Logitech 2010 Annual Report Download - page 3

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 protability; 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 signicantly 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
Executive Team
President and Chief Executive Ofcer
Chief Financial Ofce, Senior Vice President, Finance
Executive Vice President, Products
Senior Vice President, Worldwide Sales and Marketing
Senior Vice President, Customer Experience and
Chief Marketing Ofcer
Senior Vice President, Worldwide Operations
Vice President, Human Resources
Vice President, Legal,
General Counsel and Secretary of the Board
Board of Directors
Chairman of the Board
Logitech
President and Chief Executive Ofcer
Logitech
Co-Founder and Former Chairman of the Board
Logitech
Chairman
Enesco LLC
Former Senior Vice President, Worldwide Operations and
General Manager, Far East
Logitech
President and Chief Executive Ofcer
Vertex Group
Chief Executive Ofcer
BT Wholesale
Executive Vice President
Nestlé S.A.
Chief Executive Ofcer
Nestlé Nutrition
Former President, Global Marketing, Sales and Innovation
Diageo plc
President, Chief Executive Ofcer
Panalpina Group
© 2010 Logitech. All rights reserved. Logitech, the Logitech
logo, and other Logitech marks are registered in the United
States and other countries. All other trademarks are the
property of their respective owners.
Investor inquiries may be directed to:
[e-mail]
Logitech’s annual meeting of shareholders will be held at
14:30 Central European Summer Time, September 8, 2010,
at the Palais de Beaulieu in Lausanne, Switzerland.
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Fiscal Year 2010 was pivotal for Logitech
in every sense.
On one hand, it was among the most
challenging in our company’s history.
In the wake of the global recession
that began in September 2008, weak
consumer demand led to disappointing
nancial results. However, in spite of the
economic environment, we succeeded in
nishing the scal year with a very solid
quarter and with strong momentum
entering FY 2011. On the other hand,
changing consumers delivered unique new
opportunities, and we began a strategic
transformation to take full advantage of
these opportunities. This transformation
positions us for a return to double-digit
growth in FY 2011 and beyond.


As a result of our restructuring at the end of
FY 2009, we began FY 2010 with a reduced
cost structure, which better positioned us
to weather the global economic storm. We
worked with our channel partners to help
them lower their inventory levels to align with
the relatively weak consumer demand
Das Geschäftsjahr 2010 war für Logitech in
jeder Hinsicht wegweisend.
Einerseits stellten sich dem Unternehmen
enorme Herausforderungen. Die welt-
weite Rezession, die im September
2008 begonnen hatte, belastete die
Nachfrage und führte zu enttäuschenden
Finanzergebnissen. Trotz des wirtschaft-
lichen Umfelds gelang es uns jedoch, im
letzten Quartal des Geschäftsjahres ein
äusserst solides Ergebniss zu erzielen
und das Geschäftsjahr 2011 unter guten
Vorzeichen zu beginnen. Andererseits
boten sich dank neuer Konsumenten einma-
lige Chancen. Wir leiteten eine strategische
Neuorientierung ein, um diese Chancen
voll zu nutzen. Wir rechnen darum für das
Geschäftsjahr 2011 und auch danach erneut
mit einem Wachstum im zweistelligen
Bereich.
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
Dank der Umstrukturierungen zu Ende des
Geschäftsjahres 2009 begannen wir das
neue Geschäftsjahr mit einer schlanken
Kostenstruktur und waren gegen die glo-
balen wirtschaftlichen Turbulenzen besser
gewappnet. Wir unterstützten
L’exercice scal 2010 a été critique a bien
des égards pour Logitech.
Sans conteste, 2010 a été l’une des
années les plus exigeantes de toute
l’histoire de notre société. Dans le sillage
de la récession mondiale qui avait débuté
en septembre 2008, l’affaiblissement de
la demande des consommateurs a généré
des résultats nanciers décevants. Dans
un contexte économique défavorable,
nous avons toutefois terminé l’exercice
sur un trimestre très solide, qui nous a
donné l’élan nécessaire pour entamer
2011 sur de bonnes bases. Autre point
positif, l’évolution du comportement des
consommateurs et une nouvelle orientation
stratégique nous offrent des opportunités
uniques.et nous placent dans une position
idéale pour renouer avec une croissance à
deux chiffres en 2011 et au-delà.

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Suite à la restructuration de notre entreprise
à la n de l’exercice 2009, nous avons pu
démarrer 2010 avec une structure de coûts
réduite qui nous a permis de surmonter la
crise économique mondiale. Nous avons
aidé nos partenaires commerciaux à réduire
leurs stocks an de les aligner avec une
demande relativement faible
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