Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - LOGITECH INTERNATIONAL S.A. | d8k.htm |
Exhibit 99.1
| For Immedidate Release |
|
Editorial Contacts:
Joe Greenhalgh, Vice President, Investor Relations – USA (510) 713-4430
Nancy Morrison, Vice President, Corporate Communications – USA (510) 713-4948
Laura Scorza, Sr. Public Relations Manager – Europe +41-(0) 21-863-5336
Logitech Announces Fourth Quarter and Full-Year Financial
Results for FY 2011
FREMONT, Calif., April. 27, 2011 and MORGES, Switzerland, April. 28, 2011 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2011.
Sales for Q4 FY 2011 were $548 million, up 4 percent from $525 million in the same quarter last year. Excluding the favorable impact of exchange rate changes, sales increased by 3 percent. Operating income was $3.6 million, a decrease of 87 percent compared to $27.7 million in the same quarter a year ago. Net income for Q4 was $2.8 million ($0.02 per share) compared to $24.5 million ($0.14 per share) in Q4 of FY 2010. Gross margin for Q4 FY 2011 was 32.8 percent, down from 35.8 percent one year ago.
Logitech’s retail sales for Q4 FY 2011 grew by 2 percent year over year, with an increase in Asia of 32 percent, an increase in the Americas of 11 percent, and a decrease in EMEA of 17 percent. OEM sales decreased by 10 percent. Sales for the LifeSize division grew 88 percent, reaching a record high for a quarter.
For the full fiscal year, sales were $2.36 billion, up 20 percent from $1.97 billion in FY 2010. Operating income was $142.7 million, up 82 percent from $78.4 million a year ago. Gross margin for FY 2011 was 35.4 percent compared to 31.9 in FY 2010.
“FY 2011 was a strong year for the company, with sales growth of 20 percent and operating income nearly doubling, driven by our LifeSize division and our Americas and Asia retail regions,” said Gerald P. Quindlen, Logitech president and chief executive officer. “The disappointing conclusion to FY 2011 – which resulted in lower-than expected full-year sales, operating income and gross margin – was due to weaker than anticipated demand in the second half of Q4 for our products in EMEA. The weakness in demand in EMEA was compounded by poor execution of channel pricing and promotional programs within the region, which we have begun to remedy.”
Logitech Announces Q4 FY 2011 Results – Page 2
Outlook
For Fiscal Year 2012, ending March 31, 2012, Logitech expects sales of approximately $2.6 billion, operating income of approximately $185 million and gross margin of approximately 35 percent. The tax rate is expected to be approximately 15 percent.
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the earnings teleconference available online on the Logitech corporate Web site at http://ir.logitech.com. The remarks are posted in the Calendar section on the Investor home page.
Earnings Teleconference and Webcast
Logitech will hold an earnings teleconference on Thursday, April. 28, 2011 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer Time. A live webcast of the call, along with presentation slides, will be available on the Logitech corporate Web site at http://ir.logitech.com.
About Logitech
Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning multiple computing, communication and entertainment platforms, Logitech’s combined hardware and software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. 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).
# # #
This press release contains forward-looking statements, including the statements regarding anticipated sales, operating income, gross margin and tax rate for FY 2012. The forward-looking statements in this release involve risks and uncertainties that could cause Logitech’s actual results to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include: the demand of our customers and our consumers for our products and our ability to accurately forecast it; if our decisions to prioritize investments in our LifeSize division, in growing our sales and marketing in China and other high potential emerging markets, in peripherals for tablets, and in our other investment priorities, do not result in the sales or profitability growth we expect, or when we expect it; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; the sales mix among our lower- and higher-margin products and our geographic sales mix; if our product introductions and marketing activities do not result in the sales and profitability growth we expect, or when we expect it; if we fail to take advantage of trends in the consumer electronics and personal computers industries, including the growth of mobile computing devices such as smartphones and tablets with touch interfaces, or if significant demand for peripherals to use with tablets and other mobile devices with touch interfaces does not develop; if there is a deterioration of business and economic conditions or significant fluctuations in currency exchange rates; competition in the video conferencing and communications industry, including from companies with significantly greater resources, sales and marketing organizations, installed base and name recognition; as well as those additional factors set forth in Logitech’s periodic filings with the Securities and Exchange
Logitech Announces Q4 FY 2011 Results – Page 3
Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2010, and our Quarterly Report on Form 10-Q for the quarters ended June 30, 2010, September 30, 2010 and December 31, 2010 available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.
Logitech, the Logitech logo, and other Logitech marks are registered in Switzerland 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 Web site at www.logitech.com.
