Logitech International (SIX:LOGN)(Nasdaq:LOGI) today announced financial
results for the third quarter of Fiscal Year 2014, with
better-than-expected total sales of $628 million, up 2 percent compared
to the third quarter of the prior year. Q3 GAAP operating income was $53
million, with GAAP earnings per share (EPS) of $0.30 compared to a loss
a year ago. Q3 non-GAAP operating income was $67 million, with non-GAAP
EPS of $0.35, up 84 percent year over year. Cash flow from operations
for Q3 was $94 million.
Retail sales for Q3 were up 4 percent year over year. Combined,
Logitech’s retail growth categories delivered 62 percent growth compared
to the prior year.
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Tablet Accessories sales grew 95%
-
Audio – Wearables and Wireless sales grew 79%
-
PC Gaming sales grew 25%
“We’re pleased by our solid Q3 performance, with both sales and profit
growth,” said Bracken P. Darrell, Logitech president and chief executive
officer. “We’re encouraged by the robust sales in our growth categories,
as well as the success of our ongoing initiatives to improve
profitability, which includes the earlier-than-expected return to
profitability of LifeSize. We still have more work ahead, but our
turnaround is on track as we continue to build a faster and more
profitable Logitech.”
Outlook
Based on its Q3 performance, Logitech has raised its full-year outlook
for Fiscal Year 2014. The Company now expects sales of just under $2.1
billion, compared to the previously expected $2.0 billion, and non-GAAP
operating income in the range of $120 million to $125 million, compared
to the previously expected $100 million.
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,
in the Calendar section.
Financial Results Teleconference and Webcast
Logitech will hold a financial results teleconference to discuss the
results for Q3 FY 2014 on Thurs., Jan. 23, 2014 at 8:30 a.m. Eastern
Standard Time and 14:30 Central European Time. A live webcast of the
call will be available on the Logitech corporate website at http://ir.logitech.com.
Logitech also will hold its Analyst and Investor Day on Thurs., March 6,
2014 in New York City.
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) 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.
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 turnaround, growth categories,
sales, profit growth and profitability, as well as Fiscal Year 2014
revenue and operating income. 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 in our new
product categories and sales in emerging market geographies; 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 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. 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 September 30, 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.
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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(In thousands, except per share amounts) - Unaudited
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Three Months Ended
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Nine Months Ended
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December 31,
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December 31,
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CONSOLIDATED STATEMENTS OF OPERATIONS
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2013
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2012
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2013
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2012
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(revised) (A)
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(revised) (A)
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Net sales
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$
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627,890
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$
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614,500
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$
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1,637,786
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$
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1,630,797
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Cost of goods sold
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414,528
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404,695
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1,072,656
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1,079,872
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Gross profit
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213,362
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209,805
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565,130
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550,925
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% of net sales
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34.0
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%
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34.1
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%
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34.5
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%
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33.8
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%
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Operating expenses:
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Marketing and selling
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93,624
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112,698
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287,969
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324,117
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Research and development
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34,103
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40,488
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107,927
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117,625
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General and administrative
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31,560
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26,382
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90,103
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|
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84,842
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Goodwill impairment
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-
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211,000
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-
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211,000
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Restructuring charges (reversals), net
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822
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(358
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)
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8,621
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|
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28,198
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Total operating expenses
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160,109
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390,210
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494,620
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765,782
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Operating income (loss)
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53,253
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(180,405
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)
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70,510
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(214,857
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)
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Interest income (expense), net
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(1,022
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)
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114
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(862
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)
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651
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Other income (expense), net
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1,082
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(3,670
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)
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1,361
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(4,338
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)
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Income (loss) before income taxes
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53,313
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(183,961
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)
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71,009
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(218,544
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)
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Provision for (benefit from) income taxes
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4,810
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11,370
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7,065
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(26,616
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)
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Net income (loss)
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$
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48,503
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$
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(195,331
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)
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|
$
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63,944
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|
|
$
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(191,928
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)
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Net income (loss) per share:
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Basic
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$
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0.30
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$
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(1.24
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)
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$
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0.40
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$
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(1.21
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)
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Diluted
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$
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0.30
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$
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(1.24
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)
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$
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0.40
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$
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(1.21
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)
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Shares used to compute net income (loss) per share :
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Basic
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160,871
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157,706
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160,051
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158,383
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Diluted
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163,388
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157,706
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161,509
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158,383
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LOGITECH INTERNATIONAL S.A.
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(In thousands) - Unaudited
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|
|
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|
|
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|
|
December 31,
|
|
|
March 31,
|
|
|
December 31,
|
CONSOLIDATED BALANCE SHEETS
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2013
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|
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2013
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2012
|
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(A)
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(revised) (A)
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Current assets:
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Cash and cash equivalents
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$
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379,865
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|
$
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333,824
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|
$
|
321,999
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Accounts receivable, net
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|
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312,947
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|
179,565
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|
|
264,589
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Inventories
|
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|
|
|
257,998
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|
|
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261,083
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277,477
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Other current assets
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|
60,979
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|
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58,103
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|
|
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61,600
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Assets held for sale
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|
-
|
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|
|
10,960
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|
|
|
15,655
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Total current assets
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|
|
1,011,789
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|
|
|
843,535
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|
|
941,320
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Non-current assets:
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|
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|
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|
|
|
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|
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Property, plant and equipment, net
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|
|
87,494
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87,649
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|
|
89,128
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Goodwill
|
|
|
|
|
345,036
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|
|
|
341,357
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345,235
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Other intangible assets
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|
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|
|
13,319
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26,024
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|
|
35,033
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Other assets
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|
|
|
|
71,322
|
|
|
|
75,098
|
|
|
|
76,719
|
Total assets
|
|
|
|
$
|
1,528,960
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|
|
$
|
1,373,663
|
|
|
$
|
1,487,435
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|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
328,757
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|
|
$
|
265,995
|
|
|
$
|
339,283
|
Accrued and other current liabilities
|
|
|
|
|
234,297
|
|
|
|
192,774
|
|
|
|
217,095
|
Liabilities held for sale
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|
|
|
|
-
|
|
|
|
3,202
|
|
|
|
3,725
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Total current liabilities
|
|
|
|
|
563,054
|
|
|
|
461,971
|
|
|
|
560,103
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Non-current liabilities:
|
|
|
|
|
200,797
|
|
|
|
195,882
|
|
|
|
195,687
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Total liabilities
|
|
|
|
|
763,851
|
|
|
|
657,853
|
|
|
|
755,790
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
|
765,109
|
|
|
|
715,810
|
|
|
|
731,645
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
|
$
|
1,528,960
|
|
|
$
|
1,373,663
|
|
|
$
|
1,487,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) - Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
(revised) (A)
|
|
|
|
|
|
(revised) (A)
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
48,503
|
|
|
|
$
|
(195,331
|
)
|
|
|
$
|
63,944
|
|
|
|
$
|
(191,928
|
)
|
Adjustments to reconcile net income (loss) to cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
9,473
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|
|
|
|
11,554
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|
|
|
|
28,756
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|
|
|
|
33,861
|
|
Amortization of other intangible assets
|
|
|
|
|
4,472
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|
|
|
|
5,823
|
|
|
|
|
14,990
|
|
|
|
|
18,412
|
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Share-based compensation expense
|
|
|
|
|
8,913
|
|
|
|
|
5,222
|
|
|
|
|
17,412
|
|
|
|
|
18,659
|
|
Goodwill impairment
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
Impairment of strategic investment
|
|
|
|
|
38
|
|
|
|
|
3,600
|
|
|
|
|
568
|
|
|
|
|
3,600
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
1,422
|
|
|
|
|
-
|
|
|
|
|
3,878
|
|
|
|
|
-
|
|
Gain on sale of securities
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(831
|
)
|
Excess tax benefits from share-based compensation
|
|
|
|
|
(572
|
)
|
|
|
|
(4
|
)
|
|
|
|
(572
|
)
|
|
|
|
(26
|
)
|
Deferred income taxes and other
|
|
|
|
|
343
|
|
|
|
|
13,204
|
|
|
|
|
(3,559
|
)
|
|
|
|
9,398
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
(53,223
|
)
|
|
|
|
16,962
|
|
|
|
|
(130,265
|
)
|
|
|
|
(41,571
|
)
|
Inventories
|
|
|
|
|
36,002
|
|
|
|
|
32,177
|
|
|
|
|
14,652
|
|
|
|
|
352
|
|
Other assets
|
|
|
|
|
2,925
|
|
|
|
|
5,138
|
|
|
|
|
(2,968
|
)
|
|
|
|
(2,432
|
)
|
Accounts payable
|
|
|
|
|
23,376
|
|
|
|
|
(29,202
|
)
|
|
|
|
62,931
|
|
|
|
|
41,893
|
|
Accrued and other liabilities
|
|
|
|
|
12,027
|
|
|
|
|
14,958
|
|
|
|
|
38,118
|
|
|
|
|
3,961
|
|
Net cash provided by operating activities
|
|
|
|
|
93,699
|
|
|
|
|
95,101
|
|
|
|
|
107,885
|
|
|
|
|
