Logitech International unveiled its financial performance for the second quarter of Fiscal Year 2024, showcasing resilience amidst market challenges. The company reported sales of $1.06 billion, a decrease of 8% in US dollars compared to the previous year. However, it’s not all gloomy as the firm saw a substantial increase in operating income and earnings per share (EPS).
The GAAP operating income stood at $157 million, marking a 23% rise, while the Non-GAAP operating income reached $183 million, a 17% increase from the prior year. This growth was attributed to a 9% reduction in operating expenses aligning with the decline in net sales. The GAAP EPS soared by 72% to $0.86, and the Non-GAAP EPS rose by 30% to $1.09.
Cash flow from operations was another highlight, catapulting to $223 million, a significant $150 million hike compared to the previous year. The quarter-ending cash balance was robust at $1.16 billion. Logitech continued its shareholder value creation by returning $276 million through annual dividend payment and share repurchases.
Logitech’s interim CEO, Guy Gecht, applauded the team for their exemplary execution during the quarter, which he said showcased the underlying potential of the business. The quarter saw 16 new product introductions, reflecting the company’s design-led innovation approach.
On the financial front, Chuck Boynton, Logitech’s CFO, acknowledged the revenue dip but emphasized the expanded gross margins of 42.0% and operating margins of 17.3%. Through prudent operational execution and working capital management, the company generated a substantial operating cash flow and returned value to shareholders.
Looking ahead, Logitech has raised its full-year outlook for FY 2024, now projecting sales to range between $4.0 – $4.15 billion and Non-GAAP operating income to fall between $525 – $575 million. This optimistic revision comes after Logitech surpassed its H1 2024 outlook with sales of $2.032 billion and Non-GAAP operating income of $292 million.
In parallel, the company has been actively engaged in a global CEO search over the last four months, led by the board of directors under Wendy Becker. The search, which encompasses internal and external candidates across various industries and geographies, is moving closer to finalizing a decision.
This quarterly performance and the upbeat full-year outlook reflect Logitech’s strong positioning and its ability to navigate through market headwinds. With a focus on cost discipline, customer-centricity, and innovative product introductions, Logitech remains poised to continue its momentum in the competitive tech market.