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Logitech Posts Strongest Quarter Yet with 25% Growth in Sales, 34% Increase in Net Income

Jan 23, 2001

Ninth Consecutive Record Quarter for International Market Leader in Computer Interface Devices

Romanel-sur-Morges, Switzerland; Fremont, CA -- January 23, 2001 - Logitech International (Switzerland:LOGN, LOGZ) (NASDAQ:LOGIY) continued to deliver solid growth, bucking trends in the high-tech sector with consolidated sales of $232 million and net income of $19.9 million for the company's third fiscal quarter of FY01, which ended December 31, 2000. Earnings per share were $4.24 ($0.42 per ADS). This compares with sales of $185.4 million and net income of $14.9 million ($3.43 per share -- $0.34 per ADS) for the same period last year. Gross margin at 34.6% represents a sequential growth of 90 basis points; operating income of $25.5 million showed a 25% year-over-year growth.

Retail sales, which now account for 80% of Logitech's business, increased by 31% over last year, reflecting both the Company's strong holiday performance and the attractiveness of its after-market product offerings targeted at the huge installed base of PCs. OEM sales grew by 5%, in spite of an overall slowdown in sales of new PCs.

"We are pleased with our continuing record-breaking results, which underscore the strength of our market position," said Guerrino De Luca, Logitech's president and chief executive officer. "We were on holiday shelves worldwide with new and enhanced products in all areas. Our cordless interface devices, PC video cameras, and PC game controllers have once again proven their attractiveness to existing PC users, and we believe they have provided consumers with a compelling, lower cost alternative to buying a new PC this Christmas. Of special note is the success of our optical mice, introduced in June and complemented in September with the addition of the iFeelTM line of optical mice, which offer tactile feedback for easier onscreen navigation. To date, we have sold well over a quarter-million iFeel units, and we continue to experience high demand for this innovative technology.

"At the end of the fiscal year, we will see a change in our executive management team. Greg Chambers, senior vice president of worldwide sales and marketing, will be leaving to pursue his avid interest -- building and managing a vineyard in the Sonoma area. Greg has played an important role in spearheading Logitech's strong growth in sales, as well as in strengthening our presence in the retail channels, taking the supply chain to a new level, and elevating the Logitech brand on the web. We are pleased to announce that Marcel Stolk, vice president and general manager of the European Region, will be assuming Greg's responsibilities. Over the past four years, Marcel has built a world-class sales organization and significantly expanded Logitech's European presence.

"As we enter the final quarter of our Fiscal Year 2001, we remain optimistic about sustaining growth, and we estimate that we will reach the high end of our original full-year revenue and operating income growth guidance of 20 to 25% and 30 to 35% respectively."

Investors are invited to listen to a discussion of the Logitech third-quarter earnings via a live Webcast, scheduled for 12:00 P.M. EST/9:00 A.M. PST/6:00 P.M. CET today at http://www.logitech.com. A replay of the the webcast will also be made available for 14 days on the Company's Web site.

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, optical trackballs and keyboards; 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.

This press release contains forward-looking statements with respect to future results, including statements regarding sustaining growth and estimated revenue and operating income for FY 2001. These forward-looking statements 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 the timing of new product introductions by the Company and its competitors and their acceptance by the market, timely availability and pricing of products and components, price protection charges and product returns from customers, the impact of competition on the Company's average selling prices and operating expenses, inventory management and exposures, the outcome of ongoing intellectual property disputes, technological changes and their acceptance by the market, fluctuations in exchange rates, general economic conditions, as well as generally those additional factors set forth in the Company's Annual Report on Form 20-F dated July 17, 2000, and Form 6-K dated November 14, 2000, available from the SEC's Edgar database and upon request from Logitech by calling (510) 713-4220.

The revenue and operating income targets discussed in the press release constitute Logitech's goals as of the date of the release and are based on current conditions. Logitech undertakes no obligation to update these targets in any way or for any reason.

