cloudhosting14 wrote: As you would already know that managed hosting itself is another form of Cloud hosting in which the system administrations of servers is looked upon by the CPs. Similar is the case with managed multi Cloud hosting. You can very well understand how a big burden it would be to manage multi cloud servers for organization; this is why a service known as managed multi Cloud is provided to these users. This service ensures them the seam less running of their system administrative operations while organizations focus more on t...
Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced
financial results for the third quarter of Fiscal Year 2013.
Sales for Q3 FY 2013 were $615 million, down 14 percent from $715
million in Q3 FY 2012, with no material impact from exchange rates. The
company posted an operating loss of $180 million, which included a
non-cash goodwill impairment charge, estimated to be $211 million,
announced on January 22, 2013. Net loss for Q3 FY 2013 was $195 million
($1.24 per share) compared to net income of $55 million ($0.32 per
share) in Q3 FY 2012. Gross margin for the quarter was 34.2 percent,
compared to 36.2 percent in the same quarter one year ago. Excluding the
aforementioned Q3 FY 2013 impairment charge, Q3 FY 2013 non-GAAP
operating income would have been $31 million and non-GAAP net income
would have been $16 million.
Logitech’s retail sales for Q3 FY 2013 decreased by 14 percent year over
year, down 8 percent in the Americas, 11 percent in Asia and 20 percent
in EMEA. Year over year, OEM sales decreased by 23 percent and sales for
the LifeSize division decreased by 4 percent.
“As we articulated when we started the third quarter, continued weakness
in the global PC market was the primary factor in our disappointing Q3
results,” said Bracken P. Darrell, Logitech president and chief
executive officer. “These results are unacceptable and we are taking
decisive action as an outcome of my strategic review. I was pleased with
the continued strong demand for our Ultrathin Keyboard Cover in Q3. We
plan to expand our presence in the growing tablet accessories category
with the launch of a number of exciting new products later this quarter.
“We are taking immediate actions to shape a faster and more profitable
Logitech,” continued Mr. Darrell. “We are developing more
mobility-related products, leveraging the powerful growth of tablets and
smartphones. We intend to sustain our leadership in PC platform-related
products where we have engineering, distribution and scale advantages.
Our goal with PC-platform products is to maximize profitability, while
investing selectively in growing categories. We have also identified a
number of product categories that no longer fit with our current
strategic direction. As a result, we have initiated the process to
divest our remote controls and digital video security categories, and we
plan to discontinue other non-strategic products, such as speaker docks
and console gaming peripherals, by the end of Calendar Year 2013.”
Mr. Darrell concluded, “As we execute our plans over the coming
quarters, we will reduce costs significantly across the company beyond
the $80M annual cost savings (FY 2014 over FY 2012) resulting from the
restructuring we announced last April. My goal is to get Logitech back
to sustained profitability as quickly as possible. This requires
unwavering focus on developing great products both for large and for
fast-growing markets, removing unnecessary costs and a commitment to
move at least as fast as the markets in which we participate.”
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 Q3 FY 2013 on Thursday, Jan. 24, 2013 at 8:30 a.m. Eastern
Standard Time and 14:30 Central European Time. A live webcast of the
call will be available on the Logitech corporate website at http://ir.logitech.com.
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: demand for our products, expansion of our presence
and growth in the tablet and smartphones accessories category, new
product launches, our plans to divest or discontinue non-strategic
products, our focus, and our ability to be faster and more profitable,
to achieve sustained profitability, to sustain our leadership and
advantages in PC platform-related products, and to reduce costs. The
forward-looking statements in this release involve risks and
uncertainties that could cause Logitech’s actual results and events to
differ materially from those anticipated in these forward-looking
statements, including, without limitation: if our product offerings,
marketing activities and investment prioritization decisions do not
result in the sales, profitability or profitability growth we expect, or
when we expect it; the demand of our customers and our consumers for our
products and our ability to accurately forecast it; if we fail to
innovate and develop new products in a timely and cost-effective manner
for our new and existing product categories; if we do not successfully
execute on our growth opportunities in our new product categories and
sales in emerging market geographies; if sales of PC peripherals in
mature markets are less than we expect; the effect of pricing, product,
marketing and other initiatives by our competitors; if our products and
marketing strategies fail to separate our products from competitors’
products; if the restructuring fails to produce the intended performance
and cost savings results or is not implemented in the contemplated
timeframe. 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, 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.
LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
Quarter Ended December 31,
CONSOLIDATED STATEMENTS OF OPERATIONS
2012
2011
Net sales
$
614,500
$
714,596
Cost of goods sold
404,402
455,922
Gross profit
210,098
258,674
% of net sales
34.2
%
36.2
%
Operating expenses:
Marketing and selling
112,698
116,313
Research and development
40,393
41,911
General and administrative
26,382
30,673
Goodwill impairment
211,000
-
Restructuring charges (credits), net
(358
)
-
Total operating expenses
390,115
188,897
Operating income (loss)
(180,017
)
69,777
Interest income, net
114
917
Other income (expense), net
(3,670
)
6,713
Income (loss) before income taxes
(183,573
)
77,407
Provision for income taxes
11,370
22,074
Net income (loss)
$
(194,943
)
$
55,333
Shares used to compute net income (loss) per share:
Basic
157,706
173,003
Diluted
157,706
173,656
Net income (loss) per share:
Basic
$
(1.24
)
$
0.32
Diluted
$
(1.24
)
$
0.32
LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
Nine Months Ended December 31,
CONSOLIDATED STATEMENTS OF OPERATIONS
2012
2011
Net sales
$
1,630,797
$
1,784,241
Cost of goods sold
1,080,452
1,201,539
Gross profit
550,345
582,702
% of net sales
33.7
%
32.7
%
Operating expenses:
Marketing and selling
324,117
323,552
Research and development
117,340
121,383
General and administrative
84,842
89,527
Goodwill impairment
211,000
-
Restructuring charges
28,198
-
Total operating expenses
765,497
534,462
Operating income (loss)
(215,152
)
48,240
Interest income, net
651
2,208
Other income (expense), net
(4,338
)
10,141
Income (loss) before income taxes
(218,839
)
60,589
Provision for (benefit from) income taxes
(26,616
)
17,417
Net income (loss)
$
(192,223
)
$
43,172
Shares used to compute net income (loss) per share:
Basic
158,383
176,414
Diluted
158,383
177,201
Net income (loss) per share:
Basic
$
(1.21
)
$
0.24
Diluted
$
(1.21
)
$
0.24
LOGITECH INTERNATIONAL S.A.
(In thousands)
CONSOLIDATED BALANCE SHEETS
December 31, 2012
March 31, 2012
December 31, 2011
(Unaudited)
(Unaudited)
(Unaudited)
Current assets
Cash and cash equivalents
$
321,999
$
478,370
$
523,333
Accounts receivable
264,589
223,104
318,678
Inventories
277,477
297,072
295,749
Other current assets
59,808
65,990
73,498
Assets held for sale
17,697
-
-
Total current assets
941,570
1,064,536
1,211,258
Non-Current assets
Property, plant and equipment
89,128
94,884
78,055
Goodwill
345,313
560,523
560,106
Other intangible assets
35,033
53,518
59,743
Other assets
78,021
83,033
81,524
Total assets
$
1,489,065
$
1,856,494
$
1,990,686
Current liabilities
Accounts payable
$
339,283
$
301,111
$
377,132
Accrued liabilities
204,528
186,680
213,092
Liabilities held for sale
2,020
-
-
Total current liabilities
545,831
487,791
590,224
Non-current liabilities
186,663
218,462
195,956
Total liabilities
732,494
706,253
786,180
Shareholders' equity
756,571
1,150,241
1,204,506
Total liabilities and shareholders' equity
$
1,489,065
$
1,856,494
$
1,990,686
LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
Three Months Ended December 31,
CONSOLIDATED STATEMENTS OF CASH FLOWS
2012
2011
Cash flows from operating activities:
Net income (loss)
$
(194,943
)
$
55,333
Non-cash items included in net income (loss):
Depreciation
11,554
10,608
Amortization of other intangible assets
5,657
6,653
Goodwill impairment
211,000
-
Investment impairment
3,600
-
Share-based compensation expense
5,222
6,927
Gain on sale of investments
-
(6,118
)
Excess tax benefits from share-based compensation
(4
)
(3
)
Deferred income taxes and other
13,204
7,556
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
16,962
(26,575
)
Inventories
32,177
23,869
Other assets
5,138
(4,967
)
Accounts payable
(29,202
)
36,885
Accrued liabilities
14,736
42,366
Net cash provided by operating activities
95,101
152,534
Cash flows from investing activities:
Purchases of property, plant and equipment
(9,215
)
(10,496
)
Proceeds from sale of available-for-sale securities
-
6,550
Purchases of trading investments
(646
)
(1,041
)
Proceeds from sales of trading investments
671
998
Net cash used in investing activities
(9,190
)
(3,989
)
Cash flows from financing activities:
Payment of cash dividends
-
-
Purchases of treasury shares
-
-
Proceeds from sale of shares upon exercise of options and purchase
rights
(165
)
88
Tax withholdings related to net share settlements of restricted
stock units
(1,360
)
(705
)
