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