EX-15.1 2 dex151.htm PRESS RELEASE Press Release

Exhibit 15.1

 

FOR IMMEDIATE RELEASE

 

Editorial Contacts:

Joe Greenhalgh, Director, Investor Relations – USA (510) 713-4430

Ben Starkie, Public Relations Manager – Europe +41-(0) 21-863-5195

Nancy Morrison, Director, Corporate Communications – USA (510) 713-4948

 

Logitech Delivers Best-Ever Q1 Results

 

FREMONT, Calif., July 20, 2005 and ROMANEL-SUR-MORGES, Switzerland, July 21, 2005 — Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced its best-ever Q1 financial results and posted its twenty-seventh consecutive quarter of double-digit revenue growth.

 

Sales for the first quarter of Fiscal Year 2006, ended June 30, 2005, were $335 million, up 26 percent from $267 million for the same quarter one year ago. Operating income for Q1 was $25.2 million, up 17 percent from $21.6 million last year. Net income for the quarter was $22.4 million ($.23 per share), up 19 percent from $18.9 million ($.19 per share) in the prior year. Gross margin was 32.1, down from 34.1 percent in Q1 of FY 2005.

 

Retail sales were up by 27 percent, driven by growth in audio, console gaming and corded products. Logitech’s OEM sales were up by 17 percent from the same quarter last year.

 

“This great Q1, with double-digit sales growth in every region, led by the Americas, signals that Logitech’s FY 2006 is off to the right start,” said Guerrino De Luca, Logitech’s president and chief executive officer. “We are particularly pleased with the better-than-expected market response to our wide range of audio products, which we attribute to the growing popularity of both the MP3 music format and voice communications over the Internet. Even with a significantly higher proportion of audio products in the overall product mix, our gross margin remained in the targeted bracket of 32 to 34 percent, aided by healthy year-over-year improvement in gross margin for the audio category.”

 

Highlights for Logitech’s first fiscal quarter of 2006 include:

 

    Retail sales of Logitech’s audio products grew by 155 percent year over year, fueled by the increasing popularity of digital music in the home and on the go – which has created explosive demand for Logitech speakers and music headphones.

 

    Retail sales of the Company’s console gaming products grew by 84 percent, compared with Q1 of last year, due to increased demand for cordless gamepads, console wheels and Logitech’s new line of peripherals for the PSP handheld entertainment system.

 

    Retail sales of Logitech’s corded products were up by 26 percent, largely due to the popularity of the Logitech MX518 gaming mouse.

 

    The Company successfully transitioned its manufacturing operations to its new manufacturing facility in Suzhou, China.


Outlook

 

Logitech confirmed its financial goals for the current fiscal year, ending March 31, 2006, of 15 percent year-over-year growth for both sales and operating income, with gross margin at the high end of the targeted range of 32 to 34 percent for the full year.

 

Earnings Teleconference

 

Logitech will hold an earnings teleconference on Thursday, July 21, 2005 at 14:00 Central European Summer Time/8:00 a.m. Eastern Daylight Time/5:00 a.m. Pacific Daylight Time to discuss these results as well as guidance for Fiscal Year 2006. A live webcast and replay of the teleconference, including presentation slides, will be available at www.logitech.com/investors. Please visit the Web site at least 10 minutes early to register for the teleconference webcast.

 

About Logitech

 

Founded in 1981, Logitech designs, manufactures and markets personal peripherals that enable people to effectively work, play, and communicate in the digital world. Logitech International is a Swiss public company traded on the SWX Swiss Exchange (LOGN) and in the U.S. on the Nasdaq National Market System (LOGI). The company has manufacturing facilities in Asia and offices in major cities in North America, Europe and Asia Pacific.

 

###

 

This press release contains forward-looking statements regarding demand for audio products and expected sales, gross margin, and operating income for Fiscal 2006. These forward-looking statements involve risks and uncertainties that could cause Logitech’s actual performance to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include our ability to introduce successful products in a timely manner, the effect of pricing, product, marketing and other initiatives by our competitors and our reaction to them on our sales, gross margins and profitability, our ability to match production to demand and to coordinate the worldwide manufacturing and distribution of our products in a timely and cost-effective manner, the sales mix between our lower- and higher-margin products, our operations in China being adversely impacted by strains on Chinese energy, transportation, or other infrastructures, changes in consumer purchasing trends, and fluctuations in exchange rates, as well as those additional factors set forth in our periodic filings with the Securities and Exchange Commission, including its Form 20-F for the fiscal year ended March 31, 2005 available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.

