Logitech Grows 76% for Fiscal Year 2021, Q4 Revenue Doubles

Rhea-AI Summary

Logitech reported record financial results for Fiscal Year 2021, with sales reaching $5.25 billion, marking a 76% increase year-over-year. GAAP operating income soared 315% to $1.15 billion, and GAAP EPS rose 107% to $5.51. In Q4 alone, sales hit $1.54 billion, up 117%. The company forecasts non-GAAP operating income between $800 million and $850 million for FY2022. Additionally, Logitech announced a share buyback program increase to $1 billion and a proposed 10% dividend hike, reflecting its commitment to shareholder returns.

Positive

• Record FY2021 sales of $5.25 billion, up 76%.
• GAAP operating income increased 315% to $1.15 billion.
• GAAP EPS rose 107% to $5.51, indicating strong profitability.
• Raised FY2022 non-GAAP operating income outlook to $800-$850 million.
• Increased share buyback authorization to $1 billion, enhancing shareholder value.

Negative

• Sales growth in constant currency expected to be flat, plus or minus 5%.

Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2021, ended March 31, 2021.

For Fiscal Year 2021:

• Sales were Logitech’s highest ever at $5.25 billion, up 76 percent in US dollars and 74 percent in constant currency compared to the prior year.
• GAAP operating income grew 315 percent to $1.15 billion, compared to $276 million a year ago. GAAP earnings per share (EPS) grew 107 percent to $5.51, compared to $2.66 a year ago.
• Non-GAAP operating income grew 229 percent to $1.27 billion, compared to $387 million a year ago. Non-GAAP EPS grew 199 percent to $6.42, compared to $2.15 a year ago.
• Cash flow from operations was $1.46 billion, compared to $425 million a year ago.

For Q4 Fiscal Year 2021:

• Sales were $1.54 billion, up 117 percent in US dollars and 108 percent in constant currency compared to Q4 of the prior year.
• GAAP operating income grew 818 percent to $295 million, compared to Q4 of the prior year. Non-GAAP operating income grew 312 percent to $325 million, compared to Q4 of the prior year.

“Fiscal Year 2021 was our best year ever,” said Bracken Darrell, Logitech president and chief executive officer. “It has been rewarding to see Logitech’s products play an essential role enabling work, creation, connection and entertainment as our homes became schools, offices and playgrounds. Our powerful and resilient capabilities allowed us to both deliver remarkable performance in a challenging FY 2021 and, at the same time, invest in compelling plans for the future. The world has just caught a glimpse of what Logitech will become.”

“We delivered excellent financial performance, including record net sales, operating profit, gross margin and cash flow,” said Nate Olmstead, Logitech chief financial officer. “The trends that fueled our growth pre-pandemic - work from anywhere, video everywhere, esports and the democratization of content creation - all accelerated. As our market opportunities have expanded, and we have become a larger, more profitable company, we’re investing in our capabilities to accelerate our innovation, reach new customers and deliver strong financial returns over the long-term.”

Outlook

Logitech raised its Fiscal Year 2022 outlook for non-GAAP operating income to between $800 million and $850 million. Previously, it was expected to be between $750 million and $800 million. The outlook for sales growth in constant currency is still expected to be approximately flat, plus or minus 5 percent.

Increased Share Buyback Program and Proposed FY21 Dividend

Logitech’s board of directors has approved an increased share buyback authorization up to $1 billion. This expands the Company’s current $250 million, three-year share buyback authorization. To date, the Company has repurchased $165 million of shares in the current program. Following approval from the Swiss Takeover Board, the increase will give a total authorization of $835 million for repurchases over the remaining 27 months of the program through July 2023.

Logitech’s board of directors has also approved a proposal for a Fiscal Year 2021 dividend, which would be approximately a 10 percent annual increase versus last year’s dividend. Together with the new share buyback authorization, this demonstrates the Company’s continued commitment to consistently return cash to shareholders.

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 Q4 and the full Fiscal Year 2021 on Thursday, April 29, 2021 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 (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 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 Year 2022.

