Logitech Returns to Growth With Strong Fourth
Quarter; Company Announces FY 2025 Outlook
SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR
— Logitech International (SIX: LOGN) (Nasdaq: LOGI) today
announced financial results for the fourth quarter and full Fiscal
Year 2024 ended March 31, 2024.
For Q4 Fiscal Year 2024:
- Sales were $1.01 billion, up 5 percent in US dollars and 5
percent in constant currency, compared to Q4 of the prior
year.
- GAAP operating income was $130 million, up 235 percent,
compared to Q4 of the prior year. Non-GAAP operating income was
$159 million, up 93 percent, compared to Q4 of the prior year.
- GAAP earnings per share (EPS) was $1.07, up 312 percent
compared to Q4 prior year. Non-GAAP EPS was $0.99, up 98 percent
compared to the prior year.
- Cash flow from operations was $239 million, up 10 percent
compared to Q4 of the prior year.
For Fiscal Year 2024:
- Sales were $4.30 billion, down 5 percent in US dollars and 6
percent in constant currency, compared to the prior year.
- GAAP operating income was $587 million, up 28 percent compared
to the prior year. Non-GAAP operating income was $699 million, up
19 percent compared to the prior year.
- GAAP earnings per share (EPS) was $3.87, up 74 percent compared
to the prior year. Non-GAAP EPS was $4.25, up 32 percent compared
to the prior year.
- Cash flow from operations was $1.1 billion, up 114 percent
compared to the prior year. The year-ending cash balance was more
than $1.5 billion. The Company returned $686 million of cash to
shareholders through its annual dividend payment and share
repurchases.
“We delivered a strong fourth quarter, with a return to growth
and expanded gross margins,” said Hanneke Faber, Logitech chief
executive officer. “Growth was broad-based across all regions and
key categories.
“We start Fiscal Year 2025 with a focus on sustainable,
profitable growth supported by several long-term trends that
present opportunities for our business: new ways of working,
gaming, and transformational AI. Our new, ambitious mission of
extending human potential in work and play expands our addressable
market and our innovation opportunities. We’re excited for the
journey to come.”
Outlook
Logitech announced its full-year outlook for Fiscal Year
2025:
Sales
$4.3 - $4.4 billion
Sales growth (in US dollars, year over
year)
0% - 2%
Non-GAAP operating income
$685 - $715 million
Non-GAAP op. inc. growth/ (decline) (year
over year)
(2)% - 2%
Financial Results Videoconference and Webcast
Logitech will hold a financial results videoconference to
discuss the results for Q4 and the full Fiscal Year 2024 on
Tuesday, April 30, 2024 at 8:30 a.m. Eastern Daylight Time and 2:30
p.m. Central European Summer Time. This will also be an opportunity
to hear strategic insights from Logitech chief executive officer,
Hanneke Faber, on her first 100 days.
A livestream of the event will be available on the Logitech
corporate website at https://ir.logitech.com. This press release
and the Q4 Fiscal Year 2024 Shareholder Letter are also available
there.
CFO Search and Annual Investor Day
Last month, Logitech announced that Charles ‘Chuck’ Boynton,
chief financial officer (CFO), will be departing the Company to
pursue another career opportunity. Boynton will remain with the
Company as CFO through mid-May to ensure a seamless transition for
the end of the 2024 fiscal year. His successor will be named at a
later date.
Logitech plans to hold its Annual Investor Day (AID) later this
year.
Use of Non-GAAP Financial Information and Constant
Currency
To facilitate comparisons to Logitech’s historical results,
Logitech has included non-GAAP adjusted measures in this press
release, which exclude share-based compensation expense,
amortization and impairment of intangible assets,
acquisition-related costs and change in fair value of contingent
consideration for business acquisition, restructuring charges, net,
loss on investments, pension curtailment gains, non-GAAP income tax
adjustment, and other items detailed under “Supplemental Financial
Information” after the tables below and posted to our website at
https://ir.logitech.com. Logitech also presents percentage sales
growth in constant currency (“cc”), 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,
outlook 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 the full Fiscal Year 2025 non-GAAP operating income
outlook.
