[October 24, 2012] |
|
Logitech Announces Second Quarter Results for FY 2013
NEWARK, Calif. & MORGES, Switzerland --(Business Wire)--
Logitech International (SIX: LOGN) (NASDAQ: LOGI) today announced
financial results for the second quarter of Fiscal Year 2013.
Sales for Q2 FY 2013 were $548 million, down 7 percent from $589 million
in Q2 FY 2012. Excluding the unfavorable impact of exchange rates, sales
were down 4 percent compared to the same quarter in the prior year.
Operating income was $24 million, up 3 percent from operating income of
$23 million in the same quarter a year ago. Net income for Q2 FY 2013
was $55 million ($0.35 per share) compared to net income of $17 million
($0.10 per share) in Q2 FY 2012. Net income for Q2 FY 2013 includes a
net tax benefit of $32 million from the closure of an income tax audit.
Gross margin for the quarter was 35.8 percent, compared to 33.7 percent
in the same quarter one year ago.
Logitech's retail sales for Q2 FY 2013 decreased by 5 percent year over
year, down 3 percent in EMEA, 6 percent in the Americas and 7 percent in
Asia. OEM sales decreased by 27 percent. Sales for the LifeSize division
decreased by 7 percent.
"In Q2, the PC market weakened more significantly than anticipated, in
advance of the launch of Windows 8," said Guerrino De Luca, Logitech
chairman and chief executive officer. "This factor, as well as a general
slowdown in emerging markets, negatively impacted our Q2 sales. Despite
this environment, we executed effectively during the quarter, improving
our gross margin and operating results. We also recently launched
compelling new products for tablets, smartphones, the digital home, Macs
and Windows 8 PCs in time for the holiday season.
"Looking ahead, given the uncertainty in the PC market, we are now
planning for continued strong headwinds in all of our PC-related
categories for the remainder of the fiscal year. We expect this weakness
to more than offset the positive impact of our new product launches, and
consequently, we now anticipate our sales and operating income for the
second half of FY 2013 will be below that of the second half of the
prior fiscal year. In addition to managing our spending in line with the
current environment, we are also in the process of reassessing the
strategy within each of our PC-related product categories to deliver
improved performance."
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results
teleconference available online on the Logitech corporate Web site at http://ir.logitech.com.
The remarks are posted in the Calendar section on the Investor home page.
Financial Results Teleconference and Webcast
Logitech will hold a financial results teleconference to discuss the
results for Q2 FY 2013 on Thursday, Oct. 25, 2012 at 8:30 a.m. Eastern
Daylight Time and 14:30 Central European Summer Time. A live webcast of
the call will be available on the Logitech corporate website at http://ir.logitech.com.
About Logitech
Logitech is a world leader in products that connect people to the
digital experiences they care about. Spanning multiple computing,
communication and entertainment platforms, Logitech's combined hardware
and software enable or enhance digital navigation, music and video
entertainment, gaming, social networking, audio and video communication
over the Internet, video security and home-entertainment control.
Founded in 1981, Logitech International is a Swiss public company listed
on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market
(LOGI).
This press release contains forward-looking statements within the
meaning of the federal securities laws, including, without limitation,
statements regarding: our outlook for the remainder of FY 2013,
year-over-year financial performance for the second half of FY 2013, our
strategy within our product categories, and our ability to deliver
improved financial performance. The forward-looking statements in this
release involve risks and uncertainties that could cause Logitech's
actual results and events to differ materially from those anticipated in
these forward-looking statements, including, without limitation: if our
product offerings, marketing activities and investment prioritization
decisions do not result in the sales, profitability or profitability
growth we expect, or when we expect it; the demand of our customers and
our consumers for our products and our ability to accurately forecast
it; if we fail to innovate and develop new products in a timely and
cost-effective manner for our new and existing product categories; if we
do not successfully execute on our growth opportunities in our new
product categories and sales in emerging market geographies; if sales of
PC peripherals in mature markets are less than we expect; the effect of
pricing, product, marketing and other initiatives by our competitors,
and our reaction to them, on our sales, gross margins and profitability;
if our products and marketing strategies fail to separate our products
from competitors' products; if there is a deterioration of business and
economic conditions in one or more of our sales regions or operating
segments, or significant fluctuations in exchange rates; if the
restructuring fails to produce the intended performance and cost savings
results or is not implemented in the contemplated timeframe; if the
reassessment of strategy within the PC-related product categories fails
to deliver improved financial performance. A detailed discussion of
these and other risks and uncertainties that could cause actual results
and events to differ materially from such forward-looking statements is
included in Logitech's periodic filings with the Securities and Exchange
Commission, including our Quarterly Report on Form 10-Q for the fiscal
quarter ended June 30, 2012 and our Annual Report on Form 10-K for the
fiscal year ended March 31, 2012, available at www.sec.gov.,
under the caption Risk Factors and elsewhere. Logitech does not
undertake any obligation to update any forward-looking statements to
reflect new information or events or circumstances occurring after the
date of this press release.