About Logitech

Logitech designs products that have an everyday place in people's lives, connecting them to the digital experiences they care about. Almost 40 years ago, Logitech started connecting people through computers, and now it’s a multi-brand company designing products that bring people together through music, gaming, video, and computing. Brands of Logitech include Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears and Jaybird. 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 months and full fiscal year ended March 31, 2021, long-term growth trends, Logitech’s potential, investing in our capabilities to accelerate our innovation, reach new customers and deliver strong financial returns over the long-term, our share repurchase program, share repurchases, our Fiscal Year 2021 dividend proposal, and outlook for Fiscal Year 2022 operating income and sales growth. 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 and supply shortages; 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 potential 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 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, 2020, our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2020 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								Fiscal Years Ended
		March 31,								March 31,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS		2021				2020				2021				2020
Net sales		$	1,535,925			$	709,248			$	5,252,279			$	2,975,851
Cost of goods sold		821,127				428,080				2,903,215				1,838,685
Amortization of intangible assets		3,529				4,292				13,329				14,785
Gross profit		711,269				276,876				2,335,735				1,122,381
Operating expenses:
Marketing and selling		273,764				141,186				770,284				533,324
Research and development		69,009				50,094				226,023				177,593
General and administrative		68,236				25,465				166,577				94,015
Amortization of intangible assets and acquisition-related costs		5,178				4,666				19,064				17,563
Change in fair value of contingent consideration for business acquisition		—				23,247				5,716				23,247
Restructuring charges (credits), net		—				74				(54		)		144
Total operating expenses		416,187				244,732				1,187,610				845,886
Operating income		295,082				32,144				1,148,125				276,495
Interest income		340				2,614				1,784				9,619
Other income (expense), net		(11,450		)		35,360				(1,789		)		38,212
Income before income taxes		283,972				70,118				1,148,120				324,326
Provision for (benefit from) income taxes		58,225				(143,802		)		200,863				(125,397		)
Net income		$	225,747			$	213,920			$	947,257			$	449,723
Net income per share:
Basic		$	1.34			$	1.28			$	5.62			$	2.70
Diluted		$	1.31			$	1.26			$	5.51			$	2.66
Weighted average shares used to compute net income per share:
Basic		168,734				167,290				168,523				166,837
Diluted		172,954				169,981				171,775				169,381

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
		March 31,				March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS		2021				2020
Current assets:
Cash and cash equivalents		$	1,750,327			$	715,566
Accounts receivable, net		612,225				394,743
Inventories		661,116				229,249
Other current assets		135,650				74,920
Total current assets		3,159,318				1,414,478
Non-current assets:
Property, plant and equipment, net		114,060				76,119
Goodwill		429,604				400,917
Other intangible assets, net		115,148				126,941
Other assets		324,248				345,019
Total assets		$	4,142,378			$	2,363,474
Current liabilities:
Accounts payable		$	823,233			$	259,120
Accrued and other current liabilities		858,617				455,024
Total current liabilities		1,681,850				714,144
Non-current liabilities:
Income taxes payable		59,237				40,788
Other non-current liabilities		139,502				119,274
Total liabilities		1,880,589				874,206
Shareholders' equity:
Registered shares, CHF 0.25 par value:		30,148				30,148
Issued shares—173,106 at March 31, 2021 and 2020
Additional shares that may be issued out of conditional capitals — 50,000 at March 31, 2021 and March 31, 2020
Additional shares that may be issued out of authorized capital — 17,311 at March 31, 2021 and 34,621 March 31, 2020
Additional paid-in capital		129,519				75,097
Shares in treasury, at cost— 4,799 and 6,210 shares at March 31, 2021 and 2020, respectively		(279,541		)		(185,896		)
Retained earnings		2,490,578				1,690,579
Accumulated other comprehensive loss		(108,915		)		(120,660		)
Total shareholders' equity		2,261,789				1,489,268
Total liabilities and shareholders' equity		$	4,142,378			$	2,363,474

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
		Three Months Ended								Fiscal Years Ended
		March 31,								March 31,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS		2021				2020				2021				2020
Cash flows from operating activities:
Net income		$	225,747			$	213,920			$	947,257			$	449,723
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		14,742				10,739				50,752				42,893
Amortization of intangible assets		8,191				8,900				31,818				30,858
Investment impairment		2,011				—				2,011				—
Share-based compensation expense		21,305				14,569				86,019				54,870
Loss (gain) on investments		(793		)		(16		)		3,899				756
Deferred income taxes		(3,199		)		(160,333		)		34,484				(159,853		)
Change in fair value of contingent consideration for business acquisition		—				23,247				5,716				23,247
Gain on sale of investment in privately held companies		—				(39,767		)		—				(39,767		)
Other		(114		)		76				(1,784		)		(936		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net		275,584				131,524				(201,220		)		(15,768		)
Inventories		(188,123		)		75,558				(427,501		)		60,388
Other assets		(14,427		)		15,453				(67,708		)		18,319
Accounts payable		12,936				(179,440		)		553,960				(24,250		)
Accrued and other liabilities		176,359				(13,584		)		440,935				(15,480		)
Net cash provided by operating activities		530,219				100,846				1,458,638				425,000
Cash flows from investing activities:
Purchases of property, plant and equipment		(30,026		)		(10,817		)		(76,189		)		(39,484		)
Investment in privately held companies		(590		)		(35		)		(4,115		)		(345		)
Acquisitions, net of cash acquired		(43,163		)		—				(43,523		)		(91,569		)
Proceeds from return of strategic investments		—				—				2,934				—
Proceeds from sale of property, plant and equipment		—				—				—				1,037
Purchases of trading investments		(1,664		)		(8,893		)		(12,336		)		(11,964		)
Proceeds from sales of trading investments		1,915				8,952				13,247				12,091
Net cash used in investing activities		(73,528		)		(10,793		)		(119,982		)		(130,234		)
Cash flows from financing activities:
Payment of cash dividends		—				—				(146,705		)		(124,180		)
Purchases of registered shares		(92,227		)		(35,310		)		(164,952		)		(50,437		)
Proceeds from exercises of stock options and purchase rights		14,101				10,701				43,810				22,241
Tax withholdings related to net share settlements of restricted stock units		(2,607		)		(1,184		)		(32,082		)		(24,280		)
Net cash used in financing activities		(80,733		)		(25,793		)		(299,929		)		(176,656		)
Effect of exchange rate changes on cash and cash equivalents		(14,374		)		(4,740		)		(3,966		)		(7,060		)
Net increase in cash and cash equivalents		361,584				59,520				1,034,761				111,050
Cash and cash equivalents at beginning of the period		1,388,743				656,046				715,566				604,516
Cash and cash equivalents at end of the period		$	1,750,327			$	715,566			$	1,750,327			$	715,566