Public Dissemination of Certain Information
Recordings of Logitech’s earnings videoconferences and certain
events Logitech participates in or hosts, with members of the
investment community are posted on the company’s investor relations
website at https://ir.logitech.com. Additionally, Logitech provides
notifications of news or announcements regarding its operations and
financial performance, including its filings with the Securities
and Exchange Commission (SEC), investor events, and press and
earnings releases as part of its investor relations website.
Logitech intends to use its investor relations website as means of
disclosing material nonpublic information and for complying with
its disclosure obligations under Regulation FD. Logitech’s
corporate governance information also is available on its investor
relations website.
About Logitech
Logitech designs software-enabled hardware solutions that help
businesses thrive and bring people together when working, creating,
gaming and streaming. As the point of connection between people and
the digital world, our purpose is to extend human potential in work
and play, in a way that is good for people and the planet. Founded
in 1981, Logitech International is a Swiss public company listed on
the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select
Market (LOGI). Find Logitech and its other brands, including
Logitech G, at www.logitech.com or company blog.
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws, including, without
limitation, statements regarding: our preliminary financial results
for the three months and fiscal year ended March 31, 2024, Fiscal
Year 2025 outlook for sales and non-GAAP operating income,
strategic priorities, trends in our business, and related
assumptions. The forward-looking statements in this press release
are subject to 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, for example the resilience of overall
consumer demand, B2B and IT spending levels, changes in inflation
levels and monetary policies, governments’ fiscal policies, and
geopolitical conflicts; our expectations regarding our expense
reduction efforts, including the timing thereof; changes in secular
trends that impact our business; 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; issues relating to development and use
of artificial intelligence; 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, supply
shortages and other supply chain challenges; the effect of
logistics challenges, including disruptions in logistics; 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, 2023, our Quarterly Report
on Form 10-Q for the quarter ended December 31, 2023, and other
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
2024
2023
2024
2023
Net sales
$
1,011,487
$
960,077
$
4,298,467
$
4,538,818
Cost of goods sold
572,051
612,703
2,509,418
2,806,438
Amortization of intangible assets
2,459
3,510
11,028
12,865
Gross profit
436,977
343,864
1,778,021
1,719,515
Operating expenses:
Marketing and selling
185,594
181,060
730,310
809,182
Research and development
75,421
70,630
287,243
280,796
General and administrative
38,510
32,437
155,056
124,652
Amortization of intangible assets and
acquisition-related costs
2,655
2,791
10,934
11,843
Impairment of intangible assets
3,526
—
3,526
—
Change in fair value of contingent
consideration for business acquisition
(250
)
—
(250
)
—
Restructuring charges, net
1,304
18,102
3,866
34,573
Total operating expenses
306,760
305,020
1,190,685
1,261,046
Operating income
130,217
38,844
587,336
458,469
Interest income
16,128
8,758
50,636
18,331
Other income (expense), net
(2,549
)
5,089
(16,376
)
(13,278
)
Income before income taxes
143,796
52,691
621,596
463,522
Provision for (benefit from) income
taxes
(23,819
)
11,196
9,453
98,947
Net income
$
167,615
$
41,495
$
612,143
$
364,575
Net income per share:
Basic
$
1.09
$
0.26
$
3.90
$
2.25
Diluted
$
1.07
$
0.26
$
3.87
$
2.23
Weighted average shares used to compute
