Logitech International S.A 10-Q for FY2023 Q1

Logitech International S.A. (LOGI)

10-Q 2022-07-28 For: 2022-06-30

Added on April 12, 2026

About this 10-Q

Logitech International S.A filed this 10-Q on July 28, 2022, covering the quarter ended June 30, 2022 (FY2023 Q1).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.16B; down 11.6% from $1.31B a year earlier
Diluted EPS: $0.61; down 44.0% from $1.09 a year earlier

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Canton of Vaud,	Switzerland	None
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Registered Shares	LOGN	SIX Swiss Exchange
Registered Shares	LOGI	Nasdaq Global Select Market


		Page

Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2022 and 2021	3
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2022 and 2021	4
	Condensed Consolidated Balance Sheets as of June 30, 2022 and March 31, 2022	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2022 and 2021	6
	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended June 30, 2022 and 2021	7
	Notes to the Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35
Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3.	Defaults Upon Senior Securities	55
Item 4.	Mine Safety Disclosures	55
Item 5.	Other Information	55
Item 6.	Exhibit Index	56
Signatures


	Three Months Ended June 30,
	2022		2021
Net sales	$	1,159,865	$	1,312,058
Cost of goods sold	697,220		739,066
Amortization of intangible assets	3,042		4,066
Gross profit	459,603		568,926

Operating expenses:
Marketing and selling	229,378		252,314
Research and development	75,517		69,246
General and administrative	35,860		40,542
Amortization of intangible assets and acquisition-related costs	3,369		5,217

Change in fair value of contingent consideration for business acquisition	—		(1,474)

Total operating expenses	344,124		365,845

Operating income	115,479		203,081
Interest income	1,449		316
Other income (expense), net	5,624		8,435
Income before income taxes	122,552		211,832
Provision for income taxes	21,716		24,991
Net income	$	100,836	$	186,841

Net income per share:
Basic	$	0.61	$	1.11
Diluted	$	0.61	$	1.09

Weighted average shares used to compute net income per share:
Basic	164,679		168,372
Diluted	166,406		172,020


	Three Months Ended June 30,
	2022		2021
Net income	$	100,836	$	186,841
Other comprehensive income (loss):
Currency translation gain (loss):
Currency translation gain (loss), net of taxes	(21,220)		804
Reclassification of cumulative translation adjustments included in other income (expense), net	—		1,046
Defined benefit plans:
Net gain (loss) and prior service costs, net of taxes	84		(500)
Reclassification of amortization included in other income (expense), net	(113)		211
Hedging gain (loss):
Deferred hedging gain, net of taxes	6,629		530
Reclassification of hedging gain included in cost of goods sold	(2,091)		(594)
Total other comprehensive income (loss)	(16,711)		1,497
Total comprehensive income	$	84,125	$	188,338


	June 30, 2022		March 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	1,106,657	$	1,328,716
Accounts receivable, net	706,886		675,604
Inventories	917,356		933,124
Other current assets	126,689		135,478
Total current assets	2,857,588		3,072,922
Non-current assets:
Property, plant and equipment, net	112,240		109,807
Goodwill	451,209		448,175
Other intangible assets, net	79,820		83,779
Other assets	328,855		320,722
Total assets	$	3,829,712	$	4,035,405
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	558,983	$	636,306
Accrued and other current liabilities	693,784		784,848
Total current liabilities	1,252,767		1,421,154
Non-current liabilities:
Income taxes payable	82,887		83,380
Other non-current liabilities	131,700		132,133
Total liabilities	1,467,354		1,636,667
Commitments and contingencies (Note 10)
Shareholders’ equity:
Registered shares, CHF 0.25 par value:	30,148		30,148
Issued shares — 173,106 at June 30, 2022 and March 31, 2022
Additional shares that may be issued out of conditional capitals — 50,000 at June 30, 2022 and March 31, 2022
Additional shares that may be issued out of authorized capital — 17,311 at June 30, 2022 and March 31, 2022
Additional paid-in capital	98,800		129,925
Shares in treasury, at cost — 9,051 at June 30, 2022 and 7,855 at March 31, 2022	(722,273)		(632,893)
Retained earnings	3,076,517		2,975,681
Accumulated other comprehensive loss	(120,834)		(104,123)
Total shareholders’ equity	2,362,358		2,398,738
Total liabilities and shareholders’ equity	$	3,829,712	$	4,035,405