 

Logitech, the Logitech logo and other Logitech marks are owned by Logitech and may be registered. 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 / ADS) - Unaudited

 

     Quarter Ended June 30

 

CONSOLIDATED STATEMENTS OF INCOME


   2005

    2004

 

Net sales

   $ 334,702     $ 266,594  

Cost of goods sold

     227,330       175,728  
    


 


Gross profit

     107,372       90,866  
    


 


% of net sales

     32.1 %     34.1 %

Operating expenses:

                

Marketing and selling

     46,293       39,569  

Research and development

     21,018       16,679  

General and administration

     14,834       13,042  
    


 


Total operating expenses

     82,145       69,290  
    


 


Operating income

     25,227       21,576  

Interest income (expense), net

     585       (290 )

Other income, net

     234       896  
    


 


Income before income taxes

     26,046       22,182  

Provision for income taxes

     3,649       3,327  
    


 


Net income

   $ 22,397     $ 18,855  
    


 


Shares used to compute net income per share and ADS:

                

Basic

     88,457       89,656  

Diluted

     98,906       100,590  

Net income per share and ADS:

                

Basic

   $ 0.25     $ 0.21  

Diluted

   $ 0.23     $ 0.19  

 

Note:

Share and per-share data for all periods presented have been adjusted to give effect to the two-for-one stock split that took effect on June 30, 2005.


LOGITECH INTERNATIONAL S.A.

 

(In thousands) - Unaudited

 

CONSOLIDATED BALANCE SHEETS


   June 30, 2005

   March 31, 2005

   June 30, 2004

Current assets                     

Cash and cash equivalents

   $ 298,785    $ 341,277    $ 273,976

Accounts receivable

     204,867      229,234      150,926

Inventories

     189,305      175,986      179,884

Other current assets

     52,198      50,364      49,360
    

  

  

Total current assets

     745,155      796,861      654,146

Investments

     16,681      16,793      16,644

Property, plant and equipment

     60,742      52,656      42,068

Intangible assets

                    

Goodwill

     133,950      134,286      131,778

Other intangible assets

     14,656      15,816      20,744

Other assets

     2,287      2,460      3,868
    

  

  

Total assets

   $ 973,471    $ 1,018,872    $ 869,248
    

  

  

Current liabilities

                    

Short-term debt

   $ 147,268    $ 9,875    $ 9,898

Accounts payable

     153,529      177,748      156,622

Accrued liabilities

     144,427      156,575      118,910
    

  

  

Total current liabilities

     445,224      344,198      285,430

Long-term debt

     49      147,788      140,037

Other liabilities

     685      737      910
    

  

  

Total liabilities

     445,958      492,723      426,377

Shareholders’ equity

     527,513      526,149      442,871
    

  

  

Total liabilities and shareholders’ equity

   $ 973,471    $ 1,018,872    $ 869,248
    

  

  


LOGITECH INTERNATIONAL S.A.

 

(In thousands) - Unaudited

 

    

Quarter Ended

June 30


SUPPLEMENTAL FINANCIAL INFORMATION


   2005

   2004

Depreciation

   $ 7,025    $ 5,916

Amortization of other acquisition-related intangibles

     1,160      1,396

Operating income

     25,227      21,576

Operating income before depreciation and amortization

     33,412      28,888

Capital expenditures

     16,172      10,591

Net sales by channel:

             

Retail

   $ 284,312    $ 223,471

OEM

     50,390      43,123
    

  

Total net sales

   $ 334,702    $ 266,594
    

  

Net sales by product family:

             

Retail - Cordless

   $ 75,305    $ 76,680

Retail - Corded

     72,269      57,569

Retail - Video

     48,484      45,895

Retail - Audio

     54,797      21,499

Retail - Gaming

     20,589      16,249

Retail - Other

     12,868      5,579

OEM

     50,390      43,123
    

  

Total net sales

   $ 334,702    $ 266,594