Logitech Projects Continued Growth in Revenue and Profitability
March 01 2016 - 11:30PM
Business Wire
Company Reiterates FY 2016 Outlook; Provides FY
2017 Outlook; Outlines Foundation for Future Success
Prior to a meeting to be held today with financial analysts and
investors in Zurich, Logitech
International (SIX:LOGN) (NASDAQ:LOGI) announced:
- Confirmation of its FY 2016 outlook of
approximately $170 million in non-GAAP operating
income and constant currency retail sales growth of 7 to 9
percent
- An outlook for FY 2017 of
$185 million to $200 million in non-GAAP operating
income and constant currency retail sales growth in the mid-single
digits
- The continuation of its three-year plan
for returning up to $500 million in cash to shareholders
At the meeting, Logitech will outline the foundation that will
deliver the Company’s future success. It will also demonstrate the
Company’s consistent ability to grow, generate cash and build a
diversified, market-leading portfolio of growing product
categories.
“Logitech is poised for growth,” said Bracken Darrell,
Logitech president and chief executive officer. “Over the past
three years, we have revitalized our ability to grow. We have
diversified our portfolio and grown market share to lead almost
every category in which we play. We have also demonstrated rigorous
cost management that has enabled us to invest more into great new
products. We now have a foundation for a successful FY 2017, as we
work toward our long-term objective of high single-digit growth and
strong profitability.
“Going forward, we will build on this foundation for success
with powerful design, revitalized product creation in existing and
new categories, a winning global team and outstanding execution. We
already participate in big and growing markets
including Gaming, Home, Music, Video Collaboration and
Productivity & Creativity. Each of these markets is large
and offers interesting adjacent categories we could enter in the
future. In the long run we have no shortage of growth
options."
The Company'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 Web site at http://ir.logitech.com.
Use of Non-GAAP Financial Information
To facilitate comparisons to Logitech’s historical results,
Logitech has included non-GAAP adjusted measures, which exclude
primarily share-based compensation expense, amortization of other
intangible assets, restructuring charges (credits), investment
impairment (recovery), benefit from (provision for) income taxes,
and one-time special charges. 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, a
non-GAAP measure, to show performance unaffected by fluctuations in
foreign 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 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 2016 or 2017.
Market Share Information
References to market share are based on the aggregate sales
across certain countries for which Logitech has obtained data,
varying by product category (ranging from the U.S. only to
countries in North America, Europe and Asia Pacific).
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: Logitech’s success and ability to
grow, generate cash and build a diversified, market-leading
portfolio of growing product categories, outlook for Fiscal Year
2016 and Fiscal Year 2017 operating income and sales growth,
capital return to shareholders, dividends, share repurchases,
long-term growth and profitability objectives, design, product
creation, personnel, execution, and growth opportunities, and
growth in the product markets in which Logitech competes. 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 in our new product categories 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, 2015
and our Quarterly Report on Form 10-Q for the fiscal quarter ended
December 31, 2015, 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.
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.
(LOGIIR)
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160301007186/en/
Logitech InternationalJoe GreenhalghVice President, Investor
Relations – USA510-713-4430Krista ToddVice President, External
Communications – USA510-713-5834Ben StarkieCorporate Communications
– Europe+41-(0) 79-292-3499
Logitech (NASDAQ:LOGI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Logitech (NASDAQ:LOGI)
Historical Stock Chart
From Apr 2023 to Apr 2024