0001032975false00010329752023-10-232023-10-23

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
Date of Report  (Date of earliest event reported): October 23, 2023

 
LOGITECH INTERNATIONAL S.A.
(Exact name of registrant as specified in its charter)

Canton of Vaud,Switzerland0-29174 None
(State or other jurisdiction
of incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)
 
Logitech International S.A.
EPFL - Quartier de l'Innovation
Daniel Borel Innovation Center
1015 Lausanne, Switzerland
c/o Logitech Inc.
3930 North First Street
San Jose
California
95134
(Address of principal executive offices and zip code)
(510)795-8500
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐        Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Registered Shares
LOGN
SIX Swiss Exchange
Registered Shares
LOGI
Nasdaq Global Select Market



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o  



 



ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
 
On October 23, 2023, Logitech International S.A. (“Logitech”) issued a press release regarding its financial results for the quarter ended September 30, 2023.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
 
The information in Item 2.02 and Item 9.01 of this Current Report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
 
d) Exhibits.
 
ExhibitDescription
Press release issued on October 23, 2023 including financial results for the quarter ended September 30, 2023.
104Cover Page Interactive Data File (Cover page XBRL tags are embedded within the Inline XBRL document)
 
             




 
 SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 

 Logitech International S.A.
  
  
/s/ Guy Gecht
  
 Guy Gecht
 Interim Chief Executive Officer
  
  
/s/ Charles Boynton
 
 Charles Boynton
 Chief Financial Officer
October 23, 2023 













                                             Exhibit 99.1
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 Announces Second Quarter Fiscal Year 2024 Results
Company Raises FY 2024 Outlook

LAUSANNE, Switzerland, Oct. 24, 2023 and SAN JOSE, Calif., Oct. 23, 2023 — SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the second quarter of Fiscal Year 2024.
•Sales were $1.06 billion, down 8 percent in US dollars and 9 percent in constant currency, compared to the prior year.
•GAAP operating income was $157 million, up 23 percent compared to the prior year. Non-GAAP operating income was $183 million, up 17 percent compared to the prior year. In the quarter, the Company continued to reduce operating expenses, down 9 percent compared to the prior year, in line with the decline in net sales.
•GAAP earnings per share (EPS) was $0.86, up 72 percent compared to the prior year. Non-GAAP EPS was $1.09, up 30 percent compared to the prior year.
•Cash flow from operations was $223 million, up $150 million compared to the prior year. The quarter-ending cash balance was $1.16 billion. In the quarter, the Company returned $276 million of cash to shareholders through its annual dividend payment and share repurchases.

“The Logitech team stepped up execution this quarter and delivered results that demonstrate the underlying potential of our business,” said Guy Gecht, Logitech interim chief executive officer. “We made great progress toward a return to growth and exceeded our pre-pandemic profit levels. Our design-led innovation capabilities were on full display, with 16 new product introductions during the quarter. I'm proud of what our team has accomplished in this challenging environment. We remain focused on developing market leading products, operational excellence, and value creation for shareholders."

“While our second quarter revenue was down compared to last year, we delivered expanded gross margins of 42.0% and operating margins of 17.3%,” said Chuck Boynton, Logitech chief financial officer. “Through strong operating execution and working capital management, we generated $223 million in operating cash flow and returned $276 million to our shareholders. Our focus on cost discipline with a customer-first mindset is paying off, with share growth in key categories. We remain cautiously optimistic on the balance of the year and are pleased to raise the annual outlook.”



CEO Search Update
Over the last four months, the board of directors, led by Wendy Becker, has been conducting a global CEO search looking at internal and external candidates across industries and geographies. The board has met with a number of strong, diverse and experienced candidates, and is moving closer to finalizing a decision.

