Logitech(LOGI)

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Logitech(LOGI) - 2023 Q2 - Earnings Call Presentation
2022-10-25 15:11
logitech® Q2 Fiscal Year 2023 Financial Results October 24, 2022 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...
Logitech(LOGI) - 2023 Q1 - Quarterly Report
2022-07-27 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number: 0-29174 LOGITECH INTERNATIONAL S.A. (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Canton of Vaud, Switzer ...
Logitech(LOGI) - 2023 Q1 - Earnings Call Presentation
2022-07-26 20:42
Financial Performance - Net sales declined by 9% in constant currency (CC) to $1.16 billion, reflecting a volatile macroeconomic environment[11] - Gross margin was 40.0%, nearly flat sequentially, despite inflationary pressures and unfavorable currency movements[12] - Operating profit decreased by 38% year-over-year to $146 million, as the company resized variable costs while sustaining long-term product development investments[13] - Net sales decreased 12% to $1.16 billion compared to $1.312 billion in Q1'22[16] - Operating expenses decreased by 6% to $319 million[16] - Net income decreased by 41% to $123 million[17] Business Segment Performance - Gaming revenue decreased by 16% to $283 million[19] - Video Collaboration revenue increased by 5% to $246 million[19] - Keyboards & Combos revenue increased by 4% to $228 million[19] - Pointing Devices revenue remained flat at $183 million[19] - PC Webcams revenue decreased by 46% to $59 million[19] Regional Performance - Americas net sales decreased by 18% to $502 million[23] - Asia Pacific net sales increased by 7% to $367 million[23] - EMEA net sales decreased by 19% to $290 million[23] Updated Outlook for Fiscal Year 2023 - Sales growth is expected to be between -8% and -4% in constant currency[43] - Non-GAAP operating income is projected to be between $650 million and $750 million[43]
Logitech(LOGI) - 2023 Q1 - Earnings Call Transcript
2022-07-26 16:22
Logitech International S.A. (NASDAQ:LOGI) Q1 2023 Earnings Conference Call July 26, 2022 8:30 AM ET Company Participants Nate Melihercik – Investor Relations Bracken Darrell – President and Chief Executive Officer Nate Olmstead – Chief Financial Officer Conference Call Participants Paul Chung – JPMorgan Asiya Merchant – Citi Torsten Sauter – Kepler Cheuvreux Joern Iffert – UBS Alex Duval – Goldman Sachs Erik Woodring – Morgan Stanley Adam Angelov – Bank of America Ananda Baruah – Loop Capital Serge Rotzer – ...
Logitech(LOGI) - 2022 Q4 - Annual Report
2022-05-17 16:00
Part I [Business](index=5&type=section&id=Item%201.%20Business) Logitech, a global leader in PC and mobile peripherals, operates as a single segment focusing on Creativity & Productivity, Gaming, Video Collaboration, and Music markets - Logitech operates as a single operating segment: **Peripherals**, with products participating in four large markets: **Creativity & Productivity**, **Gaming**, **Video Collaboration**, and **Music**[18](index=18&type=chunk) - The business strategy is built on five core capabilities: **Design**, **Engineering**, **Go-to-market**, **Marketing**, and **Operations**[26](index=26&type=chunk) - Manufacturing is split, with approximately **half of production** at its own facility in Suzhou, China, and the rest outsourced to contract manufacturers in Asia[51](index=51&type=chunk) Key Customers' Share of Gross Sales (FY 2022) | Customer | Share of Gross Sales | | :--- | :--- | | Amazon Inc. | 17% | | Ingram Micro Inc. | 15% | | TD Synnex | 14% | Sales by Geographic Region (in thousands) | Region | FY 2022 | FY 2021 | FY 2020 | | :--- | :--- | :--- | :--- | | Americas | $2,317,941 | $2,206,552 | $1,286,527 | | EMEA | $1,724,027 | $1,735,682 | $941,211 | | Asia Pacific | $1,439,133 | $1,310,045 | $748,113 | | **Total Sales** | **$5,481,101** | **$5,252,279** | **$2,975,851** | [Products](index=7&type=section&id=Item%201.%20Business.Products) Logitech's diverse product portfolio spans Creativity & Productivity, Gaming, Video Collaboration, and Music, with some smart home lines being phased out - **Creativity & Productivity:** Includes Pointing Devices (e.g., **MX Master 3**), Keyboards & Combos (e.g., **MX Keys**), PC Webcams (e.g., **C920**), and Tablet & Other Accessories (e.g., **Combo Touch for iPad**)[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - **Gaming:** Provides industry-leading gear for all levels of gamers, including keyboards (**G915**), mice (**G PRO X Superlight**), headsets (**ASTRO A50**), and simulation products (**G923 Steering Wheel**)[35](index=35&type=chunk)[37](index=37&type=chunk) - **Video Collaboration:** Offers ConferenceCams like the **Logitech Rally Bar** and **MeetUp**, designed for various-sized meeting rooms, and high-end webcams like the **Logitech BRIO**[38](index=38&type=chunk) - **Music:** Includes Mobile Speakers (e.g., **Ultimate Ears BOOM 3**) and an Audio & Wearables category with PC speakers, headsets, and **Blue Microphones** (e.g., **Yeti**) for creators[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - The company decided to cease future product launches under the **Jaybird** brand in Q3 FY2022 and discontinued the **Harmony** line of controllers in Q4 FY2021[39](index=39&type=chunk)[42](index=42&type=chunk) [Competition](index=11&type=section&id=Item%201.%20Business.Competition) Logitech faces intense competition across all product categories from major players like Apple, Microsoft, Razer, Cisco, and Bose - **Creativity & Productivity:** Competitors include **Apple**, **Microsoft**, **Lenovo**, **HP**, **Zagg**, and various Asian brands like **Rapoo** and **Xiaomi**[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - **Gaming:** Key competitors are **Razer**, **Corsair Gaming**, **SteelSeries**, **Turtle Beach**, and **HyperX** (owned by HP Inc.)[60](index=60&type=chunk) - **Video Collaboration:** Competitors include **Cisco Systems**, **Poly, Inc.**, **GN Netcom/Jabra**, and **AVer Information Inc.**[61](index=61&type=chunk) - **Music:** Competitors for speakers and audio include **Bose**, **Harman (JBL)**, **Apple (Beats)**, **Sony**, and smart speaker providers like **Amazon** and **Google**[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - Microphone competitors include **Rode** and **Shure**[62](index=62&type=chunk) [Human Capital Resources](index=16&type=section&id=Item%201.%20Business.Human%20Capital%20Resources) As of March 31, 2022, Logitech employed approximately 8,200 people, emphasizing diversity, inclusion, and employee well-being - Employed approximately **8,200 persons** as of March 31, 2022, with around **3,000** in Suzhou manufacturing operations[82](index=82&type=chunk) - As of March 31, 2022, females represented **37%** of the global office workforce and **34%** of managerial roles[84](index=84&type=chunk) - In the U.S., underrepresented minorities represented **45%** of the workforce[84](index=84&type=chunk) - The production facility in Suzhou, China, follows the **RBA Code of Conduct** and is certified to **ISO 14001** (Environmental) and **ISO 45001** (Health and Safety)[86](index=86&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) Logitech faces significant risks including market competition, supply chain dependencies, global economic instability, cybersecurity threats, and financial unpredictability - **Business Risks:** The company's success depends on timely innovation, managing a diversified product portfolio, and navigating supply chain constraints, particularly with key components sourced from a limited number of suppliers and manufacturing concentrated in China[100](index=100&type=chunk)[106](index=106&type=chunk)[118](index=118&type=chunk)[120](index=120&type=chunk) - **Competitive and Market Risks:** Intense competition from well-financed rivals like **Microsoft**, **Apple**, and **Amazon**, coupled with the uncertain full effect of the COVID-19 pandemic on demand and operations, could adversely affect results[128](index=128&type=chunk)[130](index=130&type=chunk)[132](index=132&type=chunk) - **Global and Regulatory Risks:** Operations are subject to international political and economic instability (e.g., Russia's invasion of Ukraine), changes in trade policy and tariffs, currency exchange rate fluctuations, and evolving ESG and tax regulations[102](index=102&type=chunk)[161](index=161&type=chunk)[165](index=165&type=chunk)[171](index=171&type=chunk) - **Cybersecurity and IP Risks:** Significant disruptions or security breaches of IT systems, liabilities arising from the handling of user data under regulations like **GDPR**, and claims of infringing on others' proprietary technology could harm the business[103](index=103&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk) - **Financial Risks:** Operating results are difficult to predict and gross margins can vary significantly[104](index=104&type=chunk)[191](index=191&type=chunk) - The company cannot guarantee the continuation or size of its share repurchase program or dividend payments[194](index=194&type=chunk)[198](index=198&type=chunk) [Unresolved Staff Comments](index=41&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[200](index=200&type=chunk) [Properties](index=41&type=section&id=Item%202.%20Properties) Logitech's corporate headquarters is in Lausanne, with key offices in California and Taiwan, and owned manufacturing in Suzhou, China - Principal corporate and administrative offices are in **Lausanne (Switzerland)**, **Newark (California)**, and **Hsinchu (Taiwan)**, totaling approximately **286,000 square feet** of leased space[201](index=201&type=chunk) - The company owns manufacturing units and employee dormitories in **Suzhou, China**, occupying approximately **720,000 square feet**[202](index=202&type=chunk) [Legal Proceedings](index=41&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, not expecting a material adverse effect on its financial condition - The company is subject to claims and legal proceedings from the ordinary course of business but does not believe their resolution will have a **material adverse effect**[204](index=204&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - None[206](index=206&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=42&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Logitech's shares trade on SIX Swiss Exchange and Nasdaq, with a recommended dividend increase and an active $1.0 billion share repurchase program - The Board of Directors recommended a **10% increase** for the fiscal year 2022 cash dividend to approximately **CHF 0.96 per share**, subject to shareholder approval[210](index=210&type=chunk) - The company has a **$1.0 billion** share repurchase program, effective through July 2023[215](index=215&type=chunk) - As of March 31, 2022, **$423.7 million** remained available for repurchase[335](index=335&type=chunk) Share Repurchases in Fiscal Year 2022 | Period | Shares Repurchased (thousands) | Average Price (CHF) | Average Price (USD) | Remaining Program Amount (thousands) | | :--- | :--- | :--- | :--- | :--- | | **FY 2022 Total** | **4,607** | **82.15** | **89.36** | **$423,696** | - Over the five years ending March 31, 2022, a **$100 investment** in Logitech stock grew to **$242**, compared to **$252** for the Nasdaq Composite Index and **$328** for the S&P 500 Information and Technology Index[220](index=220&type=chunk)[222](index=222&type=chunk) [(Reserved)](index=44&type=section&id=Item%206.%20%28Reserved%29) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2022 sales grew 4% to $5.48 billion, but gross margin and operating income declined due to increased costs and promotional spending, with cash from operations significantly decreasing Fiscal Year 2022 Financial Summary | Metric | FY 2022 | FY 2021 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $5,481.1 M | $5,252.3 M | +4% | | Gross Profit | $2,263.0 M | $2,335.7 M | -3.1% | | Gross Margin | 41.3% | 44.5% | -320 bps | | Operating Income | $774.0 M | $1,148.1 M | -32.6% | | Net Income | $644.5 M | $947.3 M | -32.0% | - Sales growth was driven by **Gaming (+17%)**, **Keyboards & Combos (+23%)**, and **Pointing Devices (+15%)**, offset by declines in **Video Collaboration (-5%)** and **Audio & Wearables (-14%)**[279](index=279&type=chunk) - The company indefinitely ceased all sales and shipments to **Russia** and **Ukraine** in Q4 FY2022; these markets accounted for approximately **2%** of total revenue for the fiscal year[233](index=233&type=chunk) - Cash flow from operating activities decreased significantly to **$298.3 million** in FY2022 from **$1.46 billion** in FY2021, mainly due to an unfavorable net change in operating assets and liabilities, including a **$276.6 million** increase in inventories[328](index=328&type=chunk)[421](index=421&type=chunk) [Results of Operations](index=52&type=section&id=Item%207.%20MD%26A.Results%20of%20Operations) FY2022 sales increased 4% to $5.48 billion, driven by Gaming and Keyboards, but gross margin declined to 41.3% due to higher costs and promotions Sales by Product Category (FY2022 vs FY2021, in thousands) | Product Category | FY 2022 Sales | FY 2021 Sales | Change | | :--- | :--- | :--- | :--- | | Pointing Devices | $781,108 | $680,907 | 15% | | Keyboards & Combos | $967,301 | $784,488 | 23% | | PC Webcams | $403,651 | $439,865 | (8)% | | Tablet & Other Accessories | $310,123 | $384,301 | (19)% | | Gaming | $1,451,883 | $1,239,005 | 17% | | Video Collaboration | $997,164 | $1,044,935 | (5)% | | Mobile Speakers | $149,782 | $174,895 | (14)% | | Audio & Wearables | $401,424 | $468,776 | (14)% | - Gross margin decreased by **320 basis points** to **41.3%**, primarily due to increased promotional spending, higher reserves for excess inventories, and increased material and logistics costs[297](index=297&type=chunk) - Marketing and selling expenses increased by **$255.6 million**, mainly from higher advertising spend and increased headcount to support go-to-market expansion[299](index=299&type=chunk)[300](index=300&type=chunk) - Research and development expenses increased by **$65.8 million**, driven by a **$39.9 million** increase in personnel-related costs to support innovation[302](index=302&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Item%207.%20MD%26A.Liquidity%20and%20Capital%20Resources) As of March 31, 2022, cash and equivalents decreased to $1.33 billion, with cash from operations significantly lower due to increased inventory and financing activities Key Balance Sheet and Working Capital Metrics | Metric | March 31, 2022 | March 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,328.7 M | $1,750.3 M | | Inventories | $933.1 M | $661.1 M | | Working Capital | $1,651.8 M | $1,477.5 M | | DSO (Days) | 49 | 36 | | DPO (Days) | 78 | 90 | | ITO (x) | 3.2 | 5.0 | - Net cash used in financing activities was **$606.8 million**, primarily consisting of **$412.0 million** for share repurchases and **$159.4 million** for dividend payments[330](index=330&type=chunk) - The company had non-cancelable purchase commitments of **$736.9 million** for inventory and **$29.5 million** for capital expenditures as of March 31, 2022[339](index=339&type=chunk)[340](index=340&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Logitech's primary market risk is currency exchange rate fluctuations, with hedging strategies in place to mitigate a hypothetical $24.4 million impact on income - The company's primary market risk exposure is from currency exchange rates, with approximately **50%** of FY2022 sales denominated in non-U.S. currencies[349](index=349&type=chunk) - Logitech uses currency forward and swap contracts to hedge short-term effects of currency fluctuations on receivables, payables, and forecasted inventory purchases[350](index=350&type=chunk)[352](index=352&type=chunk) - A hypothetical adverse **10%** foreign currency exchange rate change would have resulted in an adverse effect on income before taxes of approximately **$24.4 million** as of March 31, 2022[351](index=351&type=chunk) [Financial Statements](index=62&type=section&id=Item%208.%20Financial%20Statements) This item refers to the full consolidated financial statements and supplementary data included later in the report - This item refers to the full consolidated financial statements and supplementary data, which are included later in the report[354](index=354&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=63&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - Not applicable[355](index=355&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2022, with no material changes - Management concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2022[356](index=356&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of March 31, 2022, a conclusion audited by **KPMG LLP**[358](index=358&type=chunk)[359](index=359&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of fiscal year 2022 that have materially affected, or are reasonably likely to materially affect, internal controls[360](index=360&type=chunk) [Other Information](index=64&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[363](index=363&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=64&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) The company reports no disclosures regarding foreign jurisdictions that prevent inspections - None[364](index=364&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=65&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement, including the Code of Conduct - Most information required by this item is incorporated by reference from the **2022 Proxy Statement**[367](index=367&type=chunk) - The company has a "**Logitech Code of Conduct**" that applies to all directors, officers, and employees[368](index=368&type=chunk) [Executive Compensation](index=65&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the 