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Empresas y finanzas

Logitech Announces Record Q1 Financial Results


    Logitech International (SWX:LOGN) (Nasdaq:LOGI) today announced financial results for the first quarter of Fiscal Year 2009. Sales for Q1 were $509 million, up 18 percent from $430 million in the same quarter last year. Operating income was $30 million, up 24 percent from $24 million for the same quarter a year ago. Net income was $29 million ($0.16 per share) compared to $26 million ($0.14 per share) in Q1 of FY 2008. Gross margin was 34.1 percent, compared to 33.7 percent in Q1 of FY 2008. Cash flow from operations was $44 million, up by more than three times compared to Q1 of FY 2008.

    Logitech´s retail sales for Q1 grew by 19 percent year over year, increasing by 20 percent in EMEA, 10 percent in the Americas and 41 percent in Asia. Retail sales growth was fueled by strong performance of Harmony® remotes (up 74%) and pointing devices (up 34%). Performance of the retail video business continued to rebound with sales up 21 percent. OEM sales grew by 15 percent, driven primarily by strong demand for microphones for console gaming.

    "We´re very pleased that Logitech´s Fiscal 2009 is off to a solid start in sales and profitability," said Gerald P. Quindlen, president and chief executive officer. "With strong demand for our products, we delivered double digit revenue growth across all regions and accelerated momentum in the video category. As we proceed into Q2, we look forward to continued market momentum driven by new products that will be introduced over the next few months."

    Outlook

    The Company confirmed its financial targets of 15 percent growth in both sales and operating income for Fiscal Year 2009, ending March 31, 2009. FY 2009 gross margin is expected to be above the Company´s long–term target range of 32–34 percent. Logitech expects its effective tax rate for the year to be approximately 12 percent.

    Earnings Teleconference

    Logitech will hold an earnings teleconference on July 22, 2008 at 14:30 Central European Summer Time/8:30 a.m. Eastern Daylight Time/5:30 a.m. Pacific Daylight Time to discuss these results as well as the Company´s outlook. A live webcast and replay of the teleconference, including presentation slides, will be available on the Logitech corporate Web site at http://ir.logitech.com. Please visit the Web site at least 10 minutes early to register for the teleconference webcast.

    About Logitech

    Logitech is a world leader in personal peripherals, driving innovation in PC navigation, Internet communications, digital music, home–entertainment control, gaming and wireless devices. Founded in 1981, Logitech International is a Swiss public company listed on the SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).

    This press release contains forward–looking statements, including the statements regarding expected sales and operating income growth, gross margin and effective tax rate for Fiscal Year 2009, continued market momentum and the effect of new product introductions. The forward–looking statements in this release involve risks and uncertainties that could cause Logitech´s actual performance and results to differ materially from that anticipated in these forward–looking statements. Factors that could cause actual results to differ materially include if we fail to successfully innovate in our current and emerging product categories and identify new feature or product opportunities; consumer demand for our products, particularly our newly introduced products, and our ability to accurately forecast it; if we fail to introduce new products in a timely manner at the product cost we expect; 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; as well as those additional factors set forth in our periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10–K for the fiscal year ended March 31, 2008, available at www.sec.gov. Logitech does not undertake to update any forward–looking statements.