net income per share:
Basic
154,452
160,073
156,776
162,302
Diluted
156,204
161,524
158,171
163,704
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share
amounts) - unaudited
March 31,
March 31,
CONDENSED CONSOLIDATED BALANCE
SHEETS
2024
2023
Current assets:
Cash and cash equivalents
$
1,520,842
$
1,149,023
Accounts receivable, net
541,715
630,382
Inventories
422,513
682,893
Other current assets
146,270
142,876
Total current assets
2,631,340
2,605,174
Non-current assets:
Property, plant and equipment, net
116,589
121,503
Goodwill
461,978
454,610
Other intangible assets, net
44,603
63,173
Other assets
350,194
316,293
Total assets
$
3,604,704
$
3,560,753
Current liabilities:
Accounts payable
$
448,627
$
406,968
Accrued and other current liabilities
637,262
643,139
Total current liabilities
1,085,889
1,050,107
Non-current liabilities:
Income taxes payable
112,572
106,391
Other non-current liabilities
172,590
146,695
Total liabilities
1,371,051
1,303,193
Shareholders' equity:
Registered shares, CHF 0.25 par value:
30,148
30,148
Issued shares —173,106 at March 31, 2024
and 2023
Additional shares that may be issued out
of conditional capital — 50,000 at March 31, 2024 and 2023
Additional shares that may be issued out
of authorized capital — 17,311 at March 31, 2024 and 2023
Additional paid-in capital
63,524
127,380
Shares in treasury, at cost — 19,243 and
13,763 shares at March 31, 2024 and 2023, respectively
(1,351,336
)
(977,266
)
Retained earnings
3,602,519
3,177,575
Accumulated other comprehensive loss
(111,202
)
(100,277
)
Total shareholders' equity
2,233,653
2,257,560
Total liabilities and shareholders'
equity
$
3,604,704
$
3,560,753
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
2024
2023
2024
2023
Cash flows from operating
activities:
Net income
$
167,615
$
41,495
$
612,143
$
364,575
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
14,191
19,611
63,065
76,309
Amortization of intangible assets
5,098
6,234
21,681
24,407
Impairment of intangible assets
3,526
—
3,526
—
Loss on investments
2,461
1,008
14,674
14,073
Share-based compensation expense
18,697
19,042
82,889
70,782
Deferred income taxes
(32,909
)
6,486
(42,424
)
30,714
Change in fair value of contingent
consideration for business acquisition
(250
)
—
(250
)
—
Pension curtailment gains
—
(4,225
)
—
(4,225
)
Other
43
(406
)
379
1,005
Changes in assets and liabilities, net of
acquisitions:
Accounts receivable, net
138,305
174,732
91,519
51,185
Inventories
21,827
121,000
259,796
247,309
Other assets
7,062
(15,284
)
10,760
5,634
Accounts payable
(81,047
)
(84,203
)
39,336
(219,051
)
Accrued and other liabilities
(25,514
)
(68,647
)
(11,978
)
(128,707
)
Net cash provided by operating
activities
239,105
216,843
1,145,116
534,010
Cash flows from investing
activities:
Purchases of property, plant and
equipment
(10,312
)
(23,231
)
(55,897
)
(92,353
)
Investment in privately held companies
(211
)
(1,731
)
(617
)
(4,357
)
Acquisitions, net of cash acquired
(286
)
—
(14,424
)
(8,527
)
Purchases of deferred compensation
investments
(3,678
)
(1,516
)
(11,571
)
(6,702
)
Proceeds from sales of deferred
compensation investments
3,981
1,459
12,174
6,209
Net cash used in investing
activities
(10,506
)
(25,019
)
(70,335
)
(105,730
)
Cash flows from financing
activities:
Payment of cash dividends
—
—
(182,305
)
(158,680
)
Payment of contingent consideration for
business acquisition
—
—
(5,002
)
(5,954
)
Purchases of registered shares
(127,428
)
(90,615
)
(504,203
)
(418,346
)
Proceeds from exercises of stock options
and purchase rights
16,878
12,726
32,197
28,790
Tax withholdings related to net share
settlements of restricted stock units
(1,148
)
(429
)
(29,744
)
(29,163
)
Other financing activities
—
—
(1,116
)
—
Net cash used in financing
activities
(111,698
)
(78,318
)
(690,173
)
(583,353
)
Effect of exchange rate changes on cash
and cash equivalents
(8,709
)
(614
)
(12,789
)
(24,620
)
Net increase (decrease) in cash and
cash equivalents
108,192
112,892
