Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LOGITECH INTERNATIONAL-REG. We currently have 9 research reports from 1 professional analysts.
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Strong operating performance in Q2 16/17
26 Oct 16
The company reported strong Q2 16/17 results ending in September. Revenues increased 14% to US$564m on an adjusted basis. In December 2015, management separated out the Lifesize division and the OEM business from the company with total revenues of US$43.6m. Therefore all reported numbers are based on results from continuing operations. Including the Lifesize business, revenues increased 4.5% and the gross margin improved from 34.5% to 36.9%. EBIT jumped 105.3% to US$52.7m compared to US$25.7m in Q2 15 including losses from discontinued operations of US$12.36m. The EBIT margin improved from 4.8% to 9.3% and the adjusted EBIT margin increased from 7.5% to 11.4%. The share-based compensation alone contributed US$8.5m (+39.4%) to total adjustments.
Strong start in Q1 16/17
02 Aug 16
In Q1 16/17 ending in June, revenues increased 2% to US$479.9m (adjusted excluding LifeSize +7%). The gross margin declined from 36.5% to 35.5%. EBIT jumped 271% to US$25.9m and the EBIT margin increased from 1.5% to 5.4%. The company reported an EBIT margin decline from 8% to 7.9%. This EBIT margin, however, is based on adjusted Non-GAAP related figures. Also the Non-GAAP net income increase 6% to US$33m. In reality, net income increased 138% to US$21.9m, still reflecting the solid improvement in the operating performance. Revenues in the Americas increased by 7% to US$223m, in the EMEA region 24% to US$143m and in Asia Pacific 12% to US$114m with strong business in China. Management also experienced strong revenue growth of 24% in EMEA with double-digit gains in all major product groups.
28 Apr 16
Logitech reported Q4 results ending in March. Revenues declined 3% to US$431m, however, excluding OEM revenues, retail sales increased by 4% and 6% at cc to US$431m. The operating income jumped 22% to US$22m and the EBIT margin increased from 4.1% to 5.2%. The gross margin improved further by 90bp to 33.1% and operating expenses declined by 3%. Revenues in the Americas declined by 9% to US$162m but grew in EMEA by 17% and Asia Pacific by 9%. Revenues in the Americas were negatively impacted by lower mobile speaker sales, which declined 39% to US$24m. The weak performance in Q4 15/16 might also indicate that the growth story for mobile speakers is over. Video collaboration revenues jumped 35% and gaming 19% in Q4 15/16. In the financial year 2015/16, revenues grew 1% (at constant currency +9%) to US%2.02bn. EBIT declined 10% to US$179m. Growth was driven by mobile speakers (+29% to US$230m), new gaming keyboards (+16% to US$245m) and video collaboration which grew 44% to US$89m.
15 Apr 16
The company has acquired the US-based company Jaybird for a total of US$50m in cash and an additional earn-out of up to US$45m. The earn-out is based on growth targets over the next two years. Jaybird produces fitness-focused wireless earbuds and the Reign fitness tracking wristband. The Reign is using Bluetooth to communicate data with an app for IOS or Android. According to Logitech’s management, the company is a leader in wireless audio wearables for sports and active lifestyles. The company started the business in 2006.
It is all about marketing!
02 Mar 16
Today Logitech is hosting a Capital Markets Day. Management reiterated the outlook for the financial year 2016 ending in March. At constant currency revenues are expected to grow between 7% and 9%. Non-GAAP operating income is expected to reach US$170m. In the finanical year 2017, management is expecting non-GAAP operating income to range between US$185m and US$200m. The three-year plan for returning US$500m to shareholders in cash is still valid.
Guidance increase was unavoidable
22 Jan 16
The company reported Q3`15/16 results to end December. Revenues increased by 3% to US$621m. Total retail revenues grew b y 4% to €594m and by 9% at cc. The business division reported total revenue growth of 10% and 17% at cc. Net quantity increased by only 3% but this was closely linked to the business with Tablet & Other accessories. Volume dropped by 38%. Revenues of the business division Profit Max remained flat and +5% at cc. Pointing devices benefited from the newest, high-end wireless mice and increased 3% at cc. Revenues into the US channels increased by 7% at cc (5% real), into EMEA by 10% (-1% real) and into Asia by 15% at cc (real 9%). Operating income declined marginally from US$69.5m to US$68.5m. The EBIT margin dropped from 11.5% to 11%. The gross margin also declined from 35.2% to 33.5%. Gross profit declined by 2% to US$206.5m.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
A data-driven H1 raises expectations
05 Dec 16
The first reporting period under the new D4t4 Solutions brand saw the group (previously IS Solutions) deliver good growth, leaving it well on track to meet PBT forecasts in FY 2017, and we now increase FY 2018 forecasts. The business continues to flourish from its focus on data management and analytics, enabling its international blue-chip client base to gather and gain advantage from the mass of customer data available, utilising the leading-edge Celebrus solution. Industry analysts predict 12% CAGR for the BI & Analytics market through to 2020, and D4t4 is riding this wave of demand.
09 Dec 16
Ideagen* (IDEA): Acquisition of IPI Solutions (CORP) | Lombard Risk Management* (LRM): Atos deal improves routes to German market (CORP) | Photo-Me* (PHTM): Upgrade to FY forecasts (CORP) In other news… Frontier Developments* (FDEV): ED coming to Xbox and Planet Coaster update (CORP) | LiDCO* (LID): Analyst interview (CORP) | Rude Health: Analyst interview
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
A Good Deal of Potential
07 Dec 16
The Millstream acquisition should generate substantial shareholder value in our view. It boosts adjusted EBIT by c.50% for just a £15.5m price tag, and the complementary customer set and product base create excellent cross selling opportunities. We raise our FY17 adjusted EPS estimate to 7.6p and introduce a FY18 estimate of 9.6p. PROACTIS is building its reputation for intelligent M&A and shrewd organic delivery; we expect to see further delivery on both fronts.