Company Raises FY 2022 Guidance, Share Buyback Authorization Raised to $1 Billion
LAUSANNE, Switzerland & NEWARK, Calif.–(BUSINESS WIRE)–$LOGI–Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2021, ended March 31, 2021.
For Fiscal Year 2021:
- Sales were Logitech’s highest ever at $5.25 billion, up 76 percent in US dollars and 74 percent in constant currency compared to the prior year.
- GAAP operating income grew 315 percent to $1.15 billion, compared to $276 million a year ago. GAAP earnings per share (EPS) grew 107 percent to $5.51, compared to $2.66 a year ago.
- Non-GAAP operating income grew 229 percent to $1.27 billion, compared to $387 million a year ago. Non-GAAP EPS grew 199 percent to $6.42, compared to $2.15 a year ago.
- Cash flow from operations was $1.46 billion, compared to $425 million a year ago.
For Q4 Fiscal Year 2021:
- Sales were $1.54 billion, up 117 percent in US dollars and 108 percent in constant currency compared to Q4 of the prior year.
- GAAP operating income grew 818 percent to $295 million, compared to Q4 of the prior year. Non-GAAP operating income grew 312 percent to $325 million, compared to Q4 of the prior year.
“Fiscal Year 2021 was our best year ever,” said Bracken Darrell, Logitech president and chief executive officer. “It has been rewarding to see Logitech’s products play an essential role enabling work, creation, connection and entertainment as our homes became schools, offices and playgrounds. Our powerful and resilient capabilities allowed us to both deliver remarkable performance in a challenging FY 2021 and, at the same time, invest in compelling plans for the future. The world has just caught a glimpse of what Logitech will become.”
“We delivered excellent financial performance, including record net sales, operating profit, gross margin and cash flow,” said Nate Olmstead, Logitech chief financial officer. “The trends that fueled our growth pre-pandemic – work from anywhere, video everywhere, esports and the democratization of content creation – all accelerated. As our market opportunities have expanded, and we have become a larger, more profitable company, we’re investing in our capabilities to accelerate our innovation, reach new customers and deliver strong financial returns over the long-term.”
Outlook
Logitech raised its Fiscal Year 2022 outlook for non-GAAP operating income to between $800 million and $850 million. Previously, it was expected to be between $750 million and $800 million. The outlook for sales growth in constant currency is still expected to be approximately flat, plus or minus 5 percent.
Increased Share Buyback Program and Proposed FY21 Dividend
Logitech’s board of directors has approved an increased share buyback authorization up to $1 billion. This expands the Company’s current $250 million, three-year share buyback authorization. To date, the Company has repurchased $165 million of shares in the current program. Following approval from the Swiss Takeover Board, the increase will give a total authorization of $835 million for repurchases over the remaining 27 months of the program through July 2023.
Logitech’s board of directors has also approved a proposal for a Fiscal Year 2021 dividend, which would be approximately a 10 percent annual increase versus last year’s dividend. Together with the new share buyback authorization, this demonstrates the Company’s continued commitment to consistently return cash to shareholders.
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results videoconference available online on the Logitech corporate website at http://ir.logitech.com.
Financial Results Videoconference and Webcast
Logitech will hold a financial results videoconference to discuss the results for Q4 and the full Fiscal Year 2021 on Thursday, April 29, 2021 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. A livestream of the event will be available on the Logitech corporate website at http://ir.logitech.com.
Use of Non-GAAP Financial Information and Constant Currency
To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures, which 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 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 to evaluate its current period performance and trends in its business. 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 Fiscal Year 2022.
About Logitech
Logitech designs products that have an everyday place in people’s lives, connecting them to the digital experiences they care about. Almost 40 years ago, Logitech started connecting people through computers, and now it’s a multi-brand company designing products that bring people together through music, gaming, video, and computing. Brands of Logitech include Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears and Jaybird. Founded in 1981, and headquartered in Lausanne, Switzerland, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech at www.logitech.com, the company blog or @Logitech.
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three months and full fiscal year ended March 31, 2021, long-term growth trends, Logitech’s potential, investing in our capabilities to accelerate our innovation, reach new customers and deliver strong financial returns over the long-term, our share repurchase program, share repurchases, our Fiscal Year 2021 dividend proposal, and outlook for Fiscal Year 2022 operating income and sales growth. The forward-looking statements in this press 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; 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 or our growth opportunities are more limited than we expect; the effect of demand variability and supply shortages; 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 we are not able to maintain and enhance our brands; if our products and marketing strategies fail to separate our products from competitors’ products; the COVID-19 pandemic and its potential impact; if we do not efficiently manage our spending; if there is a deterioration of business and economic conditions in one or more of our sales regions or product categories, or significant fluctuations in exchange rates; changes in trade policies and agreements and the imposition of tariffs that affect our products or operations and our ability to mitigate; risks associated with acquisitions; and the effect of changes to our effective income tax rates. 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 (SEC), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2020 and our subsequent reports filed with the SEC, 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.
