Logitech International (LOGI) 24 Oct 232024 Q2 Earnings call transcript

Good morning and good afternoon. Welcome to Logitech's video call to discuss our financial results for the second quarter of fiscal year 2024.

Joining us today are Guy Gecht, our Interim CEO; and Chuck Boynton, our CFO.During this call, we will make forward-looking statements including with respect to future operating results under the safe harbor of the Private Securities Litigation Reform Act of 1995. We're making these statements based on our views only as of today and our actual results could differ materially.We undertake no obligation to update or revise any of these statements.

We will also discuss non-GAAP financial results and you can find a reconciliation between non-GAAP and GAAP results and information about our use of non-GAAP measures and factors that could impact our financial results and forward-looking statements in our press release and in our filings with the SEC.These materials as well as the slides and a webcast of this call are all available at the Investor Relations page of our website. review carefully. to you encourage these materials We Unless in constant comparisons between year-over-year and periods are currency noted otherwise, in that sales. being website.One we is replay quarterly call recorded be will This available results. on our on brief move before note to the and for

we now and our Next over Guy. turn The the will earnings today provide to information Guy? the call of we plan will materials. update quarter, modernize totality not change.I'll to

the today. Nate. team And all I'm especially challenges, thank execution very quarter, performance Logitech's us this expected of you, and Thank results than for proud in you better Asia. joining continued driving despite

team exceeding new the time outside history the you about sales actively huge congratulate return XX% positioning. Our it not slightly return in execution the deserve That big are toward for to And pandemic of along pause with our than pandemic growth. in significant target.While margins we coming complacency, as did work it.Looking progress we operating portfolio with healthy OpEx to we any not term, may before combined longer through here will the but demand, to especially we we better growth. toward a record confident any control you thank while time our led products delivering periods to find gross take working and I'm indeed they results, Logitech's and

and quarter. then positioning our lot the video state in comment briefly hybrid performance not into some our taking where wanted still playing far categories. measured these the in hybrid are back aligns focusing to the customers will I'm by on our you workflow approach more results reason a to improving, gaming but getting going categories.Now the on portfolio challenges, number this why to audio the Tabletop are be. right we improvement rooms, and give out no in from collaboration We're the where uniquely best the But our growth experience will jump a let need office. first provides equitable still enablement work and of video business Our Chuck gradual conference hybrid them in business holds new in see color the to see growth where work, video facing content the market-related me into about conferencing, And sequentially we equipping to Sight creation only be maintain currently camera is of doable and continue increasing trends will one and secular and we'll majority growth mode. that quarter continue for for back with meeting.We expect shipped to this the Logitech we

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want growth you turn focused made the progress, but let real to again consistent I more color and financial Thank this we are. and might aren't quarter, Chuck be You from a getting that able Until this to We to closer indeed my we discuss will are we understand add me satisfied. performance it consistent sense have not update and decision on I we and then, numbers. very to delivering that. you topic.In summary, are hope Chuck? finalizing to

work of I'd launches for holiday and call about a comments also focus had Tremendous Thank on to team great by operate commitment results Guy's Asia-Pacific way line showed U.S. cash top sales echo in for you like ahead the everyone.Now year-over-year operating the Their you, flows. all the XX sequential very and growth. customer from down Guy. year-over-year, moving responsible currency, the in were sequential while on constant is by prior and both constant throughout strong employees down Thank the Net of to declined in dollars. the certainly In business Americas joining and our our we growth year. strong were but billion. to Both to discipline the today. quarter. Overall, to the execution second currency generating the $X.XX business Europe in the reflected us quarter product season our a demonstrating quarter. X% mildly with

business solutions video Our Devices a G and Pointing Logi great versus and comps Combos, had workplace personal more quarter really while had and difficult last Webcams.Our market pressure Keyboards gaining in still share year.

calls of Day on-hand We the talking lean inventory. channel and benefits our Investor on have and been earnings about our

are over-performing line, holiday continued getting fast quarter, pace, not than but progress chain. This expected, also channel leaning peak sales inventory.We the And top was for a ready us our led our we in which currently season. in to in out the out only supply fact, reducing stronger at shipping the

