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McAfee Takes Another Step Toward Global Support for Organizations in Need of Leading Managed Threat Detection and Response

ECS is McAfee’s first North American Partner for MDR Enabled by MVISION EDR

SAN JOSE, Calif.–(BUSINESS WIRE)–McAfee Corp. (Nasdaq: MCFE) – McAfee today announced that it is partnering with ECS, a recognized leader in cybersecurity, cloud managed services, agile development digital transformation, advanced engineering and Amazon Web Services solutions, to offer managed threat detection and response (MDR) capabilities through McAfee MVISION EDR. ECS is the first North American MDR partner for McAfee MVISION EDR and will leverage MVISION EDR and supporting vendors to deliver a scalable, repeatable and customizable program that enables organizations to focus on only verified threats.

MDR solutions can help organizations by alleviating the customer challenges associated with alert fatigue, false positives, inexperienced staff and lack of defined processes. These are real-world challenges recently highlighted in a Forrester report with 36% of IT decision makers stating that the alerts surfaced by their EDR solution are false positives not worth investigating. Another 35% claim that their junior staff members lack the skill sets to triage and/or investigate alerts without support from senior staff.

“Protecting an organization against threats and attacks is a difficult endeavor that requires innovative technology coupled with technical know-how,” said Anand Ramanathan, vice president of product and marketing, McAfee. “Unfortunately, despite having the right technology and experience, organizations face the challenges of dealing with alert fatigue and numerous false positives. Together with ECS we’re working to help organizations overcome these challenges to better defend themselves.”

“We have a rich history of working with McAfee to defend some of the most important endpoints in North America,” said Andy Woods, vice president of enterprise managed services at ECS. “This MDR offering with McAfee MVISION EDR is another step in the direction of building on our relationship and providing our customers with the industry leading products and solutions that they need to enable their businesses and operations to run effectively.”

McAfee and ECS have partnered for years to deliver managed endpoint security and monitoring for up to 1.4 million endpoints for the U.S. Army.

ECS leverages the powerful capabilities of McAfee MVISION EDR augmenting with security orchestration, automation, security analytics, threat intelligence platform and refined SOC practices. This creates more accurate and comprehensive alerts and provides information such as MITRE ATT&CK mapping and threat actor profiles to better understand how the organization was targeted, identify other potential areas of impact, and provide insight into how to protect from future attacks.

According to a Gartner report, Ask These Critical Questions and Consider These Risks When Selecting an MDR Provider¹, when looking for an MDR solution organizations should ask themselves questions like, “Do we need the provider to ensure service continuity, recovery and resiliency of its operations? If it has an issue and cannot provide 24/7 monitoring and response of threats as contracted, that creates a gap and risk for its customers.” As well as, “What geographies do we need the provider to operate in and where can its security operations centers (SOCs) be located?” among other questions organizations should be asking.

Benefits of the ECS solution enabled by McAfee MVISION EDR include:

• 24x7x365 US based security monitoring and engineering
• Dedicated and named analysts, engineers and project managers
• Integrated security orchestration automation and response into customer environments
• Simplified and expediated remediation through actionable intelligence and forward looking recommendations of what to expect next
• A combination of industry leading threat intelligence platform, orchestration and security analytics helps provide additional correlation and enrichment of threat events, ensuring higher fidelity alerting, more context in investigations and better actionable intelligence
• An enhanced customer experience that delivers a comprehensive program by taking ownership and not assigning tasks back to the customer
• Regular delivery of metrics and reporting that matter to your team and executives enabling and clearly communicating program effectiveness and value

For more information:

• McAfee MVISION EDR
• ECS
  • Cybersecurity
  • Managed Services

About McAfee

McAfee Corp. (Nasdaq: MCFE) is the device-to-cloud cybersecurity company. Inspired by the power of working together, McAfee creates consumer and business solutions that make our world a safer place. www.mcafee.com

¹Source: Gartner Report – Ask These Critical Questions and Consider These Risks When Selecting an MDR Provider, October 31, 2019, Toby Bussa, Kelly Kavanagh, Craig Lawson, Pete Shoard

View source version on businesswire.com: https://www.businesswire.com/news/home/20210118005053/en/

McAfee

Craig Sirois

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Software Technology Security

MEDIA:

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CSOP FTSE China A50 Index Daily (2X) Leveraged Product (ticker: 7248.HK) and CSOP FTSE China A50 Index Daily (-1X) Inverse Product (ticker: 7348.HK) to List on the HKEX

HONG KONG–(BUSINESS WIRE)–
Hong Kong’s largest leveraged and inverse products (L&I products) issuer¹, CSOP Asset Management Limited (“CSOP”) is proud to announce the listing of the CSOP FTSE China A50 Index Daily (2X) Leveraged Product (ticker: 7248.HK) and the CSOP FTSE China A50 Index Daily (-1X) Inverse Product (ticker: 7348.HK) on the Hong Kong Stock Exchange on 20 January, 2021. 7248. HK and 7348.HK will apply a swap-based synthetic replication strategy to achieve the respective investment objectives. 7248.HK will provide investment results closely corresponding to twice (2x) the daily performance of the FTSE China A50 Index while 7348.HK will provide investment results closely corresponding to inverse (-1x) daily performance of the FTSE China A50 Index, both excluding costs and expenses. With listing prices around HKD 7.75 and trading lot size of 100, the entry investments of 7248.HK and 7348.HK are approximately HKD 775 respectively.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210118005562/en/

Following the CSI300 leveraged & inverse products launched in last July, 7248.HK and 7348.HK provide more choices for investors who intended to gain short-term China A-shares exposures, especially to the big blue chips. Extensively tracked by a large scale of financial products and instruments in China overseas market, FTSE China A50 index investing in the 50 largest China A-shares was long known as one of the most representative China A-shares indices to international investors because of its sound index ecosystem. The ETF tracking FTSE China A50 index in Hong Kong is more than HKD 30 billion,² while the average daily turnover of FTSE China A50 futures listed on SGX is 297,270 lots.³ The launch of the FTSE China A50 Index tracking L&I products will not only enrich the product offerings around FTSE China A50 Index but also provide investors, especially China A50 investors, with tools to amplify or hedge in an easy way.

Ms. Ding Chen, CEO of CSOP commented, “It has been almost 9 years since the listing of our first FTSE China A50 Index product – CSOP FTSE China A50 ETF (2822.HK) in 2012. Built on the success of 2822.HK, CSOP has begun our exciting journey of becoming an Asian ETF leader. Currently, CSOP has led Hong Kong ETF market with 7 out of 20 most traded ETF being from CSOP.⁴ In addition, CSOP dominated HK L&I market with more than 96% and 90% market shares in terms of average daily turnover and asset under management respectively.⁵ Today I am very glad to introduce another FTSE China A50 Index tracking products – 7248.HK and 7348.HK to the market and sincerely hope the FTSE China A50 Index L&I product can mark a development milestone of CSOP.”

About CSOP Asset Management Limited

CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. As of 30 September 2020, CSOP had USD 8.9 billion in assets under management.

This material has not been reviewed by the Securities and Futures Commission.

Issuer: CSOP Asset Management Limited

Please refer to the offering documents for the index provider disclaimer.

IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.

CSOP FTSE China A50 Index Daily (2x) Leveraged Product and CSOP FTSE China A50 Index Daily (-1x) Inverse Product (each, the “Product” or collectively, “Products”) are sub-funds of CSOP Leveraged and Inverse Series II, an umbrella unit trust established under Hong Kong law. Units of the Products (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. The Products use a swap-based synthetic replication strategy by investing directly in Swaps, so as to give the Product twice (2x) / inverse (-1x) of the Daily performance of the FTSE China A50 Index (the “Index”) respectively.

• The Products are derivative products and are not suitable for all investors. There is no guarantee of the repayment of principal. Therefore your investment in the Products may suffer substantial or total losses.
• The Products are not intended for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from the leveraged/inverse performance of the Index over that same period. The effect of compounding becomes more pronounced on the Product’s performance as the Index experiences volatility.
• As a result of Daily rebalancing, the Index’s volatility and the effects of compounding of each day’s return over time, it is even possible that the Products will lose money over time while the Index’s performance increases/decreases or is flat.
• The Index constituents are companies listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange which is an emerging market. Investments of the Products may involve increased risks and special considerations not typically associated with an investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
• The Index consists of A-Shares which may only be bought or sold from time to time where the relevant A-Shares may be sold or purchased on the Shanghai Stock Exchange or the Shenzhen Stock Exchange, as appropriate. Given that the A-Share market is considered volatile and unstable (with the risk of suspension of a particular stock or government intervention), such high market volatility and potential settlement difficulties in the A-Share market may result in significant fluctuations in the prices of the securities traded on the A-Share market and thereby may adversely affect the Products.
• The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Units may trade at a substantial premium or discount to the NAV.

Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus and Product Key Facts Statement in detail before making any investment decision.

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¹ Bloomberg: CSOP’s leveraged and inverse products AUM on 31 December, 2020, and average daily turnover for 2020

² Bloomberg: as of 31 December, 2020

³ Bloomberg: the active contract for FTSE China A50 futures listed on SGX in 2020

⁴ Bloomberg: Hong Kong ETF market average daily turnover ranking for 2020

⁵ Bloomberg: HK L&I market average daily turnover for 2020 and asset under management as of 31 December, 2020 respectively

View source version on businesswire.com: https://www.businesswire.com/news/home/20210118005562/en/

For further information, please contact

CSOP Asset Management Limited

Larry Wang / 3406 5613 / [email protected]

Tina Shu/ 3406 5675/ [email protected]

KEYWORDS: Asia Pacific Hong Kong

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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CSOP FTSE China A50 Index Daily (2X) Leveraged Product (ticker: 7248.HK) and CSOP FTSE China A50 Index Daily (-1X) Inverse Product (ticker: 7348.HK) to List on the HKEX

Logitech’s Q3 Sales Grow 85%, Operating Income Triples

Company Raises Annual Outlook On Strong Momentum

LAUSANNE, Switzerland & NEWARK, Calif.–(BUSINESS WIRE)–
Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the third quarter of Fiscal Year 2021.

• Q3 sales were $1.67 billion, up 85 percent in US dollars and 80 percent in constant currency, compared to Q3 of the prior year.
• Q3 GAAP operating income grew 248 percent to $448 million, compared to $129 million in the same quarter a year ago. Q3 GAAP earnings per share (EPS) grew 222 percent to $2.22, compared to $0.69 in the same quarter a year ago.
• Q3 non-GAAP operating income grew 214 percent to $476 million, compared to $152 million in the same quarter a year ago. Q3 non-GAAP EPS grew 192 percent to $2.45, compared to $0.84 in the same quarter a year ago.
• Cash flow from operations was $530 million, compared to $181 million in the same period a year ago.

“This quarter’s record results demonstrate the strength of our portfolio, addressing long-term growth trends in remote work and education, video collaboration, esports, and digital content creation,” said Bracken Darrell, Logitech president and chief executive officer. “We are increasingly investing in our capabilities and people for the growth potential we see in the future. Logitech has never been more relevant to our customers’ work, play and creativity.”

Outlook

Logitech raised its Fiscal Year 2021 annual outlook to between 57 and 60 percent sales growth in constant currency, and approximately $1.05 billion in non-GAAP operating income. The Company’s previous outlook was between 35 and 40 percent sales growth in constant currency, and a range of $700 million to $725 million in non-GAAP operating income.

Prepared Remarks Available Online

Logitech has made its prepared written remarks for the financial results videoconference and livestream available online on the Logitech corporate website at http://ir.logitech.com.

Financial Results Videoconference and Livestream

Logitech will hold a financial results videoconference to discuss the results for Q3 FY 2021 on Tuesday, January 19, 2021 at 8:30 a.m. Eastern Standard Time and 2:30 p.m. Central European 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 2021.

