-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Trj47treA/s6Y4kVyCVc4mz5mT+u77+bPB2M7eiUJU6zz61rvm3xFNxDYCs3ySfR JVrLS2D9WToSiHkIYfV6eA== 0001193125-07-229608.txt : 20071030 0001193125-07-229608.hdr.sgml : 20071030 20071030160631 ACCESSION NUMBER: 0001193125-07-229608 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20071030 FILED AS OF DATE: 20071030 DATE AS OF CHANGE: 20071030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOGITECH INTERNATIONAL SA CENTRAL INDEX KEY: 0001032975 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 000000000 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29174 FILM NUMBER: 071199658 BUSINESS ADDRESS: STREET 1: 6505 KAISER DR STREET 2: C/O LOGITECH INC CITY: FREMONT STATE: CA ZIP: 94555 BUSINESS PHONE: 5107958500 MAIL ADDRESS: STREET 1: 6505 KAISER DR CITY: FREMONT STATE: CA ZIP: 94555 6-K 1 d6k.htm FORM 6-K Form 6-K

File Number: 0-29174


SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO

RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report: October 30, 2007

LOGITECH INTERNATIONAL S.A.

(Exact name of Registrant as specified in its charter)

Not Applicable

(Translation of Registrant’s name into English)

Canton of Vaud, Switzerland

(Jurisdiction of incorporation or organization)

Logitech International S.A.

Apples, Switzerland

c/o Logitech Inc.

6505 Kaiser Drive

Fremont, California 94555

(510) 795-8500

(Address and telephone number of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

þ  Form 20-F                    ¨  Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 191(b)(7):

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

¨  Yes                    þ   No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b).

Not applicable

 



LOGITECH INTERNATIONAL S.A

Form 6-K

On October 17, 2007, Logitech International S.A. issued the press release attached hereto as Exhibit 15.1.

On October 29, 2007, Logitech International S.A. issued the press release attached hereto as Exhibit 15.2.

The information in the press releases is incorporated herein by reference.


SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned, thereunto duly authorized.

 

Logitech International S.A.
/s/ Guerrino De Luca
Guerrino De Luca
President and Chief
Executive Officer
/s/ Mark J. Hawkins
Mark J. Hawkins
Chief Financial Officer,
and U.S. Representative

October 30, 2007

EX-15.1 2 dex151.htm PRESS RELEASE DATED OCTOBER 17, 2007 Press Release dated October 17, 2007

Exhibit 15.1

For Immediate Release

LOGO

Editorial Contacts:

Joe Greenhalgh, Vice President, 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 Announces Record Sales and Operating Profit for Q2

Revenue Up 19%, Operating Income Up 54%,

Company Increases Operating Income Goal for Full Year

FREMONT, Calif., Oct. 17, 2007 and ROMANEL-SUR-MORGES, Switzerland, Oct. 18, 2007 — Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced record sales and operating profit for the second quarter of Fiscal Year 2008. Sales were $595 million, up 19 percent from $502 million in the same quarter last year. Operating income was $80.4 million, up 54 percent from $52.2 million for the same quarter a year ago. Gross margin was 36.3 percent, compared to 34.5 percent in Q2 of FY 2007 – a year-over-year improvement of 180 basis points and equal to the all-time high for the Company. Cash flow from operations was $103 million, a year-over-year improvement of $80 million.

Logitech expects to provide results below the operating income line, as well as to present the value of its short-term investments and shareholders equity in its balance sheet, within the next three weeks. The Company is currently reviewing the fair value of its short-term investments as of September 30, 2007. These consist of structured finance instruments, with a par value of $169 million, composed of corporate debt as well as collateralized debt obligations.

Operating Results

Logitech’s retail sales for Q2 grew by 16 percent year over year, increasing by 17 percent in the Americas and Asia Pacific and by 15 percent in EMEA. Retail sales were driven by strong demand for Harmony remote controls, audio products, and keyboards and desktops. Harmony remote controls increased by 47 percent, more than doubling in EMEA. Audio products increased by 38 percent, driven by the company’s best quarter ever for PC speakers. The keyboards and desktops category, which grew by 35 percent, achieved a record quarter, driven by robust sales of the new Wave comfort keyboard. OEM sales grew by 40 percent, driven by strong demand for microphones for console singing games.

