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Logitech Reports Q4 Sales Down 32%

Fremont, Calif. — Logitech International announced financial results for the fourth quarter and fiscal year.

Sales for the fourth quarter were $408 million, a decrease of 32 percent compared with $601 million in the same quarter last year. Logitech posted an operating loss of $43 million, compared with operating income of $66 million in the same quarter a year ago. The net loss for the fourth quarter was $35 million ($0.20 per share), compared with net income of $60.3 million ($0.32 per share) in the prior-year fourth quarter.

During the fourth quarter, Logitech said it recorded pretax restructuring charges of $20.5 million ($15.9 million after tax or $0.09 per diluted share). Gross margin for was 25 percent, compared with 35.6 percent in the fourth quarter of the prior year.

Logitech’s retail sales for the fourth quarter declined by 32 percent year over year, with sales down by 36 percent in EMEA (Europe, Middle East and Africa), 33 percent in the Americas and 14 percent in Asia. OEM sales were down by 33 percent.

“The primary cause of the year-over-year decline in our Q4 sales was the economic downturn,” said Gerald P. Quindlen, Logitech president and CEO, in a statement. “Our sales were negatively impacted by the combination of weak consumer demand and the accelerating reset by our channel partners of their weeks of supply. A contributing factor to our sales decline was the effect of the stronger U.S. dollar.”

For the full fiscal year, sales were $2.2 billion, down from $2.4 billion in the prior-year period. Operating income was $110 million, down from $287 million a year ago. Net income was $107 million ($0.59 per share), compared with net income of $231 million ($1.23 per share) in the prior year. Excluding restructuring charges and an impairment loss on short-term investments, net income was $126 million ($0.69 per share). Gross margin for the fiscal year was 31.3 percent compared with 35.8 percent in the prior fiscal year.