Logitech 2010 Annual Report Download - page 235
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Fiscal Year 20061 2007 2008 2009 2010
(in thousands of U.S. dollars, except per share amounts)
Net sales $ 1,796,715 $ 2,066,569 $ 2,370,496 $ 2,208,832 $ 1,966,748
Gross margin 32.0% 34.3% 35.8% 31.3% 31.9%
Operating income $ 198,911 $ 230,862 $ 286,680 $ 109,654 $ 78,364
Operating margin 11.1% 11.2% 12.1% 5.0% 4.0%
Net income $ 181,105 $ 229,848 $ 231,026 $ 107,032 $ 64,957
Earnings per diluted share $ 0.92 $ 1.20 $ 1.23 $ 0.59 $ 0.36
Diluted number of shares (in millions) 198,769 190,991 187,942 182,911 179,340
Cash ow from operations $ 152,217 $ 303,825 $ 393,079 $ 200,587 $ 365,259
Capital expenditures $ 54,102 $ 47,246 $ 57,900 $ 48,263 $ 39,834
Cash and cash equivalents and short-term
investments, net of short-term debt $ 230,943 $ 398,966 $ 486,292 $ 494,396 $ 319,944
Shareholders’ equity $ 685,176 $ 844,524 $ 960,044 $ 997,708 $ 999,715
The following selected historical information has been derived from audited nancial statements included in our annual reports for such years. Accordingly, the table
should be read in conjunction with the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our annual reports for
Fiscal Years 2008 through 2010 and the section titled “Operating and Financial Review and Prospects,” in our annual reports for Fiscal Years 2006 through 2007.
1
Operating income, Operating margin, Net income and Earnings per diluted share for Fiscal Year 2006 do not include the effect of share-based compensation expense
because Logitech changed its method of accounting for share-based compensation expense effective April 1, 2006.
This document contains forward-looking statements, including the statements regarding being positioned for a return to double-digit growth in Fiscal
Year 2011 and beyond, our long-term growth strategy, our product introduction plans, our belief that we can create a seamless video experience
across screens, our plan for China to become one of our top three markets, and our plans for developing products for open eco-systems. The forward-
looking statements involve risks and uncertainties that could cause Logitech’s actual results to differ materially from that anticipated in these
forward-looking statements. Factors that could cause actual results to differ materially include: our inability to predict the timing and strength of the
improvement in our business, operating results and nancial condition; the demand of our customers and our consumers for our products and our
ability to accurately forecast it; if we fail to execute upon our long-term strategic plans and opportunities; if our investments in our strategic priorities
do not result in the growth we expect; consumer reaction to our new products; if we fail to take advantage of long-term trends in the consumer
electronics and personal computers industries; if we fail to successfully innovate in our current and emerging product categories and identify new
feature or product opportunities; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our
sales, gross margins and protability; our product introductions and marketing activities not resulting in the product or category growth we expect,
or when we expect it; competition in the video conferencing and communications industry, including from companies with signicantly greater
resources, sales and marketing organizations, installed base and name recognition; as well as those additional factors set forth in Logitech’s periodic
lings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the Fiscal Year ended March 31, 2010, and our
subsequent Quarterly Reports on Form 10-Q available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.
Selected Financial Highlights
Craig B. Malloy
Chief Executive Officer of LifeSize Communications,
Senior Vice President of Logitech