“Our outstanding Q2 performance demonstrated the strength across our product portfolio,” said Guerrino De Luca, Logitech president and chief executive officer. “Our line of Harmony remotes


has returned to strong growth, we achieved continued robust growth in audio and keyboards, and we made progress in webcams. We also achieved significant improvement in cash flow from operations. And, we are particularly pleased that the progress we have made in realigning our operating expense growth and gross profit growth positions us to exceed our FY 2008 goal for operating income growth.”

Outlook

For the current fiscal year, ending March 31, 2008, the company confirmed its sales target of 15 percent growth and increased its year-over-year operating income growth goal from 15 percent to 20 percent. FY 2008 gross margin is expected to be above the high end of the Company’s longterm target range of 32-34 percent.

Impairment of Short-Term Investments

The Company believes there has been significant impairment in the value of its short-term investment portfolio due to the recent dislocations in the credit markets. The Company’s ownership of the specific securities in this portfolio was the result of the unauthorized actions and misrepresentations to management of its treasurer, whose employment has been terminated. The Company expects to record an impairment loss of between $55 million and $75 million, which will be reported on the Q2 FY 2008 income statement as an unrealized loss under Other Expense. Subsequent to quarter end, the Company sold, at par, fifty per cent of each of the securities in the portfolio. As a result, the Company will recover half of the loss and will report it as a gain on the Q3 FY 2008 income statement under Other Income. The sale was part of a confidential settlement agreement and the sale price is not necessarily indicative of current market prices or fair value for the securities.

“It is very unfortunate that due to unauthorized actions and misrepresentations to management, Logitech has been affected by the current dislocations in the credit markets. Since uncovering the facts in early October, we’ve taken aggressive and swift action to address this isolated incident and prevent the recurrence of a similar situation.” said Mark Hawkins, Logitech chief financial officer.

Executive Leadership Transition

In a separate announcement today, Logitech announced a transition plan for its executive leadership. Effective January 1, 2008, Guerrino De Luca will become chairman of the board, Gerald P. Quindlen, currently the Company’s senior vice president of worldwide sales and marketing, will become Logitech’s president and chief executive officer, and Logitech co-founder Daniel Borel will step down from his role as chairman, remaining a member of the board of directors.


Earnings Teleconference

Logitech will hold an earnings teleconference on Oct. 18, 2007 at 14:00 Central European Time/8:00 a.m. Eastern Daylight Time/5:00 a.m. Pacific Daylight Time to discuss these results as well as targets for Fiscal Year 2008. 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 traded on the SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).

# # #

The financial results as of and for the period ended September 30, 2007 reported by Logitech in this press release do not include results below the operating income line, the value of Logitech’s short-term investments, and other line items in the balance sheet affected by the valuation of short-term investments. Although Logitech currently expects an impairment loss on its short-term investments of between $55 million and $75 million as of September 30, 2007, the actual impairment loss, once determined by Logitech, may be higher or lower than the expected range. Given the lack of a liquid market for its short-term investments, and the uncertainties inherent in developing valuations for the complex structured finance instruments in Logitech’s short-term investment portfolio, the value of the portfolio, once determined, may be higher or lower than the amount Logitech may actually realize on any future sale of the securities. The Company may report further gains or losses in future periods based on subsequent sales or changes in the fair value of the securities in the portfolio that it continues to hold. Any such gains or losses will affect Logitech’s reported results in those future periods.

