 

 

 

 

 

 

 

 

 

 

Shares used to compute net income per share:

 

 

 

 

 

 

 

 

Diluted - GAAP and Non-GAAP

 

 

156,204

 

 

 

161,524

 

 

 

158,171

 

 

 

163,704

 

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands) - unaudited

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

Three Months Ended

 

Fiscal Years Ended

 

 

March 31,

 

March 31,

SHARE-BASED COMPENSATION EXPENSE

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Share-based Compensation Expense

 

 

 

 

 

 

 

 

Cost of goods sold

 

$

1,938

 

 

$

1,407

 

 

$

8,004

 

 

$

5,635

 

Marketing and selling

 

 

7,157

 

 

 

9,467

 

 

 

35,780

 

 

 

34,707

 

Research and development

 

 

4,268

 

 

 

3,724

 

 

 

17,836

 

 

 

15,292

 

General and administrative

 

 

5,334

 

 

 

4,444

 

 

 

21,269

 

 

 

15,148

 

Total share-based compensation expense

 

 

18,697

 

 

 

19,042

 

 

 

82,889

 

 

 

70,782

 

Income tax benefit

 

 

(4,048

)

 

 

(2,254

)

 

 

(15,305

)

 

 

(9,750

)

Total share-based compensation expense, net of income tax benefit

 

$

14,649

 

 

$

16,788

 

 

$

67,584

 

 

$

61,032

 

*Note: These preliminary results for the three months and fiscal year ended March 31, 2024 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K.

(A) Non-GAAP Financial Measures

To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of financial measures, both GAAP and non-GAAP, in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.

While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting both our performance and our cash-generating potential, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance. In assessing our business during the quarter and fiscal year ended March 31, 2024 and prior periods presented, we excluded items in the following general categories, each of which are described below:

Share-based compensation expense. We believe that providing non-GAAP measures excluding share-based compensation expense, in addition to the GAAP measures, allows for a more transparent comparison of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine share-based compensation expense. We believe that excluding share-based compensation expense enhances our ability and the ability of investors to understand the impact of non-cash share-based compensation on our operating results and to compare our results against the results of other companies.

Amortization of intangible assets. We incur intangible asset amortization expense, primarily in connection with our acquisitions of various businesses and technologies. The amortization of purchased intangibles varies depending on the level of acquisition activity. We exclude these various charges in budgeting, planning and forecasting future periods and we believe that providing the non-GAAP measures excluding these various non-cash charges, as well as the GAAP measures, provides additional insight when comparing our gross profit, operating expenses, and financial results from period to period.

Impairment of intangible assets. We may incur impairment of intangible assets expense, primarily in connection with our past business or asset acquisitions. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results.

Acquisition-related costs and change in fair value of contingent consideration for business acquisition. We incurred expenses and credits in connection with our acquisitions which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination. Fair value of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions. We believe that providing the non-GAAP measures excluding these costs and credits, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results.

Restructuring charges (credits), net. These expenses are associated with restructuring plans, and will vary based on the initiatives in place during any given period. Restructuring charges may include costs related to employee terminations, facility closures and early cancellation of certain contracts as well as other costs resulting from our restructuring initiatives. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such charges (credits) are not reflective of our ongoing operating results.

Loss (gain) on investments. We recognize losses (gains) related to our investments in various companies, which vary depending on the operational and financial performance of the companies in which we invest. These amounts include our losses (earnings) on equity method investments, investment impairments and losses (gains) resulting from sales or other events related to our investments. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such losses (gains) are not reflective of our ongoing operations.

Pension curtailment losses (gains). Pension curtailment losses (gains) are associated with our restructuring initiatives as a result of a reduction in the number of participants in our defined benefit pension plans. We believe that providing the non-GAAP measures excluding these losses (gains), as applicable, as well as the GAAP measures, assists our investors because such losses (gains) are not reflective of our ongoing operating results.

Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above as well as the income tax impact of non-recurring deferred taxes, tax settlements, and other non-routine tax events, the determination of which is based upon the nature of the underlying items. For the fiscal year ended March 31, 2024, non-GAAP income tax adjustment includes a Swiss Tax Ruling with the canton of Vaud that provides future tax benefit for ten years and the tax benefit from a remeasurement of the tax basis of goodwill under the Swiss Federal Act on Tax Reform and AHV Financing (“TRAF”) based on an agreement reached with the Swiss Tax Authority during the fiscal year ended March 31, 2024.

Each of the non-GAAP financial measures described above, and used in this press release, should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. We compensate for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information.

Additional Supplemental Financial Information - Constant Currency

In addition, Logitech 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.

(LOGIIR)

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