Logitech Announces Q3 FY 2009 Results

(Auszug aus der Pressemitteilung)

FREMONT, Calif., Jan. 19, 2009 and ROMANEL-SUR-MORGES, Switzerland, Jan. 20, 2009 – Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced

financial results for the third quarter of Fiscal Year 2009. Sales for Q3 were $627 million,
a decrease of 16 percent compared to $744 million in the same quarter last year. Operating
income was $43 million, a decrease of 63 percent compared to $116 million in the
same quarter a year ago. Net income was $40 million ($0.22 per share) compared to Q3
FY 2008 net income of $134 million ($0.71 per share), which included a net realized gain
on sales of short-term investments of $27.8 million and an impairment loss of $5.5 million
on the value of short-term investments. Gross margin for the third quarter of FY
2009 was 29.9 percent compared to 36.9 percent in Q3 FY 2008. Logitech’s retail sales
for Q3 FY 2009 declined 16 percent year over year, with sales down in the Americas and
EMEA by 21 percent and 19 percent, respectively and sales up in Asia by 8 percent.
OEM sales were down by 11 percent.

“The deepening global recession had a significant impact on our operating performance
as our customers continued to reduce inventory levels in the face of weaker consumer
demand,” said Gerald P. Quindlen, Logitech president and chief executive officer. “Two
factors primarily contributed to the decline in our gross margin from last year’s record
high – the negative impact of a significantly stronger dollar and a retail environment that
was highly promotional, particularly in the Americas. We believe these factors are tied to
the current economic conditions and are not permanent.”
“During the quarter, we were able to scale back our operating expenses in anticipation of
the challenging environment. And we continued to generate positive operating cash flow,
ending the quarter with nearly half a billion dollars in cash.”

“All indications point to an even weaker retail environment in the coming months. Consequently,
our plans assume that in Q4 we will see year-over-year declines in sales, operating income before restructuring charges and gross margin that are similar to or
worse than the year-over-year declines we experienced in Q3. However, we expect to
continue to generate positive cash flow from operations as we focus on preserving the
strength of our balance sheet. Moreover, we believe the substantial steps we are taking
to align our cost structure with the current environment, combined with our continued
emphasis on product innovation, will position the Company to successfully manage
through this downturn and emerge stronger when the recovery begins.”

Restructuring
In addition to ongoing actions to reduce operating expenses, Logitech has initiated a restructuring
that is expected to reduce the Company’s global salaried workforce by between
550 and 600 employees. This plan is expected to generate annual cost savings
beginning in Fiscal Year 2010 of approximately $50 million. As a result of the restructuring,
the Company expects to incur a total charge of approximately $20-24 million over
the next twelve months, of which approximately $16-18 million is expected to be incurred
during the fourth quarter of FY 2009.