Logitech Expects Seventh Consecutive Year of Growth in Fiscal Year 2020
ZURICH, Switzerland- March 6, 2019 and NEWARK, Calif., March 5, 2019 - In advance of a meeting to be held with financial analysts and investors in Zurich, Logitech International (SIX:LOGN) (Nasdaq:LOGI) today:
- Reaffirmed its Fiscal Year 2019 outlook of 9 to 11 percent sales growth in constant currency and $340 million to $345 million in non-GAAP operating income.
- Announced a Fiscal Year 2020 outlook of mid to high single-digit sales growth in constant currency and $375 million to $385 million in non-GAAP operating income, an increase of approximately 10 to 12 percent from the midpoint of the Company’s profitability outlook for Fiscal Year 2019.
- Revised elements of its long-term business model upward. Expectations of long-term sales growth in constant currency continue to be in the high single digits. The gross margin target is now 36 to 40 percent, revised upward from the previous target of 35 to 37 percent. The operating margin target is now 11 to 14 percent, up from the previous target of 10 to 12 percent.
“Logitech grew up with the PC. Now we are becoming the leading cloud peripherals company,” said Bracken Darrell, Logitech president and chief executive officer. “Our diverse and innovative portfolio continues to deliver, driven by the horsepower of our Gaming, Video Collaboration and Creativity & Productivity market opportunities. We are sustaining our investment in future growth and in our long-term vision of Logitech, the multi-category, multi-brand design company.”
Logitech's Analyst and Investor Day will be held today at 9:00 a.m. Central European Time. A live webcast and replay of the meeting 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, purchase accounting effect on inventory, acquisition-related costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), gain (loss) on investments in privately held companies, investigation and related expenses, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” in our quarterly earnings press releases and posted to our website at http://ir.logitech.com. Historical GAAP and corresponding non-GAAP measures are provided with our earnings releases and presentations in the Investors section of our website. 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 Years 2019 or 2020.
Logitech designs products that have an everyday place in people's lives, connecting them to the digital experiences they care about. More than 35 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, Ultimate Ears, Jaybird, Blue Microphones, ASTRO Gaming and Logitech G. 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.
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This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding: growth, profitability, our outlook for Fiscal Year 2019 operating income and sales growth, our outlook for Fiscal Year 2020 operating income and sales growth, our long-term business model, sales growth, gross margin and operating margin, our consecutive years of growth, our position among cloud peripherals companies, our product portfolio and its ability to drive growth,, our growth in various product categories, our market opportunities, our long-term vision, and investments in our business. The forward-looking statements in this 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 pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; if our products and marketing strategies fail to separate our products from competitors’ products; if we are not able to maintain and enhance our brands; if we do not fully realize our goals to lower our costs and improve our operating leverage; 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;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, including our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2018 and our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, 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)