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Empresas y finanzas

Logitech Announces Fourth Quarter and Full-Year Financial Results for FY 2012


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

    Sales for Q4 FY 2012 were $532 million, down 3 percent from $548 million in Q4 FY 2011. Excluding the unfavorable impact of exchange rates, sales decreased by 2 percent compared to the prior year. Operating income was $24 million compared to $4 million in the same quarter a year ago. Net income for Q4 FY 2012 was $28 million ($0.17 per share) compared to net income of $3 million ($0.02 per share) in Q4 of FY 2011. Gross margin for the quarter was 36.4 percent compared to 32.8 percent in the same quarter one year ago.

    Logitech´s retail sales for Q4 FY 2012 decreased year over year by 2 percent, with an increase in EMEA of 13 percent, an increase in Asia of 12 percent, and a decrease in the Americas of 17 percent. OEM sales decreased by 9 percent. Sales for the LifeSize division decreased by 10 percent.

    For the full fiscal year, sales were $2.32 billion, compared to $2.36 billion in FY 2011. Operating income was $72 million, down 50 percent from $143 million a year ago. Net income for the full fiscal year was $71 million ($0.41 per share), down 44 percent from $128 million ($0.72 per share) in FY 2011. Gross margin for FY 2012 was 33.5 percent compared to 35.4 percent in FY 2011.

    "I look forward to leading Logitech to improved performance," said Bracken Darrell, Logitech president. "To get back to sustained, profitable growth, we need to be simpler, faster and more consumer-centric. Some of this transformation has already begun, with the management team´s work to reinvigorate the product portfolio. We now need to simplify the organization through restructuring. With board approval, I have eliminated a layer of business and sales executive management; the leaders of our business groups and sales regions now report directly to me. In addition, we will consolidate brand management and product portfolio management under the leadership of the business groups, and streamline most other functions. I expect most of this restructuring to be completed by the end of the current quarter, freeing up resources to pursue our growth opportunities. The restructuring should result in a reduction of approximately $80 million in annual operating costs."

    "I believe the organizational streamlining that Bracken is driving is a decisive step for Logitech´s future," said Guerrino De Luca, Logitech chairman and chief executive officer. "Looking ahead, I am also excited about what I believe is a strong lineup of new products with a much clearer value proposition to consumers. We expect that increasingly differentiated products will provide strong up-sell opportunities across all of our businesses. The majority of these new products will launch in Q2."

    The company expects to benefit from a stronger product portfolio, the simplification of the organization and processes, and cost savings from the restructuring, resulting in improved financial performance in the second half of Fiscal 2013.

    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 Q4 and full-year results for FY 2012 and its restructuring and simplification plans on Thursday, April 26, 2012 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer 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 performance, sustainable and profitable growth, organizational structure, the timing of completing the restructuring, the availability of resources to pursue growth opportunities, the reduction in annual operating costs and the amount of those cost savings available in Fiscal Year 2013, the lineup of new products, the timing of their launches and their value propositions, up-sell opportunities and financial performance in the second half of Fiscal Year 2013. The forward-looking statements in this release involve risks and uncertainties that could cause Logitech´s actual results to differ materially from those 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 we expect, or when we expect it; if we fail to successfully develop and market products for 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; in digital music, if we fail to introduce differentiated product and marketing strategies to separate ourselves from competitors; competition in the video conferencing and communications industry, including from companies with significantly greater resources, sales and marketing organizations, installed base and name recognition; if the restructuring fails to produce the intended performance and cost savings results or is not implemented in the contemplated timeframe; 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 and our Quarterly Report on Form 10-Q 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.

      LOGITECH INTERNATIONAL S.A.   (In thousands, except per share amounts) - Unaudited             Quarter Ended March 31, CONSOLIDATED STATEMENTS OF OPERATIONS     2012       2011  

     

            Net sales     $ 531,962     $ 547,618   Cost of goods sold     338,075       368,248   Gross profit     193,887       179,370     % of net sales     36.4 %     32.8 %               Operating expenses:           Marketing and selling     100,302       106,777     Research and development     40,948       38,119     General and administrative     28,896       30,836   Total operating expenses     170,146       175,732                 Operating income     23,741       3,638                 Interest income, net     466       621   Other income, net     6,481       2,679                 Income before income taxes     30,688       6,938   Provision for income taxes     2,402       4,162                 Net income   $ 28,286     $ 2,776                 Shares used to compute net income per share:             Basic     169,387       178,562       Diluted     170,401       180,423   Net income per share:             Basic   $ 0.17     $ 0.02       Diluted   $ 0.17     $ 0.02     LOGITECH INTERNATIONAL S.A.   (In thousands, except per share amounts) - Unaudited             Twelve Months Ended March 31, CONSOLIDATED STATEMENTS OF OPERATIONS     2012       2011  

     

