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Empresas y finanzas

Logitech Announces Third Quarter Results for FY 2012


    Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced financial results for the third quarter of Fiscal Year 2012.

    Sales for Q3 FY 2012 were $715 million, down 5 percent from $754 million in Q3 FY 2011. Changes in exchange rates did not have an impact on sales compared to the prior year. Operating income was $70 million, down 8 percent from $76 million in the same quarter a year ago. Net income for Q3 FY 2012 was $55 million ($0.32 per share) compared to net income of $65 million ($0.36 per share) in Q3 of FY 2011. Gross margin for the quarter was 36.2 percent compared to 36.0 percent one year ago.

    Logitech´s retail sales for Q3 FY 2012 decreased by 4 percent, with an increase in Asia of 13 percent, a decrease in EMEA of 5 percent and a decrease in the Americas of 8 percent. OEM sales decreased by 24 percent. Sales for the LifeSize division grew 6 percent.

    "Our Q3 FY 2012 sales performance across most of our business is consistent with the findings from the assessment of our business that we completed earlier this fiscal year," said Guerrino De Luca, Logitech chairman and acting chief executive officer. "Large categories such as cordless mice and cordless keyboards, including those for tablets, achieved strong year-over-year sales growth, despite the product gaps that exist across many of our retail categories. I am pleased with our improved execution in EMEA and with the progress of our new product initiatives, both of which we expect to benefit from in Fiscal Year 2013.

    "Since we last provided our outlook for Fiscal Year 2012 at the end of October, several factors have changed. Most significantly, the Euro has weakened considerably during the last three months. In addition, webcams and remotes continue to be impacted more than expected by product portfolio and market weakness. Consequently, we have lowered our outlook for FY 12 sales and operating income.

    "I am very pleased with our strong cash generation in Q3," continued De Luca. "Our cash flow from operations for the quarter was $153 million and we ended with $523 million in cash. We can repurchase up to $177 million of our shares under our existing share repurchase program, with all regulatory approvals in place to begin repurchases on our second trading line."

    Outlook

    For Fiscal Year 2012, ending March 31, 2012, the Company now expects sales of approximately $2.3 billion and operating income of approximately $60 million. The gross margin for the full year continues to be estimated to reach approximately 33 percent. Full-year outlook factors in the operating loss and very low gross margin previously reported for Q1.

    Prepared Remarks Available Online

    Logitech has made its prepared written remarks for the financial results teleconference available online on the Logitech corporate Web site at http://ir.logitech.com. The remarks are posted in the Calendar section on the Investor home page.

    Financial Results Teleconference and Webcast

    Logitech will hold a financial results teleconference to discuss the results for Q3 and the Company´s outlook on Thursday, Jan. 26, 2012 at 8:30 a.m. Eastern Standard Time and 14:30 Central European Time. A live webcast of the call will be available on the Logitech corporate website at http://ir.logitech.com.

    About Logitech

    Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning multiple computing, communication and entertainment platforms, Logitech´s combined hardware and software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. 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).

    This press release contains forward-looking statements, including the statements regarding anticipated sales, operating income and gross margin for FY 2012, the impact of improved EMEA execution and product initiatives on FY 2013 performance, and future share repurchases. The forward-looking statements in this release involve risks and uncertainties that could cause Logitech´s actual results to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include: the demand of our customers and our consumers for our products and our ability to accurately forecast it; if our investment prioritization decisions do not result in the sales or profitability growth we expect, or when we expect it; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; the sales mix among our lower- and higher-margin products and our geographic sales mix; if our product offerings and marketing activities do not result in the sales and profitability growth we expect, or when we expect it; if we fail to take advantage of trends in the consumer electronics and personal computers industries, including the growth of mobile computing devices such as smartphones and tablets with touch interfaces, or if significant demand for peripherals to use with tablets and other mobile devices with touch interfaces does not develop; if there is a deterioration of business and economic conditions in one or more of our sales regions or operating segments, or significant fluctuations in currency exchange rates; if the sales growth in emerging markets for our PC peripherals and other products does not increase as much as we expect; if our operational changes in our EMEA sales region do not result in the sales improvement in EMEA we expect; in digital music, if we are not able to identify product development, marketing, and organizational skill gaps, and resolve them, or if we fail to introduce differentiated product and marketing strategies to separate ourselves from competitors; the adverse conclusion of one or more ongoing tax audits in various jurisdictions and a material assessment by a governing tax authority that adversely affects our profitability; competition in the video conferencing and communications industry, including from companies with significantly greater resources, sales and marketing organizations, installed base and name recognition; as well as those additional factors set forth 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, 2011 our Quarterly Reports on Form 10-Q for the fiscal quarters ended June 30, 2011 and September 30, 2011 and the Quarterly Report on Form 10-Q we intend to file for the fiscal quarter ended December 31, 2011, available at www.sec.gov. Logitech does not undertake to update any forward-looking statements, which speak as of their respective dates.

    Logitech, the Logitech logo, and other Logitech marks are registered in Switzerland 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 Web site at www.logitech.com.

