In advance of a meeting to be held with financial analysts and investors, Logitech International (SIX:LOGN) (Nasdaq:LOGI) today:
- Raised its Fiscal Year 2021 annual outlook to approximately 63 percent sales growth in constant currency, and approximately $1.1 billion in non-GAAP operating income. The Company's previous outlook was between 57 and 60 percent sales growth in constant currency, and approximately $1.05 billion in non-GAAP operating income.
- Announced its Fiscal Year 2022 annual outlook. Sales growth in constant currency is expected to be approximately flat, plus or minus 5 percent, and non-GAAP operating income is expected to be between $750 million and $800 million. This outlook reflects the Company's ongoing investments in marketing, hardware and software innovation and go-to-market capabilities, as well as confidence in its ability to execute following an exceptional Fiscal Year 2021.
- Announced improvements in its long-term business model. Expectations of long-term sales growth in constant currency have increased to 8 to 10 percent, up from high-single digits. The non-GAAP gross margin target has been raised to between 39 and 44 percent, up from 36 to 40 percent. The non-GAAP operating margin target has improved to between 14 and 17 percent, up from 11 to 14 percent.
"We're delivering an extremely strong fiscal year," said Bracken Darrell, Logitech president and chief executive officer. "Several years ago, we set out to become a design company and positioned our business against long-term growth trends in remote work, video collaboration, esports, and digital content creation. These trends have accelerated over the course of the fiscal year and have seen a coming of age for Logitech. Looking ahead, we see strong growth opportunities and will continue to invest behind these secular trends, as well as others where we have opportunities to lead. We're committed to sustainability and positively impacting the communities in which we operate."
Analyst and Investor Day Videoconference and Livestream
At Logitech's Analyst and Investor Day, Company executives will present how capabilities such as go-to-market, operations, sustainability, marketing and more are contributing to current and future growth. The event will be held on March 1 at 9:00 a.m. Eastern Standard Time and 3:00 p.m. Central European Time through videoconference. A livestream and replay 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, and 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 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 2021 or 2022.
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 outlook for Fiscal Years 2021 and 2022, long-term business model, long-term growth trends, our growth potential, growth and leadership opportunities, investments for growth, and leadership in sustainability and positively impacting our communities. 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; the COVID-19 pandemic and its potential impact; 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, 2020 and our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2020, 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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