Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced that it
has withdrawn its Fiscal Year 2009 growth targets for sales and
operating income due to the deepening global recession. The Company did
not provide revised targets and plans to update investors on business
conditions and performance during its briefing on third-quarter results
on Jan. 20, 2009.
"During the December quarter, the retail environment deteriorated
significantly," said Gerald P. Quindlen, Logitech president and chief
executive officer. "We experienced varying degrees of weakness across
all geographies and channels as our customers reduced inventory levels
in the face of weaker consumer demand. Moreover, we expect the economic
environment to worsen in the coming months and we are therefore taking
significant actions to align our cost structure with what is likely to
be an extended downturn."
In addition to ongoing actions aimed at reducing operating expenses, the
Company plans to reduce its salaried workforce globally by approximately
15 percent. The associated restructuring charge will be announced with
the Company's Q3 FY 2009 results and booked in the fourth quarter of FY
2009. The Company expects that the savings from the restructuring will
begin to show in the first quarter of FY 2010.
"Although the external environment is more challenging than anything
we've experienced before, we believe Logitech is very well positioned to
manage through this downturn," continued Quindlen. "We have a strong
cash position, no debt, and we continue to maintain market share across
multiple segments and geographies. We remain confident in our strategy
for driving long-term double-digit growth and we believe the
well-considered actions we're taking now will result in an even stronger
Logitech when the economic recovery begins."
Earnings Teleconference
Logitech will hold an earnings teleconference on Tuesday, Jan. 20, 2009
at 8:30 a.m. Eastern Standard Time and 14:30 Central European 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.
About Logitech
Logitech is a world leader in personal peripherals, driving innovation
in PC navigation, Internet communications, digital music,
home-entertainment control, gaming and wireless devices. 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, including the
statements regarding the size and timing of the salaried workforce
reduction, Logitech's ability to manage through the economic downturn,
the impact of the restructuring on future performance, the prospect of
long-term double-digit growth, and the expected timing of the
announcement and booking of the restructuring charge. The
forward-looking statements in this release involve risks and
uncertainties that could cause Logitech's actual results to differ
materially from that anticipated in these forward-looking statements.
Factors that could cause actual results to differ materially include:
Logitech's ability to implement the workforce reductions in various
geographies; unexpected delays affecting our ability to announce and
book the restructuring charge; our inability to predict the depth and
length of the current deterioration of general economic conditions; the
restructuring failing to enhance Logitech's long-term performance; as
well as those additional factors set forth in our periodic filings with
the Securities and Exchange Commission, including our Annual Report on
Form 10-K for the fiscal year ended March 31, 2008 and our Quarterly
Reports on Form 10-Q, available at www.sec.gov.
Logitech does not undertake to update any forward-looking statements.
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.
(LOGI - IR)
SOURCE: Logitech International
Logitech International
Joe Greenhalgh, 510-713-4430
Vice President, Investor Relations - USA
Nancy Morrison, 510-713-4948
Vice President, Corporate Communications - USA
Ben Starkie, +41-(0) 21-863-5195
Public Relations Manager - Europe
Copyright Business Wire 2009
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