Excess tax benefits from share-based compensation
4
3
Net cash used in financing activities
(1,521
)
(614
)
Effect of exchange rate changes on cash and cash equivalents
576
(4,048
)
Net increase in cash and cash equivalents
84,966
143,883
Cash and cash equivalents at beginning of period
237,033
379,450
Cash and cash equivalents at end of period
$
321,999
$
523,333
LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
Nine Months Ended December 30,
CONSOLIDATED STATEMENTS OF CASH FLOWS
2012
2011
Cash flows from operating activities:
Net income (loss)
$
(192,223
)
$
43,172
Non-cash items included in net income (loss):
Depreciation
33,861
35,201
Amortization of other intangible assets
17,914
20,209
Goodwill impairment
211,000
-
Investment impairment
3,600
-
Inventory valuation adjustment
-
34,074
Share-based compensation expense
18,659
23,380
Gain on disposal of property and plant
-
(4,904
)
Gain on sale of investments
(831
)
(6,118
)
Excess tax benefits from share-based compensation
(26
)
(33
)
Deferred income taxes and other
9,398
(998
)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
(41,310
)
(63,092
)
Inventories
1,444
(35,720
)
Other assets
(2,201
)
(11,853
)
Accounts payable
39,673
81,973
Accrued liabilities
5,238
38,877
Net cash provided by operating activities
104,196
154,168
Cash flows from investing activities:
Purchases of property, plant and equipment
(39,737
)
(31,417
)
Acquisitions, net of cash acquired
-
(18,814
)
Investment in privately-held company
(3,970
)
-
Proceeds from sale of property and plant
4,904
Proceeds from sale of available-for-sale securities
917
6,550
Purchases of trading investments
(2,294
)
(5,577
)
Proceeds from sales of trading investments
2,309
5,520
Net cash used in investing activities
(42,775
)
(38,834
)
Cash flows from financing activities:
Payment of cash dividends
(133,462
)
-
Purchases of treasury shares
(89,955
)
(73,134
)
Proceeds from sale of shares upon exercise of options and purchase
rights
8,843
9,852
Tax withholdings related to net share settlements of restricted
stock units
(1,995
)
(890
)
Excess tax benefits from share-based compensation
26
33
Net cash used in financing activities
(216,543
)
(64,139
)
Effect of exchange rate changes on cash and cash equivalents
(1,249
)
(5,793
)
Net increase (decrease) in cash and cash equivalents
(156,371
)
45,402
Cash and cash equivalents at beginning of period
478,370
477,931
Cash and cash equivalents at end of period
$
321,999
$
523,333
LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
Quarter Ended
Nine Months Ended
December 31,
December 31,
SUPPLEMENTAL FINANCIAL INFORMATION
2012
2011
2012
2011
Depreciation
$
11,554
$
10,608
$
33,861
$
35,201
Amortization of other intangible assets
5,657
6,653
17,914
20,209
Goodwill impairment
211,000
-
211,000
-
Operating income (loss)
(180,017
)
69,777
(215,152
)
48,240
Operating income (loss) before depreciation and amortization
(162,806
)
87,038
(163,377
)
103,650
Operating income (loss) before goodwill impairment
30,983
69,777
(4,152
)
48,240
Income (loss) before income taxes
(183,573
)
77,407
(218,839
)
60,589
Income (loss) before income taxes and goodwill impairment
27,427
77,407
(7,839
)
60,589
Net income (loss)
(194,943
)
55,333
(192,223
)
43,172
Net income before goodwill impairment
16,057
55,333
18,777
43,172
Capital expenditures
9,215
10,497
39,737
31,417
Net sales by channel:
Retail
$
542,388
$
630,873
$
1,413,968
$
1,527,385
OEM
35,300
45,527
108,693
144,966
LifeSize
36,812
38,196
108,136
111,890
Total net sales
$
614,500
$
714,596
$
1,630,797
$
1,784,241
-
Net retail sales by product family(**):
Retail - Pointing Devices
$
153,921
$
171,920
$
392,274
$
427,031
Retail - Keyboards & Desktops
110,671
117,507
302,299
302,840
Retail - Tablet Accessories
39,398
17,976
89,021
36,565
Retail - Audio - PC
75,366
92,766
214,158
238,932
Retail - Audio - Wearables & Wireless
23,577
23,233
57,284
39,071
Retail - Video
51,664
58,343
138,276
166,370
Retail - PC Gaming
45,111
56,177
118,567
129,839
Retail - Remotes
30,094
39,706
60,260
74,105
Retail - Other
12,586
53,245
41,829
112,632
Total net retail sales
$
542,388
$
630,873
$
1,413,968
$
1,527,385
__________________
* * Certain products within the retail product families as presented
in prior years have been reclassified to conform to the current year
presentation, with no impact on previously reported total net retail
sales.
