SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX:LOGN) (Nasdaq:LOGI), in advance of a meeting to be held with financial analysts and investors, today confirmed its financial outlook for fiscal year 2023 and provided its outlook for the first half of fiscal year 2024.
- Current Fiscal Year 2023 Outlook: Logitech confirmed its current Fiscal Year 2023 outlook of between 15 percent and 13 percent sales decline in constant currency, and between $550 million and $600 million in non-GAAP operating income.
- First Half Fiscal Year 2024 Outlook: Logitech announced its outlook for the first half of Fiscal Year 2024. Revenue is expected to be between $1.8 billion and $1.9 billion, a decline in US dollars of between 22 percent and 18 percent. Non-GAAP operating income is expected to be between $160 million and $190 million.
- Long-Term Business Model: Logitech maintains its long-term non-GAAP model. Long-term, the expectation for sales growth in constant currency continues to be from 8 to 10 percent. The expected long-term non-GAAP gross margin target is maintained at between 39 and 44 percent. The expected long-term non-GAAP operating margin target is maintained at between 14 and 17 percent.
“Fiscal Year 2023 has been a year of transition for Logitech as we continue to navigate a series of external headwinds,” said Bracken Darrell, Logitech president and chief executive officer. “While our recent results were disappointing, we have always taken a long-term perspective and our long-term strategies remain unchanged. Short term we continue to gain market share in our key categories while we adjust our cost structure to the market size. We are encouraged by the opportunities in front of us and as a leader in our markets, we are well positioned to take advantage of the trends that fuel our business - in video, hybrid work, gaming and content creation.”
Analyst and Investor Day Videoconference and Livestream
At Logitech's Analyst and Investor Day, Company executives will present a view of the Company’s long-term strategy and industry-leading innovation. The event will be held on March 8 at 9:00 a.m. Eastern Standard Time and 3:00 p.m. Central European Time through videoconference. A livestream, replay of the event, and slide presentation 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 primarily share-based compensation expense, amortization of intangible assets, acquisition-related costs, impairment of intangible assets, 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 in our “GAAP to Non-GAAP Reconciliation” under “Supplemental Financial Information” in our quarterly earnings press release and posted to our website at http://ir.logitech.com. Logitech also presents percentage sales growth (decline) 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 financial outlooks for Fiscal Year 2023 or first half of fiscal year 2024, and for the long-term non-GAAP model.
Logitech helps all people pursue their passions and is committed to doing so in a way that is good for people and the planet. We design hardware and software solutions that help businesses thrive and bring people together when working, creating, gaming and streaming. 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 outlooks for fiscal year 2023, for first half of fiscal year 2024, and for the long-term non-GAAP model, and related assumptions, market share and business opportunities, and market trends. 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 and changes in the COVID-19 pandemic controls and infection levels in China, 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; 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 Securities and Exchange Commission (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 fiscal quarter ended December 31, 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.
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