Seven Logitech Products Win CES Innovations Awards

Seven Logitech (SWX: LOGN) (NASDAQ: LOGI) products were named 2008 CES Innovations award winners for excellence in design and engineering, including the Logitech® Harmony® One advanced universal remote, which won the prestigious Best of Innovations award in the Home-Entertainment Accessories category. All of the award-winning Logitech products will be on display at the 2008 International CES tradeshow in the Logitech booth (No. 35512, South Hall, Las Vegas Convention Center).

“It is truly an honor for Logitech to be recognized alongside so many other great products,” said Jerry Quindlen, chief executive officer of Logitech. “These awards validate our deep commitment to world-class design and acknowledge our design and engineering organizations for their persistent devotion to delivering products that delight our customers.”

The award-winning products include:

Best of Innovations: The Logitech Harmony One Advanced Universal Remote
Winner of the CES 2008 Design and Engineering Award: Best of Innovations in Home-Entertainment Accessories, the Harmony® One advanced universal remote control marks a significant leap in the evolution of the best-selling line of Harmony remotes. Offering the same one-touch, activity-based control as other Harmony remotes, the Harmony One makes controlling home entertainment even easier with a full-color touch screen, an intuitive button layout and an exceptionally comfortable user-friendly design.

To better address ergonomics, the Harmony One remote features a curved, exceptionally comfortable shape that is easy for anyone in the family to hold, regardless of hand size. Presenting an elegant piano-black top and a silver base, and black buttons with white backlighting, Harmony One is the perfect complement for any living room. And the rechargeable remote’s recharging station has a sleek profile with an adjustable light that makes it easy to find, even in the dark.

Honoree: Logitech diNovo Mini Palm-Sized Keyboard with Media Remote and ClickPad
For people who have connected their PC to their TV, the Logitech® diNovo Mini™ keyboard with media remote and ClickPad makes it easy to control PC entertainment from the sofa. For easy navigation, the diNovo Mini palm-sized keyboard features backlighting and an innovative ClickPad, which can be used as a touch pad to point, scroll and click – or as a directional pad to navigate menus and make selections. For unfettered use from anywhere in the living room, the mini-keyboard uses Bluetooth® 2.0 wireless technology.

Honoree: Logitech Squeezebox Duet Network Music System
The Logitech® Squeezebox™ Duet network music system extends the promise of the award-winning Squeezebox products, which allow people to access and listen to the music they love in any room of their home. The Squeezebox Duet offers an innovative controller, which includes a full-color LCD screen, and a compact receiver – enabling people to wirelessly browse, select and play their digital music on their existing stereo speakers anywhere in the home.

To help people navigate their digital music collections, the new Squeezebox Controller features a 2.4-inch full-color LCD screen. The multi-room controller uses a convenient scroll wheel, familiar menus and intuitive buttons, making it easy for people to browse, select and play their personal music collection, Internet radio and online subscription services.

Honoree: Logitech G9 Laser Mouse
The Logitech® G9 Laser Mouse takes customization to the extreme, giving PC gamers the ability to modify nearly every part of the G9 mouse for the best personal fit, feel and performance. With the G9 mouse, gamers can enjoy interchangeable grips, on-the-fly dpi switching ranging from 200 dpi to 3200 dpi, full-speed USB laser tracking, an onboard-memory profiling system, weight tuning, a custom-color LED and the hyper-fast MicroGear™ Precision Scroll Wheel.

Honoree: Logitech Pure-Fi Dream Premium Bedroom Music System for iPod
The Logitech® Pure-Fi Dream™ Premium Bedroom Music System for iPod® establishes a new category of iPod speakers for the bedroom. The Pure-Fi Dream speakers feature an innovative application of motion- and light-sensing technology, premium audio, a built-in radio and alarm clock functions all in a stylish, compact speaker system perfect for any night stand. A premium accompaniment to any iPod, the Pure-Fi Dream speakers offer one-button access to iPod playlists and radio stations.

Honoree: Logitech MX Air Rechargeable Cordless Air Mouse
The Logitech® MX Air™ Rechargeable Cordless Air Mouse works on the desk and in the air. Similar to the way people use a remote to control a television, when holding the MX Air mouse, people can now lean back and relax while navigating the computer and enjoying media content. To enable effortless in-air navigation, the new mouse combines three important technologies – Freespace™ motion-control, gesture command and wireless – so people can point, select and play media files with just a flick of the wrist.

