Logitech 2014 Annual Report Download - page 12

• We delivered $202 million in cash flow from operations, and we ended the year with
$469 million in cash, up $136 million over the prior year – even after distributing $36
million in dividends to our shareholders.
Underlying this solid financial performance for FY 2014 is a turnaround strategy that is working
on many fronts. Our strategy includes:
• Drive sales growth in our categories with the highest opportunity
• Maximize profitability in our PC Peripherals categories
• Return two businesses to operating profitability: LifeSize and Remote Controls
Focus on Driving Growth
Our Growth category includes PC Gaming, Tablets and Other Accessories, and Mobile
Speakers. Combined, these three categories grew 50% year over year in FY 2014. We’re proud
of the products we have designed for these categories and we see consumer validation through
improvements in market share.
In PC Gaming, which grew 29% in FY 2014, our new gaming mice were highlights. The
Logitech G602 Wireless Gaming Mouse has performed well since its introduction in August
2013, offering an unprecedented 250 hours of battery life, up to 20 times that of the leading
competitor’s wireless gaming mouse. And the Logitech G502 Proteus Core Tunable Gaming
Mouse, introduced at the end of FY 2014, has out-performed our expectations and the overall
market, driving our significant growth in gaming mice in the first half of FY 2015. Our gaming
headsets continue to outperform the market as well, with the G930 Gaming Headset remaining
the world’s best-selling headset. With a completely refreshed product lineup and branding, we
are strongly encouraged by the progress we are making in PC Gaming.
Tablets and Other Accessories grew 44% in FY 2014. Sales of tablet keyboards for the iPad
were the primary factor in this growth. During the fiscal year we also began selling tablet
keyboards and cases for Samsung products, and we broadened our iPad lineup with cases.
While we’re pleased with the innovative products we have introduced for tablets, the tablets
market itself has slowed in recent months, and that has negatively impacted our sales
momentum in this category during the first half of FY 2015. We continue to be optimistic about
the future of this category and will be aggressive in introducing innovative designs for new
generations of tablets from Apple and Samsung.
Mobile Speakers grew 161% in FY 2014. The key growth driver in this category was the UE
BOOM Bluetooth speaker, which is a winner of multiple design awards and has continued to
perform very well in the first half of FY 2015 as we broaden its retail presence and introduce
updated capabilities and special-edition models. In fact, this category has doubled in sales, year
over year, in each of the last six quarters.
Focus on Profit Maximization
With our PC Peripherals products, our goal is to maximize profitability as we continue to
innovate selectively in a declining market. In FY 2014, our improved profitability in this category
contributed to our ability to invest in our Growth category. And we have gained market share in
most of our PC Peripherals categories.
One product highlight has been our Wireless Touch Keyboard K400, which has been widely
adopted by consumers for use in the living room, a recent trend in keyboard use that we have
Focus on Return to Profitability
Building the Logitech of Tomorrow
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