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Logitech International's CEO Discusses F1Q13 Earnings Results - Earnings Call Transcript

Factors that could cause actual results to differ materially include those set forth in Logitech’s annual report on Forms 10K dated May 30, 2012 which is available online on the SEC EDGAR database and in the final paragraphs in the press release and prepared remarks reporting first quarter results available at www.Logitech.com. The forward-looking statements made during this call represent managements’ outlook only as of today and the company undertakes no obligation to update or revise any forward-looking statements as a result of new developments or otherwise.

This call is being recorded and will be available for replay on the Logitech website. Joining us today are Guerrino De Luca, Chairman and Chief Executive Officer; Bracken Darrell, President; and Erik Bardman, Senior Vice President of Finance and Chief Financial Officer. I’d now like to turn the call over to Guerrino.

Guerrino De Luca

I obviously cannot be pleased with the operating loss we generated in the quarter but I’m encouraged that our results were consistent with our expectations reflecting the modest performance of the product portfolio that is mostly made up of our older products. When I isolate some of the factors that negatively impacted our profitability it’s clear to us that our results are similar to the prior year which is what we expected at the current stage of our turnaround.

Our restructuring related costs totaled roughly $34 million in Q1. This is essentially the same amount as last year’s write down of our Logitech review of inventory. This year we also incurred $4.3 million in costs associated with the exit from our old campus in Freemont California and another $4.5 million related to the acceleration of our product portfolio simplification efforts which Bracken will address shortly. All these changes will positively impact our operating results in the future.

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