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 ended December 31, 2020, long-term growth trends, our investment in our capabilities and people, growth potential, our relevance to our customers, and outlook for Fiscal Year 2021 sales growth and non-GAAP operating income. The forward-looking statements in this 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 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 fully realize our goals to lower our costs and improve our operating leverage; 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. 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, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 and our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020, 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.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS *
(In thousands, except per share amounts) – unaudited
		Three Months Ended								Nine Months Ended
		December 31,								December 31,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS		2020				2019				2020				2019
Net sales		$	1,667,302			$	902,687			$	3,716,354			$	2,266,603
Cost of goods sold		914,851				564,283				2,082,088				1,410,605
Amortization of intangible assets		3,441				3,951				9,800				10,493
Gross profit		749,010				334,453				1,624,466				845,505
Operating expenses:
Marketing and selling		204,485				134,950				496,520				392,138
Research and development		53,910				43,292				157,014				127,499
General and administrative		37,606				22,344				98,341				68,551
Amortization of intangible assets and acquisition-related costs		4,946				5,084				13,886				12,898
Change in fair value of contingent consideration for business acquisition		—				—				5,716				—
Restructuring charges (credits), net		—				(45		)		(54		)		69
Total operating expenses		300,947				205,625				771,423				601,155
Operating income		448,063				128,828				853,043				244,350
Interest income		311				2,063				1,444				7,006
Other income, net		6,483				1,101				9,661				2,852
Income before income taxes		454,857				131,992				864,148				254,208
Provision for income taxes		72,334				14,467				142,638				18,405
Net income		$	382,523			$	117,525			$	721,510			$	235,803
Net income per share:
Basic		$	2.26			$	0.70			$	4.28			$	1.41
Diluted		$	2.22			$	0.69			$	4.21			$	1.39
Weighted average shares used to compute net income per share:
Basic		169,050				167,063				168,448				166,678
Diluted		172,587				169,685				171,378				169,173

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS *
(In thousands) – unaudited
CONDENSED CONSOLIDATED BALANCE SHEETS		December 31, 2020				March 31, 2020
Current assets:
Cash and cash equivalents		$	1,388,743			$	715,566
Accounts receivable, net		894,937				394,743
Inventories		476,802				229,249
Other current assets		117,741				74,920
Total current assets		2,878,223				1,414,478
Non-current assets:
Property, plant and equipment, net		96,683				76,119
Goodwill		400,993				400,917
Other intangible assets, net		103,314				126,941
Other assets		333,733				345,019
Total assets		$	3,812,946			$	2,363,474
Current liabilities:
Accounts payable		$	811,786			$	259,120
Accrued and other current liabilities		704,573				455,024
Total current liabilities		1,516,359				714,144
Non-current liabilities:
Income taxes payable		60,799				40,788
Other non-current liabilities		134,021				119,274
Total liabilities		1,711,179				874,206
Shareholders’ equity:
Registered shares, CHF 0.25 par value:		30,148				30,148
Issued shares — 173,106 at December 31 and March 31, 2020
Additional shares that may be issued out of conditional capitals — 50,000 at December 31 and March 31, 2020
Additional shares that may be issued out of authorized capital — 17,311 at December 31 and 34,621 at March 31, 2020
Additional paid-in capital		108,140				75,097
Shares in treasury, at cost — 4,243 at December 31, 2020 and 6,210 at March 31, 2020		(198,435		)		(185,896		)
Retained earnings		2,264,831				1,690,579
Accumulated other comprehensive loss		(102,917		)		(120,660		)
Total shareholders’ equity		2,101,767				1,489,268
Total liabilities and shareholders’ equity		$	3,812,946			$	2,363,474