    Logitech, the Logitech logo, and other Logitech marks are registered in the United States 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 June 30, CONSOLIDATED STATEMENTS OF INCOME   2008   2007           Net sales   $ 508,711   $ 429,537 Cost of goods sold     335,139     284,751 Gross profit     173,572     144,786 % of net sales     34.1%     33.7%           Operating expenses:         Marketing and selling     77,280     64,787 Research and development     33,259     28,765 General and administrative     33,309     27,322 Total operating expenses     143,848     120,874           Operating income     29,724     23,912           Interest income, net     2,552     3,538 Other income, net     561     1,319           Income before income taxes     32,837     28,769 Provision for income taxes     3,531     3,215           Net income   $ 29,306   $ 25,554                     Shares used to compute net income per share:         Basic     179,046     181,802 Diluted     184,692     189,250 Net income per share:         Basic   $0.16   $0.14 Diluted   $0.16   $0.14               LOGITECH INTERNATIONAL S.A.   (In thousands) – Unaudited                 CONSOLIDATED BALANCE SHEETS   June 30, 2008   March 31, 2008   June 30, 2007                             Current assets             Cash and cash equivalents   $ 481,020   $ 482,352   $ 227,545 Short term investments     3,364     3,940     138,975 Accounts receivable     338,493     373,619     303,384 Inventories     274,460     245,737     231,817 Other current assets     62,572     60,668     60,168 Total current assets     1,159,909     1,166,316     961,889 Property, plant and equipment     103,964     104,461     97,985 Intangible assets             Goodwill     194,383     194,383     182,255 Other intangible assets     20,125     21,730     17,702 Other assets     42,760     40,042     30,664 Total assets   $ 1,521,141   $ 1,526,932   $ 1,290,495               Current liabilities             Accounts payable   $ 299,701   $ 287,001   $ 210,987 Accrued liabilities     137,907     156,094     136,688 Total current liabilities     437,608     443,095     347,675 Other liabilities     125,421     123,793     93,445 Total liabilities     563,029     566,888     441,120               Shareholders´ equity     958,112     960,044     849,375               Total liabilities and shareholders´ equity   $ 1,521,141   $ 1,526,932   $ 1,290,495                     LOGITECH INTERNATIONAL S.A.       (In thousands) – Unaudited       SUPPLEMENTAL FINANCIAL INFORMATION   Quarter Ended     June 30 Reconciliation of GAAP to non–GAAP Financial Measures   2008       GAAP net income   $ 29,306 Adjustments:     Impairment loss on short–term investments     575       Non–GAAP net income   $ 29,881       GAAP net income per share:     Basic   $ 0.16 Diluted   $ 0.16       Impairment loss on short–term investments     Basic   $ 0.01 Diluted   $ 0.00             Non–GAAP net income per share:     Basic   $ 0.17 Diluted   $ 0.16            

    We sometimes use information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered "non–GAAP financial measures" under the U.S. Securities and Exchange Commission rules. The adjustments between the GAAP and non–GAAP financial measures presented above consist of the impact on Other Income of the impairment loss related to other–than–temporary declines in fair value of short–term investments during the three months ended June 30, 2008. Our management uses these non–GAAP measures in its financial and operational decision–making. Our management believes these non–GAAP measures, when considered in conjunction with the corresponding GAAP measures, facilitate better comparison by our investors of our current period results with corresponding prior periods.

      LOGITECH INTERNATIONAL S.A.   (In thousands) – Unaudited               Quarter Ended     June 30 SUPPLEMENTAL FINANCIAL INFORMATION   2008   2007           Depreciation   $ 10,595   $ 8,826 Amortization of other acquisition–related intangibles     1,605     1,218 Operating income     29,724     23,912 Operating income before depreciation and amortization     41,924     33,956 Capital expenditures     10,628     19,972                     Net sales by channel:         Retail   $ 439,168   $ 369,227 OEM     69,543     60,310 Total net sales   $ 508,711   $ 429,537                     Net sales by product family:         Retail – Pointing Devices   $ 147,379   $ 109,653 Retail – Keyboards & Desktops     93,934     81,589 Retail – Audio     83,218     93,066 Retail – Video     57,188     47,275 Retail – Gaming     30,510     22,202 Retail – Remotes     26,939     15,442 OEM     69,543     60,310 Total net sales   $ 508,711   $ 429,537                         Quarter Ended Stock–based Compensation Expense for   June 30 Employee Stock Options and Employee Stock Purchases   2008   2007           Cost of goods sold   $ 731   $ 704 Marketing and selling     1,849     1,946 Research and development     962     766 General and administration     2,346     2,028 Income tax benefit     (957)     (969)           Total stock–based compensation expense after income taxes   $ 4,931   $ 4,475          

    Stock–based compensation expense for employee stock options and employee stock purchases, net of tax, per share (diluted)

      $ 0.03   $ 0.02