Logitech 2004 Annual Report Download - page 81

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The Company’s financing activities used net cash of $49.1 million for the year ended March 31, 2004. Cash
used in financing activities included treasury stock repurchases totaling $79.2 million and repayment of debt
obligations of $1.3 million. The Company completed purchases under its buyback program announced in
February 2003, purchasing 1,534,236 shares for $47.1 million. Also, pursuant to a new program announced in
October 2003, authorizing the purchase of up to CHF 40 million (approximately $32 million based on exchange
rates at the date of announcement) of Logitech shares, the Company completed the purchase of 665,000 shares
for $32.1 million. The Company realized cash proceeds of $31.4 million from the sale of shares pursuant to the
Company’s stock plans in fiscal year 2004.
The Company’s financing activities used net cash of $46.6 million for the year ended March 31, 2003. Cash
used in financing activities included treasury stock purchases of $63.8 million. The Company repurchased 88,000
shares for $3.8 million in open market transactions under a short-term stock buyback program. In July 2002, the
Company announced a program to buyback up to CHF 75 million (approximately $52 million based on exchange
rates at the date of announcement) of Logitech shares in a twelve-month period. The Company completed this
buyback program with the repurchase of 1,509,000 shares for $52.4 million in open market transactions. In
February 2003, the Board of Directors authorized an additional repurchase plan for up to CHF 75 million
(approximately $55 million based on exchange rates at the date of announcement) of the Company’s registered
shares over the next twelve months. At March 31, 2003, the Company had repurchased 238,000 shares under the
new plan for $7.6 million in open market transactions. During fiscal year 2003, the Company realized $15.6
million of proceeds from the sale of shares pursuant to employee stock purchase and stock option plans.
The Company’s financing activities provided net cash of $13.2 million for the year ended March 31, 2002.
In April 2001, the Company borrowed $55 million under a bridge loan for the Labtec acquisition, bringing the
total bridge loan to $90 million. During the first quarter of fiscal year 2002, the Company repaid short-term
Labtec borrowings of $19 million and long-term Labtec borrowings of $27 million. In June 2001, the Company
sold 1% convertible bonds denominated in Swiss francs in a registered offering in Switzerland. Net proceeds of
$93 million were used to repay the $90 million bridge loan. The Company also realized $16.4 million of
proceeds from the sale of registered shares and treasury shares to fulfill employee stock option and stock
purchase plan requirements. In August through October 2001, under a previously announced registered share
buyback program, the Company repurchased 628,704 Logitech shares for $15.0 million in open market
transactions.
Cash Outlook
The Company’s working capital requirements and capital expenditures could increase to support future
expansion of Logitech operations. Future acquisitions or expansion of the Company’s operations may be
significant and may require the payment of cash. The Company is currently planning for the development of a
new factory in Suzhou to provide for additional productive capacity to meet future demand. Currently, the
Company expects its capital investment in the new factory will total approximately $14–15 million. The new site
is expected to be completed in the summer of 2005.
Subsequent to year-end, the Company announced a new buyback program of up to CHF 250 million
(approximately $200 million based on exchange rates at the date of announcement). Purchases under the program
will be conducted so that the Company’s total holdings of its own shares does not exceed 10% of its share
capital. The program expires at the Company’s 2006 Annual General Meeting.
In May 2004, the Company acquired Intrigue Technologies, Inc., a privately held Canadian company
focused on advanced remote control technology. Logitech paid cash consideration of approximately $29 million
for all the outstanding shares of Intrigue Technologies. The purchase price will be allocated to the fair values of
the net assets acquired, which primarily consist of the acquired company’s database of product information and
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