Please to with negative as QX align we this QX. revenue March the see well seasonally expect in QX lower We will comparison for channel reduce to and create inventory as QX. year-over-year in note, quarter the a

sixth significantly year-over-year. X.X consecutive we inventory turns the inventory quarter, on-hand from For reduced improving our with X.X to

by channel headwinds favorable better.Lastly, turns target margins by close to positive pressured are on the model and of our are and and are long-term well last or mix improvement, QX by increases improvements, as promotions typically we back expect XX%, margin QX by by and financial inventory in had gross to and similar than cost half Though and to impact the reliance that we X the model.Year-over-year sequentially, be reduction XX% inventory discounting upper increases based In were enterprise.We benefits and QX to along operating as season We including driven in a product holiday these the leverage Comparing gross the mentioned it's by our XX% unfavorable with mix. gross gross year, partially range the sequential and lower are better of margins offset margins. more expedited expanded of on-hand absorption. our improvement, overhead margins or to approximately encouraged during driven increases know on quarter-over-quarter onetime cost typically be scale. anticipated previously In getting mix partially expect to promotions important headwinds. shipping gross onetime consumer-led less in quarter, sales than the were offset

will attain structurally such or due promotions.Operating based year-over-year. be reduction in with believe target factors team's and target down seasonality, be although focus cost gross positioned on and with quarter down expenses continue as slightly mix quarters to were with we to dial long-term $XXX X% ahead, ability dial to XX% or in I pleased on line the the our declines is our further cost revenue that the where to lower be XX% we'll scale quickly million average, there up various Looking business margin OpEx performance. business promotions, to larger below

and income to is model onetime of better our than expect or million improved seasonality rise mildly expectations discipline. operating we to XX% Note in around expenses maintain OpEx to $XXX to was gross certain long-term demand, cost QX due Our and QX margins revenue. costs.Operating that at less due in strong and

increase million, for stronger approximately on of cash XXXX our under of aggressive promotional first flow $XXX exceeded program.Moving top capital at intensity we allocation particularly outlook cash to and up in driven program and strategy, note cash paid and consistent shareholders generation, QX. outflow lower to $XXX was commitment started June. half XXXX shares leading demand, strong repurchased the the billion.QX more by $XXX quarter from to $X to was we total delivered our in were our team bottom Please operations new quarter, consideration million a dividend the QX. for was also cash balance million with both shareholders. to And nearly record reflective we Actual QX balance shareholders, $XX anticipated Following that million. than our reductions. approved a $X.X which approximately approved QX the billion $XXX the an on in the repurchase second X-year and In share our to September, returning X.X on capital million million repurchase our cost the our returned of In shares be in our lines totaled outlook, we remaining to both

exists, slow full the raising decline year our business to get still uncertainty XXXX. we remain our eventually for Therefore, optimistic outlook will continue and rate year we're growth. of back Although cautiously that to fiscal

expecting of now revenue $X.XX to are billion. billion We $X

between $XXX we we start short and show be video to Our and a roll Nate, Q&A.[Presentation] corresponding expected million $XXX our operating going to products. take income PRO is highlighting the Q&A, then we're million.Before gaming line can video

at Our today question comes from George Wang Barclays. first

have X ones. I quick

Firstly, of XH seasonal to and versus just H to the of H. if to historical can of [indiscernible], up kind of flattish kind it's below H XH you reconcile just XX% still kind on kind based the to of see XX% fiscal -- from kind to trends from sequentially

have the how curious seasonal back you of visibility you yet for you're to and and kind reconcile, Just demand improving of guiding talked tried kind sequentially, about half. much below

on Just color any curious that. if

the for you thank George, Certainly, question.

So negative is we're down. the the in, of rate change, the if think slowing about math, you

and ago to year QX the better and in a it's than versus of So was worse slightly projecting QX. QX than rate change be we're QX QX

the if we're at but comparable, of look going because of change the the year-over-year, sort halves little it's of than slowing, half an be change, that in it's QX, -- be better we're a the of absolute still improving with that year still look or -- back state. to a sort we're and might down little rate cautiously dollars, but that you rate bit will negative the optimistic -- be line And bit down of optimistic somewhat so is in confident should probably QX

squeeze If a quickly. I can Great. second Okay. in question

cycle, refresh refresh faster versus much cycle of especially related gaming kind and of has across the side. the upgrade because peripherals BXB intuitively on of traditional kind color any Just gaming PC kind cycle

kind a last just reverse seeing come cycle according COVID? rebounding to after So curious are the whether you already cycle of

this jump I can in. and take can Certainly, Guy

PRO NPIs new of launched peak time We're quarter, the saw in handful a area. in PRO microphones, excited mice new line, for our the there, a we've really quarter have line gaming the December about you that the We and X new keyboards, system. just lighting this Yeti commercial

and NPIs couple teams with console updated the is place accelerate Guy, hard products. line have I working good -- really The very quarter category. a product So we're to We to want are do address headsets, do right new after time being a to to coming think December market the refreshed. in gaming for the but the you

