Logitech Realigns Organization with Strategic Priorities, Resulting in Expected Incremental Cost Savings of $16 to $18 Million for FY 2014
NEWARK, Calif. & MORGES, Switzerland--(BUSINESS WIRE)-- Logitech International (SIX: LOGN) (NAS: LOGI) today announced an organizational alignment to the strategic priorities outlined by newly appointed CEO Bracken P. Darrell last month. These priorities include increasing focus on mobility products, improving profitability in PC-related products and enhancing global operational efficiencies. This alignment to the strategic priorities creates incremental cost savings of approximately $16 to $18 million in operating expenses in Fiscal Year 2014, a result of a workforce reduction. This is in addition to the previously announced $80 million savings in annual operating costs (operating expenses plus costs of goods sold) for Fiscal Year 2014 related to the Company's April 2012 restructuring.
"As we align the organization with our strategy to become a faster, more profitable company, we have also created opportunities to become more focused, improve operational effectiveness and even deliver additional cost savings that will contribute to improved profitability," said Bracken P. Darrell, Logitech president and chief executive officer. "These actions support our goals to develop outstanding mobility- and PC-related products, streamline our cost structure and achieve faster times to market."
Logitech anticipates recording a pre-tax, cash charge of approximately $12 to $14 million in the fourth quarter of Fiscal Year 2013. The charge is related primarily to personnel reductions, with the Company eliminating approximately 140 positions, or 5 percent of its worldwide non-direct-labor workforce.
Additional information regarding the restructuring charges is provided in Logitech's Current Report on Form 8-K being filed with the U.S. Securities and Exchange Commission on March 1, 2013 and made available on Logitech's website at http://ir.logitech.com.
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, including statements regarding the timing and elements of the workforce reduction, the timing and form of related charges, the expected annual operating expense reduction, and Logitech's ability to be faster, to achieve its goals, and to achieve improved operational effectiveness, efficiencies and profitability. The forward-looking statements in this release involve risks and uncertainties that could cause actual events or results to differ materially from those anticipated in these forward-looking statements. Factors that could cause actual events or results to differ materially include: Logitech's ability to implement the personnel reductions in various geographies; possible changes in the size or timing of the workforce reduction or the expected costs and charges associated with the workforce reduction; and risks associated with Logitech's ability to achieve planned expense reductions and improved performance, efficiencies and profitability; as well as those additional factors set forth under the "Risk Factors" section and other sections in Logitech's periodic filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and our most recent Quarterly Report on Form 10-Q, available at www.sec.gov. Logitech does not undertake to update any forward-looking statements, which speak as of their respective dates.
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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