0001032975false00010329752026-01-272026-01-27

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
Date of Report  (Date of earliest event reported): January 27, 2026

 
LOGITECH INTERNATIONAL S.A.
(Exact name of registrant as specified in its charter)

Canton of Vaud,Switzerland0-29174 None
(State or other jurisdiction
of incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)
 
Logitech International S.A.
EPFL - Quartier de l'Innovation
1015 Lausanne, Switzerland
c/o Logitech Inc.
3930 North First Street
San Jose
California
95134
(Address of principal executive offices and zip code)
(510)795-8500
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 

    
     
☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐       
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
    



Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Registered Shares
LOGN
SIX Swiss Exchange
Registered Shares
LOGI
Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐  



 



ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
 
On January 27, 2026, Logitech International S.A. (“Logitech”) issued a press release regarding its financial results for the quarter ended December 31, 2025.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
 
The information in Item 2.02 and Item 9.01 of this Current Report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
 
(d) Exhibits
 
ExhibitDescription
Press release issued on January 27, 2026, including financial results for the quarter ended December 31, 2025.
104Cover Page Interactive Data File (Cover page XBRL tags are embedded within the Inline XBRL document)
 
             




 
 SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 

 Logitech International S.A.
  
  
/s/ Johanna (Hanneke) Faber
  
 Johanna (Hanneke) Faber
 Chief Executive Officer
  
  
/s/ Matteo Anversa
 
 Matteo Anversa
 Chief Financial Officer
January 27, 2026 

                                             Exhibit 99.1
Editorial Contacts:
Nate Melihercik, Head of Investor Relations - ir@logitech.com
Bruno Rodriguez, Head of Corporate Communications - mediarelations@logitech.com
Ben Starkie, Corporate Communications - +41 (0) 79-292-3499, bstarkie1@logitech.com


Logitech Announces Q3 Fiscal Year 2026 Results
Strong Financial Performance Driven
By Strategic Priorities and Operational Discipline

LAUSANNE, Switzerland, and SAN JOSE, Calif., Jan. 27, 2026 — SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the third quarter of Fiscal Year 2026.
•Sales were $1.42 billion, up 6 percent in US dollars and 4 percent in constant currency compared to Q3 of the prior year.
•GAAP gross margin was 43.2 percent, up 30 basis points compared to Q3 of the prior year. Non-GAAP gross margin was 43.5 percent, up 30 basis points compared to Q3 of the prior year.
•GAAP operating income was $286 million, up 22 percent compared to Q3 of the prior year. Non-GAAP operating income was $312 million, up 17 percent compared to Q3 of the prior year.
•GAAP earnings per share (EPS) was $1.69, up 28 percent compared to Q3 of the prior year. Non-GAAP EPS was $1.93, up 21 percent compared to Q3 of the prior year.
•Cash flow from operations was $481 million. The quarter-ending cash balance was $1.8 billion.
“We delivered another quarter of excellent financial performance,” said Hanneke Faber, Logitech chief executive officer. “Growth was broad-based across categories, regions and both consumer and business channels. We continued to drive superior innovation with iconic new products like the premium MX Master 4 mouse. And, with the exception of pandemic peaks, we drove record operating income despite tariff headwinds, underscoring the quality of our portfolio, the strength of our innovation and our unique global operational capabilities.”
“Our team’s excellent operational execution and disciplined cost management delivered outstanding gross and operating margins,” said Matteo Anversa, Logitech chief financial officer. “This is a strong performance in our biggest quarter of the year, in spite of the ongoing uncertain environment.”












Outlook
Our financial outlook for the fourth quarter of Fiscal Year 2026 is:

Q4 FY26 outlook
FY26 outlook
Sales$1,070 - $1,090 million$4,825 - $4,845 million
Sales growth (in US dollars, year over year)6% - 8%Approximately 6%
Sales growth (in constant currency, year over year)3% - 5%Approximately 4%
Non-GAAP operating income$155 - $165 million$900 - $910 million

Financial Results Videoconference and Webcast
Logitech will hold a financial results videoconference to discuss the results for Q3 Fiscal Year 2026 on Tuesday, January 27, 2026 at 1:30 p.m. Pacific Standard Time (PST) and 10:30 p.m. Central European Time (CET).

