Company Reconfirms Financial Targets for Current Fiscal Year
FREMONT, Calif. June 15, 2005 and ROMANEL-SUR-MORGES, Switzerland, June 16, 2005 -- Logitech International (SWX: LOGN) (NASDAQ: LOGI), today announced that its board of directors has approved a new share buyback program, which authorizes the Company to purchase additional shares on the open market. The board has authorized Logitech to invest up to 300 million Swiss francs (approximately $235 million) for this program, which, subject to the approval of the Swiss Takeover Board, will begin after the Company completes its current share buyback program of 250 million Swiss francs (approximately $195 million). Under the current program, announced in March, 2004, the Company has repurchased a total of 3,110,500 shares, as of June 3, 2005, for a total of approximately 191.5 million Swiss francs (approximately $150 million).
Also, at its Annual General Meeting for shareholders, to be held today in Montreux, Switzerland, the Company will reconfirm its financial targets for the current fiscal year, ending March 31, 2006, of 15 percent growth year-over-year for both sales and operating income. Further, Logitech expects gross margin for the full Fiscal Year 2006 to be at the high end of the Company's ongoing target range of 32 to 34 percent. And, the Company expects its effective tax rate for FY 2006 to be lowered from 15 percent to approximately 14 percent.
At the Annual General Meeting, Logitech executives will review the Company's financial performance for FY 2005, highlight FY 2006 directions for continued growth and leadership in innovation, and put several proposals before the Logitech shareholders for approval. Logitech will ask shareholders to approve the election of a new board member, the re-election of two board members, a two-for-one split of Logitech shares, which will apply to ADRs, and a resolution that lowers the number of shares that must be owned for a shareholder to place an item on the agenda for Logitech's future Annual General Meetings.
About Logitech
Founded in 1981, Logitech designs, manufactures and markets personal peripherals that enable people to effectively work, play, and communicate in the digital world. Logitech International is a Swiss public company traded on the SWX Swiss Exchange (LOGN) and in the U.S. on the Nasdaq National Market System (LOGI). The company has manufacturing facilities in Asia and offices in major cities in North America, Europe and Asia Pacific.
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