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended											Fiscal Years Ended
		March 31,											March 31,
NET SALES		2021				2020				Change			2021				2020				Change
Net sales by product category:
Pointing Devices		$	177,679			$	135,226			31	%		$	680,907			$	544,519			25	%
Keyboards & Combos		219,242				147,659				48			784,488				571,720				37
PC Webcams		144,845				40,152				261			439,865				129,193				240
Tablet & Other Accessories		117,115				31,867				268			384,301				135,309				184
Gaming (1)		322,965				148,909				117			1,239,005				690,174				80
Video Collaboration		385,657				110,675				248			1,044,935				365,616				186
Mobile Speakers		29,739				21,174				40			174,895				221,791				(21	)
Audio & Wearables		130,184				65,176				100			468,776				273,752				71
Smart Home		8,418				8,316				1			34,394				43,404				(21	)
Other (2)		81				94			{ "@context": "https://schema.org", "@type": "FAQPage", "name": "Logitech Grows 76% for Fiscal Year 2021, Q4 Revenue Doubles FAQs", "mainEntity": [ { "@type": "Question", "name": "What are Logitech's financial results for Q4 FY2021?", "acceptedAnswer": { "@type": "Answer", "text": "Logitech's Q4 FY2021 sales were $1.54 billion, up 117% from the prior year, with a GAAP operating income increase of 818%." } }, { "@type": "Question", "name": "How much did Logitech's sales grow in FY2021?", "acceptedAnswer": { "@type": "Answer", "text": "Logitech's sales for FY2021 reached $5.25 billion, a 76% increase compared to the previous year." } }, { "@type": "Question", "name": "What is Logitech's EPS for FY2021?", "acceptedAnswer": { "@type": "Answer", "text": "For FY2021, Logitech reported a GAAP EPS of $5.51, up 107% from $2.66 in FY2020." } }, { "@type": "Question", "name": "What is the forecast for Logitech's non-GAAP operating income in FY2022?", "acceptedAnswer": { "@type": "Answer", "text": "Logitech raised its FY2022 non-GAAP operating income outlook to between $800 million and $850 million." } }, { "@type": "Question", "name": "What dividend increase did Logitech propose?", "acceptedAnswer": { "@type": "Answer", "text": "Logitech proposed a dividend increase of approximately 10% compared to the previous year." } } ] } FAQ What are Logitech's financial results for Q4 FY2021? Logitech's Q4 FY2021 sales were $1.54 billion, up 117% from the prior year, with a GAAP operating income increase of 818%. How much did Logitech's sales grow in FY2021? Logitech's sales for FY2021 reached $5.25 billion, a 76% increase compared to the previous year. What is Logitech's EPS for FY2021? For FY2021, Logitech reported a GAAP EPS of $5.51, up 107% from $2.66 in FY2020. What is the forecast for Logitech's non-GAAP operating income in FY2022? Logitech raised its FY2022 non-GAAP operating income outlook to between $800 million and $850 million. What dividend increase did Logitech propose? Logitech proposed a dividend increase of approximately 10% compared to the previous year. Logitech International SA NASDAQ:LOGI LOGI Rankings #769 Ranked by Market Cap #1574 Ranked by Dividends LOGI Latest News Nov 12, 2024 Ending the Quest for a Place to Meet: Logitech Launches New Smart Office Tools Nov 11, 2024 Logitech Expands Availability of Refurbished Devices, Offering High-Quality, Affordable Tech for Work and Play Nov 11, 2024 Logitech Expands Availability of Refurbished Devices, Offering High-Quality, Affordable Tech for Work and Play Nov 6, 2024 SolarEdge Announces Changes to the Board of Directors Nov 1, 2024 Logitech Continues Support of TechLit Africa Through Technology for Students LOGI Stock Data Market Cap 12.35B Float 147.28M Insiders Ownership 0.27% Institutions Ownership 58.48% Short Percent 2.91% Industry Computer Hardware Sector Computer Peripheral Equipment, Nec Website Link Country United States of America City SAN JOSE Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit Google News © 2020-2024 StockTitan.net