Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Logitech Reports Non-Cash Accounting Charge for Q3 FY 2013



  Logitech Reports Non-Cash Accounting Charge for Q3 FY 2013

Business Wire

NEWARK, Calif. & MORGES, Switzerland -- January 22, 2013

Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced that it will
take a non-cash, non-tax-deductible goodwill impairment charge, estimated to
be $211 million, in the third quarter of Fiscal Year 2013, related to its
video conferencing reporting unit.

Logitech’s video conferencing reporting unit encompasses the integrated
operations of the company’s acquisitions of Sightspeed, LifeSize, Paradial and
Mirial, for approximately $440 million combined. Under generally accepted
accounting principles (GAAP), companies are required to conduct an annual
goodwill impairment test for each of their reporting units. Goodwill is
considered impaired when its carrying amount exceeds its implied fair value.
As a result of its annual impairment test, Logitech determined that a write
down of its video conferencing reporting unit goodwill was required, with the
bulk of the impairment related to its LifeSize acquisition.

The enterprise video conferencing industry has experienced a slowdown in
recent quarters and consequently, through this period, the video conferencing
reporting unit has not sustained the growth Logitech originally anticipated.
Logitech does not expect this accounting write down to affect its business or
financial performance beyond the recently completed third quarter.

About Logitech

Logitech is a world leader in products that connect people to the digital
experiences they care about. Spanning multiple computing, communication and
entertainment platforms, Logitech’s combined hardware and software enable or
enhance digital navigation, music and video entertainment, gaming, social
networking, audio and video communication over the Internet, video security
and home-entertainment control. Founded in 1981, Logitech International is a
Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq
Global Select Market (LOGI).

This press release contains forward-looking statements within the meaning of
the federal securities laws, including, without limitation, statements
regarding the goodwill impairment charge and its effect on Logitech’s business
and financial performance. The forward-looking statements in this release
involve risks and uncertainties that could result in adjustments to the
expected goodwill impairment charge and additional material impairment charges
in the future, including, without limitation: adverse changes in actual or
expected operating results, market capitalization, business climate, economic
factors or other negative events that may be outside the control of management
could result in additional material non-cash impairment charges in the future.
A detailed discussion of these and other risks and uncertainties that could
cause actual results and events to differ materially from such forward-looking
statements is included in Logitech’s periodic filings with the Securities and
Exchange Commission, including our Quarterly Report on Form 10-Q for the
fiscal quarter ended September 30, 2012 and our Annual Report on Form 10-K for
the fiscal year ended March 31, 2012, available at www.sec.gov, under the
caption Risk Factors and elsewhere. Logitech does not undertake any obligation
to update any forward-looking statements to reflect new information or events
or circumstances occurring after the date of this press release.

Logitech, the Logitech logo, and other Logitech marks are registered in
Switzerland and other countries. All other trademarks are the property of
their respective owners. For more information about Logitech and its products,
visit the company’s Web site at www.logitech.com.

(LOGIIR)

Contact:

Logitech International
Joe Greenhalgh
510-713-4430
Vice President, Investor Relations – USA
Nancy Morrison
510-713-4948
Vice President, Corporate Communications – USA
Laura Scorza
+41-(0) 21-863-5336
Sr. Public Relations Manager – Europe
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement