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Logitech Announces First Quarter Results for FY 2013

Discussion in 'News' started by Cristian_25H, Jul 26, 2012.

  1. Cristian_25H

    Cristian_25H News Poster

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    Logitech International today announced financial results for the first quarter of Fiscal Year 2013.

    Sales for Q1 FY 2013 were $469 million, down 2 percent from $480 million in Q1 FY 2012. Excluding the unfavorable impact of exchange rates, sales were flat compared to the prior year. The Company posted an operating loss of $59 million compared to an operating loss of $45 million in the same quarter a year ago. Included in Logitech's Q1 FY 2013 operating loss is a previously announced restructuring charge of $31 million included in operating expenses as well as $3 million in restructuring-related costs included in cost of goods sold. The net loss for Q1 FY 2013 was $52 million ($0.32 per share) compared to a net loss of $30 million ($0.17 per share) in Q1 FY 2012.

    Gross margin for the quarter was 30.8 percent, compared to 26.1 percent in the same quarter one year ago. Gross margin in the current year was negatively impacted by the combination of restructuring-related costs, the acceleration of actions taken to streamline the product portfolio, a provision for a likely settlement of a patent dispute, and a weaker euro.

    Logitech's retail sales for Q1 FY 2013 were flat year over year, with an increase in EMEA of 17 percent, flat sales in Asia, and a decrease in the Americas of 11 percent. OEM sales decreased by 25 percent. Sales for the LifeSize division increased by 1 percent.

    "Our Q1 FY 2013 results are consistent with our expectations," said Guerrino De Luca, Logitech chairman and chief executive officer. "We are in the middle of our turnaround, with most of the plans we put in place in past quarters expected to bear fruit beginning in the second half of FY 2013. And we incurred several one-time charges in the first quarter that are expected to positively impact future profitability. I'm also very pleased by the strong initial sales of the new generation of products recently added to our portfolio, such as the Logitech Ultrathin Keyboard Cover and our wireless speakers for digital music."

    "The majority of our new products, targeting consumer trends in music, tablets, touch-based navigation and the digital home, will be launched in Q2 and early Q3, as we prepare for the holiday selling season. In addition to strengthening our product portfolio, we continue to expect to benefit from the simplification of our organization and processes, and cost savings from the restructuring. We remain on track with the plan we set a quarter ago to deliver improved performance starting in the second half of Fiscal Year 2013."

    Prepared Remarks Available Online

    Logitech has made its prepared written remarks for the financial results teleconference available online on the Logitech corporate Web site at http://ir.logitech.com/. The remarks are posted in the Calendar section on the Investor home page.

    Financial Results Teleconference and Webcast

    Logitech will hold a financial results teleconference to discuss the results for Q1 FY 2013 on Thursday, July 26, 2012 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer Time. A live webcast of the call will be available on the Logitech corporate website at http://ir.logitech.com/.
     

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