The FINANCIAL — Logitech International on April 22 announced preliminary financial results for the fourth quarter and full year of Fiscal Year 2015. Q4 closed a strong fiscal year with better-than-expected sales of $467 million – up 1 percent in constant currency – and GAAP operating income of $12 million, with non-GAAP operating income of $14 million.
For the full Fiscal Year 2015, ended March 31, 2015:
Sales were $2.11 billion, down 1 percent compared to the previous fiscal year, and up 2 percent in constant currency. Importantly, Retail Strategic – sales in the Company’s Profit Maximization and Growth categories – grew by 6 percent in constant currency.
GAAP operating income was $141 million, with GAAP earnings per share (EPS) of $0.81, compared to $0.46 a year ago. This was the Company’s best EPS since FY 2008.
Non-GAAP operating income was $191 million, with non-GAAP EPS of $1.04, up from $0.75 a year ago (also the Company’s best since FY 2008).
Cash flow from operations was $179 million.
“We closed Fiscal Year 2015 with a better-than-expected performance and good momentum in spite of currency headwinds,” said Bracken Darrell, Logitech president and chief executive officer. “Our Growth category – Gaming, Tablet and Other Accessories, Mobile Speakers and Video Collaboration – sales grew by 28 percent in constant currency over the full year, accelerating in the fourth quarter to 45 percent growth, the best performance of the fiscal year.
“Looking at Fiscal Year 2016, we’re playing offense. We will accelerate our transformation of Logitech into a simpler, faster, growing company. We will focus on our growing Retail Strategic business. Consequently, we plan to exit our OEM business and reorganize Lifesize to sharpen its focus on its cloud-based offering. We will also streamline our overall cost structure through product, overhead and infrastructure cost reductions, including a targeted resource realignment. As a result, over the coming year we expect restructuring charges of approximately $15 million to $20 million. The savings from all these actions will be used to offset currency headwinds and invest in future growth.”
Outlook
Logitech confirmed its FY 2016 outlook of $150 million in non-GAAP operating income, despite the stronger currency headwinds, and 7% growth for Retail Strategic sales in constant currency.
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