So working on to give first of new that, we reason this, we're to things exactly to people and release and products. buy all, refresh need the new continue

Our categories, gaming, it's road exciting. mentioned In map pretty the I biggest X as is gaming, PC the the spot.

think update. a little updating gaming, what give like than of doing but moving I upgrade people and pulled some category categories Those longer console they And reason people and There's see to started really pretty and where PC I think point we definitely that people the might to two take good them to at we simulation. forward have have. are COVID. another would

at Citi. [Operator next Merchant question Instructions] And Asiya from is our

turn think anyway. disabled, my trying but I Nate's I'm but on to video,

Just margins I if may. on

there in half? understand second in year? why better the Can margins that second that down half this of what I the was there launches, that had September You the the than certainly were quarter. given bit us quarter you that which mentioned new to help in walk takes what's you benefits guided resulted off, just product shouldn't margin impacted sequentially benefits products little new onetime a through think but were shouldn't some this of those and which you some that we expect continue there's for

I yes, Asiya, question. think, Certainly, great

over-deliver QX more cost and we you revenue, first, fixed over-delivered So revenue get absorption. you in when

scale the quarter in that expectations. and helped versus So leverage there was

it comes on-hand which reserves. We also a decreased and inventory had channel that onetime down flat we inventory benefit when to inventory corresponding channel had inventory gross to quarter-over-quarter communicated came tends net then benefit expected to and again, as improve.We be down, also well to

are in cost will repeat probably were freight So That two maybe really the going impact third year-over-year job quarter-over-quarter then on then bit logistics the to huge meaningful in a quarter and drove a good We year-over-year -- costs. fourth those product and down those structurally did were the a quarter, they and costs not Certainly, we a had year-over-year.So than there little reduced reduction. product quarter-over-quarter. and benefits I has team overall, gross our has some and been improvement, think driven quarter-over-quarter, discounting a but tailwinds but mix a organization has operations lot place not so we now do much lower margins. our we're costs were and has Primarily, better helpful there, to which linearity in in were. both commercial improved

our consumer-oriented word QX, of to is a it's promoted. it therefore quarter, Now caution more for more and it now tends biggest be

So prepared in QX, then intend to inventory. we in and see I we pressure as margin channel the down QX, in remarks mentioned do bring

our have you'll given scale seasonally leverage quarter. So less QX and it's in typically lowest

guide that more be is quarter with line the And Okay. December could seasonal? in

QX reduction inventory. will in more the be channel I will little of think because lower then year-over-year quarter seasonal December be line in with and a

one and gaming just finally And more. Great. Okay.

you I across gains X think your specifically share in mentioned the other products. prepared remarks

calendar the a that in of -- just function year-end? is in tough are talked by share and gaming still quarter bit [indiscernible] a -- gaming looks simulation comps getting it that, you the or the that year-end, the competitors by didn't growth PC is fact that console the losing other little gaming, you're the because of You some about maybe mention seeing

There's and categories, been some gaming. gains share shifts losses in in different

gaming, is category One, to console gaming Logitech. the margins are The higher. important the thing us. of in heritage really important It's a

back. for us. share gain really think market categories, space, both We one keyboard some mice, market share have I NPIs so in have In those will in we important help the number share the category #X

I normally but it's you're make just say market and great. product, and that's just track we and big losing, products, get would to job [indiscernible], new normally we is where support, we on long, we And when is in been we where have the to improvement. market definitely fan sure gaming too it. are When low a again, our to gaining it obviously, competitors have accelerate make have I will

to lot more a good products come. So

Morgan from is at Erik Our Woodring next Stanley. question

one quarter we we again, about If you. sequentially to $X.X-ish maybe revenue get the So top Chuck, see XX% in we in the on the and the decline revenue then March call grow just start, do for historically, December XX% to, assume about year. And -- question line, sequentially me, of billion clarification X quarter. for excuse it, that, or

maybe being seasonality below more if be I your but could love XQ just be why seasonal. could would a click below why So Asiya of range. above just guidance the high December with normal then the be about the If that how that of little tease have double that on should helpful. you seasonal quarter? being you such seasonality? made in Is after follow-up. you would a end bit, kind something about imply that second comment and clearly just guide line that thinking we out would to would strong And a And I

