Logitech 2004 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2004 Logitech annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 135

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135

Seasonality
Sales of Logitech’s retail products and certain of its OEM products are seasonal. Sales are typically highest
during the third fiscal quarter, due primarily to the increased demand for Logitech’s products during the year-end
holiday buying season, and to a lesser extent in the fourth fiscal quarter. Logitech sales in the first and second
quarters can vary significantly as a result of new product introductions and other factors.
Materials
Logitech purchases some of its products and key components used in the Company’s products from single
or limited sources. In particular, a significant portion of Logitech’s cordless keyboards is single-sourced and the
sensor in the Company’s optical mice is provided by one supplier. Refer to discussion in Item 3D Risk Factors –
“We purchase key components and products from single or limited sources, and our business and operating
results could be harmed if supply were delayed or constrained or if there were shortages of required
components.”
C. Organizational Structure
The following lists the Company’s significant subsidiaries:
Name
Country of
Incorporation
Ownership
Interest
Logitech Inc. ......................................... U.S. 100%
Logitech Far East Ltd. .................................. Taiwan 100%*
Suzhou Logitech Electronics Co. Ltd. ..................... China 100%
Logitech Europe S.A. .................................. Switzerland 100%
*Due to local legal requirements, there are holders of nominal shares apart from Logitech.
D. Property, plant and equipment
Logitech’s U.S. subsidiary has headquarters in Fremont, California in three leased buildings comprising
approximately 144,000 square feet. These facilities are also occupied by Logitech’s Americas headquarters,
including research and development, product marketing, sales management, technical support and administration.
The Company’s Fremont lease expires in March 2013. The audio business unit is located in 20,275 square feet of
leased office space in Vancouver, Washington. The Company also leases an 80,000 square foot warehouse
facility in Vancouver, Washington. Both of these leases have terms through April 2006. The warehouse facility is
no longer being used because the Company has moved all of its North American distribution to a third party
facility in Memphis, Tennessee.
Logitech’s Europe headquarters are in Romanel-sur-Morges, Switzerland. This Company-owned facility
comprises 33,300 square feet and includes research and development, product marketing, sales management,
technical support, administration and certain Logitech group activities including finance. The Company has
leased an additional 8,400 square feet in Morges, Switzerland to supplement the space of the owned facility. This
lease expires in May 2009.
Logitech’s subsidiary, 3Dconnexion, has leased a 4,600 square foot office in Los Gatos, California through
the year 2006. In Seefeld, Germany, 3Dconnexion has leased 12,400 square feet through the year 2010 for its
European headquarters, research and development and manufacturing. In addition, 3Dconnexion leases sales
offices in Michigan, Texas, France and Poland with various expiration dates through 2006.
Logitech also has sales offices in more than 30 locations in 25 countries. These offices are leased with
various expiration dates from 2004 to 2015.
28