104,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
(9,033
|
)
|
|
|
|
(9,215
|
)
|
|
|
|
(32,096
|
)
|
|
|
|
(42,032
|
)
|
Purchase of strategic investment
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(3,970
|
)
|
Acquisitions, net of cash acquired
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(650
|
)
|
|
|
|
-
|
|
Proceeds from sales of available-for-sale securities
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
917
|
|
Proceeds from return of investment in privately held companies
|
|
|
|
|
261
|
|
|
|
|
-
|
|
|
|
|
261
|
|
|
|
|
-
|
|
Purchases of trading investments for deferred compensation plan
|
|
|
|
|
(1,685
|
)
|
|
|
|
(646
|
)
|
|
|
|
(7,831
|
)
|
|
|
|
(2,294
|
)
|
Proceeds from sales of trading investments for deferred compensation
plan
|
|
|
|
|
1,709
|
|
|
|
|
671
|
|
|
|
|
8,311
|
|
|
|
|
2,309
|
|
Net cash used in investing activities
|
|
|
|
|
(8,748
|
)
|
|
|
|
(9,190
|
)
|
|
|
|
(32,005
|
)
|
|
|
|
(45,070
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of cash dividends
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(36,123
|
)
|
|
|
|
(133,462
|
)
|
Purchases of treasury shares
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(87,812
|
)
|
Proceeds from sales of shares upon exercise of options and purchase
rights
|
|
|
|
|
2,330
|
|
|
|
|
(165
|
)
|
|
|
|
8,465
|
|
|
|
|
8,843
|
|
Tax withholdings related to net share settlements of restricted
stock units
|
|
|
|
|
(2,484
|
)
|
|
|
|
(1,360
|
)
|
|
|
|
(2,937
|
)
|
|
|
|
(1,995
|
)
|
Excess tax benefits from share-based compensation
|
|
|
|
|
572
|
|
|
|
|
4
|
|
|
|
|
572
|
|
|
|
|
26
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
418
|
|
|
|
|
(1,521
|
)
|
|
|
|
(30,023
|
)
|
|
|
|
(214,400
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
(300
|
)
|
|
|
|
576
|
|
|
|
|
184
|
|
|
|
|
(1,249
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
85,069
|
|
|
|
|
84,966
|
|
|
|
|
46,041
|
|
|
|
|
(156,371
|
)
|
Cash and cash equivalents, beginning of the period
|
|
|
|
|
294,796
|
|
|
|
|
237,033
|
|
|
|
|
333,824
|
|
|
|
|
478,370
|
|
Cash and cash equivalents, end of the period
|
|
|
|
$
|
379,865
|
|
|
|
$
|
321,999
|
|
|
|
$
|
379,865
|
|
|
|
$
|
321,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share amounts) - Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
SUPPLEMENTAL FINANCIAL INFORMATION (B)
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
(revised) (A)
|
|
|
|
|
|
(revised) (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - GAAP
|
|
|
|
$
|
213,362
|
|
|
|
$
|
209,805
|
|
|
|
$
|
565,130
|
|
|
|
$
|
550,925
|
|
Share-based compensation expense
|
|
|
|
|
672
|
|
|
|
|
704
|
|
|
|
|
1,843
|
|
|
|
|
2,101
|
|
Amortization of other intangible assets
|
|
|
|
|
2,190
|
|
|
|
|
3,283
|
|
|
|
|
7,361
|
|
|
|
|
10,746
|
|
Restructuring-related charges
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
5,194
|
|
|
|
|
3,315
|
|
Gross profit - Non-GAAP
|
|
|
|
$
|
216,224
|
|
|
|
$
|
213,792
|
|
|
|
$
|
579,528
|
|
|
|
$
|
567,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin - GAAP
|
|
|
|
|
34.0
|
%
|
|
|
|
34.1
|
%
|
|
|
|
34.5
|
%
|
|
|
|
33.8
|
%
|
Gross margin - Non-GAAP
|
|
|
|
|
34.4
|
%
|
|
|
|
34.8
|
%
|
|
|
|
35.4
|
%
|
|
|
|
34.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses - GAAP
|
|
|
|
$
|
160,109
|
|
|
|
$
|
390,210
|
|
|
|
$
|
494,620
|
|
|
|
$
|
765,782
|
|
Less: Share-based compensation expense
|
|
|
|
|
8,241
|
|
|
|
|
4,518
|
|
|
|
|
15,569
|
|
|
|
|
16,558
|
|
Less: Amortization of other intangible assets
|
|
|
|
|
2,282
|
|
|
|
|
2,540
|
|
|
|
|
7,629
|
