Logitech Expects Tenth Consecutive Year of Growth in Fiscal Year 2023; Confirms Long-Term Financial Model
March 02 2022 - 9:00PM
Business Wire
Company Well Positioned to Benefit from Ongoing
Secular Growth Trends
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
provided an update on its financial outlook and long-term business
model.
- Current Fiscal Year 2022 Outlook: Logitech confirmed its
recently increased current Fiscal Year 2022 outlook of between 2
and 5 percent sales growth in constant currency, and between $850
million and $900 million in non-GAAP operating income.
- Fiscal Year 2023 Outlook: Logitech announced its Fiscal
Year 2023 outlook. Sales growth in constant currency is expected to
be in the mid single digits, and non-GAAP operating income is
expected to be between $900 million and $950 million.
- Long-Term Business Model: Logitech reaffirmed its
long-term business 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.
“As a leader in large and growing markets, with world-class
design and innovation capabilities, Logitech is well positioned for
long-term growth,” said Bracken Darrell, Logitech president and
chief executive officer. “For many years, Logitech’s growth has
been fueled by market trends in remote work, video collaboration,
esports, and digital content creation. Those trends are poised to
continue to grow strongly into the future, and Logitech is poised
to grow strongly along with them.”
Analyst and Investor Day Videoconference and
Livestream
At Logitech's Analyst and Investor Day, Company executives will
present how capabilities such as design, innovation, operations,
sustainability, go-to-market, marketing, and more are contributing
to current and future growth. The event will be held on March 3 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
share-based compensation expense, amortization of intangible
assets, impairment of intangible assets, acquisition-related costs,
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 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 Fiscal Years 2022 or 2023.
About Logitech
Logitech helps all people pursue their passions by designing
experiences so everyone can create, achieve, and enjoy more.
Logitech designs and creates products that bring people together
through computing, gaming, video, streaming and creating, and
music. 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 outlook for Fiscal Years 2022
and 2023, long-term business model, long-term growth potential, 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: 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, supply shortages, and other supply chain challenges;
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 impact; our expectations regarding economic
conditions in international markets, including China, Russia and
Ukraine; macroeconomic, geopolitical, and other challenges and
uncertainties globally as a result of the current armed conflict
between Russia and Ukraine; if we do not efficiently manage our
spending; 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; 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, 2021, our
Quarterly Report on Form 10-Q for the fiscal quarter ended December
31, 2021, 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/20220302006151/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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