Logitech Announces Q3 Results

Rhea-AI Summary

Logitech International (SIX: LOGN, Nasdaq: LOGI) reported Q3 Fiscal Year 2022 results, showing a 2% decline in sales to $1.63 billion year-over-year, maintaining near-record levels. Despite a 41% drop in GAAP operating income to $263 million and a 44% decrease in GAAP EPS to $1.24, Logitech raised its FY 2022 guidance, projecting 2-5% sales growth and $850-$900 million in non-GAAP operating income. Key categories, including Keyboards and Gaming, saw significant growth. Logitech returned $450 million to shareholders year-to-date.

Positive

• Raised FY 2022 guidance for sales growth to 2-5% in constant currency.
• Projected non-GAAP operating income between $850 million and $900 million.
• Strong growth in Keyboards & Combos (+29%) and Gaming (+8%).
• Returned $450 million to shareholders through dividends and share repurchases.

Negative

• Sales down 2% year-over-year in Q3.
• GAAP operating income decreased 41% to $263 million.
• GAAP EPS declined 44% to $1.24.

Company Raises FY 2022 Outlook For Both Sales and Profitability

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 third quarter of Fiscal Year 2022, with strong growth in Pointing Devices, Keyboards & Combos and Gaming, and share gains in the majority of key categories. The Company raised annual guidance for both sales and profitability.

Q3 financial highlights:

• Sales were $1.63 billion, down 2 percent in US dollars and constant currency, compared to Q3 of the prior year. This performance nearly sustains last year’s record Q3 sales which grew 85 percent in US dollars and 80 percent in constant currency.

• Category sales in US dollars grew 29 percent in Keyboards & Combos and 8 percent in Pointing Devices and Gaming, compared to Q3 of the prior year. Video Collaboration grew 24 percent quarter over quarter and was down 2 percent compared to Q3 of the prior year in which sales grew more than 200 percent.

• GAAP operating income declined 41 percent to $263 million, compared to $448 million in the same quarter a year ago. Non-GAAP operating income declined 37 percent to $302 million, compared to $476 million in the same quarter a year ago. This reflects the Company’s planned, strategic investments in marketing and innovation to drive future growth. Non-GAAP operating income almost doubled versus two years ago.

• GAAP earnings per share (EPS) declined 44 percent to $1.24, compared to $2.22 in the same quarter a year ago. Non-GAAP EPS declined 37 percent to $1.55, compared to $2.45 in the same quarter a year ago.

• Cash flow from operations was $377 million. The Company returned $116 million of cash to shareholders through share repurchases. Year to date, the Company has returned a total of $450 million to shareholders through dividends and share repurchases, more than twice the amount over the same period last year.

“I’m excited to now have in sight a fiscal year of growth for FY 2022, on top of last year’s remarkable performance,” said Bracken Darrell, Logitech president and chief executive officer. “Our Q3 results reflect the strength of our operational capabilities, innovation engine, and the choices we made to position ourselves in line with the long-term trends affecting work, play, and creating.”

