There aren’t many public companies in AV, so it’s a good indicator for our market conditions when one announces earnings. Yesterday, Logitech International announced its financial results for the second quarter of Fiscal Year 2022. The highlights were that sales were $1.31 billion, up 4% when compared to 2021 (split calendar year 2019-2020). Q2 GAAP operating income declined 44% to $179 million, compared to $322 million in the same quarter a year ago (remember, last year was its COVID-19-induced boom due to the USB-based desktop camera growth). Q2 GAAP earnings per share (EPS) declined 48% to $0.81, compared to $1.56 in the same quarter a year ago.

“In Q2, we delivered record sales which beat last year’s exceptional sales levels, growing 4% in the quarter and 82% compared to two years ago. We also grew market share in the majority of our key product categories,” said Bracken Darrell, Logitech president and chief executive officer. “We are confirming our full-year outlook, despite unprecedented supply chain industry challenges. I am excited about the long-term growth potential of Logitech.”

Logitech confirmed to rAVe that its Fiscal Year 2022 outlook is one of expected flat sales (unlikely any growth). In fact, the company predicted sales over the next year to either be the same or plus/minus five% from 2021 and $800 million to $850 million in non-GAAP operating income.

To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures. These exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), loss (gain) on investments, non-GAAP income tax adjustment and other items detailed under “Supplemental Financial Information” after the tables below. Logitech also presents percentage sales growth in constant currency, a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales.

Logitech believes this information, used together with the GAAP financial information, will help investors evaluate its business’s current performance and trends. With respect to the company’s outlook for non-GAAP operating income, most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for the Fiscal Year 2022 outlook.