NEWARK, Calif. & MORGES, Switzerland--(BUSINESS WIRE)--
Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced an
organizational alignment to the strategic priorities outlined by newly
appointed CEO Bracken P. Darrell last month. These priorities include
increasing focus on mobility products, improving profitability in
PC-related products and enhancing global operational efficiencies. This
alignment to the strategic priorities creates incremental cost savings
of approximately $16 to $18 million in operating expenses in Fiscal Year
2014, a result of a workforce reduction. This is in addition to the
previously announced $80 million savings in annual operating costs
(operating expenses plus costs of goods sold) for Fiscal Year 2014
related to the Company's April 2012 restructuring.
"As we align the organization with our strategy to become a faster, more
profitable company, we have also created opportunities to become more
focused, improve operational effectiveness and even deliver additional
cost savings that will contribute to improved profitability," said
Bracken P. Darrell, Logitech president and chief executive officer.
"These actions support our goals to develop outstanding mobility- and
PC-related products, streamline our cost structure and achieve faster
times to market."
Logitech anticipates recording a pre-tax, cash charge of approximately
$12 to $14 million in the fourth quarter of Fiscal Year 2013. The charge
is related primarily to personnel reductions, with the Company
eliminating approximately 140 positions, or 5 percent of its worldwide
non-direct-labor workforce.
Additional information regarding the restructuring charges is provided
in Logitech's Current Report on Form 8-K being filed with the U.S.
Securities and Exchange Commission on March 1, 2013 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, including
statements regarding the timing and elements of the workforce reduction,
the timing and form of related charges, the expected annual operating
expense reduction, and Logitech's ability to be faster, to achieve its
goals, and to achieve improved operational effectiveness, efficiencies
and profitability. The forward-looking statements in this release
involve risks and uncertainties that could cause actual events or
results to differ materially from those anticipated in these
forward-looking statements. Factors that could cause actual events or
results to differ materially include: Logitech's ability to implement
the personnel reductions in various geographies; possible changes in the
size or timing of the workforce reduction or the expected costs and
charges associated with the workforce reduction; and risks associated
with Logitech's ability to achieve planned expense reductions and
improved performance, efficiencies and profitability; as well as those
additional factors set forth under the "Risk Factors" section and other
sections in Logitech's periodic filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K and our
most recent Quarterly Report on Form 10-Q, available at www.sec.gov.
Logitech does not undertake to update any forward-looking statements,
which speak as of their respective dates.
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
510-713-4430
Vice
President, Investor Relations — USA
or
Logitech International
Nancy
Morrison
510-713-4948
Vice President, Corporate Communications
— USA
or
Logitech International
Laura Scorza
+41-(0)
21-863-5336
Sr. Public Relations Manager — Europe
Source: Logitech International
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