Audit Committee's Independent Investigation Now Closed, Filings to Follow
NEWARK, Calif. & LAUSANNE, Switzerland--(BUSINESS WIRE)--
Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced
preliminary unaudited and unreviewed financial results for the second
quarter of Fiscal Year 2015.
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Q2 sales were $530 million, essentially flat compared to the prior
year, with retail sales up 2 percent.
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Q2 GAAP operating income was $42 million, with GAAP earnings per share
(EPS) of $0.22, compared to $0.09 in the same quarter a year ago.
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Q2 non-GAAP operating income was $59 million, with non-GAAP EPS of
$0.31, compared to $0.20 a year ago.
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Q2 cash flow from operations was approximately $33 million, doubling
year-over-year and the highest Q2 in the last five years.
"Our performance in Q2 shows continued progress toward our full-year
objectives, with growth in retail sales, better-than-expected
profitability and improved cash generation," said Bracken P. Darrell,
Logitech president and chief executive officer. "Sales in our Growth
category - PC Gaming, Mobile Speakers and Tablet and Other Accessories -
grew by double digits for the sixth quarter in a row, increasing 27
percent year-over-year in Q2. It was our sixth consecutive quarter in
which Mobile Speakers sales more than doubled. We've entered the second
half of the year with a robust product portfolio and a pipeline of
compelling new products set to launch in the coming quarters. This is
our strategy of delivering fewer and bigger products in action."
Outlook
Logitech confirmed its outlook for Fiscal Year 2015 of approximately
$2.16 billion in sales, assuming relatively stable currency exchange
rates, and approximately $170 million in non-GAAP operating income.
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results
teleconference available online on the Logitech corporate Web site at http://ir.logitech.com.
Financial Results Teleconference and Webcast
Logitech will hold a financial results teleconference to discuss the
preliminary results for Q2 FY 2015 on Oct. 24, 2014 at 8:30 a.m. Eastern
Daylight Time and 14:30 Central European Summer Time. A live webcast of
the call will be available on the Logitech corporate website at http://ir.logitech.com.
Audit Committee Investigation Closed
As previously disclosed, Logitech's Audit Committee, with the assistance
of independent advisors, was conducting an independent investigation of
certain accounting matters related to the Company's previously issued
financial statements. The investigation is now closed.
With the investigation closed, Logitech is performing the necessary work
to complete and file its Annual Report for FY 2014, Annual Report on
Form 10-K for FY 2014 and Quarterly Reports on Form 10-Q for Q1 and Q2
FY 2015. The Company intends to file these reports as soon as possible
to regain compliance with Nasdaq and SIX Swiss Exchange listing
requirements.
Last month, Logitech announced the restatement of its financial
statements for Fiscal Years 2011 and 2012 and for the first quarter of
Fiscal Year 2012, related to inventory valuation reserves for the
Company's discontinued Revue product. In connection with the
restatement, there will be other immaterial corrections to the financial
statements for Fiscal Years 2010 and 2013, as well as the first and
second quarters of Fiscal Year 2014. None of these other corrections are
material to the respective years or to the interim period.
Preliminary financial information for the second quarter of Fiscal Year
2015 was compiled by the Company and has not yet been reviewed by the
Company's independent registered public accounting firm. Accordingly,
the preliminary results for the first and second quarters of Fiscal Year
2015 and the results for the corresponding period of Fiscal Year 2014
contained in this press release may be subject to potentially material
adjustment.
Use of Non-GAAP Financial Information
To facilitate comparisons to Logitech's historical results, Logitech has
included non-GAAP adjusted measures, which exclude share-based
compensation expense, amortization of other intangible assets,
restructuring charges (credits), other restructuring-related charges,
investment impairment (recovery), benefit from (provision for) income
taxes, one-time special charges and other items detailed under
"Supplemental Financial Information" after the tables below. Logitech
believes this information will help investors to evaluate its current
period performance and trends in its business. With respect to the
Company's outlook for Fiscal Year 2015 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 amount has been
provided.