371,819
(179,693
)
Cash and cash equivalents at beginning
of the period
1,412,650
1,036,131
1,149,023
1,328,716
Cash and cash equivalents at end of the
period
$
1,520,842
$
1,149,023
$
1,520,842
$
1,149,023
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL
INFORMATION
Three Months Ended
Fiscal Years Ended
March 31,
March 31,
NET SALES
2024
2023 (1)
Change
2024
2023 (1)
Change
Net sales by product category:
Gaming (2)
$
273,487
$
256,437
7
%
$
1,231,063
$
1,288,313
(4
)%
Keyboards & Combos
216,240
187,800
15
821,441
836,432
(2
)
Pointing Devices
170,677
160,768
6
742,987
728,357
2
Video Collaboration
148,104
143,576
3
609,361
677,923
(10
)
Webcams
75,952
73,156
4
325,225
378,688
(14
)
Tablet Accessories
55,808
68,429
(18
)
254,060
254,374
—
Headsets
45,455
39,147
16
168,478
176,576
(5
)
Other (3)
25,764
30,764
(16
)
145,852
198,155
(26
)
Total Net Sales
$
1,011,487
$
960,077
5
%
$
4,298,467
$
4,538,818
(5
)%
(1) The Company has reclassified certain prior period amounts to
conform to the current period presentation. (2) Gaming includes
streaming services revenue generated by Streamlabs. (3) Other
primarily consists of mobile speakers and PC speakers.
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share
amounts) - unaudited
SUPPLEMENTAL FINANCIAL
INFORMATION
Three Months Ended
Fiscal Years Ended
March 31,
March 31,
GAAP TO NON-GAAP RECONCILIATION
(A)
2024
2023
2024
2023
Gross profit - GAAP
$
436,977
$
343,864
$
1,778,021
$
1,719,515
Share-based compensation expense
1,938
1,407
8,004
5,635
Amortization of intangible assets
2,459
3,510
11,028
12,865
Gross profit - Non-GAAP
$
441,374
$
348,781
$
1,797,053
$
1,738,015
Gross margin - GAAP
43.2
%
35.8
%
41.4
%
37.9
%
Gross margin - Non-GAAP
43.6
%
36.3
%
41.8
%
38.3
%
Operating expenses - GAAP
$
306,760
$
305,020
$
1,190,685
$
1,261,046
Less: Share-based compensation expense
16,759
17,635
74,885
65,147
Less: Amortization of intangible assets
and acquisition-related costs
2,655
2,791
10,934
11,843
Less: Impairment of intangible assets
3,526
—
3,526
—
Less: Change in fair value of contingent
consideration for business acquisition
(250
)
—
(250
)
—
Less: Restructuring charges, net
1,304
18,102
3,866
34,573
Operating expenses - Non-GAAP
$
282,766
$
266,492
$
1,097,724
$
1,149,483
% of net sales - GAAP
30.3
%
31.8
%
27.7
%
27.8
%
% of net sales - Non-GAAP
28.0
%
27.8
%
25.5
%
25.3
%
Operating income - GAAP
$
130,217
$
38,844
$
587,336
$
458,469
Share-based compensation expense
18,697
19,042
82,889
70,782
Amortization of intangible assets and
acquisition-related costs
5,114
6,301
21,962
24,708
Impairment of intangible assets
3,526
—
3,526
—
Change in fair value of contingent
consideration for business acquisition
(250
)
—
(250
)
—
Restructuring charges, net
1,304
18,102
3,866
34,573
Operating income - Non-GAAP
$
158,608
$
82,289
$
699,329
$
588,532
% of net sales - GAAP
12.9
%
4.0
%
13.7
%
10.1
%
% of net sales - Non-GAAP
15.7
%
8.6
%
16.3
%
13.0
%
Net income - GAAP
$
167,615
$
41,495
$
612,143
$
364,575
Share-based compensation expense
18,697
19,042
82,889
70,782
Amortization of intangible assets and
acquisition-related costs
5,114
6,301
21,962
24,708
Impairment of intangible assets
3,526
—
3,526
—
Change in fair value of contingent
consideration for business acquisition
(250
)
—
(250
)
—
Restructuring charges, net
1,304
18,102
3,866
34,573
Loss on investments
2,461
1,008
14,674
14,073
Pension curtailment gains
—
(4,225
)
—
(4,225
)
Non-GAAP income tax adjustment
(44,039
)
(1,167
)
(66,073
)
22,129
Net income - Non-GAAP
$
154,428
$
80,556
$
672,737
$
526,615
Net income per share:
Diluted - GAAP
$
1.07
$
0.26
$
3.87
$
2.23
Diluted - Non-GAAP
$
0.99
$
0.50
$
4.25
$
3.22
Shares used to compute net income per
share:
Diluted - GAAP and Non-GAAP
156,204
161,524
158,171
163,704
LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL
INFORMATION
Three Months Ended
Fiscal Years Ended
March 31,
March 31,
SHARE-BASED COMPENSATION
EXPENSE
2024
2023
2024
2023
