Logitech Announces Q2 FY 2023 Results

Rhea-AI Summary

Logitech International (SIX: LOGN, Nasdaq: LOGI) reported Q2 Fiscal Year 2023 results with sales of $1.15 billion, a 12% decline in US dollars and 7% in constant currency year-over-year. Video Collaboration sales grew 2% in US dollars, while Gaming and Keyboard & Combos sales fell 10% and 15%, respectively. Operating income dropped 29% to $127 million, with GAAP EPS down 38% to $0.50. Logitech reaffirmed its FY2023 outlook, anticipating a sales decline of 8% to 4% in constant currency. The company returned $276 million to shareholders and announced CFO Nate Olmstead's departure.

Positive

• Video Collaboration sales grew 2% in US dollars and 7% in constant currency.
• Cash flow from operations improved to $73 million from negative $63 million year-over-year.
• Returned $276 million to shareholders via dividends and share repurchases.

Negative

• Sales down 12% in US dollars and 7% in constant currency.
• GAAP operating income declined 29% to $127 million.
• GAAP EPS declined 38% to $0.50.

Company Reaffirms Fiscal Year 2023 Outlook

LAUSANNE, Switzerland & NEWARK, Calif.--(BUSINESS WIRE)-- SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the second quarter of Fiscal Year 2023.

• Sales were $1.15 billion, down 12 percent in US dollars and 7 percent in constant currency, compared to Q2 of the prior year. This performance reflects a challenging macroeconomic environment.

• Category sales in US dollars grew 2 percent in Video Collaboration and declined 2 percent in Pointing Devices compared to Q2 of the prior year. Sales in these categories in constant currency grew 7 percent and 3 percent respectively. Gaming and Keyboard & Combos sales declined 10 percent and 15 percent in US dollars respectively, and 4 percent and 10 percent in constant currency, compared to Q2 of the prior year.

• GAAP operating income declined 29 percent to $127 million, compared to $179 million in the same quarter a year ago. Non-GAAP operating income declined 26 percent to $156 million, compared to $211 million in the same quarter a year ago.

• GAAP earnings per share (EPS) declined 38 percent to $0.50, compared to $0.81 in the same quarter a year ago. Non-GAAP EPS declined 20 percent to $0.84, compared to $1.05 in the same quarter a year ago.

• Cash flow from operations was $73 million, compared to negative $63 million in the same quarter a year ago. In the quarter, the Company returned $276 million of cash to shareholders through its annual dividend payment and share repurchases.

“As we enter the holiday season we continue to drive innovation, announcing more than 20 products which tap into the long-term trends of hybrid work, video everywhere, gaming and digital content creation,” said Bracken Darrell, Logitech president and chief executive officer. “In the face of global macroeconomic headwinds we will continue to pursue operational excellence and deliver industry-leading innovation.”

Chief Financial Officer

Separately, Logitech also announced that Nate Olmstead, chief financial officer, will be leaving the Company. Logitech will be launching a search and Mr. Olmstead currently plans to stay on as CFO through the transition.

“Over the past nearly four years, Nate has been an incredible partner. His leadership helped steer Logitech through an unprecedented pandemic and period of extraordinary growth,” said Bracken Darrell. “Nate has built a world-class finance team and I’m grateful for his contribution."

“I am honored to have been part of the transformational change Logitech has undergone these last four years,” said Nate Olmstead. “I’m proud of the strong finance team we have in place and excited about what’s ahead for Logitech.”

Outlook

Logitech reaffirmed its Fiscal Year 2023 outlook of between negative 8 percent and negative 4 percent sales growth in constant currency, and between $650 million and $750 million in non-GAAP operating income.

Prepared Remarks Available Online

Logitech has made its prepared written remarks for the financial results videoconference available online on the Logitech corporate website at http://ir.logitech.com.

Financial Results Videoconference and Webcast

Logitech will hold a financial results videoconference to discuss the results for Q2 Fiscal Year 2023 on Tuesday, October 25, 2022 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, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, change in fair value of contingent consideration for business acquisition, restructuring charges, loss on investments, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below. 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 the Fiscal Year 2023 outlook.