Outlook

Logitech raised its Fiscal Year 2022 annual outlook to between 2 and 5 percent sales growth in constant currency, and between $850 million and $900 million in non-GAAP operating income. The Company’s previous outlook was flat sales growth in constant currency, plus or minus five percent, and $800 million to $850 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 Q3 Fiscal Year 2022 on Tuesday, January 25, 2022 at 8:30 a.m. Eastern Standard Time and 2:30 p.m. Central European 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, 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 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 2022 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 nine months ended December 31, 2021, long-term trends, and outlook for Fiscal Year 2022 sales growth and non-GAAP operating income. 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; 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 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 September 30, 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.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
		Three Months Ended December 31,							Nine Months Ended December 31,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS		2021				2020			2021				2020
Net sales		$	1,632,782			$	1,667,302		$	4,251,107			$	3,716,354
Cost of goods sold			971,646				914,851			2,470,980				2,082,088
Amortization of intangible assets			3,126				3,441			11,028				9,800
Gross profit			658,010				749,010			1,769,099				1,624,466
Operating expenses:
Marketing and selling			269,941				204,485			778,882				496,520
Research and development			75,529				53,910			213,436				157,014
General and administrative			38,478				37,606			112,291				98,341
Amortization of intangible assets and acquisition-related costs			3,662				4,946			13,986				13,886
Impairment of intangible assets			7,000				—			7,000				—
Change in fair value of contingent consideration for business acquisition			(1,110	)			—			(3,509	)			5,716
Restructuring charges (credits), net			1,759				—			1,770				(54	)
Total operating expenses			395,259				300,947			1,123,856				771,423
Operating income			262,751				448,063			645,243				853,043
Interest income			278				311			795				1,444
Other income (expense), net			(3,673	)			6,483			(1,941	)			9,661
Income before income taxes			259,356				454,857			644,097				864,148
Provision for income taxes			49,345				72,334			107,789				142,638
Net income		$	210,011			$	382,523		$	536,308			$	721,510
Net income per share:
Basic		$	1.26			$	2.26		$	3.19			$	4.28
Diluted		$	1.24			$	2.22		$	3.14			$	4.21
Weighted average shares used to compute net income per share:
Basic			167,090				169,050			167,953				168,448
Diluted			169,707				172,587			171,027				171,378

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
		December 31,				March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS		2021				2021
Current assets:
Cash and cash equivalents		$	1,364,411			$	1,750,327
Accounts receivable, net			845,836				612,225
Inventories			834,534				661,116
Other current assets			145,001				135,650
Total current assets			3,189,782				3,159,318
Non-current assets:
Property, plant and equipment, net			109,601				114,060
Goodwill			448,731				429,604
Other intangible assets, net			89,878				115,148
Other assets			323,605				324,248
Total assets		$	4,161,597			$	4,142,378
Current liabilities:
Accounts payable		$	738,992			$	823,233
Accrued and other current liabilities			813,684				858,617
Total current liabilities			1,552,676				1,681,850
Non-current liabilities:
Income taxes payable			85,610				59,237
Other non-current liabilities			155,369				139,502
Total liabilities			1,793,655				1,880,589
Shareholders’ equity:
Registered shares, CHF 0.25 par value:			30,148				30,148
Issued shares — 173,106 at December 31 and March 31, 2021
Additional shares that may be issued out of conditional capitals — 50,000 at December 31 and March 31, 2021
Additional shares that may be issued out of authorized capital — 17,311 at December 31 and March 31, 2021
Additional paid-in capital			115,994				129,519
Shares in treasury, at cost — 6,639 at December 31, 2021 and 4,799 at March 31, 2021			(526,480	)			(279,541	)
Retained earnings			2,867,476				2,490,578
Accumulated other comprehensive loss			(119,196	)			(108,915	)
Total shareholders’ equity			2,367,942				2,261,789
Total liabilities and shareholders’ equity		$	4,161,597			$	4,142,378