Updated Full Year Outlook
Logitech raised its full-year outlook for Fiscal Year 2024:
Previous FY 2024 outlook
New FY 2024 outlook
Sales
$3.8 - $4.0 billion
$4.0 - $4.15 billion
Sales decline (in US dollars, year over year)
16% - 12%
12% - 9%
Non-GAAP operating income
$400 - $500 million
$525 - $575 million
Non-GAAP op. inc. decline (year over year)
32% - 15%
11% - 2%

H1 2024 Results Compared to H1 2024 Outlook
Logitech exceeded its outlook for the first half of Fiscal Year 2024:
H1 2024 outlook
H1 2024 results
Sales
$1.875 - $1.975 billion
$2.032 billion
Sales decline (in US dollars, year over year)
19% - 14%
12%
Non-GAAP operating income
$180 - $220 million
$292 million
Non-GAAP op. inc. decline (year over year)
40% - 27%
3%

Financial Results Videoconference and Webcast
Logitech will hold a financial results videoconference to discuss the results for Q2 Fiscal Year 2024 on Tuesday, October 24, 2023 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. A livestream 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 in this press release, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges (credits), net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below and posted to our website at http://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 2024 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 helps all people pursue their passions and is committed to doing so in a way that is good for people and the planet. We design hardware and software solutions that help businesses thrive and bring people together when working, creating, gaming and streaming. Brands of Logitech include Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones and Ultimate Ears. 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 U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three and six months ended September 30, 2023, Fiscal Year 2024 outlook for sales and non-GAAP operating income, CEO search update, 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 changes in inflation levels and monetary policies; 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; 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 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 June 30, 2023, and our subsequent 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.
(LOGIIR)




LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
Three months ended September 30,Six months ended September 30,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 2023202220232022
Net sales$1,057,008 $1,148,951 $2,031,507 $2,308,816 
Cost of goods sold615,403 707,026 1,211,115 1,404,246 
Amortization of intangible assets2,983 3,145 6,128 6,187 
Gross profit438,622 438,780 814,264 898,383 
Operating expenses:
Marketing and selling176,356 202,091 355,541 431,469 
Research and development68,559 69,009 139,118 144,526 
General and administrative35,538 26,589 76,835 62,449 
Amortization of intangible assets and acquisition-related costs3,318 2,873 6,003 6,242 
Restructuring charges (credits), net(1,788)10,817 1,723 10,817 
Total operating expenses281,983 311,379 579,220 655,503 
Operating income156,639 127,401 235,044 242,880 
Interest income11,856 3,459 21,682 4,908 
Other income (expense), net(1,044)(25,397)(14,016)(19,773)
Income before income taxes167,451 105,463 242,710 228,015 
Provision for income taxes30,334 23,372 42,866 45,088 
Net income$137,117 $82,091 $199,844 $182,927 
Net income per share:
Basic$0.87 $0.50 $1.26 $1.12 
Diluted$0.86 $0.50 $1.25 $1.11 
Weighted average shares used to compute net income per share:
Basic157,911 163,186 158,385 163,937 
Diluted158,934 164,328 159,545 165,371 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
September 30,March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS
20232023
Current assets:
Cash and cash equivalents$1,163,904 $1,149,023 
Accounts receivable, net656,895 630,382 
Inventories532,943 682,893 
Other current assets138,482 142,876 
Total current assets2,492,224 2,605,174 
Non-current assets:
Property, plant and equipment, net122,027 121,503 
Goodwill461,401 454,610 
Other intangible assets, net58,081 63,173 
Other assets 291,297 316,293 
Total assets$3,425,030 $3,560,753 
Current liabilities:
Accounts payable$492,905 $406,968 
Accrued and other current liabilities 594,042 643,139 
Total current liabilities1,086,947 1,050,107 
Non-current liabilities:
Income taxes payable114,235 106,391 
Other non-current liabilities 146,583 146,695 
Total liabilities1,347,765 1,303,193 
Shareholders’ equity:
Registered shares, CHF 0.25 par value:30,148 30,148 
Issued shares — 173,106 at September 30, 2023 and March 31, 2023
Additional shares that may be issued out of conditional capital — 50,000 at September 30, 2023 and March 31, 2023
Additional shares that may be issued out of authorized capital — 17,311 at September 30, 2023 and March 31, 2023
Additional paid-in capital47,311 127,380 
Shares in treasury, at cost — 16,029 at September 30, 2023 and 13,763 at March 31, 2023(1,083,468)(977,266)
Retained earnings3,190,220 3,177,575 
Accumulated other comprehensive loss(106,946)(100,277)
Total shareholders’ equity2,077,265 2,257,560 
Total liabilities and shareholders’ equity$3,425,030 $3,560,753 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
Three months ended September 30,Six months ended September 30,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 2023202220232022
Cash flows from operating activities:  
Net income$137,117 $82,091 $199,844 $182,927 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation16,637 18,662 34,135 37,288 
Amortization of intangible assets5,682 6,015 11,509 12,244 
Loss (gain) on investments
(214)22,934 11,609 11,577 
Share-based compensation expense22,068 12,245 43,579 35,935 
Deferred income taxes8,146 2,775 11,108 3,040 
Other76 242 100 118 
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net(100,752)(77,337)(35,362)(121,909)
Inventories35,929 22,114 146,369 21,790 
Other assets(22,343)(175)11,999 4,757 
Accounts payable106,442 (8,320)88,022 (78,354)
Accrued and other liabilities14,476 (8,322)(59,853)(72,157)
Net cash provided by operating activities223,264 72,924 463,059 37,256 
Cash flows from investing activities:
Purchases of property, plant and equipment(18,493)(25,821)(34,731)(45,384)
Investment in privately held companies(322)(187)(356)(2,275)
Acquisitions, net of cash acquired(12,878)— (14,138)(5,839)
Purchases of deferred compensation investments(1,479)(1,577)(2,548)(2,499)
Proceeds from sales of deferred compensation investments1,551 1,493 2,622 2,436 
Net cash used in investing activities(31,621)(26,092)(49,151)(53,561)
Cash flows from financing activities:
Payment of cash dividends(182,305)(158,680)(182,305)(158,680)
Payment of contingent consideration for business acquisition(5,002)(5,954)(5,002)(5,954)
Purchases of registered shares(93,865)(116,942)(188,941)(237,561)
Proceeds from exercises of stock options and purchase rights13,206 12,850 15,319 12,850 
Tax withholdings related to net share settlements of restricted stock units(2,028)(2,598)(26,224)(26,742)
Other financing activities(1,116)— (1,116)— 
Net cash used in financing activities(271,110)(271,324)(388,269)(416,087)
Effect of exchange rate changes on cash and cash equivalents (7,715)(13,664)(10,758)(27,823)
Net increase (decrease) in cash and cash equivalents (87,182)(238,156)14,881 (460,215)
Cash and cash equivalents, beginning of the period1,251,086 1,106,657 1,149,023 1,328,716 
Cash and cash equivalents, end of the period$1,163,904 $868,501 $1,163,904 $868,501 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATIONThree months ended September 30,Six months ended September 30,
NET SALES2023
2022 (1)
Change2023
2022 (1)
Change
Net sales by product category:
Gaming (2)
$282,104 $322,028 (12)%$548,533 $619,949 (12)%
Keyboards & Combos194,914 200,853 (3)375,769 428,573 (12)
Pointing Devices191,676 185,200 3 366,130 368,483 (1)
Video Collaboration152,389 179,199 (15)291,735 360,831 (19)
Webcams88,222 102,018 (14)163,422 211,280 (23)
Tablet Accessories63,677 54,203 17 134,013 120,788 11 
Headsets44,411 44,750 (1)81,261 90,693 (10)
Other (3)
39,615 60,700 (35)70,644 108,219 (35)
Total Net Sales$1,057,008 $1,148,951 (8)%$2,031,507 $2,308,816 (12)%

