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FREMONT, Calif., April. 27, 2011 and MORGES, Switzerland, April. 28, 2011 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2011.
Sales for Q4 FY 2011 were $548 million, up 4 percent from $525 million in the same quarter last year. Excluding the favorable impact of exchange rate changes, sales increased by 3 percent. Operating income was $3.6 million, a decrease of 87 percent compared to $27.7 million in the same quarter a year ago. Net income for Q4 was $2.8 million ($0.02 per share) compared to $24.5 million ($0.14 per share) in Q4 of FY 2010. Gross margin for Q4 FY 2011 was 32.8 percent, down from 35.8 percent one year ago.
Logitech’s retail sales for Q4 FY 2011 grew by 2 percent year over year, with an increase in Asia of 32 percent, an increase in the Americas of 11 percent, and a decrease in EMEA of 17 percent. OEM sales decreased by 10 percent. Sales for the LifeSize division grew 88 percent, reaching a record high for a quarter.
For the full fiscal year, sales were $2.36 billion, up 20 percent from $1.97 billion in FY 2010. Operating income was $142.7 million, up 82 percent from $78.4 million a year ago. Gross margin for FY 2011 was 35.4 percent compared to 31.9 percent in FY 2010.
“FY 2011 was a strong year for the company, with sales growth of 20 percent and operating income nearly doubling, driven by our LifeSize division and our Americas and Asia retail regions,” said Gerald P. Quindlen, Logitech president and chief executive officer. “The disappointing conclusion to FY 2011 – which resulted in lower-than expected full-year sales, operating income and gross margin – was due to weaker than anticipated demand in the second half of Q4 for our products in EMEA. The weakness in demand in EMEA was compounded by poor execution of channel pricing and promotional programs within the region, which we have begun to remedy.”
For Fiscal Year 2012, ending March 31, 2012, Logitech expects sales of approximately $2.6 billion, operating income of approximately $185 million and gross margin of approximately 35 percent. The tax rate is expected to be approximately 15 percent.
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the results teleconference available online on the Logitech corporate Web site at http://ir.logitech.com. The remarks are posted in the Calendar section on the Investor home page.
Results Teleconference and Webcast
Logitech will hold a results teleconference on Thursday, April 28, 2011 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer Time. A live webcast of the call, along with presentation slides, will be available on the Logitech corporate Web site 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).