Company Targets High Single-Digit Sales Growth for FY18 and New $250M
Share Buyback Program
NEW YORK & LAUSANNE, Switzerland--(BUSINESS WIRE)--
Prior to a meeting to be held today with financial analysts and
investors in New York, Logitech International (SIX:LOGN) (Nasdaq:LOGI)
announced:
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Logitech International announces its Fiscal Year 2018 outlook and a new share buyback program as part of a three-year capital allocation framework. (Photo: Business Wire)
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A Fiscal Year 2018 outlook of high single-digit retail sales growth in
constant currency and $250 to $260 million in non-GAAP operating
income.
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A new $250 million share buyback program as part of a three-year
capital allocation framework.
The company also reaffirmed its FY 2017 outlook of 12 to 13 percent
retail sales growth in constant currency and $225 to $230 million in
non-GAAP operating income. At the meeting, Logitech will offer insight
into the five capabilities that will be the engine of the company’s
future growth.
“Our strategy is working,” said Bracken Darrell, Logitech president and
chief executive officer. “We have come a long way, and we’re just
getting started. We have a powerful combination of design, engineering,
marketing, go-to-market and operations capabilities that will drive
sustainable growth over the long-term.”
Logitech's Analyst and Investor Day will be held today at 9:00
a.m. Eastern Time. A live webcast and replay of the meeting will be
available on the Logitech corporate website at http://ir.logitech.com.
Use of Non-GAAP Financial Information
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, purchase
accounting effect on inventory, acquisition-related costs, change in
fair value of contingent consideration for business acquisition,
restructuring charges (credits), gain (loss) on equity-method
investment, investigation and related expenses, non-GAAP income tax
adjustment, and other items detailed under “Supplemental Financial
Information” in our quarterly earnings press release and posted to our
website at http://ir.logitech.com.
Historical GAAP and corresponding non-GAAP measures are provided with
our earnings releases and presentations in the Investors section of our
website. 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, outlook and
trends in its business. With respect to 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 2017 or 2018.
About Logitech
Logitech designs products that have an everyday place in people's lives,
connecting them to the digital experiences they care about. Over 30
years ago Logitech started connecting people through computers, and now
it’s designing products that bring people together through music,
gaming, video and computing. 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 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 Year 2017 and Fiscal Year
2018 operating income and sales growth, capital allocation strategy and
share repurchases, capabilities, growth, future performance and results.
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; 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 or our growth opportunities are more
limited than we expect; if sales of PC peripherals 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 product categories, or significant
fluctuations in exchange 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 Annual Report on Form 10-K for the Fiscal Year ended March
31, 2016 and our Quarterly Report on Form 10-Q for fiscal quarter ended
December 31, 2016, 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.
2017 Logitech, Logicool, Logi and other Logitech marks are owned by
Logitech and may be registered. 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.
(LOGIIR)
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Source: Logitech International