(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 INFORMATIONThree months ended September 30,Six months ended September 30,
GAAP TO NON-GAAP RECONCILIATION (A)
2023202220232022
Gross profit - GAAP$438,622 $438,780 $814,264 $898,383 
Share-based compensation expense2,462 1,443 3,877 2,904 
Amortization of intangible assets2,983 3,145 6,128 6,187 
Gross profit - Non-GAAP$444,067 $443,368 $824,269 $907,474 
Gross margin - GAAP41.5 %38.2 %40.1 %38.9 %
Gross margin - Non-GAAP42.0 %38.6 %40.6 %39.3 %
Operating expenses - GAAP$281,983 $311,379 $579,220 $655,503 
Less: Share-based compensation expense19,606 10,802 39,702 33,031 
Less: Amortization of intangible assets and acquisition-related costs3,318 2,873 6,003 6,242 
Less: Restructuring charges (credits), net(1,788)10,817 1,723 10,817 
Operating expenses - Non-GAAP$260,847 $286,887 $531,792 $605,413 
% of net sales - GAAP26.7 %27.1 %28.5 %28.4 %
% of net sales - Non-GAAP24.7 %25.0 %26.2 %26.2 %
Operating income - GAAP$156,639 $127,401 $235,044 $242,880 
Share-based compensation expense22,068 12,245 43,579 35,935 
Amortization of intangible assets and acquisition-related costs6,301 6,018 12,131 12,429 
Restructuring charges (credits), net(1,788)10,817 1,723 10,817 
Operating income - Non-GAAP$183,220 $156,481 $292,477 $302,061 
% of net sales - GAAP14.8 %11.1 %11.6 %10.5 %
% of net sales - Non-GAAP17.3 %13.6 %14.4 %13.1 %
Net income - GAAP$137,117 $82,091 $199,844 $182,927 
Share-based compensation expense22,068 12,245 43,579 35,935 
Amortization of intangible assets and acquisition-related costs6,301 6,018 12,131 12,429 
Restructuring charges (credits), net(1,788)10,817 1,723 10,817 
Loss (gain) on investments(214)22,934 11,609 11,577 
Non-GAAP income tax adjustment9,933 3,607 7,930 7,066 
Net income - Non-GAAP$173,417 $137,712 $276,816 $260,751 
Net income per share:
Diluted - GAAP$0.86 $0.50 $1.25 $1.11 
Diluted - Non-GAAP$1.09 $0.84 $1.74 $1.58 
Shares used to compute net income per share:
Diluted - GAAP and Non-GAAP158,934 164,328 159,545 165,371 


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATIONThree months ended September 30,Six months ended September 30,
SHARE-BASED COMPENSATION EXPENSE2023202220232022
Share-based Compensation Expense
Cost of goods sold$2,462 $1,443 $3,877 $2,904 
Marketing and selling9,262 7,429 19,745 17,226 
Research and development4,694 3,280 9,147 8,812 
General and administrative5,650 93 10,810 6,993 
Total share-based compensation expense22,068 12,245 43,579 35,935 
Income tax expense (benefit)(2,548)102 (7,866)(4,220)
Total share-based compensation expense, net of income tax expense (benefit)$19,520 $12,347 $35,713 $31,715 

*Note: These preliminary results for the three and six months ended September 30, 2023 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.

(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 ended September 30, 2023 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.

Acquisition-related costs. 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. 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.

Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above and other events; the determination of which is based upon the nature of the underlying items, the mix of income and losses in jurisdictions and the relevant tax rates in which we operate. 

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.

v3.23.3
COVER PAGE
Oct. 23, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 23, 2023
Entity Registrant Name LOGITECH INTERNATIONAL S.A.
Entity Incorporation, State or Country Code V8
Entity File Number 0-29174
Entity Address, Address Line One 1015 Lausanne, Switzerland
Entity Address, Country CH
Entity Address, Address Line Two c/o Logitech Inc.
Entity Address, Address Line Three 3930 North First Street
Entity Address, City or Town San Jose
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95134
City Area Code (510)
Local Phone Number 795-8500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Registered Shares
Trading Symbol LOGI
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001032975
Amendment Flag false
Logitech (NASDAQ:LOGI)
Historical Stock Chart
Von Mär 2024 bis Apr 2024 Click Here for more Logitech Charts.
Logitech (NASDAQ:LOGI)
Historical Stock Chart
Von Apr 2023 bis Apr 2024 Click Here for more Logitech Charts.