Public Dissemination of Certain Information

Logitech webcasts its earnings calls, and certain events Logitech participates in or hosts, with members of the investment community on its 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 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 preliminary financial results for the three and six months ended September 30, 2022, secular growth trends, operational performance, product innovation, product launches, executive leadership, and outlook for Fiscal Year 2023 sales growth and non-GAAP operating income, and related assumptions. 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, 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, 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 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 quarter ended June 30, 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.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
		Three Months Ended September 30,								Six Months Ended September 30,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS		2022				2021				2022				2021
Net sales		$	1,148,951			$	1,306,267			$	2,308,816			$	2,618,325
Cost of goods sold			707,026				760,268				1,404,246				1,499,334
Amortization of intangible assets			3,145				3,836				6,187				7,902
Gross profit			438,780				542,163				898,383				1,111,089
Operating expenses:
Marketing and selling			202,091				256,627				431,469				508,941
Research and development			69,009				68,661				144,526				137,907
General and administrative			26,589				33,271				62,449				73,813
Amortization of intangible assets and acquisition-related costs			2,873				5,107				6,242				10,324
Change in fair value of contingent consideration for business acquisition			—				(925	)			—				(2,399	)
Restructuring charges, net			10,817				11				10,817				11
Total operating expenses			311,379				362,752				655,503				728,597
Operating income			127,401				179,411				242,880				382,492
Interest income			3,459				201				4,908				517
Other income (expense), net			(25,397	)			(6,703	)			(19,773	)			1,732
Income before income taxes			105,463				172,909				228,015				384,741
Provision for income taxes			23,372				33,453				45,088				58,444
Net income		$	82,091			$	139,456			$	182,927			$	326,297
Net income per share:
Basic		$	0.50			$	0.83			$	1.12			$	1.94
Diluted		$	0.50			$	0.81			$	1.11			$	1.90
Weighted average shares used to compute net income per share:
Basic			163,186				168,389				163,937				168,380
Diluted			164,328				171,343				165,371				171,682

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
		September 30,				March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS		2022				2022
Current assets:
Cash and cash equivalents		$	868,501			$	1,328,716
Accounts receivable, net			772,731				675,604
Inventories			879,979				933,124
Other current assets			136,924				135,478
Total current assets			2,658,135				3,072,922
Non-current assets:
Property, plant and equipment, net			113,327				109,807
Goodwill			449,892				448,175
Other intangible assets, net			73,495				83,779
Other assets			350,050				320,722
Total assets		$	3,644,899			$	4,035,405
Current liabilities:
Accounts payable		$	546,563			$	636,306
Accrued and other current liabilities			663,621				784,848
Total current liabilities			1,210,184				1,421,154
Non-current liabilities:
Income taxes payable			97,450				83,380
Other non-current liabilities			168,704				132,133
Total liabilities			1,476,338				1,636,667
Shareholders’ equity:
Registered shares, CHF 0.25 par value:			30,148				30,148
Issued shares — 173,106 at September 30, 2022 and March 31, 2022
Additional shares that may be issued out of conditional capitals — 50,000 at September 30, 2022 and March 31, 2022
Additional shares that may be issued out of authorized capital — 17,311 at September 30, 2022 and March 31, 2022
Additional paid-in capital			106,130				129,925
Shares in treasury, at cost — 10,943 at September 30, 2022 and 7,855 at March 31, 2022			(824,650	)			(632,893	)
Retained earnings			2,995,927				2,975,681
Accumulated other comprehensive loss			(138,994	)			(104,123	)
Total shareholders’ equity			2,168,561				2,398,738
Total liabilities and shareholders’ equity		$	3,644,899			$	4,035,405