Logitech, the Logitech logo, and other Logitech marks are registered in
Switzerland and other countries. All other trademarks are the property
of their respective owners. For more information about Logitech and its
products, visit the company's Web site at www.logitech.com.
LOGITECH INTERNATIONAL S.A.
|
(In thousands, except per share amounts) - Unaudited
|
|
|
|
|
|
|
|
Quarter Ended September 30,
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
2012
|
|
2011
|
|
|
|
|
|
Net sales
|
|
$
|
547,693
|
|
|
$
|
589,204
|
|
Cost of goods sold
|
|
|
351,698
|
|
|
|
390,783
|
|
Gross profit
|
|
|
195,995
|
|
|
|
198,421
|
|
% of net sales
|
|
|
35.8
|
%
|
|
|
33.7
|
%
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Marketing and selling
|
|
|
110,522
|
|
|
|
107,446
|
|
Research and development
|
|
|
38,019
|
|
|
|
39,491
|
|
General and administrative
|
|
|
25,980
|
|
|
|
27,989
|
|
Restructuring charges (credits), net
|
|
|
(2,671
|
)
|
|
|
-
|
|
Total operating expenses
|
|
|
171,850
|
|
|
|
174,926
|
|
|
|
|
|
|
Operating income
|
|
|
24,145
|
|
|
|
23,495
|
|
|
|
|
|
|
Interest income, net
|
|
|
153
|
|
|
|
601
|
|
Other expense, net
|
|
|
(509
|
)
|
|
|
(1,763
|
)
|
|
|
|
|
|
Income before income taxes
|
|
|
23,789
|
|
|
|
22,333
|
|
Provision for (benefit from) income taxes
|
|
|
(31,076
|
)
|
|
|
4,888
|
|
|
|
|
|
|
Net income
|
|
$
|
54,865
|
|
|
$
|
17,445
|
|
|
|
|
|
|
Shares used to compute net income per share:
|
|
|
|
|
Basic
|
|
|
156,736
|
|
|
|
176,878
|
|
Diluted
|
|
|
157,932
|
|
|
|
177,277
|
|
Net income per share:
|
|
|
|
|
Basic
|
|
$
|
0.35
|
|
|
$
|
0.10
|
|
Diluted
|
|
$
|
0.35
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
(In thousands, except per share amounts) - Unaudited
|
|
|
|
|
|
|
|
Six Months Ended September 30,
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
2012
|
|
2011
|
|
|
|
|
|
Net sales
|
|
$
|
1,016,297
|
|
|
$
|
1,069,645
|
|
Cost of goods sold
|
|
|
676,050
|
|
|
|
745,617
|
|
Gross profit
|
|
|
340,247
|
|
|
|
324,028
|
|
% of net sales
|
|
|
33.5
|
%
|
|
|
30.3
|
%
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Marketing and selling
|
|
|
211,419
|
|
|
|
207,239
|
|
Research and development
|
|
|
76,947
|
|
|
|
79,472
|
|
General and administrative
|
|
|
58,460
|
|
|
|
58,854
|
|
Restructuring charges
|
|
|
28,556
|
|
|
|
-
|
|
Total operating expenses
|
|
|
375,382
|
|
|
|
345,565
|
|
|
|
|
|
|
Operating loss
|
|
|
(35,135
|
)
|
|
|
(21,537
|
)
|
|
|
|
|
|
Interest income, net
|
|
|
537
|
|
|
|
1,291
|
|
Other income (expense), net
|
|
|
(668
|
)
|
|
|
3,428
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
(35,266
|
)
|
|
|
(16,818
|
)
|
Benefit from income taxes
|
|
|
(37,986
|
)
|
|
|
(4,657
|
)
|
|
|
|
|
|
Net income (loss)
|
|
$
|
2,720
|
|
|
$
|
(12,161
|
)
|
|
|
|
|
|
Shares used to compute net income (loss) per share:
|
|
|
|
|
Basic
|
|
|
158,723
|
|
|
|
178,111
|
|
Diluted
|
|
|
159,853
|
|
|
|
178,111
|
|
Net income (loss) per share:
|
|
|
|
|
Basic
|
|
$
|
0.02
|
|
|
$
|
(0.07
|
)
|
Diluted
|
|
$
|
0.02
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
September 30, 2012
|
|
|
March 31, 2012
|
|
|
September 30, 2011
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
|
(Unaudited)
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
237,033
|
|
|
$
|
478,370
|
|
|
$
|
379,450
|
Accounts receivable
|
|
|
284,451
|
|
|
|
223,104
|
|
|
|
294,691
|
Inventories
|
|
|
321,307
|
|
|
|
297,072
|
|
|
|
325,053
|
Other current assets
|
|
|
69,016
|
|
|
|
65,990
|
|
|
|
85,004
|
Total current assets
|
|
|
911,807
|
|
|
|
1,064,536
|
|
|
|
1,084,198
|
Non-Current assets
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
93,854
|
|
|
|
94,884
|
|
|
|
78,416
|
Goodwill
|
|
|
561,080
|
|
|
|
560,523
|
|
|
|
560,343
|
Other intangible assets
|
|
|
41,108
|
|
|
|
53,518
|
|
|
|
66,693
|
Other assets
|
|
|
84,563
|
|
|
|
83,033
|
|
|
|
74,053
|
Total assets
|
|
$
|
1,692,412
|
|
|
$
|
1,856,494
|
|
|
$
|
1,863,703
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
368,509
|
|
|
$
|
301,111
|
|
|
$
|
342,070
|
Accrued liabilities
|
|
|
190,234
|
|
|
|
186,680
|
|
|
|
187,017
|
Total current liabilities
|
|
|
558,743
|
|
|
|
487,791
|
|
|
|
529,087
|
Non-current liabilities
|
|
|
187,372
|
|
|
|
218,462
|
|
|
|
185,277
|
Total liabilities
|
|
|
746,115
|
|
|
|
706,253
|
|
|
|
714,364
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
946,297
|
|
|
|
1,150,241
|
|
|
|
1,149,339
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,692,412
|
|
|
$
|
1,856,494
|
|
|
$
|
1,863,703
|
|
|
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
(In thousands) - Unaudited
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
54,865
|
|
|
$
|
17,445
|
|
Non-cash items included in net income:
|
|
|
|
|
Depreciation
|
|
|
11,155
|
|
|
|
11,421
|
|
Amortization of other intangible assets
|
|
|
6,025
|
|
|
|
6,926
|
|
Share-based compensation expense
|
|
|
7,266
|
|
|
|
6,738
|
|
Excess tax benefits from share-based compensation
|
|
|
(17
|
)
|
|
|
(6
|
)
|
Deferred income taxes and other
|
|
|
(2,751
|
)
|
|
|
5,147
|
|
Changes in assets and liabilities, net of acquisitions:
|
|
|
|
|
Accounts receivable
|
|
|
(64,849
|
)
|
|
|
(55,614
|
)
|
Inventories
|
|
|
(42,178
|
)
|
|
|
(4,806
|
)
|
Other assets
|
|
|
(7,372
|
)
|
|
|
(871
|
)
|
Accounts payable
|
|
|
106,283
|
|
|
|
15,742
|
|
Accrued liabilities
|
|
|
(52,276
|
)
|
|
|
(4,232
|
)
|
Net cash provided by (used in) operating activities
|
|
|
16,151
|
|
|
|
(2,110
|
)
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
(10,901
|
)
|
|
|
(10,360
|
)
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
(18,814
|
)
|
Investment in privately-held company
|
|
|
(3,970
|
)
|
|
|
-
|
|
Purchases of trading investments
|
|
|
(251
|
)
|
|
|
(991
|
)
|
Proceeds from sales of trading investments
|
|
|
253
|
|
|
|
1,022
|
|
Net cash used in investing activities
|
|
|
(14,869
|
)
|
|
|
(29,143
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Payment of cash dividends
|
|
|
(133,462
|
)
|
|
|
-
|
|
Purchases of treasury shares
|
|
|
-
|
|
|
|
(73,134
|
)
|
Proceeds from sale of shares upon exercise of options and purchase
rights
|
|
|
8,604
|
|
|
|
9,157
|
|
Tax withholdings related to net share settlements of restricted
stock units
|
|
|
(465
