Logitech 2007 Annual Report Download - page 83

Seasonality
Our retail product sales are seasonal. Sales are typically highest during the third fiscal quarter (October to
December), due primarily to the increased demand for our products during the year-end holiday buying season,
and to a lesser extent in the fourth fiscal quarter (January to March). Our sales in the first and second quarters can
vary significantly as a result of new product introductions and other factors. Accordingly, year-over-year
comparisons are more indicative of variability in our results of operations than quarter-over-quarter comparisons.
Materials
We purchase some of our products and the key components used in our products from a limited number of
sources. Refer to the discussion in Item 3D Risk Factors – “We purchase key components and products from a
limited number of sources, and our business and operating results could be harmed if supply were delayed or
constrained or if there were shortages of required components.”
C. Organizational Structure
The following lists the Company’s significant subsidiaries:
Name
Country of
Incorporation
Ownership
Interest
Logitech Inc. ......................................... U.S. 100%
Logitech Asia Pacific Limited ........................... Hong Kong 100%
Logitech Technology (Suzhou) Co. Ltd. ................... China 100%
Logitech Europe S.A. .................................. Switzerland 100%
D. Property, plant and equipment
Logitech’s Europe headquarters are in Romanel-sur-Morges, Switzerland, in a Company-owned facility
comprising 33,300 square feet, occupied by research and development, product marketing, technical support,
administration and certain Logitech group activities including finance. We lease two additional facilities of 8,700
and 8,400 square feet in Morges, Switzerland. These leases expire in June 2007 and July 2007. Sales and
marketing, including sales management, are located in these facilities. We have signed a lease on a new facility
in Morges, comprising approximately 51,000 square feet, which we began occupying in April 2007. This facility
is occupied by sales and marketing management, technical support, administration and certain Logitech group
activities, including finance, legal and human resources. The lease began in January 2007 and will continue for
10 years, with the option for Logitech to terminate the lease after 5 years.
In North America, our headquarters in Fremont, California consist of four leased buildings comprising
approximately 172,000 square feet. These facilities are occupied by Logitech’s Americas headquarters, including
research and development, product marketing, sales management, technical support and administration. The
Fremont lease expires in March 2013. The audio business unit is located in 36,000 square feet of leased office
space in Vancouver, Washington. This lease expires in April 2009. We also lease approximately 18,000 square
feet in Mountain View, California, occupied by our streaming media group, on a lease which expires in May
2011. In addition, we sublease approximately 20,000 square feet in Mississauga, Canada for our remote controls
group, on a lease which expires in September 2009.
Our 3Dconnexion subsidiary has subleased a 5,500 square foot office in San Jose, California through
December 2007. In Seefeld, Germany, 3Dconnexion has leased 15,000 square feet through the year 2010 for its
European headquarters, research and development, and manufacturing.
Worldwide operations and engineering occupy a Logitech-owned 112,000 square foot facility in Hsinchu,
Taiwan, which includes mechanical engineering, new product launches, process engineering, commodities
management, logistics, quality assurance, and administration. Personnel in Hsinchu manage distribution of
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