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
		Three Months Ended September 30,								Six Months Ended September 30,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS		2022				2021				2022				2021
Cash flows from operating activities:
Net income		$	82,091			$	139,456			$	182,927			$	326,297
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation			18,662				23,012				37,288				43,474
Amortization of intangible assets			6,015				8,625				12,244				17,468
Loss on investments			22,934				2,032				11,577				961
Share-based compensation expense			12,245				24,022				35,935				47,673
Deferred income taxes			2,775				10,966				3,040				6,808
Change in fair value of contingent consideration for business acquisition			—				(925	)			—				(2,399	)
Other			242				14				118				1,059
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net			(77,337	)			(186,316	)			(121,909	)			(113,008	)
Inventories			22,114				(52,422	)			21,790				(167,588	)
Other assets			(175	)			(17,644	)			4,757				(48,440	)
Accounts payable			(8,320	)			(39,862	)			(78,354	)			(155,482	)
Accrued and other liabilities			(8,322	)			26,164				(72,157	)			(134,671	)
Net cash provided by (used in) operating activities			72,924				(62,878	)			37,256				(177,848	)
Cash flows from investing activities:
Purchases of property, plant and equipment			(25,821	)			(22,718	)			(45,384	)			(47,232	)
Investment in privately held companies			(187	)			(400	)			(2,275	)			(901	)
Acquisitions, net of cash acquired			—				—				(5,839	)			(15,586	)
Purchases of deferred compensation investments			(1,577	)			(1,375	)			(2,499	)			(2,466	)
Proceeds from sales of deferred compensation investments			1,493				1,632				2,436				2,977
Net cash used in investing activities			(26,092	)			(22,861	)			(53,561	)			(63,208	)
Cash flows from financing activities:
Payment of cash dividends			(158,680	)			(159,410	)			(158,680	)			(159,410	)
Payment of contingent consideration for business acquisition			(5,954	)			—				(5,954	)			—
Purchases of registered shares			(116,942	)			(119,508	)			(237,561	)			(174,380	)
Proceeds from exercises of stock options and purchase rights			12,850				13,886				12,850				16,636
Tax withholdings related to net share settlements of restricted stock units			(2,598	)			(4,340	)			(26,742	)			(54,751	)
Net cash used in financing activities			(271,324	)			(269,372	)			(416,087	)			(371,905	)
Effect of exchange rate changes on cash and cash equivalents			(13,664	)			(5,314	)			(27,823	)			(70	)
Net decrease in cash and cash equivalents			(238,156	)			(360,425	)			(460,215	)			(613,031	)
Cash and cash equivalents, beginning of the period			1,106,657				1,497,721				1,328,716				1,750,327
Cash and cash equivalents, end of the period		$	868,501			$	1,137,296			$	868,501			$	1,137,296

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended September 30,									Six Months Ended September 30,
NET SALES		2022			2021			Change			2022			2021			Change
Net sales by product category:
Pointing Devices		$	185,200		$	189,014		(2	)%		$	368,483		$	371,892		(1	)%
Keyboards & Combos			200,853			236,272		(15	)			428,573			454,629		(6	)
PC Webcams			60,166			94,471		(36	)			119,552			204,389		(42	)
Tablet & Other Accessories			54,203			80,801		(33	)			120,788			160,073		(25	)
Gaming (1)			297,676			330,777		(10	)			580,482			666,174		(13	)
Video Collaboration			236,180			231,653		2				482,422			466,538		3
Mobile Speakers			39,195			39,492		(1	)			61,505			67,976		(10	)
Audio & Wearables			73,271			98,078		(25	)			142,717			214,685		(34	)
Other (2)			2,207			5,709		(61	)			4,294			11,969		(64	)
Total Sales		$	1,148,951		$	1,306,267		(12	)%		$	2,308,816		$	2,618,325		(12	)%