|
)
|
|
|
(9
|
)
|
Excess tax benefits from share-based compensation
|
|
|
17
|
|
|
|
6
|
|
Net cash used in financing activities
|
|
|
(125,306
|
)
|
|
|
(63,980
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
320
|
|
|
|
(1,684
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(123,704
|
)
|
|
|
(96,917
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
360,737
|
|
|
|
476,367
|
|
Cash and cash equivalents at end of period
|
|
$
|
237,033
|
|
|
$
|
379,450
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
(In thousands) - Unaudited
|
|
|
|
|
|
|
|
Six Months Ended September 30,
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income (loss)
|
|
$
|
2,720
|
|
|
$
|
(12,161
|
)
|
Non-cash items included in net income (loss):
|
|
|
|
|
Depreciation
|
|
|
22,307
|
|
|
|
24,593
|
|
Amortization of other intangible assets
|
|
|
12,257
|
|
|
|
13,556
|
|
Inventory valuation adjustment
|
|
|
-
|
|
|
|
34,074
|
|
Share-based compensation expense
|
|
|
13,437
|
|
|
|
16,453
|
|
Gain on disposal of property and plant
|
|
|
-
|
|
|
|
(4,904
|
)
|
Gain on sale of investments
|
|
|
(831
|
)
|
|
|
-
|
|
Excess tax benefits from share-based compensation
|
|
|
(22
|
)
|
|
|
(30
|
)
|
Deferred income taxes and other
|
|
|
(3,806
|
)
|
|
|
(8,554
|
)
|
Changes in assets and liabilities, net of acquisitions:
|
|
|
|
|
Accounts receivable
|
|
|
(58,272
|
)
|
|
|
(36,517
|
)
|
Inventories
|
|
|
(30,733
|
)
|
|
|
(59,589
|
)
|
Other assets
|
|
|
(7,339
|
)
|
|
|
(6,886
|
)
|
Accounts payable
|
|
|
68,875
|
|
|
|
45,088
|
|
Accrued liabilities
|
|
|
(9,498
|
)
|
|
|
(3,489
|
)
|
Net cash provided by operating activities
|
|
|
9,095
|
|
|
|
1,634
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
(30,522
|
)
|
|
|
(20,921
|
)
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
(18,814
|
)
|
Investment in privately-held company
|
|
|
(3,970
|
)
|
|
|
-
|
|
Proceeds from sale of property and plant
|
|
|
-
|
|
|
|
4,904
|
|
Proceeds from sale of available-for-sale securities
|
|
|
917
|
|
|
|
-
|
|
Purchases of trading investments
|
|
|
(1,648
|
)
|
|
|
(4,536
|
)
|
Proceeds from sales of trading investments
|
|
|
1,638
|
|
|
|
4,522
|
|
Net cash used in investing activities
|
|
|
(33,585
|
)
|
|
|
(34,845
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Payment of cash dividends
|
|
|
(133,462
|
)
|
|
|
-
|
|
Purchases of treasury shares
|
|
|
(89,955
|
)
|
|
|
(73,134
|
)
|
Proceeds from sale of shares upon exercise of options and purchase
rights
|
|
|
9,008
|
|
|
|
9,764
|
|
Tax withholdings related to net share settlements of restricted
stock units
|
|
|
(635
|
)
|
|
|
(185
|
)
|
Excess tax benefits from share-based compensation
|
|
|
22
|
|
|
|
30
|
|
Net cash used in financing activities
|
|
|
(215,022
|
)
|
|
|
(63,525
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(1,825
|
)
|
|
|
(1,745
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(241,337
|
)
|
|
|
(98,481
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
478,370
|
|
|
|
477,931
|
|
Cash and cash equivalents at end of period
|
|
$
|
237,033
|
|
|
$
|
379,450
|
|
|
|
|
|
|
LOGITECH INTERNATIONAL S.A.
