Logitech 2004 Annual Report Download - page 85

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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. Royalty and NRE expenses to Anoto was $.9 million during fiscal
year 2004.
Also, in connection with the Company’s investment in A4Vision, Inc. a Logitech executive was appointed
to the A4Vision board of directors. A4Vision is a privately held company from which Logitech licenses face
tracking software. The license agreement requires Logitech to pay a license fee based on the number of its
products sold with A4Vision’s licensed software. Royalty expense to A4Vision was $.2 million during fiscal year
2004.
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-22 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. Logitech
believes that all of these pending lawsuits are without merit and the Company intends to defend against them
vigorously.
Refer to discussion in Item 3D Risk Factors – “Pending lawsuits could adversely impact us.”
Dividends
Under Swiss law, a corporation pays dividends upon a vote of its shareholders. This vote typically follows
the recommendation of the corporation’s board of directors. Although the Company has paid dividends in the
past, Logitech’s board of directors announced in 1997 its intention not to recommend to shareholders any
payment of cash dividends in the future in order to retain any future earnings for use in the operation and
expansion of the business.
B. Significant Changes
None.
ITEM 9. THE OFFER AND LISTING
Stock Price Information
Registered Shares. Logitech’s registered shares are listed and traded on the Swiss Exchange, where the
share price is denominated in Swiss francs.
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