Logitech Net Falls 76% on Impairment Charge

 |  About: Logitech International S.A. (LOGI)
by: Jonathan Liss

Shares of computer accessory maker Logitech International SA were down 3% in pre-market action after reporting its 2Q08 net income fell 76% on a one-time, $67.4 million impairment charge related to its short-term investment portfolio. The charge was within the range the company had previously warned investors about. The company announced it had sold 50% of its short-term portfolio, which it will record as a one-time gain of $33.7 million in its next quarter. The company reported net income of $11.6 million, good for EPS of $0.06, versus EPS of $0.26 a year ago. Consensus estimates had been for EPS of $0.37, excluding the one-time impairment charge. Sales climbed 19% to $595 million, besting the $556 million consensus analyst estimate. Revenue from Web cameras suffered, falling 27%.

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