[April 23, 2014] |
|
Logitech's Q4 FY 2014 Sales, Profit and Cash from Operations Exceed Expectations
NEWARK, Calif. & LAUSANNE, Switzerland --(Business Wire)--
Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced
financial results for the fourth quarter and full year of Fiscal Year
2014. Q4 FY 2014 sales were $485 million, up 3 percent over the prior
year.
-
Q4 GAAP operating income was $7 million, with GAAP earnings per share
(EPS) of $0.07, compared to a loss a year ago.
-
Q4 non-GAAP operating income was $23 million, with non-GAAP EPS of
$0.14, compared to $0.01 in the same quarter a year ago.
For the full 2014 fiscal year, ended March 31, 2014, sales were $2.12
billion, up 1 percent year over year - the Company's first year of sales
growth since FY 2011.
-
FY 2014 GAAP operating income was $77 million, with GAAP EPS of $0.46,
compared to an operating loss in the prior year.
-
FY 2014 non-GAAP operating income more than doubled to $140 million,
with non-GAAP EPS of $0.76, up from $0.31 a year ago.
-
Cash flow from operations on a trailing twelve-month basis was $202
million, up 72 percent.
"Our Q4 performance was strong, with sales, profit and cash generation
better than expected," said Bracken Darrell, Logitech president and
chief executive officer. "Q4 sales in our Growth category - PC Gaming,
Tablet and Other Accessories, and Mobile Speakers - were up nearly 50
percent.
"At the start of our fiscal year we said we would deliver strong sales
in our Growth category, reduce operating expenses and improve
profitability. We delivered on our commitments across the board,
concluding FY 2014 ahead of our turnaround plan."
Outlook
Logitech confirmed its current FY 2015 outlook of $2.16 billion in sales
and $145 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,
in the Calendar section.
Financial Results Teleconference and Webcast
Logitech will hold a financial results teleconference to discuss the
results for Q4 and full-year FY 2014 on Thurs., April 24, 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.
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 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 our 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 GAAP
amount has been provided for FY 2015.
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 and growth categories, as
well as Fiscal Year 2015 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 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.
|
LOGITECH INTERNATIONAL S.A.
|
|
(In thousands, except per share amounts) - Unaudited
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Years Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
(A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
485,259
|
|
|
|
$
|
469,086
|
|
|
|
$
|
2,123,045
|
|
|
|
$
|
2,099,883
|
|
Cost of goods sold
|
|
|
|
320,298
|
|
|
|
|
309,854
|
|
|
|
|
1,392,954
|
|
|
|
|
1,389,726
|
|
Gross profit
|
|
|
|
164,961
|
|
|
|
|
159,232
|
|
|
|
|
730,091
|
|
|
|
|
710,157
|
|
% of net sales
|
|
|
|
34.0
|
%
|
|
|
|
33.9
|
%
|
|
|
|
34.4
|
%
|
|