	June 30, 2022		March 31, 2022
Accounts receivable, net:
Accounts receivable	$	961,266	$	964,766
Allowance for doubtful accounts	(174)		(2,212)
Allowance for sales returns	(9,779)		(12,321)
Allowance for cooperative marketing arrangements	(47,025)		(56,372)
Allowance for customer incentive programs	(95,215)		(97,460)
Allowance for pricing programs	(102,187)		(120,797)
	$	706,886	$	675,604
Inventories:
Raw materials	$	243,780	$	226,155
Finished goods	673,576		706,969
	$	917,356	$	933,124
Other current assets:
Value-added tax ("VAT") receivables	$	44,018	$	58,850
Prepaid expenses and other assets	82,671		76,628
	$	126,689	$	135,478
Property, plant and equipment, net:
Property, plant and equipment	$	477,941	$	459,413
Less: accumulated depreciation and amortization	(365,701)		(349,606)
	$	112,240	$	109,807
Other assets:
Deferred tax assets	$	187,544	$	193,629
Investments in privately held companies	56,512		43,068
Right-of-use assets	41,422		40,661
Investments for deferred compensation plan	28,310		28,431
Other assets	15,067		14,933
	$	328,855	$	320,722


	June 30, 2022		March 31, 2022
Accrued and other current liabilities:
Accrued customer marketing, pricing and incentive programs	$	214,342	$	232,393
Accrued personnel expenses	115,168		165,090
Accrued sales return liability	43,737		40,507
Warranty accrual	31,368		32,987
Accrued payables - non-inventory	20,661		26,722
VAT payable	20,443		39,602
Income taxes payable	19,239		35,355

Operating lease liabilities	13,121		13,690

Contingent consideration	12,013		8,042
Other current liabilities	203,692		190,460
	$	693,784	$	784,848
Other non-current liabilities:
Employee benefit plan obligations	$	48,604	$	50,741
Operating lease liabilities	28,873		28,207
Obligation for deferred compensation plan	28,310		28,431
Warranty accrual	12,473		13,232
Deferred tax liabilities	3,154		1,962
Contingent consideration	1,388		4,217
Other non-current liabilities	8,898		5,343
	$	131,700	$	132,133


	June 30, 2022						March 31, 2022
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	665,410	$	—	$	—	$	762,055	$	—	$	—

Investments for deferred compensation plan included in other assets:
Cash	$	138	$	—	$	—	$	108	$	—	$	—
Common stock	1,631		—		—		2,329		—		—
Money market funds	7,991		—		—		6,765		—		—
Mutual funds	18,550		—		—		19,229		—		—
Total of investments for deferred compensation plan	$	28,310	$	—	$	—	$	28,431	$	—	$	—

Currency derivative assets included in other current assets	$	—	$	3,147	$	—	$	—	$	1,517	$	—

Liabilities:
Contingent consideration included in accrued and other current liabilities	$	—	$	—	$	12,013	$	—	$	—	$	8,042
Contingent consideration included in other non-current liabilities	$	—	$	—	$	1,142	$	—	$	—	$	3,971
Currency derivative liabilities included in accrued and other current liabilities	$	—	$	160	$	—	$	—	$	165	$	—


	Three Months Ended June 30,
	Amount of Gain Deferred as a Component of Accumulated Other Comprehensive Loss				Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold
	2022		2021		2022		2021

Cash flow hedges	$	6,629	$	530	$	(2,091)	$	(594)


As of March 31, 2022	$	448,175

Acquisition	4,980
Effects of foreign currency translation	(1,946)
As of June 30, 2022	$	451,209


	June 30, 2022						March 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademark and trade names	$	36,790	$	(23,470)	$	13,320	$	36,790	$	(22,295)	$	14,495
Developed technology	122,075		(86,631)		35,444		119,407		(83,540)		35,867
Customer contracts/relationships	71,110		(42,612)		28,498		71,110		(40,971)		30,139
In-process R&D	3,526		—		3,526		3,826		—		3,826
Effects of foreign currency translation	(1,183)		215		(968)		(634)		86		(548)
Total	$	232,318	$	(152,498)	$	79,820	$	230,499	$	(146,720)	$	83,779



	Cumulative Translation Adjustment		Defined Benefit Plans		Deferred Hedging Gains		Total
March 31, 2022	$	(102,461)	$	(3,495)	$	1,833	$	(104,123)
Other comprehensive income (loss)	(21,220)		(29)		4,538		(16,711)
June 30, 2022	$	(123,681)	$	(3,524)	$	6,371	$	(120,834)


	June 30, 2022		March 31, 2022
Americas	$	20,198	$	22,578
EMEA	26,903		23,830
Asia Pacific	88,704		87,265
Total	$	135,805	$	133,673