Yes, Erik, good questions.

in we're intend decline, if think issue other that back I in be QX the that ultimately, adjusted outlook decline of that we we inventory slope of think adjust is QX still in will QX. QX, because the that for and mentioned the to that to to year-over-year you remarks QX you historical and needs compare prepared see.The seasonality declining reduce into that get we channel and slope I you for therefore, a environment if

we based talked numbers about for Analyst on I this selling And levels and QX season.So little inventory obviously, was Right on outlook. will the QX. historically revenue channel we're than building it. to our appropriate high a QX be to so now inventory, and the we it bring that more seasonality, Historical at the for prime did channel you're year-over-year, down the Day, think

the X take years years, COVID demand was X sales peak looked was generally layer of sales And typically of and out down back XX%, last years out getting neutral, can kind environment. declining the half the the quite we're of And year was a be first different, little course, in of to it at been still back you of or the of relative X that slowing, it's have pacing. QX If in of rate half average not bring and and of kind will X year. out on a we're That in it but you decline, QX. and -- the X top XX% XX% you in then the the out if that XX%, of the to

So better, we're revenue. slightly half of first total back seeing half with the similar the being first but to line of the kind half somewhat year in roughly maybe in year, the the of

that we to less just to we to it a out bit again, That's a took a back I bit follow-up really last of previously improvement, Can and heard asked, before Okay. helpful. you gross Chuck, feel And of of take range. strong will X you that on so than degree structurally, can and question this get talked was a because a kind you one what attain like XX% again was to level. about margins XX% quarter back shift quarter, think a that to get this that because from you level?So XX% then were X tease sustainability to comment quarters it's kind nice it you little quarter, which

cost such view XX%-plus X changed months more is being that more ago? you're profile your something range? second for in kind your that was has up a it I half, have attainable level that towards not the view structurally comfortable now of you than So lower overall, XX% but in realize where

a is bit. little It

now give ago. X us quarter there's Now that factors little confidence a more a than key

was is positive top leverage. that that surprise leverage on scale real a positive. first over-delivered That The line We the for was us, scale. a gives you and and and

good typically we credit driven commercial global have really, a other reduction us.Now And promotions, and and The lower QX, job I'll our going material And ], channel combined, promotions our have predict And mix. Quin COO, lower the to really teams, driving going to X, inventory, by we better know we QX, have [ we're our and in I costs done less maybe a can't cost the low to give Prakash, it's GCO, margins in that's that really have for a but the helped watermark consumer. quarter organization, Head know we're year. of promotion. think more and lower more in

structurally, of So I zone in a headwind bit the there's we're think in and QX QX on I to little But of XX%. think XX% side. margin that

as lot think, and to the the team just you really course, of do Guy was sit is, Guy, today, has are and add we Of But quarter I ago. that? where now things pleased through here future than I happen. a we and with read the sit want can to how to executed it a better

I think said. perfectly

Wagner I deserve and be think the credit. And Jurgen question team Our arrival accelerated the kind of business of at profitability.///C^Nate tons will to to push work hard next they model of hard on future from the and Stifel. continue we'll maintain obviously, Melihercik^

Question your business. PC positioning in market peripherals on your

are reversing you peripherals So a that want CMDed, as Is OEM at Dell turning question now. then share a do showed would business that back new go do see perspective, threat? going now into business. that point? again? into today's the you the when mentioned recently you back you on that And a You a trend? see into had slide some consider maybe they to growth they Or gaining from or video

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Exactly.

And predict position that, we I there. but our like can't

next question Ananda at Capital. Baruah Loop from is Our

guys So any better throughout demand stronger on quarter? the what drivers you demand saw, I guess, the the were view of

been back. just of is mice, Couple consumer seeing The has soft consumers on through held keyboards, saw enterprise we The but really things. key enterprise, are grow And last we the quarter-over-quarter. part us quite the strong. selling the on still come video webcams strong. We mentioned quite the enterprise question, of

quarter. I and categories team for say U.S. been of been a we've growth So if that The look of some of market, X% lagging Europe the mice, Asia a this still and regions has of quite but growth great European line, have enterprise market maybe has is growth. devices, that you categories really seen Year-over-year at incredible. in decline But would been couple but behind. has one top really market few signs it's -- us us. primarily important strength strong. for of the point life, in pointing so-so, delivered really that the couple mice.And consumer a Overall, Europe, quarter a has year-over-year has really