A livestream of the event will be available on the Logitech corporate website at https://ir.logitech.com. This press release and the Q3 Fiscal Year 2026 Shareholder Letter are also available there.

Use of Non-GAAP Financial Information and Constant Currency
To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures in this press release, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges (credits), net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below and posted to our website at https://ir.logitech.com. Logitech also presents percentage sales growth in constant currency (“cc”), 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 to evaluate its current period performance, outlook and trends in its business. With respect to the Company’s outlook for non-GAAP operating income, most of the 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 fourth quarter of Fiscal Year 2026 non-GAAP outlook.

Public Dissemination of Certain Information
Recordings of Logitech’s earnings videoconferences and certain events Logitech participates in or hosts, with members of the investment community are posted on the company’s investor relations website at https://ir.logitech.com. Additionally, Logitech provides notifications of news or announcements regarding its operations and financial performance, including its filings with the Securities and Exchange Commission (SEC), investor events, and press and earnings releases as part of its investor relations website. Logitech intends to use its investor relations website as means of disclosing material nonpublic


information and for complying with its disclosure obligations under Regulation FD. Logitech’s corporate governance information also is available on its investor relations website.

About Logitech
Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating and gaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech and its other brands, including Logitech G, at www.logitech.com or company blog.

# # #
This press release contains forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three and nine months ended December 31, 2025; Q4 FY26 outlook, including for net sales and non-GAAP operating income, growth expectations, and related assumptions. The forward-looking statements in this press release are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: macroeconomic and geopolitical conditions and other factors and their impact, for example the resilience of overall consumer demand, B2B and IT spending levels, changes in inflation levels and monetary policies, governments’ fiscal policies, and geopolitical conflicts; our expectations regarding our expense discipline efforts, including the timing thereof; changes in secular trends that impact our business; 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; issues relating to development and use of artificial intelligence; 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, production costs, supply shortages and other supply chain challenges; the effect of logistics challenges, including disruptions in logistics; 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; if we do not efficiently manage our spending; our expectations regarding our restructuring efforts, including the timing thereof; 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 regulations, policies and agreements and the imposition of tariffs or other trade restrictions that affect our products or operations and our ability to mitigate; if we do not successfully execute on strategic acquisitions and investments; 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, 2025 and other 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.

(LOGIIR)




LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
Three Months Ended
December 31,		Nine Months Ended
December 31,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 2025202420252024
Net sales$1,421,479 $1,340,294 $3,755,238 $3,544,545 
Cost of goods sold805,267 763,403 2,141,277 2,010,411 
Amortization of intangible assets1,573 2,450 5,904 7,344 
Gross profit614,639 574,441 1,608,057 1,526,790 
Operating expenses:
Marketing and selling206,875 217,048 601,664 615,816 
Research and development78,452 77,973 229,149 229,485 
General and administrative41,921 42,117 125,520 123,748 
Amortization of intangible assets and acquisition-related costs915 2,637 5,379 8,065 
Restructuring charges, net462 110 6,946 725 
Total operating expenses328,625 339,885 968,658 977,839 
Operating income286,014 234,556 639,399 548,951 
Interest income10,985 12,176 34,042 42,603 
Other income (expense), net2,131 (1,524)3,229 (2,889)
Income before income taxes299,130 245,208 676,670 588,665 
Provision for income taxes48,091 45,061 108,946 101,202 
Net income$251,039 $200,147 $567,724 $487,463 
Net income per share:
Basic$1.71 $1.33 $3.86 $3.20 
Diluted$1.69 $1.32 $3.82 $3.18 
Weighted average shares used to compute net income per share:
Basic146,827 150,647 147,265 152,127 
Diluted148,450 151,895 148,635 153,506 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
December 31,
March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS
20252025
Current assets:
Cash and cash equivalents$1,817,820 $1,503,205 
Accounts receivable, net683,126 454,546 
Inventories449,544 503,747 
Other current assets166,988 131,211 
Total current assets3,117,478 2,592,709 
Non-current assets:
Property, plant and equipment, net115,363 113,858 
Goodwill466,579 463,230 
Other intangible assets, net13,889 24,630 
Other assets 382,380 344,077 
Total assets$4,095,689 $3,538,504 
Current liabilities:
Accounts payable$590,421 $414,586 
Accrued and other current liabilities 817,924 686,503 
Total current liabilities1,408,345 1,101,089 
Non-current liabilities:
Income taxes payable113,621 88,483 
Other non-current liabilities
238,000 221,512 
Total liabilities1,759,966 1,411,084 
Shareholders’ equity:
Registered shares, CHF 0.25 par value
Issued shares: 160,784 and 168,994 at December 31, 2025 and March 31, 2025, respectively
28,001 29,432 
Additional paid-in capital104,310 82,591 
Shares in treasury, at cost
Treasury shares: 14,027 and 20,485 at December 31, 2025 and March 31, 2025, respectively
(908,278)(1,464,912)
Retained earnings3,237,815 3,627,261 
Accumulated other comprehensive loss(126,125)(146,952)
Total shareholders’ equity2,335,723 2,127,420 
Total liabilities and shareholders’ equity$4,095,689 $3,538,504 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
Three Months Ended
December 31,		Nine Months Ended
December 31,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 2025202420252024
Cash flows from operating activities:  
Net income$251,039 $200,147 $567,724 $487,463 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation16,687 15,075 47,622 44,178 
Amortization of intangible assets2,488 5,087 11,283 15,258 
Loss (gain) on investments(206)119 291 1,718 
Share-based compensation expense23,435 26,193 86,575 76,067 
Deferred income taxes(15,900)2,163 6,296 18,652 
Other77 73 65 130 
Changes in assets and liabilities:
Accounts receivable, net22,044 (46,366)(213,815)(127,934)
Inventories68,701 26,353 66,921 (67,554)
Other assets(12,939)7,175 (30,423)9,416 
Accounts payable6,548 28,472 171,967 136,848 
Accrued and other liabilities118,558 106,379 119,908 118,659 
Net cash provided by operating activities480,532 370,870 834,414 712,901 
Cash flows from investing activities:
Purchases of property, plant and equipment(14,890)(14,227)(47,723)(43,340)
Purchases of deferred compensation investments(1,520)(2,202)(5,557)(5,802)
Proceeds from sales of deferred compensation investments2,159 2,659 5,718 4,958 
Other investing activities(213)(261)(1,196)(1,173)
Net cash used in investing activities(14,464)(14,031)(48,758)(45,357)
Cash flows from financing activities:
Payment of cash dividends— — (233,059)(207,853)
Purchases of registered shares(27,117)(200,137)(255,380)(463,322)
Proceeds from exercises of stock options and purchase rights2,459 — 24,172 20,235 
Tax withholdings related to net share settlements of restricted stock units(1,195)(1,008)(19,406)(22,251)
Other financing activities— — — (2,908)
Net cash used in financing activities(25,853)(201,145)(483,673)(676,099)
Effect of exchange rate changes on cash and cash equivalents 1,798 (16,138)12,632 (9,455)
Net increase (decrease) in cash and cash equivalents 442,013 139,556 314,615 (18,010)
Cash and cash equivalents, beginning of the period1,375,807 1,363,276 1,503,205 1,520,842 
Cash and cash equivalents, end of the period$1,817,820 $1,502,832 $1,817,820 $1,502,832 



LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATIONThree Months Ended
December 31,		Nine Months Ended
December 31,
NET SALES20252024Change20252024Change
Net sales by product category:
Gaming (1)
$482,714 $466,715 3 %$1,121,894 $1,076,660 4 %
Keyboards & Combos254,612 236,748 8 712,974 662,017 8 
Pointing Devices241,160 217,045 11 658,034 602,927 9 
Video Collaboration193,252 176,053 10 527,645 482,755 9 
Webcams82,268 84,419 (3)249,944 237,572 5 
Tablet Accessories93,567 77,433 21 269,855 241,586 12 
Headsets45,939 45,886 — 134,959 137,038 (2)
Other (2)
27,967 35,995 (22)79,933 103,990 (23)
Total Net Sales$1,421,479 $1,340,294 6 %$3,755,238 $3,544,545 6 %

(1) Gaming includes streaming services revenue generated by Streamlabs.
(2) Other primarily consists of mobile speakers and PC speakers.

































LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATIONThree Months Ended
December 31,		Nine Months Ended
December 31,
GAAP TO NON-GAAP RECONCILIATION (A)
2025202420252024
Gross profit - GAAP$614,639$574,441$1,608,057$1,526,790
Share-based compensation expense2,6362,1738,3758,673
Amortization of intangible assets1,5732,4505,9047,344
Gross profit - Non-GAAP$618,848$579,064$1,622,336$1,542,807
Gross margin - GAAP43.2 %42.9 %42.8 %43.1 %
Gross margin - Non-GAAP43.5 %43.2 %43.2 %43.5 %
Operating expenses - GAAP$328,625$339,885$968,658$977,839
Less: Share-based compensation expense20,79924,02078,20067,394
Less: Amortization of intangible assets and acquisition-related costs9152,6375,3798,065
Less: Restructuring charges, net4621106,946725
Operating expenses - Non-GAAP$306,449$313,118$878,133$901,655
% of net sales - GAAP23.1 %25.4 %25.8 %27.6 %
% of net sales - Non-GAAP21.6 %23.4 %23.4 %25.4 %
Operating income - GAAP$286,014$234,556$639,399$548,951
Share-based compensation expense23,43526,19386,57576,067
Amortization of intangible assets and acquisition-related costs2,4885,08711,28315,409
Restructuring charges, net4621106,946725
Operating income - Non-GAAP$312,399$265,946$744,203$641,152
% of net sales - GAAP20.1 %17.5 %17.0 %15.5 %
% of net sales - Non-GAAP22.0 %19.8 %19.8 %18.1 %
Net income - GAAP$251,039$200,147$567,724$487,463
Share-based compensation expense23,43526,19386,57576,067
Amortization of intangible assets and acquisition-related costs2,4885,08711,28315,409
Restructuring charges, net4621106,946725
Loss (gain) on investments(206)1192911,718
Non-GAAP income tax adjustment9,8029,83417,94418,820
Net income - Non-GAAP
$287,020$241,490$690,763$600,202
Net income per share:
Diluted - GAAP$1.69$1.32$3.82$3.18
Diluted - Non-GAAP$1.93$1.59$4.65$3.91
Shares used to compute net income per share:
Diluted - GAAP and Non-GAAP148,450151,895148,635153,506


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATIONThree Months Ended
December 31,		Nine Months Ended
December 31,
SHARE-BASED COMPENSATION EXPENSE2025202420252024
Share-based Compensation Expense
Cost of goods sold$2,636 $2,173 $8,375 $8,673 
Marketing and selling5,911 11,813 31,982 34,133 
Research and development5,395 5,043 17,412 15,849 
General and administrative9,493 7,164 28,806 17,412 
Total share-based compensation expense23,435 26,193 86,575 76,067 
Income tax benefit(4,699)(4,523)(15,620)(16,901)
Total share-based compensation expense, net of income tax benefit$18,736 $21,670 $70,955 $59,166 

*Note: These preliminary results for the three and nine months ended December 31, 2025 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 enable investors to more fully understand trends in our current and future performance. In assessing our business during the quarter ended December 31, 2025 and prior periods presented, 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. We incurred expenses 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 certain incremental expenses incurred to effect a business combination. We believe that providing the non-GAAP measures excluding these costs, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results.



Restructuring charges (credits), net. These charges (credits) are associated with restructuring plans and will vary based on the initiatives in place during any given period. Restructuring charges may include costs related to employee terminations, facility closures and early cancellation of certain contracts as well as other costs resulting from our restructuring initiatives. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such charges (credits) are not reflective of our ongoing operating results.

Loss (gain) on investments. We recognize losses (gains) related to our investments in various companies, which vary depending on the operational and financial performance of the companies in which we invest. These amounts include our losses (earnings) on equity method investments as well as investment impairments and losses (gains) resulting from sales or other events related to our investments. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such losses (gains) 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 as well as the income tax impact of non-recurring deferred taxes, tax settlements, and other non-routine tax events, the determination of which is based upon the nature of the underlying items.

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.