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
		Three Months Ended December 31,								Nine Months Ended December 31,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS		2021				2020				2021				2020
Cash flows from operating activities:
Net income		$	210,011			$	382,523			$	536,308			$	721,510
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			21,913				13,409				65,387				36,010
Amortization of intangible assets			6,755				8,388				24,223				23,627
Impairment of intangible assets			7,000				—				7,000				—
Loss on investments			460				2,173				1,421				4,692
Share-based compensation expense			24,792				19,814				72,465				64,714
Deferred income taxes			20,561				17,531				27,369				37,683
Change in fair value of contingent consideration for business acquisition			(1,110	)			—				(3,509	)			5,716
Other			9				207				1,068				(1,670	)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net			(123,350	)			(129,966	)			(236,358	)			(476,804	)
Inventories			(10,240	)			(78,258	)			(177,828	)			(239,378	)
Other assets			27,871				(21,714	)			(20,569	)			(53,281	)
Accounts payable			74,845				141,848				(80,637	)			541,024
Accrued and other liabilities			117,059				173,945				(17,612	)			264,576
Net cash provided by operating activities			376,576				529,900				198,728				928,419
Cash flows from investing activities:
Purchases of property, plant and equipment			(16,494	)			(18,389	)			(63,726	)			(46,163	)
Investment in privately held companies			(359	)			(120	)			(1,260	)			(3,525	)
Acquisitions, net of cash acquired			(300	)			(360	)			(15,886	)			(360	)
Proceeds from return of strategic investments			—				2,934				—				2,934
Purchases of short-term investments			(10,000	)			—				(10,000	)			—
Proceeds from the sale of short-term investments			1,225				—				1,225				—
Purchases of trading investments			(1,178	)			(2,473	)			(3,644	)			(10,672	)
Proceeds from sales of trading investments			1,308				2,493				4,285				11,332
Net cash used in investing activities			(25,798	)			(15,915	)			(89,006	)			(46,454	)
Cash flows from financing activities:
Payment of cash dividends			—				—				(159,410	)			(146,705	)
Payment of contingent consideration for business acquisition			(880	)			—				(880	)			—
Purchases of registered shares			(116,245	)			(50,271	)			(290,625	)			(72,725	)
Proceeds from exercises of stock options and purchase rights			8				3,643				16,644				29,709
Tax withholdings related to net share settlements of restricted stock units			(3,777	)			(3,731	)			(58,528	)			(29,475	)
Net cash used in financing activities			(120,894	)			(50,359	)			(492,799	)			(219,196	)
Effect of exchange rate changes on cash and cash equivalents			(2,769	)			7,896				(2,839	)			10,408
Net increase / (decrease) in cash and cash equivalents			227,115				471,522				(385,916	)			673,177
Cash and cash equivalents, beginning of the period			1,137,296				917,221				1,750,327				715,566
Cash and cash equivalents, end of the period		$	1,364,411			$	1,388,743			$	1,364,411			$	1,388,743

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended December 31,									Nine Months Ended December 31,
NET SALES		2021			2020			Change			2021			2020			Change
Net sales by product category:
Pointing Devices		$	231,090		$	213,638		8	%		$	602,982		$	503,228		20	%
Keyboards & Combos			281,608			218,269		29				736,237			565,246		30
PC Webcams			115,115			131,700		(13	)			319,504			295,020		8
Tablet & Other Accessories			82,859			138,052		(40	)			242,932			267,186		(9	)
Gaming (1)			469,282			436,426		8				1,135,456			916,040		24
Video Collaboration			287,187			292,500		(2	)			753,725			659,278		14
Mobile Speakers			56,748			72,566		(22	)			124,724			145,156		(14	)
Audio & Wearables			104,280			152,952		(32	)			318,965			338,592		(6	)
Smart Home			4,559			10,593		(57	)			16,380			25,976		(37	)
Other (2)			54			606		(91	)			202			632		(68	)
Total Sales		$	1,632,782		$	1,667,302		(2	)%		$	4,251,107		$	3,716,354		14	%