(LOGI – IR)
LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
| Quarter Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| CONSOLIDATED STATEMENTS OF INCOME |
||||||||
| Net sales |
$ | 547,618 | $ | 525,444 | ||||
| Cost of goods sold |
368,248 | 337,122 | ||||||
| Gross profit |
179,370 | 188,322 | ||||||
| % of net sales |
32.8 | % | 35.8 | % | ||||
| Operating expenses: |
||||||||
| Marketing and selling |
106,777 | 89,693 | ||||||
| Research and development |
38,119 | 39,697 | ||||||
| General and administrative |
30,836 | 30,943 | ||||||
| Restructuring charges |
— | 290 | ||||||
| Total operating expenses |
175,732 | 160,623 | ||||||
| Operating income |
3,638 | 27,699 | ||||||
| Interest income, net |
621 | 475 | ||||||
| Other income, net |
2,679 | 723 | ||||||
| Income before income taxes |
6,938 | 28,897 | ||||||
| Provision for income taxes |
4,162 | 4,404 | ||||||
| Net income |
$ | 2,776 | $ | 24,493 | ||||
| Shares used to compute net income per share: |
||||||||
| Basic |
178,562 | 175,738 | ||||||
| Diluted |
180,423 | 177,967 | ||||||
| Net income per share: |
||||||||
| Basic |
$ | 0.02 | $ | 0.14 | ||||
| Diluted |
$ | 0.02 | $ | 0.14 | ||||
LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
| Twelve Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| CONSOLIDATED STATEMENTS OF INCOME |
||||||||
| Net sales |
$ | 2,362,886 | $ | 1,966,748 | ||||
| Cost of goods sold |
1,526,380 | 1,339,852 | ||||||
| Gross profit |
836,506 | 626,896 | ||||||
| % of net sales |
35.4 | % | 31.9 | % | ||||
| Operating expenses: |
||||||||
| Marketing and selling |
420,580 | 304,788 | ||||||
| Research and development |
156,390 | 135,813 | ||||||
| General and administrative |
116,880 | 106,147 | ||||||
| Restructuring charges |
— | 1,784 | ||||||
| Total operating expenses |
693,850 | 548,532 | ||||||
| Operating income |
142,656 | 78,364 | ||||||
| Interest income, net |
2,316 | 2,120 | ||||||
| Other income, net |
3,476 | 3,139 | ||||||
| Income before income taxes |
148,448 | 83,623 | ||||||
| Provision for income taxes |
19,988 | 18,666 | ||||||
| Net income |
$ | 128,460 | $ | 64,957 | ||||
| Shares used to compute net income per share: |
||||||||
| Basic |
176,928 | 177,279 | ||||||
| Diluted |
178,790 | 179,340 | ||||||
| Net income per share: |
||||||||
| Basic |
$ | 0.73 | $ | 0.37 | ||||
| Diluted |
$ | 0.72 | $ | 0.36 | ||||
LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
| March 31, 2011 | March 31, 2010 | |||||||
| CONSOLIDATED BALANCE SHEETS |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 477,931 | $ | 319,944 | ||||
| Accounts receivable |
258,294 | 195,247 | ||||||
| Inventories |
280,814 | 219,593 | ||||||
| Other current assets |
59,347 | 58,877 | ||||||
| Total current assets |
1,076,386 | 793,661 | ||||||
| Property, plant and equipment |
84,160 | 91,229 | ||||||
| Intangible assets |
||||||||
| Goodwill |
547,184 | 553,462 | ||||||
| Other intangible assets |
74,616 | 95,396 | ||||||
| Other assets |
79,210 | 65,930 | ||||||
| Total assets |
$ | 1,861,556 | $ | 1,599,678 | ||||
| Current liabilities |
||||||||
| Accounts payable |
$ | 298,160 | $ | 257,955 | ||||
| Accrued liabilities |
172,560 | 182,336 | ||||||
| Total current liabilities |
470,720 | 440,291 | ||||||
| Other liabilities |
185,835 | 159,672 | ||||||
| Total liabilities |
656,555 | 599,963 | ||||||
| Shareholders’ equity |
1,205,001 | 999,715 | ||||||
| Total liabilities and shareholders’ equity |
$ | 1,861,556 | $ | 1,599,678 | ||||
LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
| Twelve Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ | 128,460 | $ | 64,957 | ||||
| Non-cash items included in net income: |
||||||||
| Depreciation |
46,786 | 56,380 | ||||||
| Amortization of other intangible assets |
27,800 | 14,515 | ||||||
| Share-based compensation expense |
34,846 | 25,807 | ||||||
| Excess tax benefits from share-based compensation |
(3,455 | ) | (2,814 | ) | ||||
| Gain on cash surrender value of life insurance policies |
(901 | ) | (1,223 | ) | ||||
| Gain on disposal of fixed assets |
(838 | ) | — | |||||
| Write-down of investments |
42 | 643 | ||||||
| Deferred income taxes and other |
(8,998 | ) | (17,895 | ) | ||||
| Changes in assets and liabilities: |
||||||||
| Accounts receivable |
(54,684 | ) | 28,489 | |||||
| Inventories |
(60,482 | ) | 30,942 | |||||
| Other assets |
5,825 | 15,038 | ||||||
| Accounts payable |
37,714 | 94,155 | ||||||
| Accrued liabilities |
2,715 | 56,265 | ||||||
| Net cash provided by operating activities |
154,830 | 365,259 | ||||||