|
|
|
|
7,666
|
|
Less: Goodwill impairment
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
Less: Restructuring charges (reversals), net
|
|
|
|
|
822
|
|
|
|
|
(358
|
)
|
|
|
|
8,621
|
|
|
|
|
28,198
|
|
Less: Restructuring-related charges
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,946
|
|
Operating expenses - Non-GAAP
|
|
|
|
$
|
148,764
|
|
|
|
$
|
172,510
|
|
|
|
$
|
462,801
|
|
|
|
$
|
500,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net sales - GAAP
|
|
|
|
|
25.5
|
%
|
|
|
|
63.5
|
%
|
|
|
|
30.2
|
%
|
|
|
|
47.0
|
%
|
% of net sales - Non - GAAP
|
|
|
|
|
23.7
|
%
|
|
|
|
28.1
|
%
|
|
|
|
28.3
|
%
|
|
|
|
30.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses - GAAP
|
|
|
|
$
|
160,109
|
|
|
|
$
|
390,210
|
|
|
|
$
|
494,620
|
|
|
|
$
|
765,782
|
|
Less: Restructuring charges (reversals), net
|
|
|
|
|
822
|
|
|
|
|
(358
|
)
|
|
|
|
8,621
|
|
|
|
|
28,198
|
|
Operating expenses excluding restructuring charges - Non-GAAP
|
|
|
|
$
|
159,287
|
|
|
|
$
|
390,568
|
|
|
|
$
|
485,999
|
|
|
|
$
|
737,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) - GAAP
|
|
|
|
$
|
53,253
|
|
|
|
$
|
(180,405
|
)
|
|
|
$
|
70,510
|
|
|
|
$
|
(214,857
|
)
|
Share-based compensation expense
|
|
|
|
|
8,913
|
|
|
|
|
5,222
|
|
|
|
|
17,412
|
|
|
|
|
18,659
|
|
Amortization of other intangible assets
|
|
|
|
|
4,472
|
|
|
|
|
5,823
|
|
|
|
|
14,990
|
|
|
|
|
18,412
|
|
Goodwill Impairment
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
Restructuring charges (reversals), net
|
|
|
|
|
822
|
|
|
|
|
(358
|
)
|
|
|
|
8,621
|
|
|
|
|
28,198
|
|
Restructuring-related charges
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
5,194
|
|
|
|
|
5,261
|
|
Operating income (loss) - Non - GAAP
|
|
|
|
$
|
67,460
|
|
|
|
$
|
41,282
|
|
|
|
$
|
116,727
|
|
|
|
$
|
66,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net sales - GAAP
|
|
|
|
|
8.5
|
%
|
|
|
|
-29.4
|
%
|
|
|
|
4.3
|
%
|
|
|
|
-13.2
|
%
|
% of net sales - Non - GAAP
|
|
|
|
|
10.7
|
%
|
|
|
|
6.7
|
%
|
|
|
|
7.1
|
%
|
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - GAAP
|
|
|
|
$
|
48,503
|
|
|
|
$
|
(195,331
|
)
|
|
|
$
|
63,944
|
|
|
|
$
|
(191,928
|
)
|
Share-based compensation expense
|
|
|
|
|
8,913
|
|
|
|
|
5,222
|
|
|
|
|
17,412
|
|
|
|
|
18,659
|
|
Amortization of other intangible assets
|
|
|
|
|
4,472
|
|
|
|
|
5,823
|
|
|
|
|
14,990
|
|
|
|
|
18,412
|
|
Goodwill impairment
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
|
|
|
-
|
|
|
|
|
211,000
|
|
Restructuring charges (reversals), net
|
|
|
|
|
822
|
|
|
|
|
(358
|
)
|
|
|
|
8,621
|
|
|
|
|
28,198
|
|
Restructuring-related charges
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
5,194
|
|
|
|
|
5,261
|
|
Investment impairment (recovery), net
|
|
|
|
|
38
|
|
|
|
|
3,600
|
|
|
|
|
147
|
|
|
|
|
3,600
|
|
Benefit from (provision for) income taxes
|
|
|
|
|
(4,803
|
)
|
|
|
|
25
|
|
|
|
|
(10,171
|
)
|
|
|
|
(44,891
|
)
|
Net income - Non - GAAP
|
|
|
|
|
57,945
|
|
|
|
|
29,981
|
|
|
|
|
100,137
|
|
|
|
|
48,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP
|
|
|
|
$
|
0.30
|
|
|
|
$
|
(1.24
|
)
|
|
|
$
|
0.40
|
|
|
|
$
|
(1.21
|
)
|
Diluted - Non - GAAP
|
|
|
|
$
|
0.35
|
|
|
|
$
|
0.19
|
|
|
|
$
|
0.62
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP
|
|
|
|
|
163,388
|
|
|
|
|
157,706
|
|
|
|
|
161,509
|
|
|
|
|
158,383
|
|
Diluted - Non-GAAP
|
|
|
|
|
163,388
|
|
|
|
|
158,391
|
|
|
|
|
161,509
|
|
|
|
|
159,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales by channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
$
|
563,391
|