    (LOGI - IR)

      LOGITECH INTERNATIONAL S.A.                   (In thousands, except per share amounts) - Unaudited                       Quarter Ended December 31, CONSOLIDATED STATEMENTS OF OPERATIONS   2011   2010                   Net sales   $ 714,596     $ 754,054   Cost of goods sold     455,922       482,881   Gross profit     258,674       271,173   % of net sales     36.2 %     36.0 %                   Operating expenses:                 Marketing and selling     116,313       124,914   Research and development     41,911       38,955   General and administrative     30,673       31,264   Total operating expenses     188,897       195,133                     Operating income     69,777       76,040                     Interest income, net     917       539   Other income, net     6,713       795                     Income before income taxes     77,407       77,374   Provision for income taxes     22,074       12,372                     Net income   $ 55,333     $ 65,002                     Shares used to compute net income per share:                 Basic     173,003       177,233   Diluted     173,656       179,703   Net income per share:                 Basic   $ 0.32     $ 0.37   Diluted   $ 0.32     $ 0.36                       LOGITECH INTERNATIONAL S.A.                   (In thousands, except per share amounts) - Unaudited                       Nine Months Ended December 31, CONSOLIDATED STATEMENTS OF OPERATIONS   2011   2010                   Net sales   $ 1,784,241     $ 1,815,268   Cost of goods sold     1,201,539       1,158,132   Gross profit     582,702       657,136   % of net sales     32.7 %     36.2 %                   Operating expenses:                 Marketing and selling     323,552       313,803   Research and development     121,383       118,271   General and administrative     89,527       86,044   Total operating expenses     534,462       518,118                     Operating income     48,240       139,018                     Interest income, net     2,208       1,695   Other income, net     10,141       797                     Income before income taxes     60,589       141,510   Provision for income taxes     17,417       15,826                     Net income   $ 43,172     $ 125,684                     Shares used to compute net income per share:                 Basic     176,414       176,329   Diluted     177,201       178,306   Net income per share:                 Basic   $ 0.24     $ 0.71   Diluted   $ 0.24     $ 0.70                       LOGITECH INTERNATIONAL S.A.                     (In thousands) - Unaudited                     CONSOLIDATED BALANCE SHEETS   December 31, 2011   March 31, 2011   December 31, 2010                     Current assets                   Cash and cash equivalents   $ 523,333   $ 477,931   $ 460,726 Accounts receivable     318,678     258,294     336,098 Inventories     295,749     280,814     300,630 Other current assets     73,498     59,347     58,469 Total current assets     1,211,258     1,076,386     1,155,923 Property, plant and equipment     78,055     84,160     85,833 Intangible assets                   Goodwill     560,106     547,184     553,794 Other intangible assets     59,743     74,616     81,251 Other assets     81,524     79,210     71,212 Total assets   $ 1,990,686   $ 1,861,556   $ 1,948,013                     Current liabilities                   Accounts payable   $ 377,132   $ 298,160   $ 386,485 Accrued liabilities     213,092     172,560     213,170 Total current liabilities     590,224     470,720     599,655 Other liabilities     195,956     185,835     168,913 Total liabilities     786,180     656,555     768,568                     Shareholders´ equity     1,204,506     1,205,001     1,179,445                     Total liabilities and shareholders´ equity   $ 1,990,686   $ 1,861,556   $ 1,948,013                       LOGITECH INTERNATIONAL S.A.                   (In thousands) - Unaudited                       Nine Months Ended December 31, CONSOLIDATED STATEMENTS OF CASH FLOWS   2011   2010                   Cash flows from operating activities:                 Net income   $ 43,172     $ 125,684   Non-cash items included in net income:                 Depreciation     35,201       35,665   Amortization of other intangible assets     20,209       21,165   Inventory valuation adjustment     34,074       -   Share-based compensation expense     23,380       23,976   Gain on sales of available-for-sale investments     (6,118 )     -   Gain on disposal of property and plant     (4,904 )     (838 ) Excess tax benefits from share-based compensation     (33 )     (2,735 ) Gain on cash surrender value of life insurance policies     -  

     

      (901 ) Deferred income taxes and other     (998 )     (1,665 ) Changes in assets and liabilities:                 Accounts receivable     (63,092 )     (132,480 ) Inventories     (35,720 )     (82,636 ) Other assets     (11,853 )     5,145   Accounts payable     81,973       128,586   Accrued liabilities     38,877       34,453   Net cash provided by operating activities     154,168       153,419                     Cash flows from investing activities:                 Acquisitions and investments, net of cash acquired     (18,814 )     (7,300 ) Purchases of property, plant and equipment     (31,417 )     (31,835 ) Proceeds from sale of property and plant     4,904       2,688   Purchases of trading investments     (5,577 )     (12,554 ) Proceeds from sales of trading investments     5,520       194   Proceeds from sales of available-for-sale investments     6,550       -   Proceeds from cash surrender of life insurance policies     -       11,313   Net cash used in investing activities     (38,834 )     (37,494 )                   Cash flows from financing activities:                 Purchases of treasury shares     (73,134 )     -   Proceeds from sale of shares upon exercise of options and purchase rights     9,852       28,368   Tax withholdings related to net share settlements of restricted stock units     (890 )     (223 ) Excess tax benefits from share-based compensation     33       2,735   Net cash provided by (used in) financing activities     (64,139 )     30,880                     Effect of exchange rate changes on cash and cash equivalents     (5,793 )     (6,023 ) Net increase in cash and cash equivalents     45,402       140,782   Cash and cash equivalents at beginning of period     477,931       319,944   Cash and cash equivalents at end of period   $ 523,333     $ 460,726                       LOGITECH INTERNATIONAL S.A.                                 (In thousands, except per share amounts) - Unaudited                                     Quarter Ended   Nine Months Ended     December 31,   December 31, SUPPLEMENTAL FINANCIAL INFORMATION   2011   2010   2011   2010                                 Depreciation   $ 10,608   $ 12,322     $ 35,201     $ 35,665   Amortization of other intangible assets     6,653     7,138       20,209       21,165   Operating income     69,777     76,040       48,240       139,018   Operating income before depreciation and amortization     87,038     95,500       103,650       195,848   Capital expenditures     10,497     6,416       31,417       31,835                                                                   Net sales by channel:                               Retail   $ 630,873   $