|
|
33.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and selling
|
|
|
|
92,081
|
|
|
|
|
107,481
|
|
|
|
|
380,050
|
|
|
|
|
431,598
|
|
Research and development
|
|
|
|
30,893
|
|
|
|
|
36,582
|
|
|
|
|
138,820
|
|
|
|
|
154,207
|
|
General and administrative
|
|
|
|
29,885
|
|
|
|
|
28,982
|
|
|
|
|
119,988
|
|
|
|
|
113,824
|
|
Goodwill impairment
|
|
|
|
-
|
|
|
|
|
5,688
|
|
|
|
|
-
|
|
|
|
|
216,688
|
|
Restructuring charges, net
|
|
|
|
5,385
|
|
|
|
|
15,506
|
|
|
|
|
14,006
|
|
|
|
|
43,704
|
|
Total operating expenses
|
|
|
|
158,244
|
|
|
|
|
194,239
|
|
|
|
|
652,864
|
|
|
|
|
960,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
6,717
|
|
|
|
|
(35,007
|
)
|
|
|
|
77,227
|
|
|
|
|
(249,864
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
|
465
|
|
|
|
|
256
|
|
|
|
|
(397
|
)
|
|
|
|
907
|
|
Other income (expense), net
|
|
|
|
625
|
|
|
|
|
2,140
|
|
|
|
|
1,986
|
|
|
|
|
(2,198
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
7,807
|
|
|
|
|
(32,611
|
)
|
|
|
|
78,816
|
|
|
|
|
(251,155
|
)
|
Provision for (benefit from) income taxes
|
|
|
|
(3,777
|
)
|
|
|
|
1,028
|
|
|
|
|
3,288
|
|
|
|
|
(25,588
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
11,584
|
|
|
|
$
|
(33,639
|
)
|
|
|
$
|
75,528
|
|
|
|
$
|
(225,567
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.21
|
)
|
|
|
$
|
0.47
|
|
|
|
$
|
(1.42
|
)
|
Diluted
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.21
|
)
|
|
|
$
|
0.46
|
|
|
|
$
|
(1.42
|
)
|
Shares used to compute net income (loss) per share :
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
162,255
|
|
|
|
|
158,716
|
|
|
|
|
160,619
|
|
|
|
|
158,468
|
|
Diluted
|
|
|
|
165,766
|
|
|
|
|
158,716
|
|
|
|
|
162,526
|
|
|
|
|
158,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
(In thousands) - Unaudited
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
March 31,
|
CONSOLIDATED BALANCE SHEETS
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
469,412
|
|
|
$
|
333,824
|
Accounts receivable, net
|
|
|
|
177,671
|
|
|
|
179,565
|
Inventories
|
|
|
|
229,871
|
|
|
|
261,083
|
Other current assets
|
|
|
|
58,247
|
|
|
|
58,103
|
Assets held for sale
|
|
|
|
-
|
|
|
|
10,960
|
Total current assets
|
|
|
|
935,201
|
|
|
|
843,535
|
Non-current assets:
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
83,990
|
|
|
|
87,649
|
Goodwill
|
|
|
|
345,010
|
|
|
|
341,357
|
Other intangible assets
|
|
|
|
10,529
|
|
|
|
26,024
|
Other assets
|
|
|
|
73,964
|
|
|
|
75,098
|
Total assets
|
|
|
$
|
1,448,694
|
|
|
$
|
1,373,663
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
245,572
|
|
|
$
|
265,995
|
Accrued and other current liabilities
|
|
|
|
218,139
|
|
|
|
192,774
|
Liabilities held for sale
|
|
|
|
-
|
|
|
|
3,202
|
Total current liabilities
|
|
|
|
463,711
|
|
|
|
461,971
|
Non-current liabilities:
|
|
|
|
189,439
|
|
|
|
195,882
|
Total liabilities
|
|
|
|
653,150
|
|
|
|
657,853
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
795,544
|
|
|
|
715,810
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
1,448,694
