Logitech Delivers Tenth Consecutive Record Year with Strongest Q4 Ever
Q4 Revenue Up 17%, Operating Income Up 20%, Company Confirms Targets for FY 2009
FREMONT, Calif., April 21, 2008 and ROMANEL-SUR-MORGES, Switzerland, April 22, 2008 — Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced record Q4 sales and profits, delivering its tenth consecutive year of double-digit revenue growth and reaching its full year revenue and profitability goals.
For the fourth quarter of Fiscal Year 2008, ended March 31, 2008, sales were $601 million, up 17 percent from $513 million in the same quarter last year. Operating income was $66.1 million, up 20 percent from $55.3 million for the same quarter a year ago. Net income was $60.3 million ($0.32 per share), up from $56.2 million ($0.29 per share) in the prior year. Gross margin was 35.6 percent, compared to 34.5 percent in Q4 of FY 2007.
Logitech’s retail sales for Q4 grew by 15 percent year over year, increasing by 13 percent in EMEA, 8 percent in the Americas, and 58 percent in Asia Pacific. Across Logitech sales regions, retail growth was fueled by strong sales of cordless mice (up 58 percent) and speakers (up 24 percent). Retail video sales grew by 9 percent. OEM sales grew by 34 percent, driven primarily by strong demand for microphones for console gaming.
For the full fiscal year, sales were $2.4 billion, up 15 percent from $2.1 billion in FY 2007. Operating income was $287 million, up 24 percent from $231 million a year ago. Net income was $231 million ($1.23 per share) compared to $230 million ($1.20 per share) in the prior year. Gross margin for the fiscal year was 35.8 percent, compared to 34.3 percent in FY 2007.
“We are very pleased with our Q4 performance, including our return to growth in the video category,” said Gerald P. Quindlen, Logitech president and chief executive officer. “Our revenue growth of 17 percent underscores the strength of our product portfolio and our geographic diversity, both key factors in our ability to deliver consistent growth over the last decade. The strong momentum we carry into the new fiscal year, combined with a solid balance sheet, position us to continue delivering double-digit growth in sales and profitability.”
For Fiscal Year 2009, ending March 31, 2009, the Company confirmed its financial targets of 15 percent growth in both sales and operating income. FY 2009 gross margin is expected to be above the high end of the Company’s long-term target range of 32-34 percent. The Company’s tax rate for the year is expected to be approximately 12 percent.
Logitech will hold an earnings teleconference on April 22, 2008 at 13:30 Central European Summer Time/7:30 a.m. Eastern Daylight Time/4:30 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. Please visit the Web site at least 10 minutes early to register for the teleconference webcast.
Logitech will hold an investor meeting in New York on May 22, 2008 at 8:30 a.m. Eastern Daylight Time/16:30 Central European Summer Time. A live video webcast and replay of the meeting will be available on the Logitech corporate Web site at http://ir.logitech.com.
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).
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This press release contains forward-looking statements, including the statements regarding expected sales and operating income growth, gross margin and effective tax rate for Fiscal Year 2009. 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 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; 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.