(Auszug aus der Pressemitteilung)
FREMONT, Calif., Oct. 17, 2007 and ROMANEL-SUR-MORGES, Switzerland, Oct. 18, 2007 – Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced record sales and operating profit for the second quarter of Fiscal Year 2008. Sales were $595 million, up 19 percent from $502 million
high for the Company. Cash flow from operations was $103 million, a year-over-year improvement of $80 million.
Logitech expects to provide results below the operating income line, as well as to present the value of its short-term investments and shareholders equity in its balance sheet, within the next three weeks. The Company is currently reviewing the fair value of its short-term investments as of September 30, 2007. These consist of structured finance instruments, with a
par value of $169 million, composed of corporate debt as well as collateralized debt obligations.
Logitech’s retail sales for Q2 grew by 16 percent year over year, increasing by 17 percent in the Americas and Asia Pacific and by 15 percent in EMEA. Retail sales were driven by strong demand for Harmony remote controls, audio products, and keyboards and desktops. Harmony remote controls increased by 47 percent, more than doubling in EMEA. Audio products increased by 38 percent, driven by the company’s best quarter ever for PC speakers. The keyboards and desktops category, which grew by 35 percent, achieved a record quarter, driven by robust sales of the new Wave
comfort keyboard. OEM sales grew by 40 percent, driven by strong demand for microphones for console singing games.
„Our outstanding Q2 performance demonstrated the strength across our product portfolio,“ said Guerrino De Luca, Logitech president and chief
executive officer. „Our line of Harmony remotes has returned to strong growth, we achieved continued robust growth in audio and keyboards, and we made progress in webcams. We also achieved significant improvement in cash flow from operations. And, we are particularly pleased that the progress we have made in realigning our operating expense growth and gross profit
growth positions us to exceed our FY 2008 goal for operating income growth.“
For the current fiscal year, ending March 31, 2008, the company confirmed its sales target of 15 percent growth and increased its year-over-year
operating income growth goal from 15 percent to 20 percent. FY 2008 gross margin is expected to be above the high end of the Company�s long-term
target range of 32-34 percent.
Impairment of Short-Term Investments
The Company believes there has been significant impairment in the value of its short-term investment portfolio due to the recent dislocations in the credit markets. The Company�s ownership of the specific securities in this
portfolio was the result of the unauthorized actions and misrepresentations to management of its treasurer, whose employment has been terminated. The Company expects to record an impairment loss of between $55 million and $75
million, which will be reported on the Q2 FY 2008 income statement as an unrealized loss under Other Expense. Subsequent to quarter end, the Company
sold, at par, fifty per cent of each of the securities in the portfolio. As a result, the Company will recover half of the loss and will report it as a gain on the Q3 FY 2008 income statement under Other Income. The sale was
part of a confidential settlement agreement and the sale price is not necessarily indicative of current market prices or fair value for the
„It is very unfortunate that due to unauthorized actions and misrepresentations to management, Logitech has been affected by the current
dislocations in the credit markets. Since uncovering the facts in early October, we’ve taken aggressive and swift action to address this isolated incident and prevent the recurrence of a similar situation.“ said Mark Hawkins, Logitech chief financial officer.
Executive Leadership Transition
In a separate announcement today, Logitech announced a transition plan for its executive leadership. Effective January 1, 2008, Guerrino De Luca will become chairman of the board, Gerald P. Quindlen, currently the Company’s senior vice president of worldwide sales and marketing, will become Logitech’s president and chief executive officer, and Logitech co-founder Daniel Borel will step down from his role as chairman, remaining a member of the board of directors.