Note that unless noted otherwise, comparisons are year over year.
Logitech and other Logitech marks are trademarks or registered trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. 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 website at www.logitech.com.
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LOGITECH INTERNATIONAL S.A. |
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PRELIMINARY RESULTS* |
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(In thousands, except per share amounts) – unaudited |
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Three Months Ended |
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Fiscal Years Ended |
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March 31, |
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March 31, |
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GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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2021 |
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2020 |
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2021 |
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2020 |
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Net sales |
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$ |
1,535,925 |
|
|
$ |
709,248 |
|
|
$ |
5,252,279 |
|
|
$ |
2,975,851 |
|
|
Cost of goods sold |
|
821,127 |
|
|
428,080 |
|
|
2,903,215 |
|
|
1,838,685 |
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||||
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Amortization of intangible assets |
|
3,529 |
|
|
4,292 |
|
|
13,329 |
|
|
14,785 |
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Gross profit |
|
711,269 |
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|
276,876 |
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|
2,335,735 |
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1,122,381 |
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Operating expenses: |
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Marketing and selling |
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273,764 |
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|
141,186 |
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770,284 |
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533,324 |
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Research and development |
|
69,009 |
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|
50,094 |
|
|
226,023 |
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|
177,593 |
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General and administrative |
|
68,236 |
|
|
25,465 |
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|
166,577 |
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|
94,015 |
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Amortization of intangible assets and acquisition-related costs |
|
5,178 |
|
|
4,666 |
|
|
19,064 |
|
|
17,563 |
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Change in fair value of contingent consideration for business acquisition |
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— |
|
|
23,247 |
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|
5,716 |
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|
23,247 |
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Restructuring charges (credits), net |
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— |
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|
74 |
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|
(54 |
) |
|
144 |
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Total operating expenses |
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416,187 |
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|
244,732 |
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1,187,610 |
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|
845,886 |
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Operating income |
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295,082 |
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32,144 |
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|
1,148,125 |
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|
276,495 |
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Interest income |
|
340 |
|
|
2,614 |
|
|
1,784 |
|
|
9,619 |
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Other income (expense), net |
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(11,450 |
) |
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35,360 |
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(1,789 |
) |
|
38,212 |
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Income before income taxes |
|
283,972 |
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|
70,118 |
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|
1,148,120 |
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324,326 |
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Provision for (benefit from) income taxes |
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58,225 |
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(143,802 |
) |
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200,863 |
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(125,397 |
) |
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Net income |
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$ |
225,747 |
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$ |
213,920 |
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$ |
947,257 |
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$ |
449,723 |
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Net income per share: |
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Basic |
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$ |
1.34 |
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$ |
1.28 |
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|
$ |
5.62 |
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|
$ |
2.70 |
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Diluted |
|
$ |
1.31 |
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|
$ |
1.26 |
|
|
$ |
5.51 |
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|
$ |
2.66 |
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Weighted average shares used to compute net income per share: |
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Basic |
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168,734 |
