Logitech Revises FY 2012 Outlook Following Completion of Detailed Business Assessment
FREMONT, Calif., Sept. 21, 2011 and MORGES, Switzerland, Sept. 22, 2011 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today revised its outlook for Fiscal Year 2012, ending March 31, 2012, as a result of a detailed business assessment conducted over the last several weeks.
Based on the current economic environment in mature western markets, and the Company’s current product offering, Logitech expects to deliver revenue of approximately $2.4 billion and operating income of approximately $90 million for this fiscal year. The gross margin for the full year, which factors in the very low margin previously reported for Q1, is estimated to reach approximately 33 percent. Gross margin in both Q3 and Q4 is expected to be well above the full year average.
“Over the past several weeks after I resumed my CEO position, we conducted an in-depth assessment of the state of our business for Fiscal Year 2012 and beyond,” said Guerrino De Luca, Logitech chairman of the board and acting president and chief executive officer. “I am disappointed that our revised Fiscal 2012 outlook is not higher, but we now have a thorough understanding of what needs to be fixed. Our strategy remains unchanged. I expect the initiatives we have put in place to result in reinvigorated product offerings and improved execution in our sales and marketing organization as we progress through Fiscal 2012 and into Fiscal 2013.”
Logitech’s previous targets for FY 12 were sales of approximately $2.5 billion and operating income of at least $143 million. The Company’s previous FY 12 outlook did not include gross margin.
Teleconference and Webcast
Logitech will hold a teleconference regarding its FY 12 outlook on Thursday, Sept. 22, 2011 at 9:00 a.m. Eastern Daylight Time and 15:00 Central European Summer Time. A live webcast of the call will be available on the Logitech corporate Web site at http://ir.logitech.com.
Announcement of Q2 FY 12 Financial Results
Logitech will release quarterly financial results on Wednesday, Oct. 26, 2011 at 10:00 p.m. Eastern Daylight Time and Thursday, Oct. 27, 2011 at 04:00 Central European Summer Time.
There will be a teleconference to discuss these results on Thursday, Oct. 27, 2011 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer Time. A live webcast of the call will be available on the Logitech corporate website at http://ir.logitech.com.
Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning multiple computing, communication and entertainment platforms, Logitech’s combined hardware and software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. 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).
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This press release contains forward-looking statements, including the statements regarding anticipated sales, operating income and gross margin for FY 2012, gross margin for the second half of FY 2012, future product offerings, and future sales and marketing execution. The forward-looking statements in this release involve risks and uncertainties that could cause Logitech’s actual results to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include: the demand of our customers and our consumers for our products and our ability to accurately forecast it; if our investment prioritization decisions do not result in the sales or profitability growth we expect, or when we expect 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 sales mix among our lower- and higher-margin products and our geographic sales mix; if our product offerings and marketing activities do not result in the sales and profitability growth we expect, or when we expect it; if we fail to take advantage of trends in the consumer electronics and personal computers industries, including the growth of mobile computing devices such as smartphones and tablets with touch interfaces, or if significant demand for peripherals to use with tablets and other mobile devices with touch interfaces does not develop; if there is a deterioration of business and economic conditions in one or more of our sales regions, or significant fluctuations in currency exchange rates; if the sales growth in emerging markets for our PC peripherals and other products does not increase as much as we expect; if our operational changes in our EMEA sales region are not completed when we expect, or do not result in the sales improvement in EMEA we expect; competition in the video conferencing and communications industry, including from companies with significantly greater resources, sales and marketing organizations, installed base and name recognition; as well as those additional factors set forth in Logitech’s periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2011 and Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011 available at www.sec.gov. Logitech does not undertake to update any forward-looking statements, which speak as of their respective dates.
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.
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