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 within the
meaning of the federal securities laws, including, without limitation,
statements regarding: the Company's product portfolio, new products,
timing of new product launches, strategy and Fiscal Year 2015 revenue
and operating income; currency exchange rates; the timing of filing
periodic reports with the Securities and Exchange Commission and the SIX
Swiss Exchange to regain compliance with the Company's listing
requirements; and the impact and materiality of the restatement on and
other corrections to the Company's financial statements. 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: the results of the Audit
Committee's investigation and the completion of the additional work
related to the Company's Fiscal Year 2014 Annual Report, Fiscal Year
2014 Annual Report on Form 10-K, and Fiscal Year 2015 First and Second
Quarter Quarterly Reports on Form 10-Q; any adjustments resulting from
the review of the preliminary financial results for the first and second
quarter of Fiscal Year 2015 by the Company's independent auditors or
from the review of subsequent events, including reserves and estimates,
through the dates of filing the Fiscal Year 2014 Annual Report on Form
10-K and the Fiscal Year 2015 First and Second Quarter Quarterly Reports
on Form 10-Q; if there is a delay in completing the Fiscal Year 2014
audit of financial statements and internal controls or the First and
Second Quarter of Fiscal Year 2015 accounting reviews; 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; the demand of our customers and our
consumers for our products and our ability to accurately forecast 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 in our new
product categories or our growth opportunities are more limited than we
expect; if sales of PC peripherals in mature markets are less 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 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 operating segments, or significant
fluctuations in exchange rates; 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,
including our Quarterly Report on Form 10-Q for the fiscal quarter ended
December 31, 2013 and our Amended Annual Report on Form 10-K/A for the
fiscal year ended March 31, 2013, 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, 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.
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LOGITECH INTERNATIONAL S.A.
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The following financial statements and supplemental information
maybe subject to potentially material adjustment. Please see notes
below the tables.
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(In thousands, except per share amounts) -Unaudited
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Three Months Ended
September 30,
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Six Months Ended
September 30,
|
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GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
|
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2014
|
|
2013
|
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2014
|
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2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
530,311
|
|
|
$
|
531,972
|
|
|
$
|
1,012,514
|
|
|
$
|
1,009,896
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|
|
Cost of goods sold
|
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|
325,533
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|
|
348,559
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|
|
625,532
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|
|
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658,128
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Gross profit
|
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|
204,778
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|
183,413
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|
|
|
386,982
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|
|
|
351,768
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|
% of net sales
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|
38.6
|
%
|
|
|
34.5
|
%
|
|
|
38.2
|
%
|
|
|
34.8
|
%
|
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|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
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|
|
|
|
|
|
|
|
Marketing and selling
|
|
|
95,862
|
|
|
|
93,710
|
|
|
|
186,908
|
|
|
|
194,345
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|
|
Research and development
|
|
|
32,325
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|
|
|
37,633
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|
|
63,641
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|
|
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73,824
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|
|
General and administrative
|
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|
34,470
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|
|
29,395
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|
|
|
71,149
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|
|
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58,543
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|
Restructuring charges, net
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|
-
|
|
|
|
5,465
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|
|
|
-
|
|
|
|
7,799
|
|
|
Total operating expenses
|
|
|
162,657
|
|
|
|
166,203
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|
|
|
321,698
|
|
|
|
334,511
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
42,121
|
|
|
|
17,210
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|
|
|
65,284
|
|
|
|
17,257
|
|
|
|
|
|
|
|
|
|
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|
|
Interest income, net
|
|
|
355
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|
|
|
183
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|
|
|
613
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|
|
|
160
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|
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Other income (expense), net
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(885
|
)
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|
62
|
|
|
|
(1,083
|
)
|
|
|
279
|
|
|
|
|
|
|
|
|
|
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|
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Income before income taxes
|
|
|
41,591
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|
|
|
17,455
|
|
|
|
64,814
|
|
|
|
17,696
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|
|
Provision for income taxes
|
|
|
5,501
|
|
|
|
3,057
|
|
|
|
8,596
|
|
|
|
2,255
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|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
36,090
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|
|
$
|
14,398
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|
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$
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56,218
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|
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$
|
15,441
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Net income per share:
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Basic
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$
|
0.22
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$
|
0.09
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|
|
$
|
0.34
|
|
|
$
|
0.10
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Diluted
|
|
$
|
0.22
|
|
|
$
|
0.09
|
|
|
$
|
0.34
|
|
|
$
|
0.10
|
|
|
Shares used to compute net income per share :
|
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|
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|
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Basic
|
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|
163,230
|
|
|
|
159,969
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|
|
|
163,121
|
|
|
|
159,637
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|
|
Diluted
|
|
|
166,065
|
|
|
|
161,183
|
|
|
|
165,949
|
|
|
|
160,875
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
The following financial statements and supplemental information
maybe subject to potentially material adjustment. Please see notes
below the tables.