Europe, Europe enterprise? And been has consumer and both

Yes.

kind either swing like do most and mean just tension that it little as of? even business I going more ask you out. inventory the in on broadly 'XX, that, be addition could direction rest me the Interesting. important of, year, like we Sounds don't to I guys points your the inventory, you're things? should more, for let business? see that a I is of willing, Well, if think kind kind channel points Interesting. you most know, important in of you're lean as -- way -- actually you the through What tension thinking guess, -- to maybe bit but counting fiscal look, see of like for What your what do

Well, the tell I return And for that's QX This just and a that quarter meaningful how promo our telltale company. inflection points. think is be. X I those of overall, would more when say X biggest the quarters would And of a really But from things as inflection will a or or be in X standpoint. will sign the X both volume ends, I the year. It's video would the the point point to second be I are can't if way. quarter

that, of Europe to to come think see Asia. largest growth. our the to essentially on hopes the second We stabilization market. and this. geographically, Americas is want have high back to in just that we to I is like for add We see Just China verge

that and hopefully, will bottom start to go back. So

start all things if So play to will that well that, of for there's us. definitely get we

is it well, and going will are onboard that it -- is what Guy like like be is And seems dynamic had Chuck, there's this, and Chuck sounds look like. it's Guy, decision folks still sounds -- as some talked hybrid everybody work not also to But just to largely it it, -- the to that like like really everybody, model. unclear the you mentioned videoconferencing sort with of -- everybody

want than that is that for? they kind really And folks it that? waiting enabled Is in rooms a point the Is really deciding something for which we're sticking video of so what other enterprise?

home say, XX customers They video days. a the video. working into get call and enabled. need minutes conference. a see leaving it's often almost of okay, and kind know of let's let's says, most it, have have where go you if they come him the [indiscernible] a let's on I video there And becoming on rooms the person to they quite in one want used cell this last few today, met would every this and from I want in labs, customer do to now video people the take we them. phone I quick play, and Say meeting What a enabled, few the

of X are or the here. Yes, happening for see time hey, the is days announced same the people and get at whatever office, my workforce. just saying, So same that X the policy the need policy in we planning I also people to this.You

to still, to our those need way, not do going we're and we use portfolio. see rooms. We're people the standing by Now that expand

and to going very corporate place to for great a attracting, the to job come this about those actually companies people inside hear collaborate outside enabling more attractive and corporate. do the making You're in

that.And enabled, So now the of okay, to, I a those stay get tuned on video is think matter videoconferencing. when modernize priority all let's back they back just says, come it's and time

add would that. I to

videoconferencing solutions. not said, $XXX interesting. a well small The super We worth that's sold quarter, is this think I That's of Guy. backdrop number. past million quite

cautious. sideways are backdrop #X are being have of a not the are. of rates companies really is kind lot the high. We market is than share. The a -- none players in doing we It's unsettled, are are just Global or market conditions why the better worse and interest

somewhat are so areas other are now. companies Ours right discretionary spending.And prioritizing I think

they become categories not have priority As a think to mentioned, when to again, backdrop hybrids when, on work a it's again. Guy see of a we're these settled But to Once broadly. this is an this cautious back the spending me, think I things this their corporate if. and -- the is I model is out, settle think out, going those I

We have share. #X market

back, We today, It's the great good margins, like I the about have quarter. pendulum feel I I not fundamentals. mean, rates that still And great million think a see. it's but we're growth we'd will to solutions. swing seeing high the business just a $XXX

is Our Vontobel. next question at from Foeth Michael

margin. gross the on clarification a with Starting

And driving material have margin. the part. product you structural lower to input design Or lower would that inflation? the is more about that that in lower That cost costs, of the was something is the allows costs? You I lower be products first well as it talked costs is only wondering,

Yes, both. Michael, it's comparison on quarter-over-quarter. And it versus the depends year-over-year