	Sales Growth Rate		Constant Dollar Sales Growth Rate

Americas	(18)	%		(18)	%
EMEA	(19)	%		(12)	%
Asia Pacific	7	%		11	%


	Three Months Ended June 30,
	2022		2021
Pointing Devices	$	183,283	$	182,878
Keyboards & Combos	227,720		218,357
PC Webcams	59,386		109,918
Tablet & Other Accessories	66,585		79,272
Gaming (1)	282,806		335,397
Video Collaboration	246,242		234,885
Mobile Speakers	22,310		28,484
Audio & Wearables	69,446		116,607

Other (2)	2,087		6,260
Total Sales	$	1,159,865	$	1,312,058


	Three Months Ended June 30,
	2022		2021		Change
Pointing Devices	$	183,283	$	182,878	—	%
Keyboards & Combos	227,720		218,357		4
PC Webcams	59,386		109,918		(46)
Tablet & Other Accessories	66,585		79,272		(16)
Gaming (1)	282,806		335,397		(16)
Video Collaboration	246,242		234,885		5
Mobile Speakers	22,310		28,484		(22)
Audio & Wearables	69,446		116,607		(40)
Other (2)	2,087		6,260		(67)


Total Sales	$	1,159,865	$	1,312,058	(12)	%


	Three Months Ended June 30,
	2022	2021
Days sales in accounts receivable (“DSO”) (Days) (1)	55	37
Days accounts payable outstanding (“DPO”) (Days) (2)	72	86
Inventory turnover (“ITO”) (x)(3)	3.1	3.8


	Total Number of Shares Repurchased	Weighted Average Price Paid Per Share			Remaining Amount that May Yet Be Repurchased under the Program
During the three months ended June 30, 2022		CHF (LOGN)	USD (LOGI)
Month 1
April 1, 2022 to April 29, 2022
SIX	477	66.68	$	—	$	389,818
Nasdaq	26		69.32		388,051
Month 2
April 30, 2022 to May 27, 2022
SIX	578	59.70			352,990
Nasdaq	31		64.68		350,991
Month 3
May 28, 2022 to July 1, 2022
SIX	827	53.5			305,643
Nasdaq	42		59.65		303,149
	1,980	58.88	$	60.87	$	303,149


	As of June 30,
	2022		2021
Accounts receivable, net	$	706,886	$	545,907
Accounts payable	$	558,983	$	709,741
Inventories	$	917,356	$	778,596


Exhibit No.		Description

10.1	**	Representative form of restricted stock unit agreement (Leadership Team and other employees) under the Logitech International S.A. 2006 Stock Incentive Plan

10.2	**	Representative form of performance share unit agreement (Group Management Team (executive officers), Leadership Team and other employees) under the Logitech International S.A. 2006 Stock Incentive Plan

31.1		Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.

31.2		Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.

32.1	*	Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.

101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF		XBRL Taxonomy Definition Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


									LOGITECH INTERNATIONAL S.A.


July 28, 2022									/s/ Bracken Darrell
Date									Bracken Darrell
									President and Chief Executive Officer



July 28, 2022									/s/ Nate Olmstead
Date									Nate Olmstead
									Chief Financial Officer


The Participant hereby explicitly, voluntarily and unambiguously consents to the collection, use and transfer, in electronic or other form, of his or her personal data as described in this Agreement and any other grant materials by and among, as applicable, the Employer, the Company and any of its other Subsidiaries or Affiliates or any third parties authorised by the same in assisting in the implementation, administration and management of the Participant’s participation in the Plan. The Participant understands that the Company and the Employer may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, email address, date of birth, social insurance number, passport or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, the fact and conditions of the Participant’s participation in the Plan, details of all Restricted Stock Units or any other entitlement to Shares awarded, cancelled, exercised, vested, unvested or outstanding in the Participant’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan. The source of the Data is the Participant’s Employer as well as information which the Participant is providing to the Company and the Employer in connection with the Plan including this Appendix.			Peserta dengan ini secara eksplisit, sukarela dan tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronik atau lain-lain, data peribadinya seperti yang diterangkan dalam Perjanjian dan apa-apa bahan geran oleh dan di antara, seperti mana yang terpakai, Majikan, Syarikat dan mana-mana Anak Syarikat yang lain atau Syarikat Sekutu atau mana-mana pihak ketiga yang diberi kuasa oleh yang sama dalam membantu dalam pelaksanaan, pentadbiran dan pengurusan penyertaan Peserta dalam Pelan. Peserta memahami bahawa Syarikat dan Majikan mungkin memegang maklumat peribadi tertentu tentang Peserta, termasuk, tetapi tidak terhad kepada, nama Peserta, alamat rumah dan nombor telefon, alamat emel, tarikh lahir, nombor insurans sosial, passport atau nombor pengenalan lain, gaji, kewarganegaraan, jawatan, apa-apa saham atau jawatan pengarah yang dipegang dalam Syarikat, fakta dan syarat-syarat mengenai penyertaan Peserta dalam Pelan, butir-butir tentang semua Unit-unit Saham Terbatas atau apa-apa hak lain untuk Saham yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak hak ataupun yang belum dijelaskan bagi faedah Peserta (“Data”), untuk tujuan ekslusif bagi melaksanakan, mentadbir dan menguruskan Pelan tersebut. Sumber Data adalah daripada Majikan Peserta dan juga maklumat dimana Peserta menyediakan kepada Syarikat dan Majikan berhubung dengan Pelan tersebut termasuk Lampiran ini.


