Computer peripherals maker Logitech reported fiscal Q3 2023 results, with revenue of $1.27 billion (currently about RMB 8.611 billion), down 22 percent year-over-year in US dollars and 17 percent in constant currency compared to the previous year’s third quarter. This performance reflected the challenging macroeconomic environment.
GAAP operating income decreased by 33% to $177 million compared to $263 million in the same period last year. Non-GAAP operating income decreased 32 percent to $204 million compared to $302 million in the same period last year.
GAAP earnings per share (EPS) decreased by 31 percent to $0.86 compared to $1.24 in the same period last year. Non-GAAP earnings per share decreased by 26 percent to US$1.14 compared to US$1.55 in the same period last year.
Logitech sales declined across all categories in both U.S. dollars and constant currencies, according to the report. Compared to the third fiscal quarter of fiscal 2022.
Gaming sales declined 16 percent and 10 percent, respectively.
Video collaboration sales declined 21 percent and 16 percent, respectively.
Keyboard and Combo sales declined by 22 percent and 17 percent, respectively.
Sales of Pointing Devices (mice, etc.) decreased by 14 percent and 8 percent, respectively.
Logitech said cash flow from operating activities was $280 million, bringing the cash balance to $1.04 billion (currently approximately RMB 7.051 billion). To date, the company has returned $486 million in cash to shareholders through annual dividend payments and share repurchases, including $90 million in the current quarter.
These quarterly results reflect the current challenging macroeconomic conditions, including currency exchange rates and inflation, as well as lower corporate and consumer spending,” said Bracken Darrell, Logitech’s president and chief executive officer. In the face of these external headwinds, we continued to aggressively manage our costs during the quarter while increasing market share in key categories. Our long-term strategy remains unchanged and we remain committed to the growth trends that are driving our business.”
Logitech’s fiscal 2023 expectations have been revised to a sales reduction of between 15 percent and 13 percent on a constant currency basis and a non-GAAP operating income of $550 million to $600 million.