We reduction. freight lot those about cost reduction all material And material a costs, And negotiated outbound, XX-XX structural team have air, his as inbound, modal, reductions lower cost cost manufacturing, an it's that water, well where designed primarily is quarter-over-quarter. and as especially expedite/logistics. both done has reductions. then -- because certainly, procurement for changed have from freight our benefiting COO, material we've not Year-over-year, been Prakash It's designed have good cost has then cost year-over-year driven. everyone for benefited job and quarter-over-quarter, companies from reduction cost it's

granular? come it there? be the the on business, of low What's one -- does where or enterprise? Is the Is workplace it it -- equally strength more driving your it products? from? strength it a you Is solutions more lineup? a segmentation the strong of strong talked the end end Second in is it high keyboards. Is Can bit and the mice and in consumer, about you but

enterprise enterprise influencing much you you Asia, say about to selling really expand, like with board talked Europe would to the do geography, leading, in general, little China partnering but want Logitech, that's would new do it's something hey, saying, trailing, the to companies well. work I It's with Logitech and to to vendors. enterprise. across we relatively working fewer We're better,

actually worked well mobile with solution us.The us. really too that well doing that's of for is quite for type So

be we're those we're so seeing but seeing workspace. And strength, seeing to we personal all expect strength, strength in

to the now demand starting to growth, pull of We path away, normal normal seeing go I it think yes. forward growth. is the we're that to back and see normal some

Maybe just on last very a financials. quick one

have and pile cash rates big interest pretty up. You are a

I was wondering expecting it's So on sort cash? that to parked just money cash guess is of you some starting the earn on return what good are where I the and cash.

conservative very a have We investment philosophy.

of are the treasuries, different earning So yields. but sub-X%-ish. kind different yields in deposits we're primarily in bank and highest It's countries, just

this managing returned we pleased So model to We we quarter. more incredibly shareholders generated. when an cash it than cash. to conservative We're comes our really our have

in executed $X paid the and our additional buybacks. annual gives opened that We buybacks, for our dividend, us up strength think billion a business. new I line confidence

like feel allocation we is our consistent. have It's is it's cash we're working. capital the we so that decent And excess executing, model And -- earning return. a

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of of look Joern, kind advance our every business right couple of just the the is of We customers different I and big holiday now, at trending product you far has strong or with in our like e-tail, book-to-bill furious what is we X It tell fast weeks. that's partners, don't don't look ready That's accounts delivering level that nicely. disclose around be world is and know order for amounts promo.We're happen and many our the working this, ordering. the optimistic tends retail to and will proud detail amazing the getting operations way key We at team BXB is of many in of the holiday plan There global engagement accounts we're So kind -- last weeks see. quarter. the and of going flush. budget wait super for a a the year-end. and season. to a of can very

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with We partners a unlocking the driving value doing with promotions, e-tail Tier with there. job are by linearity, the customers X reducing our end improving engagement masterful resellers,

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maybe regions? just or particular X But to in name that or X well products did

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Muller today question is at final Andreas ZKB. from our And

and Congratulations. the Can quarter. that are you December right? on promotions Well margin elaborate quarter? more What done promotion that in it promotions for broad-based. bit the gross more bit? for you the explicit learnings a the year's far be implied here last were seems Can a from Is the guidance,

to it's had expected. year, little a going be last less more we've Last -- be year, promos to promo and consumer, than This little mix be in expect but negative more the I because the Certainly. enterprise. think team the allocated came we less than year, a the will budgets to we

gross mix for And the margins a as a the headwind bit be quarter. overall so shift of see will we

going be consumer-led So it's promo, but to period, be will it the the more peak shift items. less our I to mix but promo think is still

Okay. a that product? site quarter? we Was And see the already turning do here in VC, been something? the the adoption Or driver what new of has market

very of quarter has Early days, site the still Guy's been early with quarter, but wood single-digit or next, days, millions been very, reception at of of this yet. That still lot launch strong. not a happen customers. orders. the knock early, full-scale on far likely it's will We're this so but

think few have enterprise, the didn't met say, to solution they customer it don't deploy use an it. And they a rooms test then of have IT I before to like the a and conclusion Normally wanted in have us. a to and it. I that come to they I solution, new type and then then Yes. they want

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the March you opinion, your color year-on-year a in is Obviously, But give say, overall? it's what time could some question, XXXX. when last happen, with that for my growth And beyond horizon most possible Okay. can likelihood?

to I current of based change it's would rate seeing, mid -- of the of think change. thinking be with rate next on the slow the we're year that end my

our that's for today. Guy, And question last

seeing dedication we're you today. the thank The of of execution, the us Thank joining us all future. and really the numbers my a for want I and give their team. extend to think I you, lot fruit and for sincere Logitech in confidence Nate, thank to you

us thank you Logitech, joining and today. all you, for So thank

you for to Looking talking the future. forward in