This press release contains forward-looking statements in addition to those discussed in the preceding paragraph, including the statements regarding expected sales and operating income growth and gross margin for Fiscal Year 2008, and the expected timing for providing full results for Q2 Fiscal Year 2008. The forward-looking statements in this release involve risks and uncertainties that could cause Logitech’s actual performance, results and timing of reported results to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include those discussed in the preceding paragraph and 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 and our ability to accurately forecast 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 time to develop the actual valuation of our short-term investments as of September 30, 2007 being longer than we expect; our ability to continue to implement our plan to control operating expenses while growing sales; 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 20-F for the Fiscal Year ended March 31, 2007 and our quarterly reports on Form 6-K 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 September 30,  

PRELIMINARY CONSOLIDATED STATEMENTS OF INCOME

   2007     2006  

Net sales

   $ 595,490     $ 502,041  

Cost of goods sold

     379,536       329,076  
                

Gross profit

     215,954       172,965  
                

% of net sales

     36.3 %     34.5 %

Operating expenses:

    

Marketing and selling

     76,463       70,445  

Research and development

     30,939       26,118  

General and administrative

     28,149       24,225  
                

Total operating expenses

     135,551       120,788  
                

Operating income

     80,403       52,177  

Interest income, net

     3,925       1,930  

Other income (expense), net

     *       1,107  
                

Income before income taxes

     *       55,214  

Provision for income taxes

     *       6,010  
                

Net income

     *     $ 49,204  
                

Shares used to compute net income per share:

    

Basic

     181,459       182,502  

Diluted

     188,293       190,276  

Net income per share:

    

Basic

     *     $ 0.27  

Diluted

     *     $ 0.26  

 

* The Company’s preliminary consolidated statement of income for the quarter ended September 30, 2007 does not reflect the potential impact of an impairment loss related to short-term investments. The impairment loss is expected to range from $55 million to $75 million.

 

  Subsequent to the balance sheet date, the Company sold, at par, 50% of each of its short-term investments and as a result will recover 50% of the loss that will be recorded during the second quarter. The sale was part of a confidential settlement agreement and the sale price is not necessarily indicative of current market prices or fair value for the securities.


LOGITECH INTERNATIONAL S.A.

(In thousands, except per share amounts) - Unaudited

 

      Six Months Ended September 30,  

PRELIMINARY CONSOLIDATED STATEMENTS OF INCOME

   2007     2006  

Net sales

   $ 1,025,027     $ 895,323  

Cost of goods sold

     664,287       601,446  

Gross profit

     360,740       293,877  
                

% of net sales

     35.2 %     32.8 %
                

Operating expenses:

    

Marketing and selling

     141,250       121,643  

Research and development

     59,704       51,046  

General and administrative

     55,471       45,220  
                

Total operating expenses

     256,425       217,909  
                

Operating income

     104,315       75,968  

Interest income, net

     7,463       3,476  

Other income (expense), net

     *       9,838  
                

Income before income taxes

     *       89,282  

Provision for income taxes

     *       9,931  
                

Net income

     *     $ 79,351  
                

Shares used to compute net income per share:

    

Basic

     181,630       182,575  

Diluted

     188,699       190,466  

Net income per share:

    

Basic

     *     $ 0.43  

Diluted

     *     $ 0.42  

 

* The Company’s preliminary consolidated statement of income for the six months ended September 30, 2007 does not reflect the potential impact of an impairment loss related to short-term investments. The impairment loss is expected to range from $55 million to $75 million.

 

  Subsequent to the balance sheet date, the Company sold, at par, 50% of each of its short-term investments and as a result will recover 50% of the loss that will be recorded during the second quarter. The sale was part of a confidential settlement agreement and the sale price is not necessarily indicative of current market prices or fair value for the securities.


LOGITECH INTERNATIONAL S.A.

(In thousands) - Unaudited

 

PRELIMINARY CONSOLIDATED BALANCE SHEETS

   September 30, 2007    March 31, 2007    September 30, 2006

Current assets

        

Cash and cash equivalents

   $ 265,388    $ 196,197    $ 149,831

Short term investments

     *      214,625      95,000

Accounts receivable

     425,052      310,377      397,198

Inventories

     263,396      217,964      258,417

Other current assets

     62,437      68,257      56,599
                    

Total current assets

     *      1,007,420      957,045

Investments

     14      14      11,968

Property, plant and equipment

     97,414      87,054      84,962

Intangible assets

        

Goodwill

     186,577      179,991      136,523

Other intangible assets

     16,484      18,920      9,270

Other assets

     32,932      34,064      26,507
                    

Total assets

     *    $ 1,327,463    $ 1,226,275
                    

Current liabilities

        

