EX-99.1 2 exhibit991q1fy24.htm EX-99.1 Document

                                             Exhibit 99.1
Editorial Contacts:
Nate Melihercik, Head of Global Investor Relations - ir@logitech.com
Nicole Kenyon, Head of Global Corporate and Internal Communications - nkenyon@logitech.com (USA)
Ben Starkie, Corporate Communications - +41 (0) 79-292-3499, bstarkie1@logitech.com (Europe)

Logitech Announces First Quarter FY 2024 Results
Company Provides Full-Year and Updated First-Half 2024 Outlook

LAUSANNE, Switzerland, July 25, 2023 and SAN JOSE, Calif., July 24, 2023 — SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the first quarter of Fiscal Year 2024.
•Sales were $974 million, down 16 percent in US dollars and 15 percent in constant currency, compared to the prior year.
•GAAP operating income was $78 million, down 32 percent compared to the prior year. Non-GAAP operating income was $109 million, down 25 percent compared to the prior year.
•GAAP earnings per share (EPS) was $0.39, down 36 percent compared to the prior year. Non-GAAP EPS was $0.65, down 12 percent compared to the prior year.
•Cash flow from operations was $240 million, up $275 million compared to the prior year. The quarter-ending cash balance was $1.25 billion.
“While the markets are still challenging, I am proud of the team's achievements during our first quarter," said Guy Gecht, Logitech interim chief executive officer. “Our high-caliber seasoned team, design-led engineering and strong execution truly sets us apart. Our latest innovations and elevated outlook are just a glimpse of Logitech’s full potential as we execute our strategic vision.”

“This solid first quarter highlights steady progress on many important metrics,” said Charles Boynton, Logitech chief financial officer. “We delivered another quarter of reduced inventory and operating expenses while continuing to drive strong cash generation, further fortifying our balance sheet. With one quarter completed, we are pleased to provide a full-year and updated first-half outlook.”



Outlook
Logitech raised its outlook for the first half of Fiscal Year 2024:
Previous H1 2024 outlookNew H1 2024 outlook
Sales$1.8 - $1.9 billion$1.875 - $1.975 billion
Sales decline (in US dollars, year over year)22% - 18%19% - 14%
Non-GAAP operating income$160 - $190 million$180 - $220 million
Non-GAAP op. inc. decline (year over year)47% - 37%40% - 27%

Logitech also provided an estimated full-year outlook for Fiscal Year 2024:
Full FY 2024 outlook
Sales$3.8 - $4.0 billion
Sales decline (in US dollars, year over year)16% - 12%
Non-GAAP operating income$400 - $500 million
Non-GAAP op. inc. decline (year over year)32% - 15%

Financial Results Videoconference and Webcast
Logitech will hold a financial results videoconference to discuss the results for Q1 Fiscal Year 2024 on Tuesday, July 25, 2023 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. A livestream of the event 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 in this press release, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges, net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below and posted to our website at http://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 first half of Fiscal Year 2024 and full Fiscal Year 2024 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 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 U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three months ended June 30, 2023, full year and first half Fiscal Year 2024 outlook for sales and non-GAAP operating income 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 changes in inflation levels and monetary policies; 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; 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; 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, 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)




LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
Three months ended June 30,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 20232022
Net sales$974,499 $1,159,865 
Cost of goods sold595,712 697,220 
Amortization of intangible assets3,145 3,042 
Gross profit375,642 459,603 
Operating expenses:
Marketing and selling179,185 229,378 
Research and development70,559 75,517 
General and administrative41,297 35,860 
Amortization of intangible assets and acquisition-related costs2,685 3,369 
Restructuring charges, net3,511 — 
Total operating expenses297,237 344,124 
Operating income78,405 115,479 
Interest income9,826 1,449 
Other income (expense), net(12,972)5,624 
Income before income taxes75,259 122,552 
Provision for income taxes12,532 21,716 
Net income$62,727 $100,836 
Net income per share:
Basic$0.39 $0.61 
Diluted$0.39 $0.61 
Weighted average shares used to compute net income per share:
Basic158,859 164,679 
Diluted160,155 166,406 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except share amounts) - unaudited
June 30,March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS
20232023
Current assets:
Cash and cash equivalents$1,251,086 $1,149,023 
Accounts receivable, net562,602 630,382 
Inventories572,344 682,893 
Other current assets111,572 142,876 
Total current assets2,497,604 2,605,174 
Non-current assets:
Property, plant and equipment, net126,965 121,503 
Goodwill453,922 454,610 
Other intangible assets, net57,230 63,173 
Other assets 304,160 316,293 
Total assets$3,439,881 $3,560,753 
Current liabilities:
Accounts payable$386,599 $406,968 
Accrued and other current liabilities 570,544 643,139 
Total current liabilities957,143 1,050,107 
Non-current liabilities:
Income taxes payable107,925 106,391 
Other non-current liabilities 148,738 146,695 
Total liabilities1,213,806 1,303,193 
Shareholders’ equity:
Registered shares, CHF 0.25 par value:30,148 30,148 
Issued shares — 173,106 at June 30, 2023 and March 31, 2023
Additional shares that may be issued out of conditional capital — 50,000 at June 30, 2023 and March 31, 2023
Additional shares that may be issued out of authorized capital — 17,311 at June 30, 2023 and March 31, 2023
Additional paid-in capital49,734 127,380 
Shares in treasury, at cost — 14,484 at June 30, 2023 and 13,763 at March 31, 2023(994,581)(977,266)
Retained earnings3,240,302 3,177,575 
Accumulated other comprehensive loss(99,528)(100,277)
Total shareholders’ equity2,226,075 2,257,560 
Total liabilities and shareholders’ equity$3,439,881 $3,560,753 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
Three months ended June 30,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 20232022
Cash flows from operating activities:  
Net income$62,727 $100,836 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation17,498 18,626 
Amortization of intangible assets5,827 6,229 
Loss (gain) on investments11,823 (11,357)
Share-based compensation expense21,511 23,690 
Deferred income taxes2,962 265 
Other24 (124)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net65,390 (44,572)
Inventories110,440 (324)
Other assets34,342 4,932 
Accounts payable(18,420)(70,034)
Accrued and other liabilities(74,329)(63,835)
Net cash provided by (used in) operating activities239,795 (35,668)
Cash flows from investing activities:
Purchases of property, plant and equipment(16,238)(19,563)
Investment in privately held companies(34)(2,088)
Acquisitions, net of cash acquired— (5,839)
Purchases of deferred compensation investments(1,069)(922)
Proceeds from sales of deferred compensation investments1,071 943 
Other investing activities(1,260)— 
Net cash used in investing activities(17,530)(27,469)
Cash flows from financing activities:
Purchases of registered shares(95,076)(120,619)
Proceeds from exercises of stock options and purchase rights2,113 — 
Tax withholdings related to net share settlements of restricted stock units(24,196)(24,144)
Net cash used in financing activities(117,159)(144,763)
Effect of exchange rate changes on cash and cash equivalents (3,043)(14,159)
Net increase (decrease) in cash and cash equivalents 102,063 (222,059)
Cash and cash equivalents, beginning of the period1,149,023 1,328,716 
Cash and cash equivalents, end of the period$1,251,086 $1,106,657 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATIONThree months ended June 30,
NET SALES2023
2022 (1)
Change
Net sales by product category:
Gaming (2)
$266,429 $297,921 (11)%
Keyboards & Combos180,855 227,720 (21)
Pointing Devices174,454 183,283 (5)
Video Collaboration139,346 181,632 (23)
Webcams75,200 109,262 (31)
Tablet Accessories70,336 66,585 6 
Headsets36,850 45,943 (20)
Other (3)
31,029 47,519 (35)
Total Net Sales$974,499 $1,159,865 (16)%

(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 INFORMATIONThree months ended June 30,
GAAP TO NON-GAAP RECONCILIATION (A)
20232022
Gross profit - GAAP$375,642 $459,603 
Share-based compensation expense1,415 1,461 
Amortization of intangible assets3,145 3,042 
Gross profit - Non-GAAP$380,202 $464,106 
Gross margin - GAAP38.5 %39.6 %
Gross margin - Non-GAAP39.0 %40.0 %
Operating expenses - GAAP$297,237 $344,124 
Less: Share-based compensation expense20,096 22,229 
Less: Amortization of intangible assets and acquisition-related costs2,685 3,369 
Less: Restructuring charges, net3,511 — 
Operating expenses - Non-GAAP$270,945 $318,526 
% of net sales - GAAP30.5 %29.7 %
% of net sales - Non-GAAP27.8 %27.5 %
Operating income - GAAP$78,405 $115,479 
Share-based compensation expense21,511 23,690 
Amortization of intangible assets and acquisition-related costs5,830 6,411 
Restructuring charges, net3,511 — 
Operating income - Non-GAAP$109,257 $145,580 
% of net sales - GAAP8.0 %10.0 %
% of net sales - Non-GAAP11.2 %12.6 %
Net income - GAAP$62,727 $100,836 
Share-based compensation expense21,511 23,690 
Amortization of intangible assets and acquisition-related costs5,830 6,411 
Restructuring charges, net3,511 — 
Loss (gain) on investments11,823 (11,357)
Non-GAAP income tax adjustment(2,001)3,459 
Net income - Non-GAAP$103,401 $123,039 
Net income per share:
Diluted - GAAP$0.39 $0.61 
Diluted - Non-GAAP$0.65 $0.74 
Shares used to compute net income per share:
Diluted - GAAP and Non-GAAP160,155 166,406 


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATIONThree months ended June 30,
SHARE-BASED COMPENSATION EXPENSE20232022
Share-based Compensation Expense
Cost of goods sold$1,415 $1,461 
Marketing and selling10,483 9,797 
Research and development4,453 5,532 
General and administrative5,160 6,900 
Total share-based compensation expense21,511 23,690 
Income tax benefit(5,318)(4,322)
Total share-based compensation expense, net of income tax benefit$16,193 $19,368 

*Note: These preliminary results for the three months ended June 30, 2023 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.

(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 ended June 30, 2023 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.

Acquisition-related costs. 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. 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, 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 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.

Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above and other events; the determination of which is based upon the nature of the underlying items, the mix of income and losses in jurisdictions and the relevant tax rates in which we operate. 

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.