|
|
|
$
|
1,373,663
|
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
(In thousands) - Unaudited
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Years Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
(A)
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
11,584
|
|
|
|
$
|
(33,639
|
)
|
|
|
$
|
75,528
|
|
|
|
$
|
(225,567
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
14,978
|
|
|
|
|
10,558
|
|
|
|
|
43,734
|
|
|
|
|
44,419
|
|
Amortization of other intangible assets
|
|
|
|
2,781
|
|
|
|
|
5,159
|
|
|
|
|
17,771
|
|
|
|
|
23,571
|
|
Share-based compensation expense
|
|
|
|
8,134
|
|
|
|
|
6,539
|
|
|
|
|
25,546
|
|
|
|
|
25,198
|
|
Goodwill impairment
|
|
|
|
-
|
|
|
|
|
5,688
|
|
|
|
|
-
|
|
|
|
|
216,688
|
|
Impairment of investment
|
|
|
|
56
|
|
|
|
|
-
|
|
|
|
|
624
|
|
|
|
|
3,600
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
533
|
|
|
|
|
-
|
|
|
|
|
4,411
|
|
|
|
|
-
|
|
Gain on sale of securities
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(831
|
)
|
Excess tax benefits from share-based compensation
|
|
|
|
(1,674
|
)
|
|
|
|
-
|
|
|
|
|
(2,246
|
)
|
|
|
|
(26
|
)
|
Deferred income taxes and other
|
|
|
|
(815
|
)
|
|
|
|
2,154
|
|
|
|
|
(4,374
|
)
|
|
|
|
11,552
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
134,998
|
|
|
|
|
86,238
|
|
|
|
|
4,733
|
|
|
|
|
44,667
|
|
Inventories
|
|
|
|
27,361
|
|
|
|
|
23,602
|
|
|
|
|
42,013
|
|
|
|
|
23,954
|
|
Other assets
|
|
|
|
2,227
|
|
|
|
|
1,012
|
|
|
|
|
(741
|
)
|
|
|
|
(1,420
|
)
|
Accounts payable
|
|
|
|
(83,182
|
)
|
|
|
|
(75,962
|
)
|
|
|
|
(20,251
|
)
|
|
|
|
(34,069
|
)
|
Accrued and other liabilities
|
|
|
|
(23,007
|
)
|
|
|
|
(18,555
|
)
|
|
|
|
15,111
|
|
|
|
|
(14,594
|
)
|
Net cash provided by operating activities
|
|
|
|
93,974
|
|
|
|
|
12,794
|
|
|
|
|
201,859
|
|
|
|
|
117,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(11,000
|
)
|
|
|
|
(7,208
|
)
|
|
|
|
(43,096
|
)
|
|
|
|
(49,240
|
)
|
Purchase of strategic investment
|
|
|
|
(300
|
)
|
|
|
|
(450
|
)
|
|
|
|
(300
|
)
|
|
|
|
(4,420
|
)
|
Acquisitions, net of cash acquired
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(650
|
)
|
|
|
|
-
|
|
Proceeds from sales of available-for-sale securities
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
917
|
|
Proceeds from return of investment from strategic investments
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
261
|
|
|
|
|
-
|
|
Purchases of trading investments for deferred compensation plan
|
|
|
|
(619
|
)
|
|
|
|
(1,902
|
)
|
|
|
|
(8,450
|
)
|
|
|
|
(4,196
|
)
|
Proceeds from sales of trading investments for deferred compensation
plan
|
|
|
|
683
|
|
|
|
|
2,154
|
|
|
|
|
8,994
|
|
|
|
|
4,463
|
|
Net cash used in investing activities
|
|
|
|
(11,236
|
)
|
|
|
|
(7,406
|
)
|
|
|
|
(43,241
|
)
|
|
|
|
(52,476
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
8,457
|
|
|
|
|
7,139
|
|
|
|
|
16,922
|
|
|
|
|
15,982
|
|
Tax withholdings related to net share settlements of restricted
stock units
|
|
|
|
(2,789
|
)
|
|
|
|
(380
|
)
|
|
|
|
(5,726