(1)		Gaming includes streaming services revenue generated by Streamlabs.
(2)		Other includes Smart Home.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended September 30,								Six Months Ended September 30,
GAAP TO NON-GAAP RECONCILIATION (A)		2022				2021				2022				2021
Gross profit - GAAP		$	438,780			$	542,163			$	898,383			$	1,111,089
Share-based compensation expense			1,443				2,102				2,904				3,471
Amortization of intangible assets			3,145				3,836				6,187				7,902
Gross profit - Non-GAAP		$	443,368			$	548,101			$	907,474			$	1,122,462
Gross margin - GAAP			38.2	%			41.5	%			38.9	%			42.4	%
Gross margin - Non-GAAP			38.6	%			42.0	%			39.3	%			42.9	%
Operating expenses - GAAP		$	311,379			$	362,752			$	655,503			$	728,597
Less: Share-based compensation expense			10,802				21,920				33,031				44,202
Less: Amortization of intangible assets and acquisition-related costs			2,873				5,107				6,242				10,324
Less: Change in fair value of contingent consideration for business acquisition			—				(925	)			—				(2,399	)
Less: Restructuring charges, net			10,817				11				10,817				11
Operating expenses - Non-GAAP		$	286,887			$	336,639			$	605,413			$	676,459
% of net sales - GAAP			27.1	%			27.8	%			28.4	%			27.8	%
% of net sales - Non-GAAP			25.0	%			25.8	%			26.2	%			25.8	%
Operating income - GAAP		$	127,401			$	179,411			$	242,880			$	382,492
Share-based compensation expense			12,245				24,022				35,935				47,673
Amortization of intangible assets and acquisition-related costs			6,018				8,943				12,429				18,226
Change in fair value of contingent consideration for business acquisition			—				(925	)			—				(2,399	)
Restructuring charges, net			10,817				11				10,817				11
Operating income - Non-GAAP		$	156,481			$	211,462			$	302,061			$	446,003
% of net sales - GAAP			11.1	%			13.7	%			10.5	%			14.6	%
% of net sales - Non-GAAP			13.6	%			16.2	%			13.1	%			17.0	%
Net income - GAAP		$	82,091			$	139,456			$	182,927			$	326,297
Share-based compensation expense			12,245				24,022				35,935				47,673
Amortization of intangible assets and acquisition-related costs			6,018				8,943				12,429				18,226
Change in fair value of contingent consideration for business acquisition			—				(925	)			—				(2,399	)
Restructuring charges, net			10,817				11				10,817				11
Loss on investments			22,934				2,032				11,577				961
Non-GAAP income tax adjustment			3,607				6,825				7,066				(591	)
Net income - Non-GAAP		$	137,712			$	180,364			$	260,751			$	390,178
Net income per share:
Diluted - GAAP		$	0.50			$	0.81			$	1.11			$	1.90
Diluted - Non-GAAP		$	0.84			$	1.05			$	1.58			$	2.27
Shares used to compute net income per share:
Diluted - GAAP and Non-GAAP			164,328				171,343				165,371				171,682

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended September 30,								Six Months Ended September 30,
SHARE-BASED COMPENSATION EXPENSE		2022				2021				2022				2021
Share-based Compensation Expense
Cost of goods sold		$	1,443			$	2,102			$	2,904			$	3,471
Marketing and selling			7,429				9,758				17,226				18,288
Research and development			3,280				4,724				8,812				9,785
General and administrative			93				7,438				6,993				16,129
Total share-based compensation expense			12,245				24,022				35,935				47,673
Income tax expense (benefit)			102				(3,285	)			(4,220	)			(19,879	)
Total share-based compensation expense, net of income tax expense (benefit)		$	12,347			$	20,737			$	31,715			$	27,794

*Note: These preliminary results for the three and six months ended September 30, 2022 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 September 30, 2022 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 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 all 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, 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.

(LOGIIR)

View source version on businesswire.com: https://www.businesswire.com/news/home/20221024005999/en/

Editorial Contacts:

Nate Melihercik, Head of Global Investor Relations - ir@logitech.com

Nicole Kenyon, Head of Global Corporate & Employee Communications - USA (510) 988-8553

Ben Starkie, Corporate Communications - Europe +41 (0) 79-292-3499

Source: Logitech International

FAQ

What were Logitech's Q2 Fiscal Year 2023 sales results?

Logitech reported Q2 sales of $1.15 billion, down 12% in US dollars and 7% in constant currency compared to the prior year.

How did Logitech's earnings per share perform in Q2 FY2023?

GAAP EPS dropped 38% to $0.50 in Q2 Fiscal Year 2023, down from $0.81 in the same quarter last year.

What is Logitech's outlook for Fiscal Year 2023?

Logitech reaffirmed its outlook for FY2023, expecting between negative 8% and negative 4% sales growth in constant currency.

How much cash did Logitech return to shareholders recently?

Logitech returned $276 million to shareholders through dividends and share repurchases.

Who is leaving Logitech as CFO?

Nate Olmstead, the Chief Financial Officer, is leaving Logitech, planning to stay until a transition is completed.