|[January 22, 2013]
Logitech Reports Non-Cash Accounting Charge for Q3 FY 2013
NEWARK, Calif. & MORGES, Switzerland --(Business Wire)--
Logitech (News - Alert) 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 (News - Alert), 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 (News - Alert) 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.
Logitech s 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
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.
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