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|
|
(In thousands, except per share amounts) - Unaudited
|
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GAAP TO NON GAAP RECONCILIATION (A)
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
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SUPPLEMENTAL FINANCIAL INFORMATION
|
|
2014 (1) (2)
|
|
2013 (1)
|
|
2014 (1) (2)
|
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2013 (1)
|
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Gross profit - GAAP
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|
$
|
204,778
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|
|
$
|
183,413
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|
|
$
|
386,982
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|
|
$
|
351,768
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|
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Share-based compensation expense
|
|
|
627
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|
|
|
594
|
|
|
|
1,165
|
|
|
|
1,171
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|
|
Amortization of other intangible assets
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|
|
543
|
|
|
|
2,593
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|
|
|
1,093
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|
|
|
5,171
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|
|
Restructuring-related charges
|
|
|
-
|
|
|
|
5,194
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|
|
|
-
|
|
|
|
5,194
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|
|
Gross profit - Non-GAAP
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|
$
|
205,948
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|
|
$
|
191,794
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$
|
389,240
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$
|
363,304
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|
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|
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|
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|
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|
Gross margin - GAAP
|
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|
38.6
|
%
|
|
|
34.5
|
%
|
|
|
38.2
|
%
|
|
|
34.8
|
%
|
|
Gross margin - Non-GAAP
|
|
|
38.8
|
%
|
|
|
36.1
|
%
|
|
|
38.4
|
%
|
|
|
36.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses - GAAP
|
|
$
|
162,657
|
|
|
$
|
166,203
|
|
|
$
|
321,698
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|
|
$
|
334,511
|
|
|
Less: Share-based compensation expense
|
|
|
5,434
|
|
|
|
3,515
|
|
|
|
11,834
|
|
|
|
7,328
|
|
|
Amortization of other intangible assets
|
|
|
2,033
|
|
|
|
2,661
|
|
|
|
4,265
|
|
|
|
5,347
|
|
|
Restructuring charges, net
|
|
|
-
|
|
|
|
5,465
|
|
|
|
-
|
|
|
|
7,799
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|
|
One time special charge
|
|
|
8,020
|
|
|
|
-
|
|
|
|
17,000
|
|
|
|
-
|
|
|
Operating expenses - Non-GAAP
|
|
$
|
147,170
|
|
|
$
|
154,562
|
|
|
$
|
288,599
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|
|
$
|
314,037
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|
|
|
|
|
|
|
|
|
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|
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% of net sales - GAAP
|
|
|
30.7
|
%
|
|
|
31.2
|
%
|
|
|
31.8
|
%
|
|
|
33.1
|
%
|
|
% of net sales - Non - GAAP
|
|
|
27.8
|
%
|
|
|
29.1
|
%
|
|
|
28.5
|
%
|
|
|
31.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income - GAAP
|
|
$
|
42,121
|
|
|
$
|
17,210
|
|
|
$
|
65,284
|
|
|
$
|
17,257
|
|
|
Share-based compensation expense
|
|
|
6,061
|
|
|
|
4,109
|
|
|
|
12,999
|
|
|
|
