Logitech 2007 Annual Report Download - page 104

(1) Beneficial ownership is determined in accordance with rules of the SEC that deem shares to be beneficially
owned by any person who has voting or investment power with respect to such shares. The beneficial owner
has furnished this information. The person named in the table has sole voting and sole investment power
with respect to all shares shown as beneficially owned, subject to community property laws where
applicable. Shares subject to options that are currently exercisable or exercisable within 60 days after
March 31, 2007 are deemed to be issued and beneficially owned by the person holding such options for the
purpose of computing the percentage ownership of such person but are not treated as issued for the purpose
of computing the percentage ownership of any other person.
(2) Percentage ownership is calculated based on 191,606,620 shares issued as of March 31, 2007.
On May 4, 2007, we announced in the Swiss Official Gazette of Commerce that Logitech’s ownership of its
own shares in treasury had exceeded 5% of total shares issued. As of May 10, 2007, we held approximately 5.2%
of total shares issued.
B. Related Party Transactions
In connection with our investment in the Anoto Group AB, a Logitech executive was elected to the Anoto
board of directors. Anoto is a publicly traded Swedish high technology company from which Logitech licenses
digital pen technology. During fiscal year 2007, the Company sold its investment in Anoto. The license
agreement requires Logitech to pay a license fee for the rights to use the Anoto technology and a license fee on
the sales value of digital pen solutions sold by Logitech. Also, the agreement includes non-recurring engineering
(“NRE”) service fees primarily for specific development and maintenance of Anoto’s licensed technology.
During fiscal years 2007, 2006 and 2005 expenses incurred for license fees to Anoto were $0.3 million,
$0.5 million and $0.7 million.
Also, in connection with the Company’s investment in A4Vision, Inc. a Logitech executive was appointed
to the A4Vision board of directors until March 2007, when A4vision was acquired. A4Vision was a privately
held company from which Logitech licensed face tracking software. The license agreement required Logitech to
pay a license fee based on the number of its products sold with A4Vision’s licensed software. We did not pay any
license fees to A4Vision during fiscal year 2007. During fiscal year 2006, expenses incurred for license fees to
A4Vision were immaterial. Expenses incurred for license fees to A4Vision amounted to $0.2 million in fiscal
year 2005.
C. Interests of Experts and Counsel
Not applicable.
ITEM 8. FINANCIAL INFORMATION
A. Consolidated Statements and Other Financial Information
Please refer to Item 18 “Financial Statements” and pages F-1 through F-30 of our Consolidated Financial
Statements. In addition, for more information regarding our results of operations, please refer to Item 5
“Operating and Financial Review and Prospects.”
Legal Proceedings
From time to time, Logitech becomes involved in claims and legal proceedings that arise in the ordinary
course of its business. The Company is currently subject to several such claims and legal proceedings and intends
to defend against them vigorously. However, there can be no assurance that our defenses will be successful, or
that any judgment or settlement in any of these lawsuits or claims would not have a material adverse impact on
the Company’s business, financial condition and results of operations.
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