2022 Proxy Statement - Information is incorporated by reference from the **2022 Proxy Statement**[370](index=370&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=65&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2022 Proxy Statement - Information is incorporated by reference from the **2022 Proxy Statement**[371](index=371&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=65&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the 2022 Proxy Statement - Information is incorporated by reference from the **2022 Proxy Statement**[372](index=372&type=chunk) [Principal Accountant Fees and Services](index=65&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the 2022 Proxy Statement - Information is incorporated by reference from the **2022 Proxy Statement**[373](index=373&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=66&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed with the Annual Report, including consolidated financial statements and auditor's report - This item contains the list of financial statements, the financial statement schedule, and all exhibits filed with the **Form 10-K**[375](index=375&type=chunk) - The filed documents include the **Report of Independent Registered Public Accounting Firm**, **Consolidated Financial Statements**, **Notes to Consolidated Financial Statements**, and **Schedule II—Valuation and Qualifying Accounts**[375](index=375&type=chunk)[630](index=630&type=chunk)
Logitech(LOGI) - 2022 Q4 - Earnings Call Transcript
2022-05-03 16:22
Logitech International S.A. (NASDAQ:LOGI) Q4 2022 Earnings Conference Call May 3, 2022 8:30 AM ET Company Participants Nate Melihercik - Head, Global Investor Relations Bracken Darrell - President & Chief Executive Officer Nate Olmstead - Chief Financial Officer Conference Call Participants Alex Duval - Goldman Sachs Paul Chung - JPMorgan Asiya Merchant - Citi Erik Woodring - Morgan Stanley Ananda Baruah - Loop Capital Joern Iffert - UBS Rob Sanders - Deutsche Bank Adam Angelov - Bank of America Nate Melih ...
Logitech(LOGI) - 2022 Q3 - Quarterly Report
2022-01-26 16:00
Part I [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including operations, balance sheets, and cash flows, for the three and nine months ended December 31, 2021 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's condensed consolidated statements of operations, showing a 2% decrease in Q3 FY2022 net sales and a 45% decline in net income Q3 FY2022 vs Q3 FY2021 Statement of Operations (in thousands, except per share) | Metric | Three Months Ended Dec 31, 2021 | Three Months Ended Dec 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $1,632,782 | $1,667,302 | -2.1% | | Gross profit | $658,010 | $749,010 | -12.1% | | Operating income | $262,751 | $448,063 | -41.4% | | Net income | $210,011 | $382,523 | -45.1% | | Diluted EPS | $1.24 | $2.22 | -44.1% | Nine Months FY2022 vs Nine Months FY2021 Statement of Operations (in thousands, except per share) | Metric | Nine Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $4,251,107 | $3,716,354 | +14.4% | | Gross profit | $1,769,099 | $1,624,466 | +8.9% | | Operating income | $645,243 | $853,043 | -24.4% | | Net income | $536,308 | $721,510 | -25.7% | | Diluted EPS | $3.14 | $4.21 | -25.4% | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the condensed consolidated balance sheets, showing total assets of $4.16 billion and a decrease in cash and cash equivalents as of December 31, 2021 Balance Sheet Comparison (in thousands) | Account | Dec 31, 2021 | Mar 31, 2021 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $1,364,411 | $1,750,327 | | Accounts receivable, net | $845,836 | $612,225 | | Inventories | $834,534 | $661,116 | | **Total Assets** | **$4,161,597** | **$4,142,378** | | **Current Liabilities** | $1,552,676 | $1,681,850 | | **Total Liabilities** | **$1,793,655** | **$1,880,589** | | **Total Shareholders' Equity** | **$2,367,942** | **$2,261,789** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the condensed consolidated statements of cash flows, indicating a significant decrease in net cash provided by operating activities for the nine months ended December 31, 2021 Cash Flow Summary (in thousands) | Activity | Nine Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $198,728 | $928,419 | | Net cash used in investing activities | ($89,006) | ($46,454) | | Net cash used in financing activities | ($492,799) | ($219,196) | | **Net (decrease) / increase in cash** | **($385,916)** | **$673,177** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on accounting policies, financial statement components, and key events, including impairment charges, share repurchase program updates, and sales by product category - The company decided to discontinue Jaybird-branded products, resulting in a pre-tax impairment charge of **$7.0 million** for intangible assets and **$1.8 million** in restructuring charges in Q3 FY2022[82](index=82&type=chunk)[100](index=100&type=chunk) - In April 2021, the Board of Directors increased the 2020 share repurchase program authorization by **$750.0 million**, bringing the total to **$1.0 billion**. As of Dec 31, 2021, **$545.0 million** remained available for repurchase[92](index=92&type=chunk) - During the nine months ended Dec 31, 2021, the company paid cash dividends of **$0.95 per share**, totaling **$159.4 million**[93](index=93&type=chunk) Sales by Product Category - Nine Months Ended Dec 31 (in thousands) | Product Category | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Gaming | $1,135,456 | $916,040 | +24% | | Keyboards & Combos | $736,237 | $565,246 | +30% | | Video Collaboration | $753,725 | $659,278 | +14% | | Pointing Devices | $602,982 | $503,228 | +20% | | PC Webcams | $319,504 | $295,020 | +8% | | Audio & Wearables | $318,965 | $338,592 | -6% | | Tablet & Other Accessories | $242,932 | $267,186 | -9% | | Mobile Speakers | $124,724 | $145,156 | -14% | [Management's Discussion and Analysis (MD&A)](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting a 2% sales decrease in Q3 FY22, a decline in gross margin, and increased operating expenses, alongside ongoing COVID-19 impacts - The COVID-19 pandemic continues to have mixed effects, causing supply chain challenges, increased logistics costs, and demand volatility, while also accelerating long-term trends like work-from-anywhere and gaming[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - Gross margin for Q3 FY22 decreased by **460 basis points** to **40.3%**, primarily due to increased promotional spending, higher logistics costs, and reserves for excess inventories, including costs for exiting the Jaybird brand[115](index=115&type=chunk)[163](index=163&type=chunk) - Operating expenses for Q3 FY22 increased to **24.2% of sales** from **18.0%** in the prior year, mainly due to higher investments in marketing, selling, and R&D, plus a **$7.0 million** impairment charge for Jaybird intangible assets[116](index=116&type=chunk)[164](index=164&type=chunk) Sales Growth by Region (Q3 FY22 vs Q3 FY21) | Region | Sales Growth Rate (%) | Constant Currency Sales Growth Rate (%) | | :--- | :--- | :--- | | Americas | (4)% | (5)% | | EMEA | 1% | 3% | | Asia Pacific | (2)% | (2)% | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily from currency exchange rates, and its use of derivative instruments to mitigate these fluctuations - In Q3 FY22, approximately **53% of sales** were denominated in non-U.S. currencies, with the Euro accounting for **27% of total sales**[209](index=209&type=chunk) - The company uses currency forward/swap contracts and cash flow hedges to manage short-term currency risk. As of Dec 31, 2021, the notional amount of forward contracts for inventory purchases was **$128.1 million**, and for other receivables/payables was **$251.7 million**[77](index=77&type=chunk)[78](index=78&type=chunk) - A hypothetical adverse **10%** foreign currency exchange rate change would have negatively impacted pre-tax income by approximately **$21.4 million** as of December 31, 2021, net of hedging effects[211](index=211&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2021, with no material changes in internal control over financial reporting - The CEO and CFO concluded that as of December 31, 2021, the company's disclosure controls and procedures were effective at the reasonable assurance level[214](index=214&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended December 31, 2021, that have materially affected, or are reasonably likely to materially affect, these controls[217](index=217&type=chunk) Part II [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section describes the company's involvement in various legal proceedings, which management believes will not materially adversely affect its financial condition or operations - Logitech is subject to several claims and a small number of legal proceedings arising from its ordinary course of business[218](index=218&type=chunk) - The company believes that the resolution of pending legal matters will not have a material adverse effect on its financial position or results of operations[218](index=218&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks to Logitech's business, including market competition, supply chain dependencies, geopolitical factors, and financial and regulatory uncertainties - **Business Risks:** Failure to innovate, dependence on successful execution of growth opportunities, competition from large players like Microsoft and Apple, and the uncertain full effect of the COVID-19 pandemic are major business risks[222](index=222&type=chunk)[244](index=244&type=chunk)[247](index=247&type=chunk) - **Operational & Supply Chain Risks:** The company relies on manufacturing in China and Southeast Asia, exposing it to geopolitical risks, tariffs, and supply chain disruptions. It also depends on a limited number of sources for key components and on third-party distributors like Amazon and Ingram Micro[222](index=222&type=chunk)[256](index=256&type=chunk)[262](index=262&type=chunk) - **Global & Regulatory Risks:** Operations in many countries expose Logitech to risks from fluctuating currency exchange rates, changes in international trade policies (including U.S.-China tariffs), and varying legal and tax regulations, such as Swiss tax reforms[225](index=225&type=chunk)[290](index=290&type=chunk)[293](index=293&type=chunk) - **IP, Cybersecurity & Privacy Risks:** The company faces risks from potential IP infringement claims, the need to protect its own proprietary technology, and potential security breaches of its IT systems or user data, which is subject to evolving regulations like GDPR[225](index=225&type=chunk)[307](index=307&type=chunk)[311](index=311&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity, including the number of shares repurchased and the remaining authorization under its program Share Repurchases (Q3 FY2022) | Period (2021) | Total Shares Repurchased (thousands) | Weighted Average Price Paid (CHF/USD) | | :--- | :--- | :--- | | Oct 2 - Oct 29 | 503 | CHF 81.95 | | Oct 30 - Nov 26 | 389 | CHF 74.27 | | Nov 27 - Dec 31 | 486 (467 SIX, 19 Nasdaq) | CHF 75.96 / USD 79.20 | | **Total** | **1,379** | **CHF 77.63 / USD 84.12** | - As of December 31, 2021, **$545.0 million** remained available for repurchase under the company's **$1.0 billion** share repurchase program[325](index=325&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibit%20Index) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL interactive data files - Filed exhibits include Rule 13a-14(a)/15d-14(a) certifications by the CEO and CFO, Section 1350 certifications, and XBRL data files[331](index=331&type=chunk)
Logitech(LOGI) - 2022 Q3 - Earnings Call Transcript
2022-01-25 20:28
