Logitech Announces Financial Results for Q3 FY 2010
Company Returns to Double-Digit Profit Growth
FREMONT, Calif., Jan. 20, 2010 and ROMANEL-SUR-MORGES, Switzerland, Jan. 21, 2010 - Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the third quarter of Fiscal Year 2010.
Sales for Q3 were $617 million, a decrease of 2 percent compared to $627 million in the same quarter last year. Excluding the favorable impact of exchange rate changes, sales decreased by 7 percent.
Operating income for Q3 grew by 37 percent, to $58 million, compared to $43 million in the same quarter a year ago. Operating income for Q3 FY 2010 includes the impact of $5.8 million in one-time transaction costs related to the Company's acquisition of LifeSize Communications in December 2009. Net income for the quarter was $57 million ($0.32 per share) compared to net income of $40 million ($0.22 per share) in Q3 FY 2009. Gross margin for the third quarter was 33.9 percent compared to 29.9 percent in Q3 FY 2009.
Logitech's retail sales for Q3 were up 3 percent year over year, with sales up by 8 percent in the Americas and 6 percent in EMEA and down 17 percent in Asia. OEM sales were down by 38 percent.
"Q3 marks a turning point in our plan to emerge stronger from the economic downturn," said Gerald P. Quindlen, Logitech president and chief executive officer. "There were many highlights in the quarter, starting with improved sell-through in all of our retail regions, driven by the success of our new products across multiple categories.
"We are also very pleased with our return to year-over-year profitability growth in Q3, driven by the substantial improvement in gross margin, as well as with our outstanding working capital management, which yielded cash flow from operations of $166 million. For the current quarter, we anticipate accelerating sales momentum, resulting in our return to double-digit sales growth, as well as a substantial improvement in profitability compared to Q4 FY 2009."
For the fourth quarter of FY 2010, Logitech expects sales within the range of $500 million to $515 million, gross margin of approximately 34 percent, and operating income in the range of $15 million to $20 million, which includes the impact of amortization of the intangible assets of LifeSize Communications, which will recur in future periods.
Earnings Teleconference and Webcast
Logitech will hold an earnings teleconference on Thursday, Jan. 21, 2010 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.
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).