|
)
|
|
|
|
(2,375
|
)
|
Excess tax benefits from share-based compensation
|
|
|
|
1,674
|
|
|
|
|
-
|
|
|
|
|
2,246
|
|
|
|
|
26
|
|
Net cash provided by (used in) financing activities
|
|
|
|
7,342
|
|
|
|
|
6,759
|
|
|
|
|
(22,681
|
)
|
|
|
|
(207,641
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(533
|
)
|
|
|
|
(322
|
)
|
|
|
|
(349
|
)
|
|
|
|
(1,571
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
89,547
|
|
|
|
|
11,825
|
|
|
|
|
135,588
|
|
|
|
|
(144,546
|
)
|
Cash and cash equivalents, beginning of the period
|
|
|
|
379,865
|
|
|
|
|
321,999
|
|
|
|
|
333,824
|
|
|
|
|
478,370
|
|
Cash and cash equivalents, end of the period
|
|
|
$
|
469,412
|
|
|
|
$
|
333,824
|
|
|
|
$
|
469,412
|
|
|
|
$
|
333,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
(In thousands, except per share amounts) - Unaudited
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Years Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
SUPPLEMENTAL FINANCIAL INFORMATION (B)
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
(A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - GAAP
|
|
|
$
|
164,961
|
|
|
|
$
|
159,232
|
|
|
|
$
|
730,091
|
|
|
|
$
|
710,157
|
|
Share-based compensation expense
|
|
|
|
675
|
|
|
|
|
398
|
|
|
|
|
2,518
|
|
|
|
|
2,499
|
|
Amortization of other intangible assets
|
|
|
|
549
|
|
|
|
|
2,534
|
|
|
|
|
7,910
|
|
|
|
|
13,280
|
|
Restructuring-related charges
|
|
|
|
-
|
|
|
|
|
1,084
|
|
|
|
|
5,194
|
|
|
|
|
4,399
|
|
Gross profit - Non-GAAP
|
|
|
$
|
166,185
|
|
|
|
$
|
163,248
|
|
|
|
$
|
745,713
|
|
|
|
$
|
730,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin - GAAP
|
|
|
|
34.0
|
%
|
|
|
|
33.9
|
%
|
|
|
|
34.4
|
%
|
|
|
|
33.8
|
%
|
Gross margin - Non-GAAP
|
|
|
|
34.2
|
%
|
|
|
|
34.8
|
%
|
|
|
|
35.1
|
%
|
|
|
|
34.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses - GAAP
|
|
|
$
|
158,244
|
|
|
|
$
|
194,239
|
|
|
|
$
|
652,864
|
|
|
|
$
|
960,021
|
|
Less: Share-based compensation expense
|
|
|
|
7,459
|
|
|
|
|
6,141
|
|
|
|
|
23,028
|
|
|
|
|
22,699
|
|
Amortization of other intangible assets
|
|
|
|
2,232
|
|
|
|
|
2,625
|
|
|
|
|
9,861
|
|
|
|
|
10,291
|
|
Goodwill impairment
|
|
|
|
-
|
|
|
|
|
5,688
|
|
|
|
|
-
|
|
|
|
|
216,688
|
|
Restructuring charges, net
|
|
|
|
5,385
|
|
|
|
|
15,506
|
|
|
|
|
14,006
|
|
|
|
|
43,704
|
|
Restructuring-related charges
|
|
|
|
-
|
|
|
|
|
997
|
|
|
|
|
-
|
|
|
|
|
2,943
|
|
Operating expenses - Non-GAAP
|
|
|
$
|
143,168
|
|
|
|
$
|
163,282
|
|
|
|
$
|
605,969
|
|
|
|
$
|
663,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net sales - GAAP
|
|
|
|
32.6
|
%
|
|
|
|
41.4
|
%
|
|
|
|
30.8
|
%
|
|
|
|
45.7
|
%
|
% of net sales - Non - GAAP
|
|
|
|
29.5
|
%
|
|
|
|
34.8
|
%
|
|
|
|
28.5
|
%
|
|
|
|
31.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses - GAAP
|
|
|
$
|
158,244
|
|
|
|
$
|
194,239
|
|
|
|
$
|
652,864
|
|
|
|
$
|
960,021
|
|
Less: Restructuring charges, net
|
|
|
|
5,385
|
|
|
|
|
15,506
|
|
|
|
|
14,006
|
|
|
|
|
43,704
|
|
Operating expenses excluding restructuring charges - Non-GAAP
|
|
|
$
|
152,859
|
|
|
|
$
|
178,733
|
|
|
|
$
|
638,858
|
|
|
|
$
|
916,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) - GAAP
|
|
|
$
|
6,717
|
|
|
|
$
|
(35,007
|
)
|
|
|
$
|
77,227
|
|
|
|
$
|
(249,864
|
)
|
Share-based compensation expense
|
|
|
|
8,134
|
|
|
|
|
6,539
|
|
|
|
|
25,546
|
|
|
|
|
25,198
|
|
Amortization of other intangible assets
|
|
|
|
2,781
|
|
|
|
|
5,159
|
|
|
|
|
17,771
|
|
|
|
|
23,571
|
|
Goodwill Impairment
|
|
|
|
-
|
|
|
|
|
5,688
|
|
|
|
|
-
|
|
|
|
|
216,688
|
|
Restructuring charges, net
|
|
|
|
5,385
|
|
|
|
|
15,506
|
|
|
|
|
14,006
|
|
|
|
|
43,704
|
|
Restructuring-related charges
|
|
|
|
-
|
|
|
|
|
2,081
|
|
|
|
|
5,194
|
|
|
|
|
7,342
|
|
Operating income (loss) - Non - GAAP
|
|
|
$
|
23,017
|
|
|
|
$
|
(34
|
)
|
|
|
$
|
139,744
|
|
|
|
$
|
66,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net sales - GAAP
|
|
|
|
1.4
|
%
|
|
|
|
-7.5
|
%
|
|
|
|
3.6
|
%
|
|
|
|
-11.9
|
%
|
% of net sales - Non - GAAP
|
|
|
|
4.7
|
%
|
|
|
|
0.0
|
%
|
|
|
|
6.6
|
%
|
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) - GAAP
|
|
|
$
|
11,584
|
|
|
|
$
|
(33,639
|
)
|
|
|
$
|
75,528
|
|
|
|
$
|
(225,567
|
)
|
Share-based compensation expense
|
|
|
|
8,134
|
|
|
|
|
6,539
|
|
|
|
|
25,546
|
|
|
|
|
25,198
|
|
Amortization of other intangible assets
|
|
|
|
2,781
|
|
|
|
|
5,159
|
|
|
|
|
17,771
|
|
|
|
|
23,571
|
|
Goodwill impairment
|
|
|
|
-
|
|
|
|
|
5,688
|
|
|
|
|
-
|
|
|
|
|
216,688
|
|
Restructuring charges, net
|
|
|
|
5,385
|
|
|
|
|
15,506
|
|
|
|
|
14,006
|
|
|
|
|
43,704
|
|
Restructuring-related charges
|
|
|
|
-
|
|
|
|
|
2,081
|
|
|
|
|
5,194
|
|
|
|
|
7,342
|
|
Investment impairment, net
|
|
|
|
56
|
|
|
|
|
-
|
|
|
|
|
203
|
|
|
|
|
3,600
|
|
Benefit from (provision for) income taxes
|
|
|
|
(5,216
|
)
|
|
|
|
381
|
|
|
|
|
(15,387
|
)
|
|
|
|
(44,510
|
)
|
Net income - Non - GAAP
|
|
|
|
22,724
|
|
|
|
|
1,715
|
|
|
|
|
122,861
|
|
|
|
|
50,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.21
|
)
|
|
|
$
|
0.46
|
|
|
|
$
|
(1.42
|
)
|
Diluted - Non - GAAP
|
|
|
$
|
0.14
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.76
|
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP
|
|
|
|
165,766
|
|
|
|
|
158,716
|
|
|
|
|
162,526
|
|
|
|
|
158,468
|
|
Diluted - Non-GAAP
|
|
|
|
165,766
|
|
|
|
|
159,565
|
|
|
|
|
162,526
|
|
|
|
|
159,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales by channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
$
|
420,013
|
|
|
|
$
|
407,689
|
|
|
|
$
|
1,861,493
|
|
|
|
$
|
1,821,657
|
|
OEM
|
|
|
|
35,168
|
|
|
|
|
32,493
|
|
|
|
|
141,749
|
|
|
|
|
141,186
|
|
Video conferencing
|
|
|
|
30,078
|
|
|
|
|
28,904
|
|
|
|
|
119,803
|
|
|
|
|
137,040
|
|
Total net sales
|
|
|
$
|
485,259
|
|
|
|
$
|
469,086
|
|
|
|
$
|
2,123,045
|
|
|
|
$
|
2,099,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales by product family(*):
|
|
|
|
|
|
|
|
|
|
|
|
|
PC Gaming
|
|
|
$
|
44,796
|
|
|
|
$
|
24,096
|
|
|
|
$
|
186,441
|
|
|
|
$
|
144,512
|
|
Tablet & Other Accessories
|
|
|
|
22,692
|
|
|
|
|
30,766