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|
167,290 |
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|
168,523 |
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|
166,837 |
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Diluted |
|
172,954 |
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|
169,981 |
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|
171,775 |
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|
169,381 |
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LOGITECH INTERNATIONAL S.A. |
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PRELIMINARY RESULTS* |
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(In thousands) – unaudited |
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March 31, |
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March 31, |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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2021 |
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2020 |
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Current assets: |
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Cash and cash equivalents |
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$ |
1,750,327 |
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|
$ |
715,566 |
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Accounts receivable, net |
|
612,225 |
|
|
394,743 |
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||
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Inventories |
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661,116 |
|
|
229,249 |
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||
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Other current assets |
|
135,650 |
|
|
74,920 |
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||
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Total current assets |
|
3,159,318 |
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|
1,414,478 |
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Non-current assets: |
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Property, plant and equipment, net |
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114,060 |
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|
76,119 |
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Goodwill |
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429,604 |
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|
400,917 |
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Other intangible assets, net |
|
115,148 |
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|
126,941 |
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||
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Other assets |
|
324,248 |
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|
345,019 |
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Total assets |
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$ |
4,142,378 |
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$ |
2,363,474 |
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Current liabilities: |
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Accounts payable |
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$ |
823,233 |
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$ |
259,120 |
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|
Accrued and other current liabilities |
|
858,617 |
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|
455,024 |
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Total current liabilities |
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1,681,850 |
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|
714,144 |
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Non-current liabilities: |
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Income taxes payable |
|
59,237 |
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|
40,788 |
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Other non-current liabilities |
|
139,502 |
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|
119,274 |
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Total liabilities |
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1,880,589 |
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|
874,206 |
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Shareholders’ equity: |
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Registered shares, CHF 0.25 par value: |
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30,148 |
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|
30,148 |
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Issued shares—173,106 at March 31, 2021 and 2020 |
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Additional shares that may be issued out of conditional capitals — 50,000 at March 31, 2021 and March 31, 2020 |
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Additional shares that may be issued out of authorized capital — 17,311 at March 31, 2021 and 34,621 March 31, 2020 |
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Additional paid-in capital |
|
129,519 |
|
|
75,097 |
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||
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Shares in treasury, at cost— 4,799 and 6,210 shares at March 31, 2021 and 2020, respectively |
|
(279,541 |
) |
|
(185,896 |
) |
||
|
Retained earnings |
|
2,490,578 |
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|
1,690,579 |
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||
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Accumulated other comprehensive loss |
|
(108,915 |
) |
|
(120,660 |
) |
||
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Total shareholders’ equity |
|
2,261,789 |
|
|
1,489,268 |
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||
|
Total liabilities and shareholders’ equity |
|
$ |
4,142,378 |
|
|
$ |
2,363,474 |
|
|
LOGITECH INTERNATIONAL S.A. |
|
|
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|
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|
PRELIMINARY RESULTS* |
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|
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|
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(In thousands) – unaudited |
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|
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|
|
Three Months Ended |
|
Fiscal Years Ended |