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS *
(In thousands) – unaudited
		Three Months Ended								Nine Months Ended
		December 31,								December 31,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS		2020				2019				2020				2019
Cash flows from operating activities:
Net income		$	382,523			$	117,525			$	721,510			$	235,803
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		13,409				10,768				36,010				32,154
Amortization of intangible assets		8,388				8,223				23,627				21,958
Loss on investments		2,173				709				4,692				772
Share-based compensation expense		19,814				13,831				64,714				40,301
Deferred income taxes		17,531				9,458				37,683				480
Change in fair value of contingent consideration for business acquisition		—				—				5,716				—
Other		207				(1,010		)		(1,670		)		(1,012		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net		(129,966		)		(61,337		)		(476,804		)		(147,292		)
Inventories		(78,258		)		32,603				(239,378		)		(15,170		)
Other assets		(21,714		)		16,949				(53,281		)		2,866
Accounts payable		141,848				26,089				541,024				155,190
Accrued and other liabilities		173,945				7,327				264,576				(1,896		)
Net cash provided by operating activities		529,900				181,135				928,419				324,154
Cash flows from investing activities:
Purchases of property, plant and equipment		(18,389		)		(10,575		)		(46,163		)		(28,667		)
Investment in privately held companies		(120		)		(140		)		(3,525		)		(310		)
Acquisitions, net of cash acquired		(360		)		(91,203		)		(360		)		(91,569		)
Proceeds from the sale of property, plant and equipment		—				1,037				—				1,037
Proceeds from return of strategic investments		2,934				—				2,934				—
Purchases of trading investments		(2,473		)		(546		)		(10,672		)		(3,071		)
Proceeds from sales of trading investments		2,493				568				11,332				3,139
Net cash used in investing activities		(15,915		)		(100,859		)		(46,454		)		(119,441		)
Cash flows from financing activities:
Payment of cash dividends		—				—				(146,705		)		(124,180		)
Purchases of registered shares		(50,271		)		—				(72,725		)		(15,127		)
Proceeds from exercises of stock options and purchase rights		3,643				2,209				29,709				11,540
Tax withholdings related to net share settlements of restricted stock units		(3,731		)		(2,188		)		(29,475		)		(23,096		)
Net cash provided (used) in financing activities		(50,359		)		21				(219,196		)		(150,863		)
Effect of exchange rate changes on cash and cash equivalents		7,896				1,285				10,408				(2,320		)
Net increase in cash and cash equivalents		471,522				81,582				673,177				51,530
Cash and cash equivalents, beginning of the period		917,221				574,464				715,566				604,516
Cash and cash equivalents, end of the period		$	1,388,743			$	656,046			$	1,388,743			$	656,046

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS *
(In thousands) – unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended											Nine Months Ended
		December 31,											December 31,
NET SALES		2020				2019				Change			2020				2019				Change
Net sales by product category:
Pointing Devices		$	213,638			$	154,540			38	%		$	503,228			$	409,293			23	%
Keyboards & Combos		218,269				156,333				40			565,246				424,061				33
PC Webcams		131,700				32,165				309			295,020				89,041				231
Tablet & Other Accessories		138,052				31,256				342			267,186				103,442				158
Gaming (1)		436,426				245,736				78			916,040				541,265				69
Video Collaboration		292,500				91,964				218			659,278				254,941				159
Mobile Speakers		72,566				92,969				(22	)		145,156				200,617				(28	)
Audio & Wearables		152,952				81,934				87			338,592				208,576				62
Smart Home		10,593				15,790				(33	)		25,976				35,088				(26	)
Other (2)		606				—				—			632				279				127
Total sales		$	1,667,302			$	902,687			85	%		$	3,716,354			$	2,266,603			64	%

(1) Gaming revenue includes streaming services revenue generated by Streamlabs.

(2) Other category includes products that we currently intend to phase out, or have already phased out, because they are no longer strategic to our business.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS *
(In thousands, except per share amounts) – Unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended								Nine Months Ended
		December 31,								December 31,
GAAP TO NON-GAAP RECONCILIATION (A)		2020				2019				2020				2019
Gross profit – GAAP		$	749,010			$	334,453			$	1,624,466			$	845,505
Share-based compensation expense		1,747				1,210				4,919				3,552
Amortization of intangible assets		3,441				3,951				9,800				10,493
Gross profit – Non-GAAP		$	754,198			$	339,614			$	1,639,185			$	859,550
Gross margin – GAAP		44.9		%		37.1		%		43.7		%		37.3		%
Gross margin – Non-GAAP		45.2		%		37.6		%		44.1		%		37.9		%
Operating expenses – GAAP		$	300,947			$	205,625			$	771,423			$	601,155
Less: Share-based compensation expense		18,067				12,621				59,795				36,749
Less: Amortization of intangible assets and acquisition-related costs		4,946				5,084				13,886				12,898
Less: Change in fair value of contingent consideration for business acquisition		—				—				5,716				—
Less: Restructuring charges (credits), net		—				(45		)		(54		)		69
Operating expenses – Non-GAAP		$	277,934			$	187,965			$	692,080			$	551,439
% of net sales – GAAP		18.0		%		22.8		%		20.8		%		26.5		%
% of net sales – Non – GAAP		16.7		%		20.8		%		18.6		%		24.3		%
Operating income – GAAP		$	448,063			$	128,828			$	853,043			$	244,350
Share-based compensation expense		19,814				13,831				64,714				40,301
Amortization of intangible assets and acquisition-related costs		8,387				9,035				23,686				23,391
Change in fair value of contingent consideration for business acquisition		—				—				5,716				—
Restructuring charges (credits), net		—				(45		)		(54		)		69
Operating income – Non – GAAP		$	476,264			$	151,649			$	947,105			$	308,111
% of net sales – GAAP		26.9		%		14.3		%		23.0		%		10.8		%
% of net sales – Non – GAAP		28.6		%		16.8		%		25.5		%		13.6		%
Net income – GAAP		$	382,523			$	117,525			$	721,510			$	235,803
Share-based compensation expense		19,814				13,831				64,714				40,301
Amortization of intangible assets and acquisition related costs		8,387				9,035				23,686				23,391
Change in fair value of contingent consideration for business acquisition		—				—				5,716				—
Restructuring charges (credits), net		—				(45		)		(54		)		69
Loss on investments		2,173				709				4,692				772
Non-GAAP income tax adjustment		10,165				2,123				31,564				(6,476		)
Net income – Non – GAAP		$	423,062			$	143,178			$	851,828			$	293,860
Net income per share:
Diluted – GAAP		$	2.22			$	0.69			$	4.21			$	1.39
Diluted – Non – GAAP		$	2.45			$	0.84			$	4.97			$	1.74
Shares used to compute net income per share:
Diluted – GAAP and Non – GAAP		172,587				169,685				171,378				169,173