| Cash flows from investing activities: |
||||||||
| Purchases of property, plant and equipment |
(41,318 | ) | (39,834 | ) | ||||
| Purchases of trading investments |
(19,075 | ) | — | |||||
| Sales of trading investments |
6,470 | — | ||||||
| Proceeds from cash surrender of life insurance policies |
11,313 | 813 | ||||||
| Proceeds from sale of business |
9,087 | — | ||||||
| Acquisitions and investments, net of cash acquired |
(7,300 | ) | (388,809 | ) | ||||
| Proceeds from sale of property, plant and equipment |
2,688 | — | ||||||
| Other, net |
(5 | ) | — | |||||
| Net cash used in investing activities |
(38,140 | ) | (427,830 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Proceeds from sale of shares upon exercise of options and purchase rights |
42,969 | 28,917 | ||||||
| Excess tax benefits from share-based compensation |
3,455 | 2,814 | ||||||
| Purchases of treasury shares |
— | (126,301 | ) | |||||
| Repayment of short- and long-term debt |
— | (13,630 | ) | |||||
| Net cash provided by (used in) financing activities |
46,424 | (108,200 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents |
(5,127 | ) | (2,044 | ) | ||||
| Net increase (decrease) in cash and cash equivalents |
157,987 | (172,815 | ) | |||||
| Cash and cash equivalents at beginning of period |
319,944 | 492,759 | ||||||
| Cash and cash equivalents at end of period |
$ | 477,931 | $ | 319,944 | ||||
LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
| Quarter Ended March 31, |
Twelve Months Ended March 31, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION |
||||||||||||||||
| Depreciation |
$ | 11,121 | $ | 14,528 | $ | 46,786 | $ | 56,380 | ||||||||
| Amortization of other intangibles |
6,635 | 6,913 | 27,800 | 14,515 | ||||||||||||
| Operating income |
3,638 | 27,699 | 142,656 | 78,364 | ||||||||||||
| Operating income before depreciation and amortization |
21,394 | 49,140 | 217,242 | 149,259 | ||||||||||||
| Capital expenditures |
9,483 | 13,396 | 41,318 | 39,834 | ||||||||||||
| Net sales by channel: |
||||||||||||||||
| Retail |
$ | 463,232 | $ | 454,426 | $ | 2,005,210 | $ | 1,745,152 | ||||||||
| OEM |
45,026 | 50,127 | 223,775 | 198,364 | ||||||||||||
| LifeSize (1) |
39,360 | 20,891 | 133,901 | 23,232 | ||||||||||||
| Total net sales |
$ | 547,618 | $ | 525,444 | $ | 2,362,886 | $ | 1,966,748 | ||||||||
| Net retail sales by product family: |
||||||||||||||||
| Retail - Pointing Devices |
$ | 146,181 | $ | 140,687 | $ | 618,404 | $ | 528,236 | ||||||||
| Retail - Keyboards & Desktops |
104,883 | 86,499 | 390,426 | 329,038 | ||||||||||||
| Retail - Audio |
96,079 | 113,894 | 466,927 | 454,957 | ||||||||||||
| Retail - Video |
61,721 | 59,943 | 255,015 | 228,344 | ||||||||||||
| Retail - Gaming |
22,996 | 25,594 | 104,459 | 107,595 | ||||||||||||
| Retail - Digital Home |
31,372 | 27,809 | 169,979 | 96,982 | ||||||||||||
| Total net retail sales |
$ | 463,232 | $ | 454,426 | $ | 2,005,210 | $ | 1,745,152 | ||||||||
| Quarter Ended March 31, |
Twelve Months Ended March 31, |
|||||||||||||||
| Share-based Compensation Expense |
2011 | 2010 | 2011 | 2010 | ||||||||||||
| Cost of goods sold |
$ | 1,313 | $ | 938 | $ | 4,223 | $ | 3,073 | ||||||||
| Marketing and selling |
3,747 | 3,270 | 12,030 | 9,201 | ||||||||||||
| Research and development |
2,436 | 1,854 | 7,829 | 4,902 | ||||||||||||
| General and administrative |
3,374 | 2,496 | 10,764 | 8,631 | ||||||||||||
| Income tax benefit |
(2,752 | ) | (1,611 | ) | (8,279 | ) | (5,768 | ) | ||||||||
| Total share-based compensation expense after income taxes |
$ | 8,118 | $ | 6,947 | $ | 26,567 | $ | 20,039 | ||||||||
| Share-based compensation expense net of tax, per share (diluted) |
$ | 0.04 | $ | 0.04 | $ | 0.15 | $ | 0.11 | ||||||||
Constant dollar sales (sales excluding impact of exchange rate changes)
We refer to our net sales excluding the impact of foreign currency exchange rates as constant dollar sales. Constant dollar sales are a non-GAAP financial measure, which is information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. GAAP. Our management uses these non-GAAP measures in its financial and operational decision-making, and believes these non-GAAP measures, when considered in conjunction with the corresponding GAAP measures, facilitate a better understanding of changes in net sales. Constant dollar sales are calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency.
| (1) | The acquisition of LifeSize was completed on December 11, 2009. The results of operations of LifeSize are included in Logitech’s consolidated financial statements from the date of acquisition. |