NEWARK, Calif. & MORGES, Switzerland--(BUSINESS WIRE)--
Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced that it
expects to record pre-tax charges in the current fiscal year of
approximately $35 million associated with the company's previously
announced restructuring. The company is undertaking this restructuring
to simplify the organization, to better align costs with its current
business and to free up resources to pursue its growth opportunities.
The restructuring is expected to yield approximately a net $80 million
reduction in annual operating costs. The reduction will begin to benefit
the company in the second half of Fiscal Year 2013 with the full savings
expected to be achieved in Fiscal Year 2014.
Approximately $32 million of the restructuring charges are expected to
be recorded in the first quarter of Fiscal Year 2013, ending June 30,
2012. The largest component of the restructuring charge will be cash
charges related to a workforce reduction. The company is eliminating
approximately 450 positions, or 13 percent of its worldwide
non-direct-labor workforce. Logitech expects that reduced
personnel-related costs will represent an estimated 60 percent of the
approximately $80 million savings in annual operating costs.
"As we announced in April, this organizational streamlining, along with
our strategy to deliver fewer but more compelling products, should
position Logitech for renewed growth and profitability," said Bracken
Darrell, Logitech president. "While we are saddened by the departure of
many colleagues, the restructuring is necessary for our future success."
Additional information on the restructuring charges is provided in the
Current Report on Form 8-K being filed with the U.S. Securities and
Exchange Commission on June 8, 2012 and made available on Logitech's
website at http://ir.logitech.com.
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: organizational structure; the amount and timing of
charges in connection with the restructuring; the goals of the
restructuring; the reduction in annual operating costs and the timing of
achieving such savings; the breakdown of such savings by type of costs;
the number of positions to be eliminated; and Logitech's ability to
achieve renewed growth and profitability and future success. 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; if the restructuring fails to produce the intended
performance and cost savings results or is not implemented in the
contemplated timeframe. 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 Annual Report on Form 10-K for the fiscal year ended March
31, 2012, 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
Nancy Morrison, Vice
President, Corporate Communications — USA
510-713-4948
Source: Logitech International
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