 

LOGITECH INTERNATIONAL S.A.

   
     

Quarter Ending
December 31

CONSOLIDATED STATEMENTS OF INCOME
(In thousands of U.S. dollars) - Unaudited

2000

1999

     

Net sales

$ 231,982

$ 185,425

Cost of goods sold

151,673

118,147

Gross profit

80,309

67,278

     % of net sales

34.6%

36.3%

     

Operating expenses:

   

     Marketing and selling

36,907

31,264

     Research and development

9,456

7,627

     General and administration

8,412

7,913

Total operating expenses

54,775

46,804

 

   

Operating income

25,534

20,474

     

Interest income (expense), net

(396)

(61)

Other income (expense), net

(263)

(1,805)

     

Income before income taxes

24,875

18,608

Provision for income taxes

4,975

3,722

     

Net income

$ 19,900

$ 14,886

     

Shares used to compute net income per share:

 

 

     Basic

4,242,544

3,983,060

     Diluted

4,698,403

4,340,528

Net income per share:

 

 

     Basic

$4.69

$3.74

     Diluted

$4.24

$3.43

Net income per ADS (10 ADS : 1 Share):

 

 

     Basic

$0.47

$0.37

     Diluted

$0.42

$0.34





LOGITECH INTERNATIONAL S.A.

   
     

Nine Months Ending
December 31

CONSOLIDATED STATEMENTS OF INCOME
(In thousands of U.S. dollars) - Unaudited

2000

1999

     

Net sales

$ 563,963

$ 439,739

Cost of goods sold

372,183

293,250

Gross profit

191,780

146,489

     % of net sales

34.0%

33.3%

     

Operating expenses:

   

     Marketing and selling

98,172

74,391

     Research and development

26,760

22,852

     General and administration

25,274

21,929

Total operating expenses

150,206

119,172

 

   

Operating income

41,574

27,317

     

Interest income (expense), net

(359)

(403)

Other income (expense), net

1,602

(1,092)

     

Income before income taxes

42,817

25,822

Provision for income taxes

8,563

5,164

     

Net income

$ 34,254

$ 20,658

     

Shares used to compute net income per share:

 

 

     Basic

4,201,603

3,937,172

     Diluted

4,697,340

4,162,670

Net income per share:

 

 

     Basic

$8.15

$5.25

     Diluted

$7.29

$4.96

Net income per ADS (10 ADS : 1 Share):

 

 

     Basic

$0.82

$0.53

     Diluted

$0.73

$0.50





LOGITECH INTERNATIONAL S.A.

       

CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars) - Unaudited

December 31,
2000

September 30,
2000

December 31,
1999

       

Current assets

     Cash and cash equivalents

$ 15,266 

$ 22,200 

$ 29,703 

     Accounts receivable

 179,129 

145,852 

137,170 

     Inventories

121,256 

128,463 

71,235 

     Other current assets

28,707 

24,726 

20,320 

     Total current assets

344,358 

321,241 

257,798 

Investments

19,661 

28,792 

13,124 

Property, plant and equipment

39,453 

42,916 

42,309 

Intangible assets

11,593 

12,127 

15,100 

Other assets

990 

874 

903 

Total assets

$ 416,055 

$ 405,950 

$ 329,234 

       

Current liabilities

     Short-term debt

$ 6,707 

$ 18,126 

$   7,200 

     Accounts payable

117,944 

123,059 

101,421 

     Accrued liabilites

67,224 

54,381 

49,701 

     Total current liabilities

191,875 

195,566 

158,322 

Long term debt

3,068 

3,220 

3,141 

Other liabilities

524 

518 

743 

Total liabilities

195,467 

199,304 

162,206 

       

Shareholders' equity

220,588 

206,646 

167,028 

       

Total liabilities and shareholders' equity

$ 416,055 

$ 405,950 

$ 329,234 

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