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS *
(In thousands) – unaudited
SUPPLEMENTAL FINANCIAL INFORMATION		Three Months Ended								Nine Months Ended
		December 31,								December 31,
SHARE-BASED COMPENSATION EXPENSE		2020				2019				2020				2019
Share-based Compensation Expense
Cost of goods sold		$	1,747			$	1,210			$	4,919			$	3,552
Marketing and selling		8,390				6,216				27,559				20,016
Research and development		3,482				2,242				10,348				6,644
General and administrative		6,195				4,163				21,888				10,089
Total share-based compensation expense		19,814				13,831				64,714				40,301
Income tax benefit		(3,471		)		(3,135		)		(15,540		)		(12,658		)
Total share-based compensation expense, net of income tax benefit		$	16,343			$	10,696			$	49,174			$	27,643

* Note: These preliminary results for the three and nine months ended December 31, 2020 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.

(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 December 31, 2020 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. We believe that excluding share-based compensation expense enhances our ability and the ability of investors to understand the impact of non-cash share-based compensation on our operating results and to compare our results against the results of other companies.

Amortization of intangible assets. We incur intangible asset amortization expense, primarily in connection with our acquisitions of various businesses and technologies. The amortization of purchased intangibles varies depending on the level of acquisition activity. We exclude these various charges in budgeting, planning and forecasting future periods and we believe that providing the non-GAAP measures excluding these various non-cash charges, as well as the GAAP measures, provides additional insight when comparing our gross profit, operating expenses, and financial results from period to period.

Acquisition-related costs and change in fair value of contingent consideration for business acquisition. We incurred expenses and credits in connection with our acquisitions which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related costs include all incremental expenses incurred to effect a business combination. Fair value of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions. We believe that providing the non-GAAP measures excluding these costs and credits, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results.

Restructuring charges (credits). These expenses are associated with re-aligning our business strategies based on current economic conditions. We have undertaken several restructuring plans in recent years. In connection with our restructuring initiatives, we incurred restructuring charges related to employee terminations, facility closures and early cancellation of certain contracts. We believe that providing the non-GAAP measures excluding these charges, as well as the GAAP measures, assists our investors because such charges (credits) are not reflective of our ongoing operating results in the current period.

Loss (gain) on investments. We recognized loss (gain) related to our investments in various companies, which varies depending on the operational and financial performance of those companies in which we invested, and sales of these investments. We believe that providing the non-GAAP measures excluding these charges, as well as the GAAP measures, assists our investors because such charges are not reflective of our ongoing operations.

Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above and other events; the determination of which is based upon the nature of the underlying items, the mix of income and losses in jurisdictions and the relevant tax rates in which we operate.

Each of the non-GAAP financial measures described above, and used in this press release, should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. We compensate for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information.

Additional Supplemental Financial Information – Constant Currency

In addition, Logitech 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.

(LOGIIR)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210118005546/en/

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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INDUSTRY KEYWORDS: Hardware Audio/Video Consumer Electronics Technology Software

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