8,499
|
|
|
Amortization of other intangible assets
|
|
|
2,576
|
|
|
|
5,254
|
|
|
|
5,358
|
|
|
|
10,518
|
|
|
Restructuring charges, net
|
|
|
-
|
|
|
|
5,465
|
|
|
|
-
|
|
|
|
7,799
|
|
|
Restructuring related charges
|
|
|
-
|
|
|
|
5,194
|
|
|
|
-
|
|
|
|
5,194
|
|
|
One time special charge
|
|
|
8,020
|
|
|
|
-
|
|
|
|
17,000
|
|
|
|
-
|
|
|
Operating income - Non - GAAP
|
|
$
|
58,778
|
|
|
$
|
37,232
|
|
|
$
|
100,641
|
|
|
$
|
49,267
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net sales - GAAP
|
|
|
7.9
|
%
|
|
|
3.2
|
%
|
|
|
6.4
|
%
|
|
|
1.7
|
%
|
|
% of net sales - Non - GAAP
|
|
|
11.1
|
%
|
|
|
7.0
|
%
|
|
|
9.9
|
%
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income - GAAP
|
|
$
|
36,090
|
|
|
$
|
14,398
|
|
|
$
|
56,218
|
|
|
$
|
15,441
|
|
|
Share-based compensation expense
|
|
|
6,061
|
|
|
|
4,109
|
|
|
|
12,999
|
|
|
|
8,499
|
|
|
Amortization of other intangible assets
|
|
|
2,576
|
|
|
|
5,254
|
|
|
|
5,358
|
|
|
|
10,518
|
|
|
Restructuring related charges
|
|
|
-
|
|
|
|
5,194
|
|
|
|
-
|
|
|
|
5,194
|
|
|
Restructuring charges, net
|
|
|
-
|
|
|
|
5,465
|
|
|
|
-
|
|
|
|
7,799
|
|
|
One time special charge
|
|
|
8,020
|
|
|
|
-
|
|
|
|
17,000
|
|
|
|
-
|
|
|
Investment impairment, net
|
|
|
105
|
|
|
|
(261
|
)
|
|
|
105
|
|
|
|
109
|
|
|
Benefit from (provision for) income taxes
|
|
|
(1,803
|
)
|
|
|
(2,638
|
)
|
|
|
(3,964
|
)
|
|
|
(5,368
|
)
|
|
Net income - Non - GAAP
|
|
$
|
51,049
|
|
|
$
|
31,521
|
|
|
$
|
87,716
|
|
|
$
|
42,192
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP
|
|
$
|
0.22
|
|
|
$
|
0.09
|
|
|
$
|
0.34
|
|
|
$
|
0.10
|
|
|
Diluted - Non - GAAP
|
|
$
|
0.31
|
|
|
$
|
0.20
|
|
|
$
|
0.53
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute net income per share:
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP and Non GAAP
|
|
|
166,065
|
|
|
|
161,183
|
|
|
|
165,949
|
|
|
|
160,875
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales by channel:
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
473,463
|
|
|
$
|
464,853
|
|
|
$
|
897,276
|
|
|
$
|
878,089
|
|
|
OEM
|
|
|
28,394
|
|
|
|
37,526
|
|
|
|
61,027
|
|
|
|
72,039
|
|
|
Video conferencing
|
|
|
28,454
|
|
|
|
29,593
|
|
|
|
54,211
|
|
|
|
59,768
|
|
|
Total net sales
|
|
$
|
530,311
|
|
|
$
|
531,972
|
|
|
$
|
1,012,514
|
|
|
$
|
1,009,896
|
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales by product family(*):
|
|
|
|
|
|
|
|
|
|
PC Gaming
|
|
$
|
47,506
|
|
|
$
|
43,260
|
|
|
$
|
94,382
|
|
|
$
|
83,473
|
|
|
Tablet & Other Accessories
|
|
|
28,158
|
|
|
|
34,695
|
|
|
|
59,874
|
|
|
|
73,254
|
|
|
Mobile Speakers
|
|
|
48,538
|
|
|
|
19,967
|
|
|
|
77,367
|
|
|
|
33,834
|
|
|
Growth
|
|
|
124,202
|
|
|
|
97,922
|
|
|
|
231,623
|
|
|
|
190,561
|
|
|
Pointing Devices
|
|
|
127,693
|
|
|
|
130,656
|
|
|
|
240,735
|
|
|
|
245,307
|
|
|
PC Keyboards & Desktops
|
|
|
105,718
|
|
|
|
105,260
|
|
|
|
211,241
|
|
|
|
203,273
|
|
|
Audio-PC &Wearables
|
|
|
58,677
|
|
|
|
70,523
|
|
|
|
108,303
|
|
|
|
126,061
|
|
|
Video
|
|
|
37,563
|
|
|
|
36,645
|
|
|
|
72,139
|
|
|
|
67,585
|
|
|
Remotes
|
|
|
18,776
|
|
|
|
13,327
|
|
|
|
31,108
|
|
|
|
27,901
|
|
|
Profit maximization
|
|
|
348,427
|
|
|
|
356,411
|
|
|
|
663,526
|
|
|
|
670,127
|
|
|
Other
|
|
|
834
|
|
|
|
10,520
|
|
|
|
2,127
|
|
|
|
17,401
|
|
|
Non-Strategic
|
|
|
834
|
|
|
|
10,520
|
|
|
|
2,127
|
|
|
|
17,401
|
|
|
Total net retail sales
|
|
$
|
473,463
|
|
|
$
|
464,853
|
|
|
$
|
897,276
|
|
|
$
|
878,089
|
|
|
__________________
|
|
|
|
|
|
|
|
|
|
* Certain products within the retail product families as presented
in prior years have been reclassified to conform to the current
year presentation.