Honoree: Logitech VX Nano Cordless Laser Mouse
The Logitech® VX Nano Cordless Laser Mouse for Notebooks offers the tiny, plug-and-forget Nano-receiver. The mouse’s Nano-receiver provides highly mobile notebook PC and MacBook® users with a mouse that simplifies life on the road. Because the USB receiver is so small, people no longer need to constantly plug and unplug it when moving from place to place.

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 traded on the SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).

LOGI: Logitech Delivers Best Quarter Ever

Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced its best-ever quarterly results, posting record profits and margins, and the Company´s thirty-third consecutive quarter of double-digit revenue growth. Sales for the third quarter of Fiscal Year 2007, ended Dec. 31, 2006, were $659 million, up 15 percent from $574 million for the same quarter one year ago.

GAAP operating income was $100 million, an increase of 23 percent over Q3 last year, and includes $4.6 million in costs for stock-based compensation. GAAP net income, including $4.4 million in costs for stock-based compensation (net of related tax benefit), was $94 million ($0.49 per share), up 32 percent year over year. GAAP gross margin was 36.2 percent.

Non-GAAP operating income, which excludes stock-based compensation, was $104.2 million, up 29 percent from last year´s operating income of $80.7 million. Non-GAAP net income for Q3 was $98.7 million ($0.51 per share), up 38 percent compared with net income of $71.3 million ($0.36 per share) in the prior year. Non-GAAP gross margin was 36.3 percent, compared to 32.3 percent for the same quarter last year — a year-over-year improvement of 400 basis points. (See Note 1.)

Logitech´s retail sales for the quarter increased by 16 percent, with growth of 19 percent in EMEA, 14 percent in the Americas and 2 percent in Asia Pacific. Retail sales were driven by year-over-year growth across most product categories, with particular strength in audio (up 27 percent), and remote controls (up 42 percent). The Company´s OEM sales grew by 4 percent.

Cash flow from operations for the quarter was $171 million, an increase of $126 million compared to the prior year and the highest cash flow from operations for a single quarter in the Company´s history.

“This was our best quarter ever, reflecting significantly improved margins across all major product categories, strong demand for our holiday lineup, and effective management of our working capital,” said Guerrino De Luca, Logitech president and chief executive officer. “We have been increasingly successful in bringing a wealth of innovation to our product categories. And our record-setting gross margin is a clear indication of the value consumers place on that innovation.

“One highlight for the quarter was our outstanding year-over-year growth in audio, demonstrating the continued consumer appetite for iPod® and PC speakers that enhance the digital music experience, as well as the impact of our strongly differentiated offering. We´re also very pleased by the continued growth in our line of universal remote controls, as consumers continue to simplify and enrich their living room entertainment systems with the unique benefits of a Harmony remote control.”

Outlook
While Logitech continues to expect FY 2007 sales growth of 17 percent year over year, the Company now expects FY 2007 non-GAAP operating income growth of between 25 and 30 percent compared with last year; previously the company estimated non-GAAP operating income to increase between 20 and 25 percent. FY 2007 gross margin is expected to be at or above the high end of the Company´s long-term range of 32-34 percent; previously the company estimated gross margin to be above the mid point of the range. Logitech now expects its non-GAAP effective tax rate for the year to be between 11 percent and 12 percent (previously 13 percent). Non-GAAP operating income and effective tax rate exclude the costs of stock-based compensation. The Company now expects the net costs of stock-based compensation for FY 2007, reflected in net income, to be at the low end of the previously stated range of $16 to $19 million.

The Company also provided preliminary financial targets of 15 percent growth in sales and operating income for Fiscal Year 2008, ending March 31, 2008.

Earnings Teleconference
Logitech will hold an earnings teleconference on Jan. 18, 2007 at 14:00 Central European Time/8:00 a.m. Eastern Standard Time/5:00 a.m. Pacific Standard Time to discuss these results as well as guidance for Fiscal Year 2007 and Fiscal Year 2008. A live webcast and replay of the teleconference, including presentation slides, will be available on the Logitech corporate Web site at http://ir.logitech.com. Please visit the Web site at least 10 minutes early to register for the teleconference webcast.