|
|
|
$
|
542,388
|
|
|
|
$
|
1,441,481
|
|
|
|
$
|
1,413,968
|
|
OEM
|
|
|
|
|
34,542
|
|
|
|
|
35,300
|
|
|
|
|
106,581
|
|
|
|
|
108,693
|
|
Video conferencing
|
|
|
|
|
29,957
|
|
|
|
|
36,812
|
|
|
|
|
89,724
|
|
|
|
|
108,136
|
|
Total net sales
|
|
|
|
$
|
627,890
|
|
|
|
$
|
614,500
|
|
|
|
$
|
1,637,786
|
|
|
|
$
|
1,630,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales by product family(*):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pointing devices
|
|
|
|
$
|
141,757
|
|
|
|
$
|
153,921
|
|
|
|
$
|
387,064
|
|
|
|
$
|
392,275
|
|
PC keyboards & desktops
|
|
|
|
|
108,339
|
|
|
|
|
110,671
|
|
|
|
|
311,525
|
|
|
|
|
302,299
|
|
Tablet & other accessories
|
|
|
|
|
77,010
|
|
|
|
|
39,398
|
|
|
|
|
150,280
|
|
|
|
|
89,021
|
|
Audio - PC
|
|
|
|
|
66,594
|
|
|
|
|
75,366
|
|
|
|
|
185,759
|
|
|
|
|
214,158
|
|
Audio - wearables and wireless
|
|
|
|
|
42,154
|
|
|
|
|
23,577
|
|
|
|
|
86,877
|
|
|
|
|
57,284
|
|
Video
|
|
|
|
|
38,154
|
|
|
|
|
41,776
|
|
|
|
|
105,741
|
|
|
|
|
116,835
|
|
PC gaming
|
|
|
|
|
56,214
|
|
|
|
|
45,111
|
|
|
|
|
137,324
|
|
|
|
|
118,567
|
|
Remotes
|
|
|
|
|
26,049
|
|
|
|
|
30,094
|
|
|
|
|
53,950
|
|
|
|
|
60,260
|
|
Other
|
|
|
|
|
7,120
|
|
|
|
|
22,474
|
|
|
|
|
22,961
|
|
|
|
|
63,269
|
|
Total net retail sales
|
|
|
|
$
|
563,391
|
|
|
|
$
|
542,388
|
|
|
|
$
|
1,441,481
|
|
|
|
$
|
1,413,968
|
|
__________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Certain products within the retail product families as presented in
prior years have been reclassified to conform to the current year
presentation, with no impact on previously reported total net retail
sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based Compensation Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
$
|
672
|
|
|
|
$
|
704
|
|
|
|
$
|
1,843
|
|
|
|
$
|
2,101
|
|
Research and development
|
|
|
|
|
1,906
|
|
|
|
|
2,430
|
|
|
|
|
3,840
|
|
|
|
|
6,018
|
|
Marketing and selling
|
|
|
|
|
3,057
|
|
|
|
|
953
|
|
|
|
|
5,980
|
|
|
|
|
5,377
|
|
General and administrative
|
|
|
|
|
3,278
|
|
|
|
|
1,135
|
|
|
|
|
5,749
|
|
|
|
|
5,163
|
|
Income tax benefit
|
|
|
|
|
(168
|
)
|
|
|
|
(1,043
|
)
|
|
|
|
(2,343
|
)
|
|
|
|
(4,090
|
)
|
Total share-based compensation expense after income taxes
|
|
|
|
$
|
8,745
|
|
|
|
$
|
4,179
|
|
|
|
$
|
15,069
|
|
|
|
$
|
14,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
|
|
|
In the first quarter of fiscal year 2014, the Company identified
errors related to the accounting for its product warranty liability,
amortization expense of certain intangible assets and other
out-of-period adjustments. The errors impacted prior reporting
periods, starting prior to fiscal year 2009. While these errors are
not material to any previously issued annual or quarterly
consolidated financial statements, management concluded that
correcting the cumulative errors and related tax effects, which
amounted to $19.1 million, in the first quarter of fiscal year 2014
would be material to the consolidated financial statements for the
first quarter of fiscal year 2014 and to the expected results of
operations for the fiscal year ending March 31, 2014. Accordingly,
the Company revised its prior period annual and quarterly
consolidated financial statements as reflected in this earnings
release.
|
|
|
|
|
|
(B)
|
|
|
|
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 nine months ended
December 31, 2013, 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.
|
|
|
|
|
|
|
|
|
|
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)
Copyright Business Wire 2014