Quarter Ended
Nine Months Ended
December 31,
December 31,
Share-based Compensation Expense (*)
2012
2011
2012
2011
Cost of goods sold
$
704
$
948
$
2,101
$
3,058
Marketing and selling
953
2,380
5,377
9,345
Research and development
2,430
1,802
6,018
5,364
General and administrative
1,135
1,797
5,163
5,613
Income tax benefit
(1,043
)
70
(4,090
)
(4,595
)
Total share-based compensation expense after income taxes
$
4,179
$
6,997
$
14,569
$
18,785
__________________
* Share-based compensation expense for the quarter ended December
31, 2012 and nine months ended December 31, 2012 includes a
reduction of $0 and $2.2m in expense applicable to employees
terminated as a result of the restructuring plan announced in
April 2012.
Constant dollar sales (sales excluding
impact of exchange rate changes) and Non-GAAP operating and net
income (excluding the Q3 FY 2013 impairment charge)
We refer to our net sales excluding the impact of foreign currency
exchange rates as constant dollar sales. We also report non-GAAP
operating and net income (loss) in this press release, excluding
the Q3 FY 2013 non-cash impairment charge, and non-GAAP operating
income (loss) before depreciation and amortization. Constant
dollar sales and non-GAAP operating and net income (loss) are
non-GAAP financial measures, which are information derived from
consolidated financial information but not presented in our
financial statements prepared in accordance with U.S. GAAP. Our
management uses these non-GAAP measures in its financial and
operational decision-making, and believes these non-GAAP measures,
when considered in conjunction with the corresponding GAAP
measures, facilitate a better understanding of changes in net
sales, operating income (loss) and net income(loss). Constant
dollar sales are calculated by translating prior period sales in
each local currency at the current period's average exchange rate
for that currency. Non-GAAP operating income (loss) and non-GAAP
net income (loss) before goodwill impairment can be reconciled to
GAAP operating income (loss) and GAAP net income (loss),
respectively, by adding the amount of the impairment
charge. Non-GAAP operating income (loss) before depreciation and
amortization can be reconciled to GAAP operating income (loss) by
adding the amounts of depreciation and amortization of other
intangible assets.
SYS-CON Events announced today that OpenStack will exhibit at SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York. OpenStack software controls large pools of compute, storage, and networking resources thro...
“Cloud has everything to do with what has happened with Big Data,” explained Jason Deck, Director of Strategic Alliances at Logicworks, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “Big Data doesn’t exist in its easily accessible way without cloud. From reduced...
You're getting pitched every day from your legacy enterprise software and hardware vendors about "cloud." They're doing an amazing job of convincing your CIO and CTO about what cloud is and how you should use it. The reality is they're defending their shrinking market share and keeping...
In an ideal developer/systems administrator’s world, most applications would deploy seamlessly to multiple platforms and scale elastically with minimal effort bringing the unprecedented agility of the cloud within immediate reach of developer teams and IT organizations.
OpenStack, a ...
Cloud computing must have been brushing up on its bedside manner.
HIPAA requirements now stipulate everyone in the health-care industry must begin migrating patient records and other data to cloud computing. By 2015, all medical professionals with access to patient records must utiliz...
“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Secu...
.gif)
SYS-CON Events announced today that OpenStack will exhibit at SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York. OpenStack software controls large pools of compute, storage, and networking resources thro...
“Cloud has everything to do with what has happened with Big Data,” explained Jason Deck, Director of Strategic Alliances at Logicworks, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “Big Data doesn’t exist in its easily accessible way without cloud. From reduced...
You're getting pitched every day from your legacy enterprise software and hardware vendors about "cloud." They're doing an amazing job of convincing your CIO and CTO about what cloud is and how you should use it. The reality is they're defending their shrinking market share and keeping...
In an ideal developer/systems administrator’s world, most applications would deploy seamlessly to multiple platforms and scale elastically with minimal effort bringing the unprecedented agility of the cloud within immediate reach of developer teams and IT organizations.
OpenStack, a ...
Cloud computing must have been brushing up on its bedside manner.
HIPAA requirements now stipulate everyone in the health-care industry must begin migrating patient records and other data to cloud computing. By 2015, all medical professionals with access to patient records must utiliz...
“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Secu...
