Logitech International Announces Financial Results For The Fourth Quarter

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Logitech International (SIX: LOGN) (Nasdaq: LOGI) announced financial results for the fourth quarter and full Fiscal Year 2023, ended March 31, 2023.

For Fiscal Year 2023:

• Sales were $4.54 billion, down 17 percent in US dollars and 13 percent in constant currency, compared to the prior year. This performance reflects the challenging macroeconomic environment and lower enterprise and consumer spending.
• GAAP operating income was $458 million, down 41 percent, compared to the prior year. Non-GAAP operating income was $589 million, down 35 percent, compared to the prior year. Despite the decline, operating expenses were prudently reduced, down 17 percent compared to the prior year, in line with the decline in net sales.
• GAAP earnings per share (EPS) was $2.23, down 41 percent, compared to the prior year. Non-GAAP EPS was $3.22, down 30 percent, compared to the prior year.
• Cash flow from operations was $534 million, up 79 percent, and the end-of-year cash balance was $1.15 billion. The Company returned $577 million of cash to shareholders through its annual dividend payment and share repurchases.
• These results were within the range of Logitech’s previously provided Fiscal Year 2023 outlook of between 15 percent and 13 percent sales decline in constant currency, and between $550 million and $600 million in non-GAAP operating income.

For Q4 Fiscal Year 2023:

• Sales were $960 million, down 22 percent in US dollars and 20 percent in constant currency, compared to Q4 of the prior year.
• GAAP operating income was $39 million, down 70 percent, compared to Q4 of the prior year. Non-GAAP operating income was $82 million, down 47 percent, compared to Q4 of the prior year.

“Logitech’s Fiscal Year 2023 performance was in line with our revised outlook,” said Bracken Darrell, Logitech president and chief executive officer. “Despite the decline in sales, we are significantly larger than before the pandemic. We are focused on our long-term strategy, building out our capabilities and capitalizing on the trends that fuel our business – video collaboration, hybrid work, gaming and digital content creation. These trends continue to offer a great opportunity for us to design outstanding, seamless experiences for people to work, play and create from anywhere.”

“We begin Fiscal Year 2024 on solid footing, with a robust balance sheet, improved inventory levels, strong cash flow and no debt,” said Charles Boynton, Logitech chief financial officer. “We have proactively controlled expenses to align our operating costs with reduced revenue. While macro conditions remain uncertain, we reaffirm our outlook for the first half of the new fiscal year.”

Outlook

Logitech confirmed its outlook for the first half of Fiscal Year 2024: