Logitech Expects Eighth Consecutive Year of Growth in Fiscal Year 2021

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

• Reconfirmed its Fiscal Year 2020 sales outlook of mid to high single-digit sales growth in constant currency. The Company also slightly modified its profit outlook to $365 million to $375 million in non-GAAP operating income, versus its previous guidance of $375 million to $385 million. This adjustment is due to short term coronavirus impacts.
• Announced its Fiscal Year 2021 outlook of mid single-digit sales growth in constant currency and $380 million to $400 million in non-GAAP operating income.
• Maintained its long-term business model. Expectations of long-term sales growth in constant currency continue to be in the high single-digits. The non-GAAP gross margin target remains 36 to 40 percent and the operating margin target remains 11 to 14 percent.

“We are encouraged by continued strong demand for our products. That said, we are slightly adjusting our operating income outlook to account for supply chain uncertainties related to the trajectory of the coronavirus,” said Bracken Darrell, Logitech president and chief executive officer. “Our strategy and execution continue to work well and we have confidence in continued growth of our biggest categories - Gaming, Video Collaboration, and Creativity & Productivity - where we can deliver ongoing category leadership and long-term success. Consequently, we reconfirm our current fiscal year sales growth target and maintain our long-term business outlook.”

Analyst and Investor Day Webcast

Logitech's Analyst and Investor Day will be held today in New York at 9:00 a.m. Eastern Standard 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, restructuring charges (credits), loss (gain) on investments, and non-GAAP income tax adjustment. 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 Year 2020 or 2021.