|
|
|
|
|
172,955
|
|
|
|
|
119,856
|
|
Mobile Speakers
|
|
|
|
19,154
|
|
|
|
|
3,799
|
|
|
|
|
87,186
|
|
|
|
|
33,408
|
|
Growth
|
|
|
|
86,642
|
|
|
|
|
58,661
|
|
|
|
|
446,582
|
|
|
|
|
297,776
|
|
Pointing Devices
|
|
|
|
118,586
|
|
|
|
|
128,809
|
|
|
|
|
505,650
|
|
|
|
|
521,083
|
|
PC Keyboards & Desktops
|
|
|
|
102,230
|
|
|
|
|
105,176
|
|
|
|
|
414,185
|
|
|
|
|
399,144
|
|
Audio-PC &Wearables
|
|
|
|
59,849
|
|
|
|
|
61,064
|
|
|
|
|
254,931
|
|
|
|
|
292,245
|
|
Video
|
|
|
|
30,857
|
|
|
|
|
36,225
|
|
|
|
|
136,597
|
|
|
|
|
153,060
|
|
Remotes
|
|
|
|
13,124
|
|
|
|
|
11,382
|
|
|
|
|
67,075
|
|
|
|
|
71,641
|
|
Profit Maximization
|
|
|
|
324,646
|
|
|
|
|
342,656
|
|
|
|
|
1,378,438
|
|
|
|
|
1,437,173
|
|
Other
|
|
|
|
8,725
|
|
|
|
|
6,372
|
|
|
|
|
36,473
|
|
|
|
|
86,708
|
|
Non-Strategic
|
|
|
|
8,725
|
|
|
|
|
6,372
|
|
|
|
|
36,473
|
|
|
|
|
86,708
|
|
Total net retail sales
|
|
|
$
|
420,013
|
|
|
|
$
|
407,689
|
|
|
|
$
|
1,861,493
|
|
|
|
$
|
1,821,657
|
|
__________________
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
|
$
|
675
|
|
|
|
$
|
398
|
|
|
|
$
|
2,518
|
|
|
|
$
|
2,499
|
|
Research and development
|
|
|
|
706
|
|
|
|
|
1,514
|
|
|
|
|
4,546
|
|
|
|
|
7,532
|
|
Marketing and selling
|
|
|
|
2,318
|
|
|
|
|
2,448
|
|
|
|
|
8,298
|
|
|
|
|
7,825
|
|
General and administrative
|
|
|
|
4,435
|
|
|
|
|
2,179
|
|
|
|
|
10,184
|
|
|
|
|
7,342
|
|
Income tax benefit
|
|
|
|
(2,559
|
)
|
|
|
|
(1,266
|
)
|
|
|
|
(4,902
|
)
|
|
|
|
(5,356
|
)
|
Total share-based compensation expense after income taxes
|
|
|
$
|
5,575
|
|
|
|
$
|
5,273
|
|
|
|
$
|
20,644
|
|
|
|
$
|
19,842
|
|
__________________
|
(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.
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|
|
|
(B)
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|
Non-GAAP Financial Measures
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|
|
|
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|
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 months and fiscal years
ended March 31, 2013 and 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.
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|
|
|
|
|
Income taxes. Our historical non-GAAP effective tax rates
differ from our GAAP effective tax rates from period to period
because non-GAAP income tax expense or benefit excludes the tax
impact of certain GAAP financial measures for the reasons stated
above. We also exclude the tax impact of certain events that
management believes are not indicative of our ongoing operating
results.
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|
|
|
|
|
Impairment of investment and goodwill. We provided non-GAAP
measures excluding the impairment of investment and goodwill that
are not reflective of our ongoing operations.
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|
|
|
|
|
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.
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(LOGIIR)
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