|
|
|
|
|
|
|
|
|
(In thousands, except per share amounts) - Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
|
|
September 30,
|
|
September 30,
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$
|
11,155
|
|
|
$
|
11,421
|
|
|
$
|
22,307
|
|
|
$
|
24,593
|
|
Amortization of other intangible assets
|
|
|
6,025
|
|
|
|
6,926
|
|
|
|
12,257
|
|
|
|
13,556
|
|
Operating income (loss)
|
|
|
24,145
|
|
|
|
23,495
|
|
|
|
(35,135
|
)
|
|
|
(21,537
|
)
|
Operating income (loss) before depreciation and amortization
|
|
|
41,325
|
|
|
|
41,842
|
|
|
|
(571
|
)
|
|
|
16,612
|
|
Capital expenditures
|
|
|
10,901
|
|
|
|
10,360
|
|
|
|
30,522
|
|
|
|
20,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales by channel:
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
476,479
|
|
|
$
|
501,735
|
|
|
$
|
871,580
|
|
|
$
|
896,511
|
|
OEM
|
|
|
36,718
|
|
|
|
50,261
|
|
|
|
73,393
|
|
|
|
99,439
|
|
LifeSize
|
|
|
34,496
|
|
|
|
37,208
|
|
|
|
71,324
|
|
|
|
73,695
|
|
Total net sales
|
|
$
|
547,693
|
|
|
$
|
589,204
|
|
|
$
|
1,016,297
|
|
|
$
|
1,069,645
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales by product family(**):
|
|
|
|
|
|
|
|
|
Retail - Pointing Devices
|
|
$
|
122,490
|
|
|
$
|
133,165
|
|
|
$
|
238,217
|
|
|
$
|
254,914
|
|
Retail - Keyboards & Desktops
|
|
|
130,806
|
|
|
|
109,325
|
|
|
|
241,251
|
|
|
|
203,921
|
|
Retail - Audio
|
|
|
109,831
|
|
|
|
126,967
|
|
|
|
199,878
|
|
|
|
204,640
|
|
Retail - Video
|
|
|
47,352
|
|
|
|
57,276
|
|
|
|
84,232
|
|
|
|
106,862
|
|
Retail - Gaming
|
|
|
47,302
|
|
|
|
47,836
|
|
|
|
74,576
|
|
|
|
85,003
|
|
Retail - Digital Home
|
|
|
18,698
|
|
|
|
27,166
|
|
|
|
33,426
|
|
|
|
41,171
|
|
Total net retail sales
|
|
$
|
476,479
|
|
|
$
|
501,735
|
|
|
$
|
871,580
|
|
|
$
|
896,511
|
|
|
|
|
|
|
|
|
|
|
__________________
|
|
|
|
|
|
|
|
|
** Certain products within the retail product families as
presented in prior years have been reclassified to conform to the
current year presentation, with no impact on previously reported
total net retail sales.
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
|
|
September 30,
|
|
September 30,
|
Share-based Compensation Expense (*)
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$
|
608
|
|
|
$
|
950
|
|
|
$
|
1,397
|
|
|
$
|
2,110
|
|
Marketing and selling
|
|
|
2,644
|
|
|
|
3,448
|
|
|
|
4,424
|
|
|
|
6,965
|
|
Research and development
|
|
|
1,763
|
|
|
|
1,754
|
|
|
|
3,588
|
|
|
|
3,562
|
|
General and administrative
|
|
|
2,251
|
|
|
|
586
|
|
|
|
4,028
|
|
|
|
3,816
|
|
Income tax benefit
|
|
|
(1,671
|
)
|
|
|
(2,276
|
)
|
|
|
(3,047
|
)
|
|
|
(4,665
|
)
|
Total share-based compensation expense after income taxes
|
|
$
|
5,595
|
|
|
$
|
4,462
|
|
|
$
|
10,390
|
|
|
$
|
11,788
|
|
|
|
|
|
|
|
|
|
|
__________________
|
|
|
|
|
|
|
|
|
* Share-based compensation expense for the quarter ended September
30, 2012 and six months ended September 30, 2012 includes a
reduction of $0.6m and $2.2m in expense applicable to employees
terminated as a result of the restructuring plan announced in April
2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant dollar sales (sales excluding
impact of exchange rate changes)
|
|
|
We refer to our net sales excluding the impact of foreign currency
exchange rates as constant dollar sales. Constant dollar sales are
a non-GAAP financial measure, which is information derived from
consolidated financial information but not presented in our
financial statements prepared in accordance with U.S. GAAP. Our
management uses these non-GAAP measures in its financial and
operational decision-making, and believes these non-GAAP measures,
when considered in conjunction with the corresponding GAAP
measures, facilitate a better understanding of changes in net
sales. Constant dollar sales are calculated by translating prior
period sales in each local currency at the current period's
average exchange rate for that currency.
|
|
|
|
|
|
|
|
|
|
|
|
(LOGIIR)
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