Logitech International (LOGI) 8-K Logitech Announces Fourth Quarter and Full-Year Financial Results for FY 2010

Exhibit 99.1

For Immediate Release                                 &# 160;                                            

Editorial Contacts:

Joe Greenhalgh, Vice President, Investor Relations – USA (510) 713-4430

Nancy Morrison, Vice President, Corporate Communications – USA (510) 713-4948

Laura Scorza, Public Relations Manager – Europe +41-(0) 21-863-5336

Logitech Announces Fourth Quarter and Full-Year Financial Results for FY 2010

Company Delivers 29% Revenue Growth in Q4

FREMONT, Calif., April 28, 2010 and ROMANEL-SUR-MORGES, Switzerland, April 29, 2010 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full year of Fiscal Year 2010.

Sales for Q4 FY 2010 were $525 million, up 29 percent from $408 million in the same quarter last year. Excluding the favorable impact of exchange rate changes, sales increased by 25 percent. Operating income was $28 million, compared to an operating loss of $43 million in the same quarter a year ago. Net income for Q4 was $24 million ($0.14 per share) compared to a net loss one year ago of $35 million ($0.20 per share). Gross margin for Q4 FY 2010 was 35.8 percent, up from 25.0 percent in Q4 FY 2009.

Logitech’s retail sales for the fourth quarter of FY 2010 grew by 27 percent year over year, with sales up by 54 percent in the Americas, 15 percent in EMEA, and 10 percent in Asia. OEM sales grew by 1 percent.

“After a challenging start to the year, we ended Fiscal Year 2010 with very strong sales and gross margin performance,” said Gerald P. Quindlen, Logitech president and chief executive officer. “I’m very pleased that in Q4 we delivered strong sell-through growth and achieved double-digit sales growth in our three retail regions, as well as double-digit sales growth across all of our retail product categories. And we delivered our highest Q4 gross margin ever.

“As we begin FY 2011, our focus shifts from emerging stronger from the downturn to returning to driving strong top-line and profitability growth by executing on our long-term strategy. We enter the new fiscal year with an improving economic outlook, a strong balance sheet and accelerating sales momentum in all retail sales regions. We’re well positioned for growth across our product portfolio. Most notably, we see continued strong double-digit sales growth in the digital home with our line of Harmony remotes, which now includes innovative new models at lower price points for a broader range of households. We also expect accelerating sales growth in FY 11 from our LifeSize video communications division, which in Q4 had its highest billings ever.”

Full-Year Financial Results

For the full fiscal year, sales were $2.0 billion, down from $2.2 billion in FY 2009. Operating income was $78 million, down from $110 million a year ago. Net income was $65 million ($0.36 per share), compared to $107 million ($0.59 per share) in the prior year. Gross margin for FY 2010 was 31.9 percent compared to 31.3 percent in FY 2009.

Outlook

For Fiscal Year 2011, ending March 31, 2011, Logitech targets sales of approximately $2.3 billion and gross margin of approximately 34 percent. The Company expects operating income to approximately double year over year. The tax rate for FY 2011 is expected to be approximately 18 percent.

For the first quarter of Fiscal Year 2011, ending June 30, 2010, Logitech targets sales in the range of $450 million to $465 million and gross margin of approximately 34 percent. The Company expects operating income for Q1 FY 2011 to be approximately $5 million.

Earnings Teleconference and Webcast

Logitech will hold an earnings teleconference on Thursday, April 29, 2010 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer Time. A live webcast of the call, along with presentation slides, will be available on the Logitech corporate Web site at http://ir.logitech.com.