Financial Data and Key Metrics Changes - The company's total top line declined by 2% in constant currency, with a notable double-digit growth in Keyboards & Combos and strong single-digit growth in pointing devices and gaming [21][22] - Non-GAAP gross margin was reported at 40.6%, down from last year's elevated levels, primarily due to higher freight costs impacting gross margin by approximately 2 percentage points [27][22] - Operating profit decreased by 37% to $302 million, with operating margins at 18.5%, down about 10 points year-over-year [29] Business Line Data and Key Metrics Changes - In the Creativity & Productivity segment, pointing devices grew by 8% and Keyboards & Combos grew by 29%, driven by hybrid work trends [23] - Video collaboration sales declined by 1% year-over-year but saw a 24% quarter-over-quarter growth, with conference room cameras and systems leading the category performance [24][16] - Gaming grew by 8%, down from 73% growth last year, with supply issues affecting potential double-digit growth [25] Market Data and Key Metrics Changes - The Americas region showed the strongest performance in video collaboration, while EMEA experienced a significant recovery compared to the previous quarter [80] - The gaming market is expanding, with 3 billion gamers worldwide, creating opportunities for customer segmentation and product innovation [14] Company Strategy and Development Direction - The company is focused on leveraging its innovation engine to capitalize on macro trends such as gaming, hybrid work, and video collaboration [8][10] - There is an ongoing commitment to sustainability, with initiatives like carbon neutrality achieved in 2021 and plans to be climate positive by 2030 [19][20] - The company is exploring new categories and continuously reorganizing teams to enhance innovation and market responsiveness [98][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth trends, emphasizing that the pandemic accelerated existing market dynamics rather than creating temporary spikes [114] - The company is increasing its fiscal '22 constant currency sales outlook to growth of 2% to 5%, up from a previous flat growth outlook [32] - Supply chain challenges are expected to persist, impacting gross margins and operational costs in the near term [22][37] Other Important Information - The company reported a cash balance of approximately $1.4 billion, flat compared to the previous year, while returning $450 million to shareholders through dividends and share repurchases year-to-date [30] - The cash conversion cycle increased to 56 days, primarily due to higher inventory days impacted by supply chain disruptions [31] Q&A Session Summary Question: Confidence in Future Outlook - Management highlighted long-term growth trends in all categories, emphasizing the opportunity for upgrades in mice and keyboards due to suboptimal setups among consumers [36] Question: Gross Margins and Freight Costs - Management expects similar supply chain cost challenges in Q4, with higher freight costs continuing to impact margins [37][40] Question: Revenue Guidance and Market Conditions - The company upgraded its full-year guidance prudently, considering potential cost pressures and market volatility [47][50] Question: Video Collaboration Demand by Region - Demand for conference cameras is growing, with expectations for increased video conferencing as offices reopen [78] Question: Market Share and Competition - The company continues to gain market share across key categories, leveraging its strong balance sheet to navigate supply chain challenges [85][86] Question: R&D Spending Allocation - The majority of R&D spending is directed towards existing segments, with ongoing investments in new categories through pilot programs [106]
Logitech(LOGI) - 2022 Q3 - Earnings Call Presentation
2022-01-25 16:09
Q3 Fiscal Year 2022 Financial Results January 24, 2022 logitech® | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...
Logitech(LOGI) - 2022 Q2 - Quarterly Report
2021-10-27 16:00
Part I [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201%2E%20Financial%20Statements%20%28Unaudited%29) This section presents Logitech's unaudited condensed consolidated financial statements, showing increased six-month sales but decreased net income year-over-year [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales increased for both three and six-month periods, but operating and net income declined significantly year-over-year Consolidated Statements of Operations Highlights (In thousands, except per share amounts) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | YoY Change | Six Months Ended Sep 30, 2021 | Six Months Ended Sep 30, 2020 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,306,267 | $1,257,158 | 4% | $2,618,325 | $2,049,052 | 28% | | **Gross profit** | $542,163 | $569,723 | -5% | $1,111,089 | $875,456 | 27% | | **Operating income** | $179,411 | $321,553 | -44% | $382,492 | $404,980 | -6% | | **Net income** | $139,456 | $266,914 | -48% | $326,297 | $338,987 | -4% | | **Diluted EPS** | $0.81 | $1.56 | -48% | $1.90 | $1.99 | -5% | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $3.86 billion due to reduced cash, while inventories increased and total liabilities decreased Balance Sheet Highlights (In thousands) | Account | September 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $1,137,296 | $1,750,327 | | Inventories | $827,710 | $661,116 | | **Total Assets** | **$3,856,164** | **$4,142,378** | | **Current Liabilities** | | | | Accounts payable | $660,720 | $823,233 | | **Total Liabilities** | **$1,593,481** | **$1,880,589** | | **Total Shareholders' Equity** | **$2,262,683** | **$2,261,789** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities resulted in a $177.8 million cash outflow, contrasting prior year's inflow, driven by inventory and payment timing Cash Flow Summary (In thousands) | Cash Flow Activity | Six Months Ended Sep 30, 2021 | Six Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by / (used in) operating activities | $(177,848) | $398,519 | | Net cash used in investing activities | $(63,208) | $(30,539) | | Net cash used in financing activities | $(371,905) | $(168,837) | | **Net decrease in cash and cash equivalents** | **$(613,031)** | **$201,655** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, segment performance, income taxes, and goodwill, highlighting sales growth by category and region Sales by Product Category (Six Months Ended Sep 30, In thousands) | Product Category | 2021 Sales | 2020 Sales | YoY Change | | :--- | :--- | :--- | :--- | | Pointing Devices | $371,892 | $289,590 | 28% | | Keyboards & Combos | $454,629 | $346,977 | 31% | | PC Webcams | $204,389 | $163,320 | 25% | | Gaming | $666,174 | $479,614 | 39% | | Video Collaboration | $466,538 | $366,778 | 27% | | Audio & Wearables | $214,685 | $185,640 | 16% | Sales by Geographic Region (Six Months Ended Sep 30, In thousands) | Region | 2021 Sales | 2020 Sales | YoY Change | | :--- | :--- | :--- | :--- | | Americas | $1,154,081 | $898,503 | 28% | | EMEA | $757,409 | $600,349 | 26% | | Asia Pacific | $706,835 | $550,200 | 28% | - The effective income tax rate for the six months ended September 30, 2021 was **15.2%**, down from **17.2%** in the prior year period, primarily due to the mix of income across jurisdictions and a discrete tax benefit of **$14.3 million** from excess tax benefits in the U.S[50](index=50&type=chunk)[51](index=51&type=chunk) - Goodwill increased from **$429.6 million** at March 31, 2021 to **$449.4 million** at September 30, 2021, primarily due to a **$20.7 million** addition from an immaterial technology acquisition made on May 19, 2021[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 28% sales increase driven by secular trends, offset by decreased gross margin and higher operating expenses [Summary of Financial Results and Business Trends](index=27&type=section&id=Summary%20of%20Financial%20Results%20and%20Business%20Trends) Sales grew 28% driven by secular trends, while gross margin slightly decreased and operating expenses increased - Total sales for the six months ended September 30, 2021, increased by **28%** compared to the same period in the prior year[109](index=109&type=chunk) - The company identifies five large market opportunities driving its business: Creativity & Productivity, Gaming, Video Collaboration, Music, and Smart Home[114](index=114&type=chunk) - Key business trends include strong demand driven by work-from-home, remote learning, the increasing popularity of gaming and esports, and the growth of video meetings[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Sales grew 28% driven by Gaming and Keyboards, while gross margin slightly decreased and marketing expenses significantly increased Sales Growth by Region (Six Months Ended Sep 30, 2021) | Region | Sales Growth Rate | Constant Dollar Sales Growth Rate | | :--- | :--- | :--- | | Americas | 28% | 27% | | EMEA | 26% | 21% | | Asia Pacific | 28% | 24% | Sales Growth by Product Category (Six Months Ended Sep 30, 2021) | Product Category | YoY Change | | :--- | :--- | | Gaming | 39% | | Keyboards & Combos | 31% | | Pointing Devices | 28% | | Video Collaboration | 27% | | PC Webcams | 25% | - Gross margin for the six months ended Sep 30, 2021, decreased by **30 basis points** to **42.4%**, attributed to increased promotional spending, higher inventory reserves, and increased logistics costs, partially offset by favorable currency rates and product mix[158](index=158&type=chunk) - Marketing and selling expenses for the six-month period increased by **$216.9 million**, driven by higher advertising and marketing spend to support investment in brand awareness and consideration[162](index=162&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents decreased by $613 million due to operating cash outflow and increased financing activities including share repurchases - Cash and cash equivalents decreased from **$1.75 billion** at March 31, 2021, to **$1.14 billion** at September 30, 2021[174](index=174&type=chunk) - Net cash used in operating activities was **$177.8 million** for the six-month period, primarily due to increased inventory to support future demand and timing of tax and bonus payments[175](index=175&type=chunk)[183](index=183&type=chunk) - The company's share repurchase program was increased by **$750.0 million** in April 2021 to an aggregate of **$1.0 billion**. As of September 30, 2021, **$661.0 million** remained available for repurchase[189](index=189&type=chunk) Key Working Capital Metrics (as of Sep 30) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | DSO (Days) | 50 | 54 | | DPO (Days) | 78 | 87 | | Inventory Turnover (x) | 3.7 | 7.0 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from currency fluctuations, with 50% of sales in non-USD currencies, mitigated by hedging strategies - Approximately **50%** of sales for the three months ended September 30, 2021, were denominated in currencies other than the U.S. Dollar, with the Euro accounting for **23%** of total sales[201](index=201&type=chunk) - The company uses currency forward and swap contracts to hedge short-term receivables and payables, and cash flow hedges for forecasted inventory purchases[202](index=202&type=chunk)[204](index=204&type=chunk) - A hypothetical adverse **10%** foreign currency exchange rate change would have resulted in an adverse effect on income before taxes of approximately **$25.5 million** as of September 30, 2021[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective with no material changes in internal control - The CEO and CFO concluded that as of September 30, 2021, the company's disclosure controls and procedures are effective at the reasonable assurance level[206](index=206&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[209](index=209&type=chunk) Part II [Item 1. Legal Proceedings](index=41&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, not expecting a material adverse financial impact - Logitech is subject to several claims and