Logitech 2007 Annual Report Download - page 72

such as Popular Mechanics, PC World, PC Magazine, CNET, Computer Shopper, Macworld, Maximum PC, and
in many other media outlets worldwide.
Substantial Technical Expertise
Logitech has accumulated significant expertise in the key engineering disciplines that underlie our products.
For example, our engineers have continually enhanced motion-encoding technology for control devices over
several distinct generations. Their expertise in mechanical design is showcased in the award-winning MX™
Revolution cordless laser mouse, which includes the MicroGear™Precison Scroll Wheel that sets a new
benchmark for scrolling efficiency. Logitech engineers have developed several radio transmission technologies
for cordless operations, developed new applications for webcams, enabled the integration of new controllers in
console gaming, and developed innovative database and Web-based systems to configure our advanced remote
controls. Many of the technologies involved in these developments have applications across multiple product
offerings, allowing us to leverage our accumulated investment.
We believe Logitech’s future lies not only in our strong internal technical resources, but also in partnering
with other industry leaders with complementary technologies that promise to make the interface more productive,
natural and enjoyable.
Technological Innovation
Logitech has long been at the forefront of technological innovation, with a list of more than 90 industry
“firsts” to our name and a patent portfolio of more than 300 patents.
We have continually embraced new connectivity technologies and standards. Logitech led in optical sensing
technology with the opto-mechanical mouse in 1982. We were also among the first to market a digital still
camera in 1991. We demonstrated the first working USB prototype at the Fall Comdex in 1995. In 2001,
Logitech introduced the first cordless optical mouse. With the Cordless Presenter™, we introduced our first
Bluetooth personal peripheral and in 2004, with the MXTM1000, the first laser mouse. Also in 2004, we extended
the use of our proprietary 2.4 GHz technology to our mice products, further reducing power consumption and
size, and enhancing the range of operation. In 2005, Logitech included the Z-wave radio technology in our
high-end advanced remote controls, to enable simple home automation tasks based on this emerging connectivity
standard. In fiscal year 2007, we introduced the MX Revolution cordless laser mouse, with the MicroGear
Precision Scroll Wheel, which spins freely for up to seven seconds, spanning hundreds of pages with a single
flick of the finger. We also introduced an innovative stand to make using a notebook PC more comfortable: the
one-piece Alto, a notebook riser with an integrated, full-size keyboard that levels the notebook screen with the
user’s eyes and frees their hands from the constraints of a cramped notebook keypad. Logitech continues to
monitor the connectivity environment to optimize the user experience when interfacing with digital information.
Retail Brand and Shelf Space
We believe the Logitech brand name and industrial designs are recognized worldwide as symbols of product
quality, innovation, ease of use and price-performance value. Logitech enjoys a strong and growing brand
presence in more than 100 countries. During fiscal year 2007, we sold 83 million Logitech-branded products. We
believe that in the consumer market, brand identity and brand awareness are important components of the
purchase decision, and that as competition intensifies, the ability to secure shelf space will increasingly become a
competitive advantage. Logitech’s brand has enabled us to build an extensive retail distribution network and to
obtain critical shelf space. The strength of our brand is apparent in the OEM channel as well, where systems
manufacturers and integrators, as well as game publishers, and other partners are choosing to bundle Logitech-
branded products with their offerings.
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