About Logitech

Logitech is a world leader in personal peripherals, driving innovation in PC navigation, Internet communications, digital music, home-entertainment control, gaming and wireless devices. 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, including the statements regarding anticipated sales, operating income and gross margin for Q1 FY 2011, anticipated sales, operating income, gross margin and tax rate for FY 2011, returning to strong top-line and profitability growth, executing on our long-term strategy, being positioned for growth across our product portfolio, the rate of sales momentum in our retail sales regions and for our LifeSize video communications division, and anticipated strong double-digit sales growth in Harmony remotes. The forward-looking statements in this release involve risks and uncertainties that could cause Logitech’s actual results to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include: our inabil ity to predict the timing and strength of the improvement in our business, operating results and financial condition; the demand of our customers and our consumers for our products and our ability to accurately forecast it; consumer reaction to our new products; 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 we fail to take advantage of long-term trends in the consumer electronics and personal computers industries; if we fail to successfully innovate in our current and emerging product categories and identify new feature or product opportunities; the sales mix among our lower- and higher-margin products and our geographic sales mix; if we fail to execute upon our long-term strategic plans and opportunities; our product introductions and marketing activities not resulting in the product or category growth we expect, or when we expect it; the retention of employees of LifeSize and the ability of Log itech to successfully integrate LifeSize’s market opportunities, technology, personnel and operations and to achieve anticipated results; competition in the video conferencing and communications industry, including from companies with significantly greater resources, sales and marketing organizations, installed base and name recognition; as well as those additional factors set forth in Logitech’s periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2009, and our subsequent Quarterly Reports on Form 10-Q available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.

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.

(LOGI – IR)

LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
	Quarter Ended March 31,
CONSOLIDATED STATEMENTS OF OPERATIONS	2010			2009
Net sales	$	525,444		$	407,948
Cost of goods sold		337,122			305,864
Gross profit		188,322			102,084
% of net sales		35.8	%		25.0	%
Operating expenses:
Marketing and selling		89,693			71,101
Research and development		39,697			29,744
General and administrative		30,943			23,901
Restructuring charges		290			20,547
Total operating expenses		160,623			145,293
Operating income (loss)		27,699			(43,209	)
Interest income, net		475			1,089
Other income, net		723			702
Income (loss) before income taxes		28,897			(41,418	)
Provision (benefit) for income taxes		4,404			(6,340	)
Net income (loss)	$	24,493		$	(35,078	)
Shares used to compute net income per share:
Basic		175,738			179,065
Diluted		177,967			179,065
Net income (loss) per share:
Basic	$	0.14		$	(0.20	)
Diluted	$	0.14		$	(0.20	)

LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
	Twelve Months Ended March 31,
CONSOLIDATED STATEMENTS OF OPERATIONS	2010			2009
Net sales	$	1,966,748		$	2,208,832
Cost of goods sold		1,339,852			1,517,606
Gross profit		626,896			691,226
% of net sales		31.9	%		31.3	%
Operating expenses:
Marketing and selling		304,788			319,167
Research and development		135,813			128,755
General and administrative		106,147			113,103
Restructuring charges		1,784			20,547
Total operating expenses		548,532			581,572
Operating income		78,364			109,654
Interest income, net		2,120			8,628
Other income, net		3,139			8,511
Income before income taxes		83,623			126,793
Provision for income taxes		18,666			19,761
Net income	$	64,957		$	107,032
Shares used to compute net income per share:
Basic		177,279			178,811
Diluted		179,340			182,911
Net income per share:
Basic	$	0.37		$	0.60
Diluted	$	0.36		$	0.59

LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
CONSOLIDATED BALANCE SHEETS	March 31, 2010		March 31, 2009
Current assets
Cash and cash equivalents	$	319,944	$	492,759
Short term investments		-		1,637
Accounts receivable		195,247		213,929
Inventories		219,593		233,467
Other current assets		58,877		56,884
Total current assets		793,661		998,676
Property, plant and equipment		91,229		104,132
Intangible assets
Goodwill		553,462		242,909
Other intangible assets		95,396		32,109
Other assets		65,930		43,704
Total assets	$	1,599,678	$	1,421,530
Current liabilities
Accounts payable	$	257,955	$	157,798
Accrued liabilities		182,336		131,496
Total current liabilities		440,291		289,294
Other liabilities		159,672		134,528
Total liabilities		599,963		423,822
Shareholders' equity		999,715		997,708
Total liabilities and shareholders' equity	$	1,599,678	$	1,421,530