Short-term debt

   $ —      $ 11,856    $ 12,322

Accounts payable

     340,786      218,129      278,870

Accrued liabilities

     161,613      235,080      181,207
                    

Total current liabilities

     502,399      465,065      472,399

Other liabilities

     99,505      17,874      12,389
                    

Total liabilities

     601,904      482,939      484,788

Shareholders’ equity

     *      844,524      741,487

Total liabilities and shareholders’ equity

     *    $ 1,327,463    $ 1,226,275
                    

 

* The Company’s preliminary consolidated balance sheet as of September 30, 2007 does not reflect the potential impact of an impairment loss related to short-term investments. The impairment loss is expected to range from $55 million to $75 million.

 

  Refer to the Consolidated Statements of Income for more information.


LOGITECH INTERNATIONAL S.A.

(In thousands) - Unaudited

 

     Quarter Ended
September 30
    Six Months Ended
September 30
 

SUPPLEMENTAL FINANCIAL INFORMATION

   2007     2006     2007     2006  

Depreciation

   $ 11,176     $ 8,765     $ 20,002     $ 16,266  

Amortization of other acquisition-related intangibles

     1,219       952       2,437       1,905  

Operating income

     80,403       52,177       104,315       75,968  

Operating income before depreciation and amortization

     92,798       61,894       126,754       94,139  

Capital expenditures

     9,945       12,309       29,917       26,058  

Net sales by channel:

        

Retail

   $ 518,441     $ 446,932     $ 887,668     $ 788,048  

OEM

     77,049       55,109       137,359       107,275  
                                

Total net sales

   $ 595,490     $ 502,041     $ 1,025,027     $ 895,323  
                                

Net sales by product family:

        

Retail - Pointing Devices

   $ 155,490     $ 136,796     $ 265,143     $ 232,819  

Retail - Keyboards & Desktops

     114,500       85,087       196,089       152,313  

Retail - Video

     64,469       87,726       111,744       163,652  

Retail - Audio

     123,628       89,723       216,694       156,628  

Retail - Gaming

     35,726       30,831       57,928       50,348  

Retail - Remotes

     24,628       16,769       40,070       32,288  

OEM

     77,049       55,109       137,359       107,275  
                                

Total net sales

   $ 595,490     $ 502,041     $ 1,025,027     $ 895,323  
                                
Stock-based Compensation Expense for    Quarter Ended
September 30
    Six Months Ended
September 30
 

Employee Stock Options and Employee Stock Purchases

   2007     2006     2007     2006  

Cost of goods sold

   $ 636     $ 731     $ 1,340     $ 1,449  

Marketing and selling

     1,699       1,910       3,645       3,761  

Research and development

     741       819       1,507       1,606  

General and administration

     1,415       1,766       3,443       3,536  

Income tax benefit

     (1,662 )     (1,113 )     (2,631 )     (2,031 )
                                

Total stock-based compensation expense after income taxes

   $ 2,829     $ 4,113     $ 7,304     $ 8,321  
                                

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

   $ 0.02     $ 0.02     $ 0.04     $ 0.04  
EX-15.2 3 dex152.htm PRESS RELEASE DATED OCTOBER 29, 2007 Press Release dated October 29, 2007

Exhibit 15.2

For Immediate Release

 

Editorial Contacts:   

LOGO

Joe Greenhalgh, Vice President, 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 Announces Final Q2 Financial Results

FREMONT, Calif., Oct. 29, 2007 and ROMANEL-SUR-MORGES, Switzerland, Oct. 30, 2007 — Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced final financial results for the second quarter of Fiscal Year 2008, updating the Company’s Oct. 17, 2007 announcement.

Consistent with the range in the previous announcement, the Company recorded an impairment loss of $67.4 million on the value of its short-term investment portfolio as of September 30, 2007. As a result, net income for Q2 FY 2008 was $12 million ($0.06 per share). Excluding this charge, non-GAAP net income for the quarter was $79 million ($0.42 per share), compared to $49 million ($0.26 per share) in Q2 FY 2007.

