Logitech 2008 Annual Report Download - page 31

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under SFAS 141R, changes in deferred tax asset valuation allowances and acquired income tax uncertainties
in a business combination after the measurement period will impact income taxes. SFAS 141R is effective
for fiscal years beginning after December 15, 2008 and, as such, we will adopt this standard for any future
acquisitions beginning in fiscal year 2010.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures
about Derivative Instruments and Hedging Activities – an amendment of FASB Statement No. 133”
(“SFAS 161”). This Statement requires enhanced disclosures about an entity’s derivative and hedging
activities. SFAS 161 is effective for financial statements issued for fiscal years beginning after
November 15, 2008 and interim periods within those fiscal years. We will adopt SFAS 161 in the first
quarter of fiscal year 2010, and we are evaluating the disclosure impact.
Results of Operations
Year Ended March 31, 2008 Compared with Year Ended March 31, 2007
Net Sales
Net sales by channel and product family for fiscal years 2008 and 2007 were as follows (in thousands):
2008 2007 Change %
Net sales by channel:
Retail ........................ $2,067,288 $ 1,844,395 12%
OEM ........................ 303,208 222,174 36%
Total net sales ............. $2,370,496 $ 2,066,569 15%
Net sales by product family:
Retail - Pointing Devices ........ $ 622,074 $ 508,449 22%
Retail - Keyboards & Desktops . . . 458,434 372,266 23%
Retail - Audio ................. 478,455 408,314 17%
Retail - Video ................. 238,728 314,514 (24%)
Retail - Gaming ................ 146,016 149,113 (2%)
Retail - Remotes ............... 123,581 91,739 35%
OEM ........................ 303,208 222,174 36%
Total net sales.............. $2,370,496 $ 2,066,569 15%
Logitech’s Pointing Devices product family includes the Company’s mice, trackballs and other
pointing devices. Keyboards and desktops include cordless and corded keyboards and desktops. Audio
includes speakers and headset products for the PC, the home, and mobile entertainment platforms and
wireless music systems; video is comprised of PC webcams and WiLife video security monitoring systems;
gaming includes console and PC gaming peripherals; and remotes is comprised of the Company’s advanced
remote controls.
Retail sales growth in fiscal year 2008 was primarily attributable to strong contributions from
pointing devices, keyboards, desktops, audio products and remotes. OEM sales were higher as a result of
strong sales of gaming peripherals, keyboards and desktops. We achieved strong sales growth in spite of a
highly promotional market that resulted in higher consumer rebates as compared with the prior fiscal year.
Approximately 54% of the Company’s sales were denominated in currencies other than the U.S. dollar in
fiscal year 2008. Net sales growth benefited from the strengthening of the Euro during fiscal year 2008;