Earnings Per Share Up Over 20%; Company Beats Three-Year Non-GAAP EPS Goal A Full Year Early
Logitech Delivers New Sales Record and Sixth Consecutive Year of Growth
LAUSANNE, Switzerland- Apr. 30, 2019 and NEWARK, Calif., Apr. 29, 2019- Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2019, ended March 31, 2019.
For Fiscal Year 2019:
- Sales were the highest ever at $2.79 billion, up 9 percent in US dollars and 10 percent in constant currency compared to the prior year, the sixth consecutive year of growth.
- GAAP operating income grew 15 percent to $263 million, compared to $230 million a year ago. GAAP earnings per share (EPS) grew 24 percent to $1.52, compared to $1.23 a year ago.
- Non-GAAP operating income grew 23 percent to $352 million, compared to $287 million a year ago. Non-GAAP EPS grew 26 percent to $2.01, compared to $1.60 a year ago.
For Q4 Fiscal Year 2019:
- Sales grew to $624 million, up 5 percent in US dollars and 9 percent in constant currency compared to Q4 of the prior year.
- GAAP operating income grew 8 percent to $42 million, and non-GAAP operating income grew 16 percent to $64 million, compared to Q4 of the prior year.
“We’ve delivered our third consecutive year of double-digit growth in constant currency and our highest fiscal year sales ever,” said Bracken Darrell, Logitech president and chief executive officer. “Our innovative, diverse product portfolio delivered, led by strong, sustainable growth in our major categories of Gaming, Video Collaboration, and Creativity & Productivity. And we are not just growing topline, but also systematically delivering strong leverage on the bottom line. In fact, we achieved our plan to double non-GAAP EPS to $2.00 a full year early. Our strategy is working, and we are excited for our future as the world’s leading cloud peripheral company.”
Logitech confirmed its 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.
Additionally, Logitech announced today that Vincent Pilette, Logitech’s chief financial officer, is leaving the Company. Vincent will leave, and cease to be a member of the Group Management Team, at the end of May, 2019, to pursue a senior leadership role at another company. Logitech has named Nate Olmstead interim chief financial officer following Vincent’s departure. Nate joined Logitech in 2019 as vice president of finance, and brings over 16 years of financial management experience, most recently as the vice president of finance for global operations at Hewlett Packard Enterprise. Nate has a BA from Stanford and an MBA from Harvard.
“When I joined Logitech, I had a vision to turn Logitech into a design company, pursuing opportunities in the many new market opportunities enabled by the cloud,” said Bracken Darrell. “We needed financial and operational strength to support the ambition of that vision. Vincent has been a terrific partner for this pursuit these past six years, and we’ve made great progress. But more important than his partnership and leadership is the team he built and the culture of rigor and discipline he helped instill throughout the company. We now have a strong, seasoned finance team across every area and a proven track record of operational excellence. That is his most important legacy. I’m excited for him in his next challenge. And I’m even more energized by our continued progress toward our design company vision."
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results teleconference available online on the Logitech corporate website at http://ir.logitech.com.
Financial Results Teleconference and Webcast
Logitech will hold a financial results teleconference to discuss the results for Q4 and the full Fiscal Year 2019 on Tuesday, April 30, 2019 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. A live webcast of the call 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), loss (gain) on investments in privately held companies, 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 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: our preliminary financial results for the three months and full fiscal year ended March 31, 2019, innovation, product portfolio, brand leadership, growth, profitability and leverage, sustainability, market leadership, position for the future, focus, vision ability to be a design company, outlook for Fiscal Year 2020 operating income and sales growth, and our executive officers. 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 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 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. 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2018 and our Quarterly Report on Form 10-Q for the fiscal quarter ended December 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.
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