Revenue Up 17%; Operating Income Up 298%; Net Income Up 747%
Fremont, CA -- July 25, 2000 -- Logitech (NASDAQ:LOGIY; Switzerland:LOGN, LOGZ), international market leader in human interface devices that define the way people link to information in business, at home and online, has posted record first quarter results for the second consecutive year. Consolidated sales reached $141 million, a 17 percent increase over sales of $121 million for the same quarter last year. Net income of $5.0 million ($1.06 per share -- $0.11 per ADS)1 was more than eight times greater than the net income of $0.6 million ($0.15 per share -- $0.01 per ADS)1, posted in the same quarter last year.
Gross margin was strong at 33.4 percent, compared with 29.7 percent for the first quarter of fiscal 2000, while operating income of $4.1 million was four times larger than last year's first quarter operating income of $1.0 million.
"We continue to be pleased with Logitech's growth and with the success of the new products and product categories that we have added to our portfolio," said Guerrino De Luca, president and chief executive officer. "We are on track for the holiday selling season, with the largest array ever of new devices either in-store now or scheduled to hit retail shelves over the next two months.
"During the first quarter, we strengthened our executive team with the addition of two new vice presidents," continued Mr. De Luca. "Steven Perotin, vice president of our worldwide supply chain, will be key in effectively managing delivery, inventory and working capital as we continue to increase the breadth of our product line. In addition, Ted Hoff, a well-known figure in the industry, is now heading our interactive entertainment business division.
This past quarter, Logitech announced several significant initiatives with other industry leaders -- a joint development effort with Motorola aimed at introducing a new generation of cordless peripherals based on the emerging Bluetooth wireless communication standard, and an OEM partnership with the LEGO® Company, whereby QuickCam® PC Video Camera technology will be embedded in LEGO® MINDSTORMS'™ new Vision Command™ products.
About Logitech
Founded in 1981, Logitech designs, manufactures and markets human interface devices and supporting software that link people to the Internet and enable them to work, play, learn and communicate more effectively in the digital world. Logitech's interface products include Internet video cameras; input and pointing devices such as corded and cordless mice, keyboards and optical trackballs; multimedia speakers; and interactive gaming products such as joysticks, gamepads and racing systems.
With operational headquarters through its U.S. subsidiary in Fremont, California, and regional headquarters through local subsidiaries in Romanel, Switzerland, and Hsinchu, Taiwan, R.O.C., Logitech International is a Swiss public company traded in Switzerland under the symbols LOGN and LOGZ, and in the U.S. on the Nasdaq National Market System (LOGIY). The company has manufacturing facilities in Asia and offices in major cities in North America, Europe and Asia Pacific.
All trademarks are the property of their respective owners.
This press release contains forward-looking statements, which involve risks and uncertainties. The Company's actual performance could differ materially from that anticipated in these forward-looking statements as a result of certain factors, including product release schedules and those set forth in the Company's Annual Report on Form 20-F dated July 17, 2000, available upon request from Logitech by calling (510) 713-4220.
1 At the Company's Annual General Meeting held on June 29, 2000, in Lausanne, Switzerland, shareholders approved a two-for-one stock split (reflected in both registered shares and ADSs). The earnings-per-share figures represent post-split calculations.
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LOGITECH INTERNATIONAL S.A. |
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Quarter Ending
June 30 |
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CONSOLIDATED STATEMENTS OF INCOME
(In thousands of U.S. dollars) - Unaudited |
2000 |
1999 |
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Net sales |
$ 141,416 |
$ 121,068 |
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Cost of goods sold |
94,125 |
85,105 |
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Gross profit |
47,291 |
35.963 |
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% of net sales |
33.4% |
29.7% |
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Operating expenses: |
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Marketing and selling |
26,449 |
21,353 |
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Research and development |
8,509 |
7,006 |
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General and administration |
8,265 |
6,583 |
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Total operating expenses |
43,223 |
34,942 |
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Operating income |
4,068 |
1,021 |
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Interest income (expense), net |
196 |
(204) |
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Other income (expense), net |
1,967 |
(82) |
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Income before income taxes |
6,231 |
735 |
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Provision for income taxes |
1,246 |
147 |
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Net income |
$ 4,985 |
$ 588 |
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Shares used to compute net income per share: |
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Basic |
4,153,071 |
3,893,412 |
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Diluted |
4,680,840 |
4,001,732 |
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Net income per share: |
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Basic |
$1.20 |
$0.15 |
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Diluted |
$1.06 |
$0.15 |
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Net income per ADS (10 ADS : 1 Share): |
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Basic |
$0.12 |
$0.02 |
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Diluted |
$0.11 |
$0.01 |
Note: The Company completed a two-for-one stock split on July 5, 2000. All references to share and per-share data have been adjusted to give effect to this stock split.
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LOGITECH INTERNATIONAL S.A. |
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CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars) - Unaudited |
June 30,
2000 |
March 31,
2000 |
June 30,
1999 |
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Current assets |
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Cash and cash equivalents |
$ 44,369 |
$ 49,426 |
$ 23,890 |
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Accounts receivable |
107,151 |
123,172 |
84,313 |
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Inventories |
101,763 |
68,255 |
58,523 |
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Other current assets |
23,916 |
25,354 |
17,397 |
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Total current assets |
277,199 |
266,207 |
184,123 |
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Investments |
41,052 |
10,807 |
15,071 |
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Property, plant and equipment |
40,871 |
42,117 |
43,288 |
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Intangible assets |
13,002 |
14,007 |
17,203 |
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Other assets |
887 |
939 |
1,270 |
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Total assets |
$ 373,011 |
$ 334,077 |
$ 260,955 |
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Current liabilities |
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Short-term debt |
$ 7,028 |
$ 6,990 |
$ 20,439 |
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Accounts payable |
95,283 |
92,430 |
55,658 |
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Accrued liabilites |
51,435 |
51,049 |
39,834 |
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Total current liabilities |
153,746 |
150,469 |
115,931 |
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Long term debt |
2,917 |
2,934 |
3,376 |
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Other liabilities |
510 |
705 |
720 |
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Total liabilities |
157,173 |
154,108 |
120,027 |
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Shareholders' equity |
215,838 |
179,969 |
140,928 |
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Total liabilities and shareholders' equity |
$373,011 |
$334,077 |
$ 260,955 |
NOTE: The financial data in this earnings release has not been restated for the Company's 2 for 1 stock split of July 5, 2000. See the Company's Annual Report on Form 20-F dated July 17, 2000.