Logitech 2005 Annual Report Download - page 44

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The following tables set forth, for the periods indicated, information concerning exchange rates between the
U.S. dollar and the Swiss franc based on the noon buying rate as reported by The Bank of New York, expressed
in Swiss francs per U.S. dollars. The noon buying rate is the rate in New York City for cable transfers in selected
currencies as certified for customs purposes by the Federal Reserve Bank of New York.
Average (1) High Low Period End
Fiscal 2001 .......................... CHF1.697 CHF1.830 CHF1.590 CHF1.736
Fiscal 2002 .......................... 1.699 1.819 1.586 1.682
Fiscal 2003 .......................... 1.469 1.674 1.325 1.354
Fiscal 2004 .......................... 1.311 1.418 1.219 1.268
Fiscal 2005 .......................... 1.225 1.320 1.134 1.195
(1) Represents the average of the noon buying rate on the last business day of each month during the year.
High Low
Monthly Highs and Lows (over the most recent six month period):
October 2004 ................................................ CHF1.266 CHF1.196
November 2004 .............................................. CHF1.208 CHF1.139
December 2004 .............................................. CHF1.161 CHF1.134
January 2005 ................................................ CHF1.196 CHF1.147
February 2005 ............................................... CHF1.222 CHF1.159
March 2005 ................................................. CHF1.206 CHF1.150
As of May 2, 2005, the noon buying rate between the U.S. dollar and the Swiss franc was CHF 1.198.
B. Capitalization and Indebtedness
Not applicable.
C. Reasons for the Offer and Use of Proceeds
Not applicable.
D. Risk Factors
Risk Factors
Our operating results are difficult to predict and fluctuations in them may cause volatility in the price of
our ADSs and registered shares.
Given the nature of the markets in which we compete, our revenues and profitability are difficult to predict
for many reasons, including the following:
• Our operating results are highly dependent on the volume and timing of orders received during the
quarter, which are difficult to forecast. Customers generally order on an as-needed basis and we
typically do not obtain firm, long-term purchase commitments from our customers. As a result, our
revenues in any quarter depend primarily on orders booked and shipped in that quarter. In addition, a
significant portion of our quarterly retail sales can occur in the last month of each quarter, further
increasing the difficulty in predicting revenues and profitability for the quarter.
• We must incur a large portion of our costs in advance of sales orders, because we must plan research
and production, order components and enter into development, sales and marketing, and other operating
commitments prior to obtaining firm commitments from our customers. This makes it difficult for us to
adjust our costs in response to a revenue shortfall, which could adversely affect our operating results.
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