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|
|
March 31, |
|
March 31, |
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|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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2021 |
|
2020 |
|
2021 |
|
2020 |
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Cash flows from operating activities: |
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Net income |
|
$ |
225,747 |
|
|
$ |
213,920 |
|
|
$ |
947,257 |
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|
$ |
449,723 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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|
|
|
|
|
|
|
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Depreciation |
|
14,742 |
|
|
10,739 |
|
|
50,752 |
|
|
42,893 |
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||||
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Amortization of intangible assets |
|
8,191 |
|
|
8,900 |
|
|
31,818 |
|
|
30,858 |
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||||
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Investment impairment |
|
2,011 |
|
|
— |
|
|
2,011 |
|
|
— |
|
||||
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Share-based compensation expense |
|
21,305 |
|
|
14,569 |
|
|
86,019 |
|
|
54,870 |
|
||||
|
Loss (gain) on investments |
|
(793 |
) |
|
(16 |
) |
|
3,899 |
|
|
756 |
|
||||
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Deferred income taxes |
|
(3,199 |
) |
|
(160,333 |
) |
|
34,484 |
|
|
(159,853 |
) |
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Change in fair value of contingent consideration for business acquisition |
|
— |
|
|
23,247 |
|
|
5,716 |
|
|
23,247 |
|
||||
|
Gain on sale of investment in privately held companies |
|
— |
|
|
(39,767 |
) |
|
— |
|
|
(39,767 |
) |
||||
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Other |
|
(114 |
) |
|
76 |
|
|
(1,784 |
) |
|
(936 |
) |
||||
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Changes in assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
||||||||
|
Accounts receivable, net |
|
275,584 |
|
|
131,524 |
|
|
(201,220 |
) |
|
(15,768 |
) |
||||
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Inventories |
|
(188,123 |
) |
|
75,558 |
|
|
(427,501 |
) |
|
60,388 |
|
||||
|
Other assets |
|
(14,427 |
) |
|
15,453 |
|
|
(67,708 |
) |
|
18,319 |
|
||||
|
Accounts payable |
|
12,936 |
|
|
(179,440 |
) |
|
553,960 |
|
|
(24,250 |
) |
||||
|
Accrued and other liabilities |
|
176,359 |
|
|
(13,584 |
) |
|
440,935 |
|
|
(15,480 |
) |
||||
|
Net cash provided by operating activities |
|
530,219 |
|
|
100,846 |
|
|
1,458,638 |
|
|
425,000 |
|
||||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
|
Purchases of property, plant and equipment |
|
(30,026 |
) |
|
(10,817 |
) |
|
(76,189 |
) |
|
(39,484 |
) |
||||
|
Investment in privately held companies |
|
(590 |
) |
|
(35 |
) |
|
(4,115 |
) |
|
(345 |
) |
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|
Acquisitions, net of cash acquired |
|
(43,163 |
) |
|
— |
|
|
(43,523 |
) |
|
(91,569 |
) |
||||
|
Proceeds from return of strategic investments |
|
— |
|
|
— |
|
|
2,934 |
|
|
— |
|
||||
|
Proceeds from sale of property, plant and equipment |
|
— |
|
|
— |
|
|
— |
|
|
1,037 |
|
||||
|
Purchases of trading investments |
|
(1,664 |
) |
|
(8,893 |
) |
|
(12,336 |
) |
|
(11,964 |
) |
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|
Proceeds from sales of trading investments |
|
1,915 |
|
|
8,952 |
|
|
13,247 |
|
|
12,091 |
|
||||
|
Net cash used in investing activities |
|
(73,528 |
) |
|
(10,793 |
) |
|
(119,982 |
) |
|
(130,234 |
) |
||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
|
Payment of cash dividends |
|
— |
|
|
— |
|
|
(146,705 |
) |
|
(124,180 |
) |
||||
|
Purchases of registered shares |
|
(92,227 |
) |
|
(35,310 |
) |
|
(164,952 |
) |
|
(50,437 |
) |
||||
|
Proceeds from exercises of stock options and purchase rights |
|
14,101 |
|
|
10,701 |
|
|
43,810 |
|
|
22,241 |
|
||||
|
Tax withholdings related to net share settlements of restricted stock units |
|
(2,607 |
) |
|
(1,184 |
) |
|
(32,082 |
) |
|
(24,280 |
) |
||||
|
Net cash used in financing activities |
|
(80,733 |
) |
|
(25,793 |
) |
|
(299,929 |
) |
|
(176,656 |
) |
||||
|
Effect of exchange rate changes on cash and cash equivalents |
|
(14,374 |
) |
|
(4,740 |
) |
|
(3,966 |
) |
|
(7,060 |
) |
||||
|
Net increase in cash and cash equivalents |
|
361,584 |
|
|
59,520 |
|
|
1,034,761 |
|
|
111,050 |
|
||||
|
Cash and cash equivalents at beginning of the period |
|
1,388,743 |
|
|
656,046 |
|
|
715,566 |
|
|
604,516 |
|
||||
|
Cash and cash equivalents at end of the period |
|
$ |
1,750,327 |
|
|
$ |
715,566 |
|
|
$ |
1,750,327 |
|
|
$ |
715,566 |
|
|
LOGITECH INTERNATIONAL S.A. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PRELIMINARY RESULTS* |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(In thousands) – unaudited |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
SUPPLEMENTAL FINANCIAL INFORMATION |
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||||||||
|
|
|
March 31, |
|
March 31, |
||||||||||||||||||
|
NET SALES |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales by product category: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Pointing Devices |
|
$ |
177,679 |
|
|
$ |
135,226 |
|
|
31 |
% |
|
$ |
680,907 |
|
|
$ |
544,519 |
|
|
25 |
% |
|
Keyboards & Combos |
|
219,242 |
|
|
147,659 |
|
|
48 |
|
|
784,488 |
|
|
571,720 |
|
|
37 |
|
||||
|
PC Webcams |
|
144,845 |
|
|
40,152 |
|
|
261 |
|
|
439,865 |
|
|
129,193 |
|
|
240 |
|
||||
|
Tablet & Other Accessories |
|
117,115 |
|
|
31,867 |
|
|
268 |
|
|
384,301 |
|
|
135,309 |
|
|
184 |
|
||||
|
Gaming (1) |
|
322,965 |
|
|
148,909 |
|
|
117 |
|
|
1,239,005 |
|
|
690,174 |
|
|
80 |
|
||||
|
Video Collaboration |
|
385,657 |
|
|
110,675 |
|
|
248 |
|
|
1,044,935 |
|
|
365,616 |
|
|
186 |
|
||||
|
Mobile Speakers |
|
29,739 |
|
|
21,174 |
|
|
40 |
|
|
174,895 |
|
|
221,791 |
|
|
(21 |
) |
||||
|
Audio & Wearables |
|
130,184 |
|
|
65,176 |
|
|
100 |
|
|
468,776 |
|
|
273,752 |
|
|
71 |
|
||||
|
Smart Home |
|
8,418 |
|
|
8,316 |
|
|
1 |
|
|
34,394 |
|
|
43,404 |
|
|
(21 |
) |
||||
|
Other (2) |
|
81 |
|
|
94 |
|
|
(14 |
) |
|
713 |
|
|
373 |
|
|
91 |
|
||||
|
Total net retail sales |
|
$ |
1,535,925 |
|
|
$ |
709,248 |
|
|
117 |
% |
|
$ |
5,252,279 |
|
|
$ |
2,975,851 |
|
|
76 |
% |
(1) Gaming includes streaming services revenue generated by Streamlabs.