(1)		Gaming includes streaming services revenue generated by Streamlabs.
(2)		Other includes products that the Company currently intends to phase out, or has already phased out, because they are no longer strategic to the Company's business.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended December 31,								Nine Months Ended December 31,
GAAP TO NON GAAP RECONCILIATION (A)		2021				2020				2021				2020
Gross profit - GAAP		$	658,010			$	749,010			$	1,769,099			$	1,624,466
Share-based compensation expense			1,782				1,747				5,253				4,919
Amortization of intangible assets			3,126				3,441				11,028				9,800
Gross profit - Non-GAAP		$	662,918			$	754,198			$	1,785,380			$	1,639,185
Gross margin - GAAP			40.3	%			44.9	%			41.6	%			43.7	%
Gross margin - Non-GAAP			40.6	%			45.2	%			42.0	%			44.1	%
Operating expenses - GAAP		$	395,259			$	300,947			$	1,123,856			$	771,423
Less: Share-based compensation expense			23,010				18,067				67,212				59,795
Less: Amortization of intangible assets and acquisition-related costs			3,662				4,946				13,986				13,886
Less: Impairment of intangible assets			7,000				—				7,000				—
Less: Change in fair value of contingent consideration for business acquisition			(1,110	)			—				(3,509	)			5,716
Less: Restructuring charges (credits), net			1,759				—				1,770				(54	)
Operating expenses - Non-GAAP		$	360,938			$	277,934			$	1,037,397			$	692,080
% of net sales - GAAP			24.2	%			18.0	%			26.4	%			20.8	%
% of net sales - Non - GAAP			22.1	%			16.7	%			24.4	%			18.6	%
Operating income - GAAP		$	262,751			$	448,063			$	645,243			$	853,043
Share-based compensation expense			24,792				19,814				72,465				64,714
Amortization of intangible assets and acquisition-related costs			6,788				8,387				25,014				23,686
Impairment of intangible assets			7,000				—				7,000				—
Change in fair value of contingent consideration for business acquisition			(1,110	)			—				(3,509	)			5,716
Restructuring charges (credits), net			1,759				—				1,770				(54	)
Operating income - Non - GAAP		$	301,980			$	476,264			$	747,983			$	947,105
% of net sales - GAAP			16.1	%			26.9	%			15.2	%			23.0	%
% of net sales - Non - GAAP			18.5	%			28.6	%			17.6	%			25.5	%
Net income - GAAP		$	210,011			$	382,523			$	536,308			$	721,510
Share-based compensation expense			24,792				19,814				72,465				64,714
Amortization of intangible assets and acquisition-related costs			6,788				8,387				25,014				23,686
Impairment of intangible assets			7,000				—				7,000				—
Change in fair value of contingent consideration for business acquisition			(1,110	)			—				(3,509	)			5,716
Restructuring charges (credits), net			1,759				—				1,770				(54	)
Loss on investments			460				2,173				1,421				4,692
Non-GAAP income tax adjustment			13,054				10,165				12,463				31,564
Net income - Non - GAAP		$	262,754			$	423,062			$	652,932			$	851,828
Net income per share:
Diluted - GAAP		$	1.24			$	2.22			$	3.14			$	4.21
Diluted - Non - GAAP		$	1.55			$	2.45			$	3.82			$	4.97
Shares used to compute net income per share:
Diluted - GAAP and Non - GAAP			169,707				172,587				171,027				171,378

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended December 31,								Nine Months Ended December 31,
SHARE-BASED COMPENSATION EXPENSE		2021				2020				2021				2020
Share-based Compensation Expense
Cost of goods sold		$	1,782			$	1,747			$	5,253			$	4,919
Marketing and selling			10,699				8,390				28,987				27,559
Research and development			4,510				3,482				14,295				10,348
General and administrative			7,801				6,195				23,930				21,888
Total share-based compensation expense			24,792				19,814				72,465				64,714
Income tax benefit			(3,581	)			(3,471	)			(23,460	)			(15,540	)
Total share-based compensation expense, net of income tax benefit		$	21,211			$	16,343			$	49,005			$	49,174

*Note: These preliminary results for the three and nine months ended December 31, 2021 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 December 31, 2021 and previous periods, 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 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 (credits). These expenses are associated with re-aligning our business strategies based on current economic conditions. We have undertaken several restructuring plans in recent years. In connection with our restructuring initiatives, we incurred restructuring charges related to employee terminations, facility closures and early cancellation of certain contracts. 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 in the current period.

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/20220124005837/en/

Editorial Contacts:

Nicole Noutsios, Investor Relations - lir@logitech.com

Nicole Kenyon, Head of Global Corporate & Employee Communications - USA +1 (510) 988-8553

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

Source: Logitech International

FAQ

What were Logitech's Q3 FY 2022 sales figures?

Logitech reported Q3 FY 2022 sales of $1.63 billion, a 2% decline compared to the previous year.

How did Logitech's operating income change in Q3 FY 2022?

GAAP operating income fell 41% to $263 million in Q3 FY 2022.

What is Logitech's new outlook for FY 2022?

Logitech raised its FY 2022 sales growth forecast to between 2% and 5% in constant currency.

What was the EPS decline for Logitech in Q3 FY 2022?

GAAP EPS declined 44% to $1.24 in Q3 FY 2022.

How much has Logitech returned to shareholders this year?

Year to date, Logitech has returned $450 million to shareholders through dividends and share repurchases.