Prior to a meeting with financial analysts and investors in Zurich, Logitech International (SIX:LOGN) (Nasdaq:LOGI) announced 1. Full-year FY 2015 financial outlook of $2.11 billion in sales and $185 million in non-GAAP operating income, 2. Full-year financial outlook for FY 2016 of $2.15 billion in sales (+2% year-over-year, +6% year-over-year in constant currency) and $150 million in non-GAAP operating income, and 3. A plan for returning up to $500 million in cash to shareholders over a three year period featuring an enhanced dividend plan of $250 million to complement the existing Board-approved $250 million share buyback program.
"I'm very pleased that our profitability turnaround is on track thanks to higher gross margins and disciplined spending," said Bracken Darrell, Logitech president and chief executive officer. "While the strength of the U.S. dollar will have a significant impact on our financial results moving forward, the underlying fundamentals of our business are positive and we are projecting solid sales growth in FY 2016 in constant currency. We are also taking a number of actions in anticipation of a stronger dollar moving forward, including pricing adjustments and the further reduction of our global cost structure."
"Given our confidence in our ability to generate cash as we continue to make progress towards achieving the sales and profitability targets in our long-term business model, we are also introducing a refined three-year capital allocation plan that includes returning up to half a billion dollars to shareholders through dividends and share buybacks."
The Board of Directors plans to request shareholder approval of the Swiss franc equivalent of an $85 million dividend for FY 2015 at Logitech's next annual general meeting. Based on current exchange rates and the current number of shares outstanding, this represents approximately CHF 0.52 per share, double last year's dividend of CHF 0.26 per share.
The Company's Analyst and Investor Day will be held today at 9:00 a.m. Central European Time. A live webcast and replay of the meeting will be available on the Logitech corporate website.
Recommended for You
Latest News Posts
- Gearbox CEO addresses current Borderlands 3 rights rumors
- Total War Saga: Thrones of Britannia, a Mierce comeback
- Donkey Kong Country: Tropical Freeze trailer, meet the Kongs
- PlayerUnknown's Battlegrounds will 'soon' get map selection
- Australian High Court REJECTS Valves appeal to $3M fine
- FS 40 Pieces Samsung Galaxy S9+ (www.BizFests.com) 128GB $8,520
- Legacy Mode
- Possible Router Issues
- ADATA Premier Memory Cards
- Can't complete BIOS recovery
- Micron Launches Industry's First Enterprise SATA Solid State Drives Built on Leading 64-layer 3D NAND Technology
- Micron, Rambus, Northwest Logic and Avery Design to Deliver a Comprehensive GDDR6 Solution for Next-Generation Applications
- Toshiba Memory America Unveils UFS Devices Utilizing 64-Layer, 3D Flash Memory
- ASUS Announces GeForce GTX 1070 Ti Series Gaming Graphics Cards
- ASUS Announces ASUS Hangouts Meet Hardware Kit