a small number of legal proceedings arising from the ordinary course of business[210](index=210&type=chunk) - The company does not believe that the resolution of these pending matters will have a material adverse effect on its financial position or results of operations[210](index=210&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A%2E%20Risk%20Factors) Logitech faces significant risks including innovation challenges, supply chain disruptions, brand reputation, and global operational complexities [Risks Related to our Business](index=46&type=section&id=Risks%20Related%20to%20our%20Business) Business risks include intense competition, innovation demands, COVID-19 impacts, supply chain disruptions, and reliance on key partners - Failure to innovate and develop new products in a timely and cost-effective manner could adversely affect business results due to short product life cycles and intense competition[221](index=221&type=chunk) - The full effect of the COVID-19 pandemic remains uncertain and could adversely affect business, including disruptions to manufacturing, supply chain, and logistics[239](index=239&type=chunk)[240](index=240&type=chunk) - The company purchases key components and products from a limited number of sources, and supply delays, constraints, or shortages could adversely affect operating results[246](index=246&type=chunk) - Over a quarter of gross sales are concentrated with two customers, Amazon Inc. and Ingram Micro, and any adverse change in these relationships could have a significant impact[255](index=255&type=chunk) [Risks Related to Global Operations and Regulatory Environment](index=55&type=section&id=Risks%20Related%20to%20Global%20Operations%20and%20Regulatory%20Environment) Global operations face risks from political instability, diverse regulations, trade policy changes, currency fluctuations, and evolving tax laws - The company faces risks from international operations, including political instability, varying legal and regulatory requirements, and difficulties in managing a global workforce[279](index=279&type=chunk) - Changes in U.S. and other countries' trade policies, including the imposition of tariffs, may have adverse impacts on business, results of operations, and financial condition[283](index=283&type=chunk) - Financial performance is subject to risks from currency exchange rate fluctuations, as a significant portion of business is conducted in currencies other than the U.S. Dollar[286](index=286&type=chunk) - Changes in tax laws or a successful challenge to the company's operating structure, particularly following Swiss tax reform (TRAF), could increase effective income tax rates[296](index=296&type=chunk)[297](index=297&type=chunk) [Risks Related to Intellectual Property, Cyber Security and Privacy](index=59&type=section&id=Risks%20Related%20to%20Intellectual%20Property%2C%20Cyber%20Security%20and%20Privacy) Risks include IT system breaches, data privacy liabilities under evolving laws, and intellectual property infringement claims - Significant disruptions or security breaches of websites or IT systems could adversely affect the business, brand, and reputation[300](index=300&type=chunk) - The collection and use of user data could lead to liabilities and increased costs due to evolving privacy laws like GDPR and the risk of data breaches[302](index=302&type=chunk)[303](index=303&type=chunk) - The company faces an increased risk of claims alleging infringement of others' intellectual property rights, which could result in costly litigation or substantial damages[304](index=304&type=chunk) [Risks Related to our Financial Results](index=61&type=section&id=Risks%20Related%20to%20our%20Financial%20Results) Financial results are unpredictable due to fluctuating demand, variable gross margins, and discretionary share repurchase/dividend policies - Operating results are difficult to predict due to fluctuating demand, the timing of orders, and the impact of global economic conditions, which may cause share price volatility[309](index=309&type=chunk) - Gross margins can vary significantly due to factors like product mix, competition, commodity costs, and currency exchange rates, leading to unanticipated fluctuations in operating results[312](index=312&type=chunk) - The share repurchase program and dividend payments are not guaranteed and may be affected by business conditions, diminishing cash reserves that could be used for other purposes[316](index=316&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Logitech repurchased 1.151 million shares during Q2 FY2022 under its expanded $1.0 billion share repurchase program Share Repurchase Activity (Q2 FY2022) | Period | Total Shares Repurchased (thousands) | Remaining Amount for Repurchase (thousands) | | :--- | :--- | :--- | | **July 3 - Oct 1, 2021** | 1,151 | $661,023 | - In April 2021, the Board of Directors approved an increase of **$750.0 million** to the 2020 share repurchase program, bringing the aggregate amount to **$1.0 billion**[317](index=317&type=chunk) [Item 3. Defaults Upon Senior Securities](index=64&type=section&id=Item%203%2E%20Defaults%20Upon%20Senior%20Securities) Not applicable, the company reports no defaults upon senior securities - Not applicable[319](index=319&type=chunk) [Item 4. Mine Safety Disclosures](index=64&type=section&id=Item%204%2E%20Mine%20Safety%20Disclosures) None, the company has no mine safety disclosures to report - None[320](index=320&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205%2E%20Other%20Information) None, the company reports no other information for this item - None[321](index=321&type=chunk) [Item 6. Exhibit Index](index=65&type=section&id=Item%206%2E%20Exhibit%20Index) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data - Lists exhibits filed with the report, including Rule 13a-14(a)/15d-14(a) certifications for the CEO and CFO, Section 1350 certifications, and XBRL data files[324](index=324&type=chunk)