(2) Other includes products that the Company currently intends to phase out, or has already phased out, because they are no longer strategic to the Company’s business.
|
LOGITECH INTERNATIONAL S.A. |
|
|
|
|
|
|
|
|
||||||||
|
PRELIMINARY RESULTS* |
|
|
|
|
|
|
|
|
||||||||
|
(In thousands, except per share amounts) – Unaudited |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
SUPPLEMENTAL FINANCIAL INFORMATION |
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||
|
|
|
March 31, |
|
March 31, |
||||||||||||
|
GAAP TO NON GAAP RECONCILIATION (A) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit – GAAP |
|
$ |
711,269 |
|
|
$ |
276,876 |
|
|
$ |
2,335,735 |
|
|
$ |
1,122,381 |
|
|
Share-based compensation expense |
|
1,519 |
|
|
1,300 |
|
|
6,438 |
|
|
4,852 |
|
||||
|
Amortization of intangible assets |
|
3,529 |
|
|
4,292 |
|
|
13,329 |
|
|
14,785 |
|
||||
|
Gross profit – Non-GAAP |
|
$ |
716,317 |
|
|
$ |
282,468 |
|
|
$ |
2,355,502 |
|
|
$ |
1,142,018 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin – GAAP |
|
46.3 |
% |
|
39.0 |
% |
|
44.5 |
% |
|
37.7 |
% |
||||
|
Gross margin – Non-GAAP |
|
46.6 |
% |
|
39.8 |
% |
|
44.8 |
% |
|
38.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses – GAAP |
|
$ |
416,187 |
|
|
$ |
244,732 |
|
|
$ |
1,187,610 |
|
|
$ |
845,886 |
|
|
Less: Share-based compensation expense |
|
19,786 |
|
|
13,269 |
|
|
79,581 |
|
|
50,018 |
|
||||
|
Less: Amortization of intangible assets and acquisition-related costs |
|
5,178 |
|
|
4,666 |
|
|
19,064 |
|
|
17,563 |
|
||||
|
Less: Change in fair value of contingent consideration for business acquisition |
|
— |
|
|
23,247 |
|
|
5,716 |
|
|
23,247 |
|
||||
|
Less: Restructuring charges (credits), net |
|
— |
|
|
74 |
|
|
(54 |
) |
|
144 |
|
||||
|
Operating expenses – Non-GAAP |
|
$ |
391,223 |
|
|
$ |
203,476 |
|
|
$ |
1,083,303 |
|
|
$ |
754,914 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
% of net sales – GAAP |
|
27.1 |
% |
|
34.5 |
% |
|
22.6 |
% |
|
28.4 |
% |
||||
|
% of net sales – Non – GAAP |
|
25.5 |
% |
|
28.7 |
% |
|
20.6 |
% |
|
25.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income – GAAP |
|
$ |
295,082 |
|
|
$ |
32,144 |
|
|
$ |
1,148,125 |
|
|
$ |
276,495 |
|
|
Share-based compensation expense |
|
21,305 |
|
|
14,569 |
|
|
86,019 |
|
|
54,870 |
|
||||
|
Amortization of intangible assets and acquisition-related costs |
|
8,707 |
|
|
8,958 |
|
|
32,393 |
|
|
32,348 |
|
||||
|
Change in fair value of contingent consideration for business acquisition |
|
— |
|
|
23,247 |
|
|
5,716 |
|
|
23,247 |
|
||||
|
Restructuring charges (credits), net |
|
— |
|
|
74 |
|
|
(54 |
) |
|
144 |
|
||||
|
Operating income – Non – GAAP |
|
$ |
325,094 |
|
|
$ |
78,992 |
|
|
$ |
1,272,199 |
|
|
$ |
387,104 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
% of net sales – GAAP |
|
19.2 |
% |
|
4.5 |
% |
|
21.9 |
% |
|
9.3 |
% |
||||
|
% of net sales – Non – GAAP |
|
21.2 |
% |
|
11.1 |
% |
|
24.2 |
% |
|
13.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income – GAAP |
|
$ |
225,747 |
|
|
$ |
213,920 |
|
|
$ |
947,257 |
|
|
$ |
449,723 |
|
|
Share-based compensation expense |
|
21,305 |
|
|
14,569 |
|
|
86,019 |
|
|
54,870 |
|
||||
|
Amortization of intangible assets and acquisition-related costs |
|
8,707 |
|
|
8,958 |
|
|
32,393 |
|
|
32,348 |
|
||||
|