Share-based Compensation
Expense
Cost of goods sold
$
1,938
$
1,407
$
8,004
$
5,635
Marketing and selling
7,157
9,467
35,780
34,707
Research and development
4,268
3,724
17,836
15,292
General and administrative
5,334
4,444
21,269
15,148
Total share-based compensation
expense
18,697
19,042
82,889
70,782
Income tax benefit
(4,048
)
(2,254
)
(15,305
)
(9,750
)
Total share-based compensation expense,
net of income tax benefit
$
14,649
$
16,788
$
67,584
$
61,032
*Note: These preliminary results for the three months and fiscal
year ended March 31, 2024 are subject to adjustments, including
subsequent events that may occur through the date of filing our
Annual Report on Form 10-K.
(A) Non-GAAP Financial Measures
To supplement our condensed consolidated financial results
prepared in accordance with GAAP, we use a number of financial
measures, both GAAP and non-GAAP, in analyzing and assessing our
overall business performance, for making operating decisions and
for forecasting and planning future periods. We consider the use of
non-GAAP financial measures helpful in assessing our current
financial performance, ongoing operations and prospects for the
future as well as understanding financial and business trends
relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance
our understanding of certain aspects of our financial performance
and to provide incremental insight into the underlying factors and
trends affecting both our performance and our cash-generating
potential, we do not consider these measures to be a substitute
for, or superior to, the information provided by GAAP financial
measures. Consistent with this approach, we believe that disclosing
non-GAAP financial measures to the readers of our financial
statements provides useful supplemental data that, while not a
substitute for GAAP financial measures, can offer insight in the
review of our financial and operational performance and enables
investors to more fully understand trends in our current and future
performance. In assessing our business during the quarter and
fiscal year ended March 31, 2024 and prior periods presented, we
excluded items in the following general categories, each of which
are described below:
Share-based compensation expense. We
believe that providing non-GAAP measures excluding share-based
compensation expense, in addition to the GAAP measures, allows for
a more transparent comparison of our financial results from period
to period. We prepare and maintain our budgets and forecasts for
future periods on a basis consistent with this non-GAAP financial
measure. Further, companies use a variety of types of equity awards
as well as a variety of methodologies, assumptions and estimates to
determine share-based compensation expense. We believe that
excluding share-based compensation expense enhances our ability and
the ability of investors to understand the impact of non-cash
share-based compensation on our operating results and to compare
our results against the results of other companies.
Amortization of intangible assets. We
incur intangible asset amortization expense, primarily in
connection with our acquisitions of various businesses and
technologies. The amortization of purchased intangibles varies
depending on the level of acquisition activity. We exclude these
various charges in budgeting, planning and forecasting future
periods and we believe that providing the non-GAAP measures
excluding these various non-cash charges, as well as the GAAP
measures, provides additional insight when comparing our gross
profit, operating expenses, and financial results from period to
period.
Impairment of intangible assets. We
may incur impairment of intangible assets expense, primarily in
connection with our past business or asset acquisitions. We believe
that providing the non-GAAP measures excluding these items, as well
as the GAAP measures, assists our investors because such expenses
are not reflective of our ongoing operating results.
