Logitech Expects Seventh Consecutive Year of Growth in Fiscal Year 2020

In advance of a meeting to be held with financial analysts and investors in Zurich, Logitech International (SIX:LOGN) (Nasdaq:LOGI) today:

• Reaffirmed its Fiscal Year 2019 outlook of 9 to 11 percent sales growth in constant currency and $340 million to $345 million in non-GAAP operating income.
• Announced a Fiscal Year 2020 outlook of mid to high single-digit sales growth in constant currency and $375 million to $385 million in non-GAAP operating income, an increase of approximately 10 to 12 percent from the midpoint of the Company’s profitability outlook for Fiscal Year 2019.
• Revised elements of its long-term business model upward. Expectations of long-term sales growth in constant currency continue to be in the high single digits. The gross margin target is now 36 to 40 percent, revised upward from the previous target of 35 to 37 percent. The operating margin target is now 11 to 14 percent, up from the previous target of 10 to 12 percent.

“Logitech grew up with the PC. Now we are becoming the leading cloud peripherals company,” said Bracken Darrell, Logitech president and chief executive officer. “Our diverse and innovative portfolio continues to deliver, driven by the horsepower of our Gaming, Video Collaboration and Creativity & Productivity market opportunities. We are sustaining our investment in future growth and in our long-term vision of Logitech, the multi-category, multi-brand design company.”

Logitech's Analyst and Investor Day will be held today at 9:00 a.m. Central European Time. A live webcast and replay of the meeting will be available on the Logitech corporate website at http://ir.logitech.com.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures, which exclude share-based compensation expense, amortization of intangible assets, purchase accounting effect on inventory, acquisition-related costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), gain (loss) on investments in privately held companies, investigation and related expenses, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” in our quarterly earnings press releases and posted to our website at http://ir.logitech.com. Historical GAAP and corresponding non-GAAP measures are provided with our earnings releases and presentations in the Investors section of our website. Logitech also presents percentage sales growth in constant currency to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance and trends in its business. With respect to the Company’s 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 the GAAP amounts has been provided for Fiscal Years 2019 or 2020.