Logitech 2004 Annual Report Download - page 54

Over the past 20 years, Logitech has established itself as a leading designer, manufacturer and marketer
of computer control devices (mice and trackballs). Building on this leadership position, the Company has
capitalized on the growth in personal computing and the advent and growth of the Internet by significantly
expanding its product offerings to include a wide range of interface devices for PCs. Logitech is a worldwide
leader in radio-based cordless input devices, offering a comprehensive selection of cordless keyboards, mice
and gaming controllers. The Company also has become a leader in the PC video camera market. In addition,
Logitech has emerged as a leading provider of multimedia speaker systems and PC voice access products.
More recently, the Company has become a pioneer in the area of digital writing, working with industry
partners on solutions based on a Logitech digital pen that captures handwritten information in a digital form
for easy transfer to the PC.
Through integrated hardware and software functionality, Logitech products for the PC platform are
optimized for the Internet. The Company provides Internet webcams that enable “one-button” video instant
messaging and feature mobile video technology that allow users to send live video to mobile phones; and
keyboards and mice that are one click away from the Internet. These product offerings demonstrate Logitech’s
commitment to ensuring a user-friendly and effective Internet experience.
Expanding into new markets, Logitech now produces interface devices for platforms such as gaming
consoles and mobile phones. The Company produces controllers for the popular gaming consoles, as well as
supporting features for specific games. For example, the Company’s line of steering wheels support popular
driving games, including Gran Turismo™and Formula One™. Logitech also manufactures webcams and headsets
for gaming consoles, including the EyeToy™camera and the USB Headset for the PlayStation®2. For mobile
phones, Logitech offers comfortable headsets, including a cordless headset for phones that use the Bluetooth®
wireless technology. The Company’s recent acquisition of Intrigue Technologies expands its presence in the
digital living room and introduces a new line of personal interface devices for home entertainment systems to
Logitech’s product portfolio. Intrigue’s current line of advanced remote controls, with Smart State Technology™
Activity Control provides simple, intuitive control of even the most elaborate entertainment system.
Logitech has long been at the forefront of technological innovation, with a list of more than 50 industry
“firsts” to its name and a patent portfolio of more than 90 patents. In pointing devices, the Company led in
optical sensing technology with the opto-mechanical mouse in 1982, and the first cordless optical mouse in 2001.
The Company was also among the first to market a digital still camera in 1991.
The Company has continually embraced new connectivity technologies and standards. Logitech
demonstrated the first working USB prototype at the Fall Comdex in 1995. In addition, the Company pioneered
digital radio-based cordless mice and keyboards and introduced the first Bluetooth-based peripheral, the Logitech
Cordless Presenter™designed for electronic presentations. In 2003, Logitech introduced another breakthrough
product using Bluetooth technology, the diNovo™Media Desktop™, which acts as a hub for connectivity
between a desktop PC and Bluetooth devices. Logitech will continue to monitor the connectivity environment, in
order to optimize the user experience when interfacing with digital information.
The Company believes the following to be among its key competitive strengths:
•Substantial Technical Expertise. Logitech has accumulated significant expertise in the key engineering
disciplines that underlie its products. For example, Logitech engineers have continually enhanced
motion-encoding technology for control devices over several distinct generations. They have developed
several radio transmission technologies for cordless operations, developed new applications for
webcams, and enabled the integration of new controllers in console gaming. Many of the technologies
involved in these developments have applications across multiple product offerings, allowing the
Company to leverage its accumulated investment.
Logitech believes its future lies not only in its strong internal technical resources, but also from
partnering with other industry leaders with complementary technologies that promise to make the
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