LOGITECH INTERNATIONAL S.A.
(In thousands) - Unaudited
	Twelve Months Ended March 31,
CONSOLIDATED STATEMENTS OF CASH FLOWS	2010			2009
Cash flows from operating activities:
Net income	$	64,957		$	107,032
Non-cash items included in net income:
Depreciation		56,380			44,021
Amortization of other intangible assets		14,515			8,166
Share-based compensation expense related to options,
restricted stock units and purchase rights		25,807			24,503
Write-down of investments		643			2,727
Excess tax benefits from share-based compensation		(2,814	)		(6,592	)
Loss (gain) on cash surrender value of life insurance policies		(1,223	)		2,868
In-process research and development		-			1,000
Deferred income taxes and other		(18,458	)		(10,387	)
Changes in assets and liabilities:
Accounts receivable		28,489			152,496
Inventories		30,942			(9,078	)
Other assets		15,601			14,615
Accounts payable		94,155			(123,802	)
Accrued liabilities		56,265			(6,982	)
Net cash provided by operating activities		365,259			200,587
Cash flows from investing activities:
Purchases of property, plant and equipment		(39,834	)		(48,263	)
Proceeds from cash surrender of life insurance policies		813			-
Acquisitions and investments, net of cash acquired		(388,809	)		(64,430	)
Premiums paid on cash surrender value life insurance policies		-			(427	)
Net cash used in investing activities		(427,830	)		(113,120	)
Cash flows from financing activities:
Repayments of debt		(13,630	)		-
Purchases of treasury shares		(126,301	)		(78,870	)
Proceeds from sale of shares upon exercise of options and purchase rights		28,917			31,119
Excess tax benefits from share-based compensation		2,814			6,592
Net cash used in financing activities		(108,200	)		(41,159	)
Effect of exchange rate changes on cash and cash equivalents		(2,044	)		(35,901	)
Net increase (decrease) in cash and cash equivalents		(172,815	)		10,407
Cash and cash equivalents at beginning of period		492,759			482,352
Cash and cash equivalents at end of period	$	319,944		$	492,759

LOGITECH INTERNATIONAL S.A.
(In thousands, except per share amounts) - Unaudited
	Quarter Ended						Twelve Months Ended
	March 31,						March 31,
SUPPLEMENTAL FINANCIAL INFORMATION	2010			2009			2010			2009
Depreciation	$	14,528		$	10,171		$	56,380		$	44,021
Amortization of other acquisition-related intangibles		6,913			2,358		$	14,515		$	8,166
Operating income (loss)		27,699			(43,209	)		78,364			109,654
Operating income (loss) before depreciation and amortization		49,140			(30,680	)		149,259			161,841
Capital expenditures		13,396			9,632			39,834			48,263
Net sales by channel:
Retail	$	454,426		$	358,421		$	1,745,152		$	1,887,343
OEM		50,127			49,527			198,364			321,489
LifeSize		20,891			-			23,232			-
Total net sales	$	525,444		$	407,948		$	1,966,748		$	2,208,832
Net retail sales by product family:
Retail - Pointing Devices	$	140,687		$	106,271		$	528,236		$	579,775
Retail - Keyboards & Desktops		86,499			72,485			329,038			384,809
Retail - Audio		113,894			92,901			454,957			445,362
Retail - Video		59,943			49,707			228,344			248,339
Retail - Gaming		25,594			19,404			107,595			127,052
Retail - Remotes		27,809			17,653			96,982			102,006
Total net retail sales	$	454,426		$	358,421		$	1,745,152		$	1,887,343
	Quarter Ended						Twelve Months Ended
Share-based Compensation Expense for Employee Stock	March 31,						March 31,
Options, Restricted Stock Units and Employee Stock Purchases		2010			2009			2010			2009
Cost of goods sold	$	938		$	875		$	3,073		$	3,163
Marketing and selling		3,270			2,081			9,201			7,989
Research and development		1,854			1,222			4,902			4,488
General and administration		2,496			2,373			8,631			8,863
Income tax expense (benefit)		(1,611	)		1,482			(5,768	)		(3,102	)
Total share-based compensation expense after income taxes	$	6,947		$	8,033		$	20,039		$	21,401
Share-based compensation expense for employee stock options,
restricted stock units, employee stock purchases, net of tax, per share (diluted)	$	0.04		$	0.04		$	0.11		$	0.12
Constant Currency
The total Logitech net sales figure for Q4 FY 2010 excluding the impact of exchange rate changes is a non-GAAP financial
measure. It is calculated by translating prior period local currency results at the current period's average exchange rates.