|
|
|
|
|
|
|
|
|
|
|
|
Share-based Compensation Expense
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$
|
627
|
|
|
$
|
594
|
|
|
$
|
1,165
|
|
|
$
|
1,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
552
|
|
|
|
840
|
|
|
|
1,396
|
|
|
|
1,934
|
|
|
Marketing and selling
|
|
|
1,653
|
|
|
|
1,017
|
|
|
|
4,209
|
|
|
|
2,923
|
|
|
General and administrative
|
|
|
3,229
|
|
|
|
1,658
|
|
|
|
6,229
|
|
|
|
2,471
|
|
|
Income tax benefit
|
|
|
(1,913
|
)
|
|
|
(1,300
|
)
|
|
|
(3,097
|
)
|
|
|
(2,175
|
)
|
|
Total share-based compensation expense after income taxes
|
|
$
|
4,148
|
|
|
$
|
2,809
|
|
|
$
|
9,902
|
|
|
$
|
6,324
|
|
|
__________________
|
|
|
|
|
|
|
|
|
|
(1) NOTE: Based on the Audit Committee's investigation and
related additional work associated with the Company's Fiscal Year
2014 Annual Report on Form 10-K, the preliminary results for the
three and six months ended September 30 of Fiscal Year 2015 and the
results for the corresponding periods of Fiscal Year 2014 contained
in these prepared remarks are subject to potentially material
adjustment.
|
|
|
|
(2) NOTE: The financial information for the three and six months
ended September 30 of Fiscal Year 2015 is preliminary, was compiled
by the Company and has not yet been reviewed by the Company's
independent registered public accounting firm. The financial
information for the three and six months ended September 30 of
Fiscal Year 2015 may be subject to potentially material adjustment
based on changes in reserves and estimates resulting from subsequent
events and other information available through the filing date of
the Company's Quarterly Report on Form 10-Q for the three and six
months ended September 30, 2014.
|
|
|
|
(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 three and six months ended
September 30, 2014, we excluded items in the following general
categories, each of which are described below:
|
|
|
|
|
|
Share-based compensation expenses. 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 other 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 operating expenses and financial results
from period to period.
|
|
|
Restructuring and restructuring-related charges. These
expenses are associated with re-aligning our business strategies
based on current economic conditions. We have undertaken several
restructurings in recent years. In connection with our restructuring
initiatives, we incurred restructuring charges related to employee
terminations, facility closures and early cancellation of certain
contracts. Our restructuring initiatives also resulted in other
costs related to restructurings not qualifying for inclusion in
restructuring charges. We believe that providing the non-GAAP
measures excluding these charges, as well as the GAAP measures,
assists our investors because such charges are not reflective of our
ongoing operating results in the current period.
|
|
|
One-time special charges: costs related to investigations. These
expenses are forensic accounting, audit, consulting and legal fees
related to the Audit Committee's investigation and the ongoing
formal investigation by the Securities and Exchange Commission. We
believe that providing the non-GAAP measures excluding these
charges, as well as the GAAP measures, assists our investors
because such charges are one-time in nature and not reflective of
our ongoing operations.
|
|
|
Other charges. We provided non-GAAP measures excluding
the effect of certain charges and income that are not reflective of
our ongoing operations.
|
|
|
|
|
|
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.
|
(LOGIIR)
Logitech International
Joe Greenhalgh
Vice President, Investor
Relations - USA
510-713-4430
Krista Todd
Sr. Director,
External Communications - USA
510-713-5834
Ben Starkie
Corporate
Communications - Europe
+41-(0) 79-292-3499
Source: Logitech International
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