Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced that
based on findings of the previously disclosed investigation and related
work, the Audit Committee of its Board of Directors has determined that
Logitech previously issued financial statements for Fiscal Years 2011
and 2012 and the first quarter of Fiscal Year 2012 can no longer be
relied on. This is due to an accounting misstatement for inventory
valuation reserves for Logitech’s discontinued Revue product.
Accordingly, the Company will restate these financial statements as part
of its Fiscal Year 2014 10-K filing. The company has discussed the
matter relating to the restatement with its independent registered
public accounting firm, PricewaterhouseCoopers LLP.
The restatement will reflect an increase in the provision for inventory
reserves during the fourth quarter of Fiscal Year 2011 related to the
Revue product, and a corresponding decrease in the provision for
inventory reserves for the same amount in the first quarter of Fiscal
Year 2012. This shift will cause a decrease in operating income in
Fiscal Year 2011 and a corresponding increase in operating income for
the same amount in Fiscal Year 2012. In connection with the restatement,
there will be other corrections to the financial statements, none of
which are material to the respective years. Logitech is finalizing the
total amount of these adjustments. The restatement is not expected to
materially impact Fiscal Years 2013 or 2014. There is no impact on the
Company’s cash and cash equivalent balances reported in any of these
years.
The Audit Committee is continuing its investigation with respect to the
specific subject matter of the restatement, which is expected to be
completed over the next several weeks. In addition, the Company is
working to evaluate the impact of the restatement and final results of
the investigation on its internal controls over financial reporting. The
Company is working to complete and file its 10-K and annual report for
Fiscal Year 2014 and 10-Q for the first quarter of Fiscal Year 2015 as
soon as possible.
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 anticipated timing for completing the Audit
Committee’s independent investigation; the anticipated timing for filing
the fiscal year 2014 annual report on Form 10-K and annual report and
the first quarter of fiscal year 2015 quarterly report on Form 10-Q; the
impact and materiality of the restatement on and other corrections to
the Company’s financial statements; and enhancement of internal
controls. 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 there is an unanticipated
delay in completing the Audit Committee’s independent investigation, the
fiscal Year 2014 audit of financial statements and internal controls or
the first quarter of fiscal year 2015 accounting review. 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, 2013 and 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)
Copyright Business Wire 2014