Logitech Delivers 8th Consecutive Record Year, 30th Straight Quarter of Double-Digit Sales Growth

Logitech Delivers 8th Consecutive Record Year, 30th Straight Quarter of Double-Digit Sales Growth

Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced it has posted its eighth consecutive year of record sales and profits, ending with a record fourth quarter and reaching its increased fiscal-year goals. Sales for the fiscal year, ended March 31, 2006, were $1.8 billion, up 21 percent from $1.48 billion in Fiscal Year 2005. Operating income was $199 million, an increase of 16 percent over $172 million in the prior year. Net income was $181 million ($1.84 per share), up 21 percent from $149 million ($1.53 per share) last year. Gross margin for FY 2006 was 32 percent, compared with 34 percent last year.

For Logitech´s fourth fiscal quarter, sales were $466 million, up 16 percent from $403 million for the same quarter one year ago. Operating income was $55 million, up 17 percent from $47 million last year. Net income for the quarter was $51 million ($0.52 per share), up 27 percent from $40.2 million ($0.41 per share) in the prior year. Gross margin was 31.9 percent, compared with 33.6 percent last year.

Logitech´s retail sales for Q4 grew by 19 percent year over year, with sales up in the Americas by 18 percent, in EMEA by 20 percent and in Asia by 15 percent. Retail sales were driven by high demand for audio products (up 68 percent), video products (up 61 percent) and a return to strong growth in cordless mice (up 21 percent). The Company´s line of Harmony® remote controls also continued its rapid growth during the quarter, with sales in Europe accelerating. Logitech´s OEM sales declined by 6 percent for the quarter.

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