Logitech Confirms Lifesize Non-Cash Accounting Charge for Fiscal Year 2015
May 13 2015 - 09:00PM
Business Wire
Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced
that, based on a third party valuation report, it will take a
non-cash, non-tax-deductible goodwill impairment charge related to
the acquisition of Lifesize. As communicated in April 2015,
Logitech has been evaluating the goodwill associated with Lifesize.
This charge is expected to be between $100 million and $123 million
in the fourth quarter of Fiscal Year 2015.
The charge does not affect the Company’s operating performance.
It is still subject to further review by the Company and its
independent auditors, including the routine review of subsequent
events, prior to the filing of its Annual Report on Form 10-K for
the fiscal year ended March 31, 2015.
As announced last month, Logitech is reorganizing its Lifesize
business to sharpen its focus on Lifesize’s new cloud-based
offering which is gaining significant market traction. Logitech is
implementing these actions, and considering others, to optimize the
value of its video conferencing reporting unit.
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
related to Lifesize, the reorganization of the Lifesize business,
Lifesize’s cloud-based offering, and actions to optimize the value
of Lifesize. 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 do not successfully execute on our
growth opportunities in our new product categories or our growth
opportunities are more limited than we expect; the effect of
pricing, product, marketing and other initiatives by our
competitors, and our reaction to them, on our sales, gross margins
and profitability; if our products and marketing strategies fail to
separate our products from competitors’ products; changes with
respect to the Lifesize business, assets, strategy or perceived
valuation; finalization of the review of the charge by Logitech and
its independent auditors. 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 December 31, 2014 and our Annual
Report on Form 10-K for the fiscal year ended March 31, 2014,
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)
Logitech InternationalJoe GreenhalghVice President, Investor
Relations – USA510-713-4430orKrista ToddVice President,
Communications – USA510-713-5834orBen StarkieCorporate
Communications – Europe+41-(0) 79-292-3499
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