Change in fair value of contingent consideration for business acquisition |
|
— |
|
|
23,247 |
|
|
5,716 |
|
|
23,247 |
|
||||
|
Restructuring charges (credits), net |
|
— |
|
|
74 |
|
|
(54 |
) |
|
144 |
|
||||
|
Loss (gain) on investments |
|
1,218 |
|
|
(39,783 |
) |
|
5,910 |
|
|
(39,011 |
) |
||||
|
Non-GAAP income tax adjustment |
|
(5,776 |
) |
|
(150,048 |
) |
|
25,788 |
|
|
(156,524 |
) |
||||
|
Net income – Non – GAAP |
|
$ |
251,201 |
|
|
$ |
70,937 |
|
|
$ |
1,103,029 |
|
|
$ |
364,797 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income per share: |
|
|
|
|
|
|
|
|
||||||||
|
Diluted – GAAP |
|
$ |
1.31 |
|
|
$ |
1.26 |
|
|
$ |
5.51 |
|
|
$ |
2.66 |
|
|
Diluted – Non – GAAP |
|
$ |
1.45 |
|
|
$ |
0.42 |
|
|
$ |
6.42 |
|
|
$ |
2.15 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Shares used to compute net income per share: |
|
|
|
|
|
|
|
|
||||||||
|
Diluted – GAAP and Non – GAAP |
|
172,954 |
|
|
169,981 |
|
|
171,775 |
|
|
169,381 |
|
||||
|
LOGITECH INTERNATIONAL S.A. |
|
|
|
|
|
|
|
|
||||||||
|
PRELIMINARY RESULTS* |
|
|
|
|
|
|
|
|
||||||||
|
(In thousands) – unaudited |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
SUPPLEMENTAL FINANCIAL INFORMATION |
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||
|
|
|
March 31, |
|
March 31, |
||||||||||||
|
SHARE-BASED COMPENSATION EXPENSE |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Share-based Compensation Expense |
|
|
|
|
|
|
|
|
||||||||
|
Cost of goods sold |
|
$ |
1,519 |
|
|
$ |
1,300 |
|
|
$ |
6,438 |
|
|
$ |
4,852 |
|
|
Marketing and selling |
|
9,229 |
|
|
6,819 |
|
|
36,788 |
|
|
26,835 |
|
||||
|
Research and development |
|
3,831 |
|
|
2,629 |
|
|
14,179 |
|
|
9,273 |
|
||||
|
General and administrative |
|
6,726 |
|
|
3,821 |
|
|
28,614 |
|
|
13,910 |
|
||||
|
Total share-based compensation expense |
|
21,305 |
|
|
14,569 |
|
|
86,019 |
|
|
54,870 |
|
||||
|
Income tax benefit |
|
(3,932 |
) |
|
(1,451 |
) |
|
(19,472 |
) |
|
(14,109 |
) |
||||
|
Total share-based compensation expense, net of income tax benefit |
|
$ |
17,373 |
|
|
$ |
13,118 |
|
|
$ |
66,547 |
|
|
$ |
40,761 |
|
*Note: These preliminary results for the three months and fiscal year ended March 31, 2021 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K.
(A) Non-GAAP Financial Measures
To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of financial measures, both GAAP and non-GAAP, in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting both our performance and our cash-generating potential, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance. In assessing our business during the quarter ended March 31, 2021 and previous periods, we excluded items in the following general categories, each of which are described below:
Share-based compensation expense. We believe that providing non-GAAP measures excluding share-based compensation expense, in addition to the GAAP measures, allows for a more transparent comparison of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine share-based compensation expense.
Contacts
Editorial Contacts:
Ben Lu, CFA
Vice President, Investor Relations – USA
(510) 713-5568
Nicole Kenyon
Head of Global Corporate & Employee Communications – USA
(510) 988-8553
Ben Starkie
Corporate Communications – Europe
+41 (0) 79-292-3499
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