Subsequent to quarter end, the Company sold, at par, fifty per cent of each of the securities in the portfolio. As a result, the Company will recover half of the loss and will record it as a gain of $33.7 million in the Q3 FY 2008 income statement under Other Income. The sale was part of a confidential settlement agreement and the sale price is not necessarily indicative of current market prices or fair value for the securities.

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

# # #

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 September 30,  

CONSOLIDATED STATEMENTS OF INCOME

   2007     2006  

Net sales

   $ 595,490     $ 502,041  

Cost of goods sold

     379,536       329,076  
                

Gross profit

     215,954       172,965  
                

% of net sales

     36.3 %     34.5 %

Operating expenses:

    

Marketing and selling

     76,463       70,445  

Research and development

     30,939       26,118  

General and administrative

     28,149       24,225  
                

Total operating expenses

     135,551       120,788  
                

Operating income

     80,403       52,177  

Interest income, net

     3,925       1,930  

Other income (expense), net

     (65,023 )     1,107  
                

Income before income taxes

     19,305       55,214  

Provision for income taxes

     7,743       6,010  
                

Net income

   $ 11,562     $ 49,204  
                

Shares used to compute net income per share:

    

Basic

     181,459       182,502  

Diluted

     188,293       190,276  

Net income per share:

    

Basic

   $ 0.06     $ 0.27  

Diluted

   $ 0.06     $ 0.26  

Other income (expense), net for the quarter ended September 30, 2007 includes an impairment loss of $67.4 million related to the decline in fair value of short-term investments.

Subsequent to the balance sheet date, the Company sold, at par, 50% of each of its short-term investments and as a result recovered 50% of the loss or $33.7 million during the third quarter. The sale was part of a confidential settlement agreement and the sale price is not necessarily indicative of current market prices or fair value for the securities.


LOGITECH INTERNATIONAL S.A.

(In thousands, except per share amounts) - Unaudited

 

     Six Months Ended September 30,  

CONSOLIDATED STATEMENTS OF INCOME

   2007     2006  

Net sales

   $ 1,025,027     $ 895,323  

Cost of goods sold

     664,287       601,446  
                

Gross profit

     360,740       293,877  
                

% of net sales

     35.2 %     32.8 %

Operating expenses:

    

Marketing and selling

     141,250       121,643  

Research and development

     59,704       51,046  

General and administrative

     55,471       45,220  
                

Total operating expenses

     256,425       217,909  
                

Operating income

     104,315       75,968  

Interest income, net

     7,463       3,476  

Other income (expense), net

     (63,704 )     9,838  
                

Income before income taxes

     48,074       89,282  

Provision for income taxes

     10,958       9,931  
                

Net income

   $ 37,116     $ 79,351  
                

Shares used to compute net income per share:

    

Basic

     181,630       182,575  

Diluted

     188,699       190,466  

Net income per share:

    

Basic

   $ 0.20     $ 0.43  

Diluted

   $ 0.20     $ 0.42  

Other income (expense), net for the six months ended September 30, 2007 includes an impairment loss of $67.4 million related to the decline in fair value of short-term investments.

Subsequent to the balance sheet date, the Company sold, at par, 50% of each of its short-term investments and as a result recovered 50% of the loss or $33.7 million during the third quarter. The sale was part of a confidential settlement agreement and the sale price is not necessarily indicative of current market prices or fair value for the securities.


LOGITECH INTERNATIONAL S.A.

(In thousands) - Unaudited

 

CONSOLIDATED BALANCE SHEETS

   September 30, 2007    March 31, 2007    September 30, 2006

Current assets

        

Cash and cash equivalents

   $ 265,388    $ 196,197    $ 149,831

Short term investments

     101,181      214,625      95,000

Accounts receivable

     425,052      310,377      397,198

Inventories

     263,396      217,964      258,417

Other current assets

     62,437      68,257      56,599
                    

Total current assets

     1,117,454      1,007,420      957,045

Investments

     14      14      11,968

Property, plant and equipment

     97,414      87,054      84,962

Intangible assets

        

