Logitech 2004 Annual Report Download - page 63

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In retail channels, Logitech’s direct sales force sells to distributors and large retailers. Its distributor
customers typically resell products to retailers, value-added resellers, and systems integrators with which
Logitech does not have a direct relationship. These distributors in the U.S. include Ingram Micro Inc. and Tech
Data Corporation, and in Europe include Tech Data Corporation, Ingram Micro, Actebis and many strong
national distributors such as Banque Magnetique in France, GEM in the United Kingdom and Also-ABC in
Switzerland.
Logitech’s products can be found in major retail chains, where they typically enjoy access to significant
shelf space. These chains in the U.S. include Best Buy Co., Inc., CompUSA, Inc., Office Depot, Inc., Staples,
Inc., Target and Wal-Mart, and in Europe include MediaMarkt/Saturn, Carrefour, KESA Group, FNAC, Dixons
Stores Group PLC and most key national consumer electronics chains. Logitech products also can be found at the
top online e-tailers, which include Amazon.com, Buy.com, CDW, Insight, and others.
Through its operating subsidiaries, the Company maintains sales offices or sales representatives in more
than 30 countries and throughout the United States.
Principal Markets
The Company operates as one business segment, which is the design, development, production, marketing
and support of personal interface devices.
Net sales to unaffiliated customers by geographic region was as follows (in thousands):
Year ended March 31,
2004 2003 2002
Europe .......................................... $ 592,067 $ 487,762 $413,348
North America .................................... 473,065 435,612 389,949
Asia Pacific ...................................... 203,338 176,914 140,249
Total net sales ................................. $1,268,470 $1,100,288 $943,546
Customer Service and Technical Support
Through its operating subsidiaries, the Company maintains customer service and technical support
operations in the United States, Europe, Asia and Australia. Customer service and technical personnel provide
support services to retail purchasers of products via telephone, email, facsimile and the Logitech website. This
site is designed to expedite overall response time while minimizing the resources required for effective customer
support. In general, OEMs provide customer service and technical support for their products, including
components purchased from suppliers such as Logitech. The Company provides a one to five year warranty on its
branded retail products.
Manufacturing
The Company’s manufacturing operations consist principally of final assembly and testing. Logitech’s high-
volume manufacturing is located in Suzhou, China. The Suzhou facilities are designed to allow production
growth as well as flexibility in responding to changing demands for the Company’s products. Logitech is
currently expanding its Suzhou operations with the construction of a new factory to provide for additional
productive capacity to meet future demand. The new facility will initially have 30% greater capacity than the
Company’s existing operations as well as the potential to double beyond that. The Company expects construction
of the new site to be completed and operations to commence in the summer of 2005. The Company continues to
focus on improving the efficiency at the Suzhou facilities, including the implementation of total quality
management and total employee involvement programs.
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