Acquisition-related costs and change in
fair value of contingent consideration for business
acquisition. We incurred expenses and credits in connection
with our acquisitions which we generally would not have otherwise
incurred in the periods presented as a part of our continuing
operations. Acquisition-related costs include certain incremental
expenses incurred to effect a business combination. Fair value of
contingent consideration is associated with our estimates of the
value of earn-outs in connection with certain acquisitions. We
believe that providing the non-GAAP measures excluding these costs
and credits, as well as the GAAP measures, assists our investors
because such costs are not reflective of our ongoing operating
results.
Restructuring charges (credits), net.
These expenses are associated with restructuring plans, and will
vary based on the initiatives in place during any given period.
Restructuring charges may include costs related to employee
terminations, facility closures and early cancellation of certain
contracts as well as other costs resulting from our restructuring
initiatives. We believe that providing the non-GAAP measures
excluding these items, as well as the GAAP measures, assists our
investors because such charges (credits) are not reflective of our
ongoing operating results.
Loss (gain) on investments. We
recognize losses (gains) related to our investments in various
companies, which vary depending on the operational and financial
performance of the companies in which we invest. These amounts
include our losses (earnings) on equity method investments,
investment impairments and losses (gains) resulting from sales or
other events related to our investments. We believe that providing
the non-GAAP measures excluding these items, as well as the GAAP
measures, assists our investors because such losses (gains) are not
reflective of our ongoing operations.
Pension curtailment losses (gains).
Pension curtailment losses (gains) are associated with our
restructuring initiatives as a result of a reduction in the number
of participants in our defined benefit pension plans. We believe
that providing the non-GAAP measures excluding these losses
(gains), as applicable, as well as the GAAP measures, assists our
investors because such losses (gains) are not reflective of our
ongoing operating results.
Non-GAAP income tax adjustment.
Non-GAAP income tax adjustment primarily measures the income tax
effect of non-GAAP adjustments excluded above as well as the income
tax impact of non-recurring deferred taxes, tax settlements, and
other non-routine tax events, the determination of which is based
upon the nature of the underlying items. For the fiscal year ended
March 31, 2024, non-GAAP income tax adjustment includes a Swiss Tax
Ruling with the canton of Vaud that provides future tax benefit for
ten years and the tax benefit from a remeasurement of the tax basis
of goodwill under the Swiss Federal Act on Tax Reform and AHV
Financing (“TRAF”) based on an agreement reached with the Swiss Tax
Authority during the fiscal year ended March 31, 2024.
Each of the non-GAAP financial measures described above, and
used in this press release, should not be considered in isolation
from, or as a substitute for, a measure of financial performance
prepared in accordance with GAAP. Further, investors are cautioned
that there are inherent limitations associated with the use of each
of these non-GAAP financial measures as an analytical tool. In
particular, these non-GAAP financial measures are not based on a
comprehensive set of accounting rules or principles and many of the
adjustments to the GAAP financial measures reflect the exclusion of
items that are recurring and may be reflected in the Company’s
financial results for the foreseeable future. We compensate for
these limitations by providing specific information in the
reconciliation included in this press release regarding the GAAP
amounts excluded from the non-GAAP financial measures. In addition,
as noted above, we evaluate the non-GAAP financial measures
together with the most directly comparable GAAP financial
information.
Additional Supplemental Financial Information - Constant
Currency
In addition, Logitech 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.
(LOGIIR)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429210443/en/
Editorial Contacts: Nate Melihercik Head of Global
Investor Relations ir@logitech.com
Nicole Kenyon Head of Global Corporate and Internal
Communications nkenyon@logitech.com (USA)
Ben Starkie Corporate Communications +41 (0) 79-292-3499
bstarkie1@logitech.com (Europe)
Logitech (NASDAQ:LOGI)
Historical Stock Chart
From Nov 2024 to Dec 2024
Logitech (NASDAQ:LOGI)
Historical Stock Chart
From Dec 2023 to Dec 2024
