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Empresas y finanzas

Logitech Posts Q2 Results


    Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced financial results for the second quarter of Fiscal Year 2009. Sales for Q2 were a record $665 million, up 12 percent from $595 million in the same quarter last year. Operating income was $80 million, essentially unchanged from the same quarter a year ago. Net income was $72 million ($0.39 per share) compared to Q2 FY 2008 net income of $12 million ($0.06 per share), which included an impairment loss of $67.4 million ($0.36 per share) on the value of short–term investments. Gross margin for the second quarter was 34.3 percent compared to 36.3 percent in Q2 FY 2008.

    Logitech´s retail sales for Q2 grew by 5 percent year over year, increasing by 35 percent in Asia and 8 percent in EMEA and decreasing by 11 percent in the Americas. Harmony® remotes (up 17%) and pointing devices (up 16%) were the best–performing categories in retail and video sales grew for the third consecutive quarter (up 9%). OEM sales grew by 56 percent, reflecting exceptionally strong demand for microphones for console gaming.

    "We are pleased to deliver double–digit revenue growth in what has become an increasingly challenging environment," said Gerald P. Quindlen, Logitech president and chief executive officer. "The strong growth in Asia and OEM, as well as in pointing devices and Harmony remotes, underscores the resilience of our geographic and category diversification. The decline in our gross margin was primarily due to the combination of higher input costs and the mix between retail and OEM sales.

    "Given the pervasive economic uncertainty, both in North America and Europe, we are tempering our outlook for growth for Fiscal 2009. We remain bullish on the opportunities across all our product categories and we believe we are well positioned to return to annual growth in the mid–teens when conditions improve."

    Outlook

    For Fiscal Year 2009, ending March 31, 2009 the Company now expects growth of 6–8 percent in sales and 3–5 percent in operating income, revised from the original target of 15 percent growth for both. The Company continues to expect FY 2009 gross margin to be above its 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 Oct. 21, 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.

    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 SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).

    This press release contains forward–looking statements, including the statements regarding revised expected sales and operating income growth, gross margin and effective tax rate for Fiscal Year 2009, and an expected return to mid–teens annual growth when conditions improve. 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 the depth and length of the current deterioration of general economic conditions, which could lead to significantly reduced consumer demand for our products, the financial distress or bankruptcy of a number of our suppliers and customers, and other adverse consequences, which could significantly harm our operating results; 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 and our Quarterly Reports on Form 10–Q, 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 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 September 30, CONSOLIDATED STATEMENTS OF INCOME   2008   2007           Net sales   $ 664,707     $ 595,490   Cost of goods sold     436,633       379,536   Gross profit     228,074       215,954   % of net sales    

    34.3%

     

       

    36.3%

     

              Operating expenses:         Marketing and selling     84,740       76,463   Research and development     33,351       30,939   General and administrative     29,620       28,149   Total operating expenses     147,711       135,551             Operating income     80,363       80,403             Interest income, net     2,775       3,925   Other income, net     (853 )     (65,023 )           Income before income taxes     82,285       19,305   Provision for income taxes     9,974       7,743             Net income   $ 72,311     $ 11,562                       Shares used to compute net income per share:         Basic   178,630   181,459 Diluted   183,509   188,293 Net income per share:         Basic   $0.41   $0.06 Diluted   $0.39   $0.06                   LOGITECH INTERNATIONAL S.A.   (In thousands, except per share amounts) – Unaudited               Six Months Ended September 30, CONSOLIDATED STATEMENTS OF INCOME   2008   2007           Net sales   $ 1,173,418     $ 1,025,027   Cost of goods sold     771,772       664,287   Gross profit     401,646       360,740   % of net sales    

    34.2%

     

       

    35.2%

     

              Operating expenses:         Marketing and selling     162,020       141,250   Research and development     66,610       59,704   General and administrative     62,929       55,471   Total operating expenses     291,559       256,425             Operating income     110,087       104,315             Interest income, net     5,327       7,463   Other income, net     (292 )     (63,704 )           Income before income taxes     115,122       48,074   Provision for income taxes     13,505       10,958             Net income   $ 101,617     $ 37,116                       Shares used to compute net income per share:         Basic   178,835   181,630 Diluted   184,154   188,699 Net income per share:         Basic   $0.57   $0.20 Diluted   $0.55   $0.20                   LOGITECH INTERNATIONAL S.A.   (In thousands) – Unaudited               CONSOLIDATED BALANCE SHEETS   September 30, 2008   March 31, 2008   September 30, 2007                             Current assets             Cash and cash equivalents   $ 455,231   $ 482,352   $ 265,388 Short term investments     3,418     3,940     101,181 Accounts receivable     467,499     373,619     425,052 Inventories     323,673     245,737     263,396 Other current assets     68,138     60,668     62,437 Total current assets     1,317,959     1,166,316     1,117,454 Property, plant and equipment     105,244     104,461     97,414 Intangible assets             Goodwill     218,776     194,383     186,577 Other intangible assets     31,460     21,730     16,484 Other assets     39,072     40,042     32,946 Total assets   $ 1,712,511   $ 1,526,932   $ 1,450,875               Current liabilities             Accounts payable   $ 404,356   $ 287,001   $ 340,786 Accrued liabilities     168,627     156,094     161,613 Total current liabilities     572,983     443,095     502,399 Other liabilities     126,345     123,793     99,505 Total liabilities     699,328     566,888     601,904               Shareholders´ equity     1,013,183     960,044     848,971               Total liabilities and shareholders´ equity   $ 1,712,511   $ 1,526,932   $ 1,450,875                     LOGITECH INTERNATIONAL S.A.   (In thousands) – Unaudited               Six Months Ended September 30, CONSOLIDATED STATEMENTS OF CASH FLOWS   2008   2007           Cash flows from operating activities:         Net income   $ 101,617     $ 37,116   Non–cash items included in net income:         Depreciation     22,501       20,002   Amortization of other intangible assets     3,470       2,437  

    Share–based compensation expense related to options and purchase rights

        11,710       9,935   Write–down of investments     978       67,419   Excess tax benefits from share–based compensation     (6,032 )     (8,285 ) Loss (gain) on cash surrender value of life insurance policies     363       (567 ) Deferred income taxes and other     3,434       (824 ) Changes in assets and liabilities, net of acquisitions:         Accounts receivable     (98,604 )     (103,992 ) Inventories     (82,846 )     (40,810 ) Other assets     (15,298 )     (4,938 ) Accounts payable     120,004       120,026   Accrued liabilities     22,110