The Participant also authorizes any transfer of Data, as may be required, to Equatex AG, Equatex US Inc. or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan and/or with whom any Shares acquired upon vesting of the Restricted Stock Units are deposited. The Participant acknowledges that these recipients may be located in the Participant’s country or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections to the Participant’s country, which may not give the same level of protection to Data. The Participant understands that the Participant may request a list with the names and addresses of any potential recipients of Data by contacting the Participant’s local human resources representative. The Participant authorizes the Company, Equatex AG, Equatex US Inc. and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Participant’s participation in the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant understands that he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case, without cost, by contacting in writing the Participant’s local human resources representative, whose contact details are Director of People and Culture Asia Pacific at peopleconnect@logitech.com.			Peserta juga memberi kuasa mengenai apa-apa pemindahan Data, yang mungkin diperlukan, kepada Equatex AG, Equatex US Inc. atau pembekal perkhidmatan pelan saham yang mungkin dipilih oleh Syarikat pada masa depan, yang membantu Syarikat dengan pelaksanaan, pentadbiran dan pengurusan Pelan dan/atau dengan siapa sahaja Saham yang diperolehi semasa peletakan hak Unit-unit Saham Terbatas didepositkan. Peserta memaklumkan bahawa penerima-penerima ini mungkin berada di negara Peserta atau mana-mana tempat lain, dan bahawa negara penerima (contohnya di Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan perlindungan yang berbeza dengan negara Peserta, dimana mungkin tidak memberi tahap perlindungan Data yang sama. Peserta memahami bahawa Peserta boleh meminta satu senarai yang mengandungi nama dan alamat penerima-penerima Data yang berpotensi dengan menghubungi wakil sumber manusia tempatan Peserta. Peserta memberi kuasa kepada Syarikat, Equatex AG, Equatex US Inc. dan mana-mana penerima-penerima lain yang mungkin membantu Syarikat (pada masa sekarang atau pada masa depan) dengan melaksanakan, mentadbir dan mengurus penyertaan Peserta dalam Pelan untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir dan menguruskan penyertaan Peserta dalam Pelan. Peserta memahami bahawa Data hanya akan disimpan untuk tempoh yang perlu bagi melaksanakan, mentadbir dan menguruskan penyertaan Peserta dalam Pelan. Peserta memahami bahawa dia boleh, pada bila-bila masa, melihat Data, meminta maklumat tambahan mengenai penyimpanan dan pemprosesan Data, meminta bahawa pindaan-pindaan dilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakil sumber manusia tempatan Peserta, dimana butir-butir hubungan adalah Director of People and Culture Asia Pacific di peopleconnect@logitech.


Further, the Participant understands that he or she is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke consent, the Participant’s employment status or service and career with the Company and/or the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing consent is that the Company would not be able to grant future Restricted Stock Units or other equity awards to the Participant or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.			Selanjutnya, Peserta memahami bahawa dia telah memberikan persetujuan di sini secara sukarela. Jika Peserta tidak bersetuju, atau jika Peserta kemudian membatalkan persetujuan, status pekerjaan atau perkhidmatan dan kerjaya Peserta dengan Syarikat dan / atau Majikan tidak akan terjejas; satu-satunya akibat buruk jika tidak bersetuju atau menarik balik persetujuan adalah bahawa Syarikat tidak akan dapat memberikan Unit-unit Saham Terbatas atau anugerah ekuiti yang lain kepada Peserta pada masa hadapan atau mentadbir atau mengekalkan anugerah tersebut. Oleh itu, Peserta memahami bahawa keengganan atau penarikan balik persetujuan boleh menjejaskan keupayaan Peserta untuk mengambil bahagian dalam Pelan. Untuk maklumat lanjut mengenai akibat keengganan Peserta untuk memberikan persetujuan atau penarikan balik persetujuan, Peserta memahami bahawa dia boleh menghubungi wakil sumber manusia tempatanny




						July 28, 2022

						/s/ Bracken Darrell
						Bracken Darrell President and Chief Executive Officer




						July 28, 2022

						/s/ Nate Olmstead
						Nate Olmstead Chief Financial Officer