Goodwill

     186,577      179,991      136,523

Other intangible assets

     16,484      18,920      9,270

Other assets

     32,932      34,064      26,507
                    

Total assets

   $ 1,450,875    $ 1,327,463    $ 1,226,275
                    

Current liabilities

        

Short-term debt

   $ —      $ 11,856    $ 12,322

Accounts payable

     340,786      218,129      278,870

Accrued liabilities

     161,613      235,080      181,207
                    

Total current liabilities

     502,399      465,065      472,399

Other liabilities

     99,505      17,874      12,389
                    

Total liabilities

     601,904      482,939      484,788

Shareholders’ equity

     848,971      844,524      741,487
                    

Total liabilities and shareholders’ equity

   $ 1,450,875    $ 1,327,463    $ 1,226,275
                    


LOGITECH INTERNATIONAL S.A.

(In thousands) - Unaudited

 

SUPPLEMENTAL FINANCIAL INFORMATION    Quarter Ended
September 30
   Six Months Ended
September 30

Reconciliation of GAAP to non-GAAP Financial Measures

   2007    2007

GAAP net income

   $ 11,562    $ 37,116

Adjustments:

     

Impairment loss on short-term investments

     67,419      67,419
             

Non-GAAP net income

   $ 78,981    $ 104,535
             

GAAP net income per share:

     

Basic

   $ 0.06    $ 0.20

Diluted

   $ 0.06    $ 0.20

Impairment loss on short-term investments per share

     

Basic

   $ 0.38    $ 0.38

Diluted

   $ 0.36    $ 0.36

Non-GAAP net income per share:

     

Basic

   $ 0.44    $ 0.58

Diluted

   $ 0.42    $ 0.56

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 impairment loss related to an other-than-temporary decline in fair value of short-term investments during the quarter ended September 30, 2007. There were no adjustments to our GAAP net income during the three and six months ended September 30, 2006 and accordingly our financial results for those periods are presented in the accompanying earnings release on a GAAP basis only. 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
September 30
   Six Months Ended
September 30

SUPPLEMENTAL FINANCIAL INFORMATION

   2007    2006    2007    2006

Depreciation

   $ 11,176    $ 8,765    $ 20,002    $ 16,266

Amortization of other acquisition-related intangibles

     1,219      952      2,437      1,905

Operating income

     80,403      52,177      104,315      75,968

Operating income before depreciation and amortization

     92,798      61,894      126,754      94,139

Capital expenditures

     9,945      12,309      29,917      26,058

Net sales by channel:

           

Retail

   $ 518,441    $ 446,932    $ 887,668    $ 788,048

OEM

     77,049      55,109      137,359      107,275
                           

Total net sales

   $ 595,490    $ 502,041    $ 1,025,027    $ 895,323
                           

Net sales by product family:

           

Retail - Pointing Devices

   $ 155,490    $ 136,796    $ 265,143    $ 232,819

Retail - Keyboards & Desktops

     114,500      85,087      196,089      152,313

Retail - Video

     64,469      87,726      111,744      163,652

Retail - Audio

     123,628      89,723      216,694      156,628

Retail - Gaming

     35,726      30,831      57,928      50,348

Retail - Remotes

     24,628      16,769      40,070      32,288

OEM

     77,049      55,109      137,359      107,275
                           

Total net sales

   $ 595,490    $ 502,041    $ 1,025,027    $ 895,323
                           

 

Stock-based Compensation Expense for    Quarter Ended
September 30
    Six Months Ended
September 30
 

Employee Stock Options and Employee Stock Purchases

   2007     2006     2007     2006  

Cost of goods sold

   $ 636     $ 731     $ 1,340     $ 1,449  

Marketing and selling

     1,699       1,910       3,645       3,761  

Research and development

     741       819       1,507       1,606  

General and administration

     1,415       1,766       3,443       3,536  

Income tax benefit

     (1,662 )     (1,113 )     (2,631 )     (2,031 )
                                

Total stock-based compensation expense after income taxes

   $ 2,829     $ 4,113     $ 7,304     $ 8,321  
                                

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

   $ 0.02     $ 0.02     $ 0.04     $ 0.04  
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