NEWARK, Calif. & LAUSANNE, Switzerland--(BUSINESS WIRE)--
Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced that,
based on a third party valuation report, it will take a non-cash,
non-tax-deductible goodwill impairment charge related to the acquisition
of Lifesize. As communicated in April 2015, Logitech has been evaluating
the goodwill associated with Lifesize. This charge is expected to be
between $100 million and $123 million in the fourth quarter of Fiscal
Year 2015.
The charge does not affect the Company's operating performance. It is
still subject to further review by the Company and its independent
auditors, including the routine review of subsequent events, prior to
the filing of its Annual Report on Form 10-K for the fiscal year ended
March 31, 2015.
As announced last month, Logitech is reorganizing its Lifesize business
to sharpen its focus on Lifesize's new cloud-based offering which is
gaining significant market traction. Logitech is implementing these
actions, and considering others, to optimize the value of its video
conferencing reporting unit.
About Logitech
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).
This press release contains forward-looking statements within the
meaning of the federal securities laws, including, without limitation
statements regarding: the goodwill impairment charge related to
Lifesize, the reorganization of the Lifesize business, Lifesize's
cloud-based offering, and actions to optimize the value of Lifesize. The
forward-looking statements in this release involve risks and
uncertainties that could cause Logitech's actual results and events to
differ materially from those anticipated in these forward-looking
statements, including, without limitation: if our product offerings,
marketing activities and investment prioritization decisions do not
result in the sales, profitability or profitability growth we expect, or
when we expect it; the demand of our customers and our consumers for our
products and our ability to accurately forecast it; if we do not
successfully execute on our growth opportunities in our new product
categories or our growth opportunities are more limited than we expect;
the effect of pricing, product, marketing and other initiatives by our
competitors, and our reaction to them, on our sales, gross margins and
profitability; if our products and marketing strategies fail to separate
our products from competitors' products; changes with respect to the
Lifesize business, assets, strategy or perceived valuation; finalization
of the review of the charge by Logitech and its independent auditors. A
detailed discussion of these and other risks and uncertainties that
could cause actual results and events to differ materially from such
forward-looking statements is included in Logitech's periodic filings
with the Securities and Exchange Commission, including our Quarterly
Report on Form 10-Q for the fiscal quarter ended December 31, 2014 and
our Annual Report on Form 10-K for the fiscal year ended March 31, 2014,
available at www.sec.gov,
under the caption Risk Factors and elsewhere. Logitech does not
undertake any obligation to update any forward-looking statements to
reflect new information or events or circumstances occurring after the
date of this press release.
Logitech, the Logitech logo, and other Logitech marks are registered in
Switzerland 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.
(LOGIIR)
Logitech International
Joe Greenhalgh
Vice President, Investor
Relations - USA
510-713-4430
or
Krista Todd
Vice
President, Communications - USA
510-713-5834
or
Ben
Starkie
Corporate Communications - Europe
+41-(0) 79-292-3499
Source: Logitech International
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