Logitech 2004 Annual Report Download - page 75
Download and view the complete annual report
Please find page 75 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.-
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
 |
 |
Research and Development
Research and development expense consists of personnel and related overhead costs, contractors and outside
consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and
development of new products and enhancements of existing products.
The increase in research and development expense in fiscal year 2004 compared to fiscal year 2003 was
mainly due to increased personnel to support ongoing investment in product development. Specifically, the
Company increased research and development spending for its control device and audio product programs. Also,
the stronger Swiss franc relative to the U.S. dollar contributed to the increase in fiscal year 2004 as the Company
maintains a substantial research and development team in Switzerland.
General and Administrative
General and administrative expense consists primarily of personnel and related overhead and facilities costs
for the finance, information systems, executive, human resources and legal functions.
The increase in general and administrative expense in fiscal year 2004 compared to the prior year was
primarily due to higher personnel expenses to support the growth of Logitech’s business, partially offset by lower
discretionary spending. Also, the stronger Euro and Swiss franc relative to the U.S. dollar further contributed to
the increase in fiscal year 2004.
Interest Expense, Net
Interest income and expense for fiscal years 2004 and 2003 were as follows (in thousands):
2004 2003 Change
Interest income .................................... $2,278 $2,411 (6)%
Interest expense ................................... (4,136) (3,607) 15 %
Interest expense, net ................................ $(1,858) $(1,196) 55 %
Interest expense, net was higher in fiscal year 2004 compared to fiscal year 2003 primarily as a result of the
$.8 million financing charge in connection with the sale of part of the Company’s China VAT receivables to a
bank in July 2003.
Other Income (Expense), Net
Other income and expense for fiscal years 2004 and 2003 were as follows (in thousands):
2004 2003 Change
Foreign currency exchange gains, net ................... $2,966 $2,801 6%
Loss on sale of investments ........................... — (514) (100)%
Write-off of investments ............................. (515) (1,161) (56)%
Other,net ......................................... (478) (260) 84 %
Otherincome,net .................................. $1,973 $ 866 128%
Other income, net in fiscal year 2004 included $3.0 million of favorable fluctuations in exchange rates,
offset by a $.5 million provision for a potentially non-recoverable insurance loss and a $.5 million write-down of
an investment. Other income last year consisted of $2.8 million of favorable fluctuations in exchange rates offset
by a $1.7 million loss from the write-down and sale of shares of Immersion Corporation.
37