            Net sales     $ 2,316,203     $ 2,362,886   Cost of goods sold     1,539,614       1,526,380   Gross profit     776,589       836,506     % of net sales     33.5 %     35.4 %               Operating expenses:           Marketing and selling     423,854       420,580     Research and development     162,331       156,390     General and administrative     118,423       116,880   Total operating expenses     704,608       693,850                 Operating income     71,981       142,656                 Interest income, net     2,674       2,316   Other income, net     16,622       3,476                 Income before income taxes     91,277       148,448   Provision for income taxes     19,819       19,988                 Net income   $ 71,458     $ 128,460                 Shares used to compute net income per share:             Basic     174,648       176,928       Diluted     175,591       178,790   Net income per share:             Basic   $ 0.41     $ 0.73       Diluted   $ 0.41     $ 0.72     LOGITECH INTERNATIONAL S.A.   (In thousands) - Unaudited     CONSOLIDATED BALANCE SHEETS   March 31, 2012   March 31, 2011

     

            Current assets           Cash and cash equivalents   $ 478,370   $ 477,931   Accounts receivable     223,104     258,294   Inventories     297,072     280,814   Other current assets     65,990     59,347   Total current assets     1,064,536     1,076,386 Property, plant and equipment     86,773     84,160 Intangible assets           Goodwill     560,523     547,184   Other intangible assets     53,518     74,616 Other assets     83,033     79,210 Total assets   $ 1,848,383   $ 1,861,556             Current liabilities           Accounts payable   $ 301,111   $ 298,160   Accrued liabilities     178,569     172,560   Total current liabilities     479,680     470,720 Other liabilities     218,462     185,835 Total liabilities     698,142     656,555             Shareholders´ equity     1,150,241     1,205,001             Total liabilities and shareholders´ equity   $ 1,848,383   $ 1,861,556   LOGITECH INTERNATIONAL S.A.   (In thousands) - Unaudited         Twelve Months Ended March 31, CONSOLIDATED STATEMENTS OF CASH FLOWS     2012       2011  

     

            Cash flows from operating activities:         Net income   $ 71,458     $ 128,460   Non-cash items included in net income:         Depreciation     45,968       48,191   Amortization of other intangible assets     26,534       27,800   Inventory valuation adjustment     34,074       -   Share-based compensation expense     31,529       34,846   Gain on sale of investments     (6,109 )     -   Gain on disposal of fixed assets     (8,967 )     (838 ) Excess tax benefits from share-based compensation     (37 )     (3,455 ) Deferred income taxes and other     137       (9,350 ) Changes in assets and liabilities:         Accounts receivable     29,279       (54,684 ) Inventories     (36,621 )     (60,482 ) Other assets     (4,621 )     5,825   Accounts payable     3,622       37,714   Accrued liabilities     13,090       2,715   Net cash provided by operating activities     199,336       156,742             Cash flows from investing activities:         Purchases of property, plant and equipment     (51,001 )     (43,039 ) Acquisitions and investments, net of cash acquired     (18,814 )     (7,300 ) Proceeds from sale of property, plant and equipment     8,967       2,688   Proceeds from sale of available-for-sale securities     6,550       -   Purchases of trading investments     (7,505 )     (19,075 ) Sales of trading investments     7,399       6,470   Proceeds from cash surrender of life insurance policies     -       11,313   Proceeds from sale of business     -       9,087   Premiums paid on cash surrender value of life insurance policies     -       (5 ) Net cash used in investing activities     (54,404 )     (39,861 )           Cash flows from financing activities:         Purchases of treasury shares     (156,036 )     -   Proceeds from sale of shares upon exercise of options and purchase rights     17,591       43,001   Tax withholdings related to net share settlements of restricted stock units     (966 )     (223 ) Excess tax benefits from share-based compensation     37       3,455   Net cash provided by (used in) financing activities     (139,374 )     46,233             Effect of exchange rate changes on cash and cash equivalents     (5,119 )     (5,127 )

    Net increase in cash and cash equivalents

        439       157,987   Cash and cash equivalents at beginning of period     477,931       319,944   Cash and cash equivalents at end of period   $ 478,370     $ 477,931     LOGITECH INTERNATIONAL S.A.   (In thousands, except per share amounts) - Unaudited       Quarter Ended   Twelve Months Ended     March 31,   March 31, SUPPLEMENTAL FINANCIAL INFORMATION     2012       2011       2012       2011                         Depreciation   $ 10,767     $ 12,526     $ 45,968     $ 48,191   Amortization of other intangible assets     6,325       6,635       26,534       27,800   Operating income     23,741       3,638       71,981       142,656   Operating income before depreciation and amortization     40,833       22,799       144,483       218,647   Capital expenditures     19,584       11,204       51,001       43,039                                               Net sales by channel:                   Retail   $ 455,398     $ 463,232     $ 1,982,783     $ 2,005,210     OEM     40,993       45,026       185,959       223,775     LifeSize     35,571       39,360       147,461       133,901       Total net sales   $ 531,962     $ 547,618     $ 2,316,203     $ 2,362,886                     -