Logitech 2007 Annual Report Download - page 78

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Audio
The Company’s audio development resources cover a wide range of audio technologies. In speaker systems,
Logitech uses advanced computer-aided design and simulation tools for amplifier and printed circuit board
design. Sophisticated laser and PC-based technologies support speaker transducer design. For headsets, in-house
engineering and testing technology ensure high-resolution voice recognition microphones. Computer-aided
design and in-house rapid prototyping technology speed the overall process and help ensure that products meet
design and performance goals.
Research and Development
We believe that continued investment in product research and development is critical to Logitech’s success.
We believe that our international structure provides advantages and synergies to our overall product development
efforts. Our product research and development activities are conducted mainly at the following engineering
centers.
Switzerland. Logitech’s Swiss engineering center in Romanel-sur-Morges provides us with advanced
sensing and cordless technologies. In addition, the center is a convenient point for gaining access to leading
European technologies. We have been successful in recruiting and retaining top engineering graduates from
leading Swiss universities because we are one of the few personal computer technology companies with research
and development activities in Switzerland. In February 2007, Logitech, in collaboration with Ecole
Polytechnique Fédérale de Lausanne (“EPFL”), created the Logitech EPFL incubator, which will offer a select
number of students and researchers financial, educational and functional support to develop their ideas into the
technologies and personal peripherals of the future.
Taiwan. Through our engineering center in Hsinchu, Taiwan, we have established access to key Asian
markets, engineering resources and high-tech manufacturing. Taiwan is a world leader in manufacturing and
engineering, particularly in the design and manufacture of semiconductors, notebook computers, scanners,
monitors and related products. Moreover, the common language of Taiwan and China facilitates the transfer of
products from Logitech’s engineering launch site in Taiwan to our high-volume manufacturing site in China.
U.S.A. Our Fremont and Mountain View, California locations allow Logitech access to Silicon Valley’s
talent pool, particularly important in the development of Internet applications, software and video technologies,
and wireless networking. In addition, locations in the midst of the world’s leading technology market enable us
to compile market intelligence to define and position products and develop key strategic alliances.
Logitech’s Vancouver, Washington engineering center designs and develops our audio products. The
facility specializes in acoustic research and development, including model and simulation work. Areas of
development include cordless audio applications, demanding applications for audio input such as voice
recognition, and audio output for PC speakers.
Canada. Logitech’s Mississauga, Canada engineering center designs and develops our Web-connected
advanced remote control products. In addition, our Canadian engineering center develops and maintains
Logitech’s on-line Smart State database of infrared codes and device characteristics used in programming the
Web-connected advanced remotes.
Germany. Our 3Dconnexion subsidiary, whose research and development facility is located in Seefeld,
Germany, provides Logitech with ongoing research in 3D controller devices. The location of the facility provides
access to Germany’s leading automotive manufacturers, who are important 3Dconnexion customers and to the
Institute of Robotics and Mechatronics (DLR), a leading research center in robotics from which we have licensed
some of our 3D technology.
Our research and development expenses for fiscal years 2007, 2006 and 2005 amounted to $108.3 million,
$88.0 million and $73.9 million. We expect to continue to devote significant resources to research and
development to sustain our competitive position.
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