Logitech sets aside US$3.25mil to cover possible SEC penalty


  • TECH
  • Monday, 08 Jun 2015

POTENTIAL FINE: A year ago, Logitech disclosed it was the subject of a formal SEC probe for a revision it made to its fiscal 2013 results which was in turn tied to accruals for warranties on defective products from a distributor deal it had between 2007 and 2009.

FRANKFURT: Swiss-American gadget maker Logitech has set aside US$3.25mil (RM12.24mil) to cover a potential civil penalty stemming from a previously disclosed investigation by US securities regulators, the company said in a filing. 

In a report on its fiscal 2015 year ended in March, the Lausanne-based company said it could not predict the final amount of the penalty or when a settlement might be reached with the US Securities and Exchange Commission. 

The maker of computer accessories also said it would see an increase of US$0.5mil (RM1.88mil) in inventory and accrual for a balance sheet reclassification and a change of US$0.3mil (RM1.12mil) in deferred tax assets tied to these changes. 

A company spokesman did not provide further details. 

A year ago, Logitech disclosed it was the subject of a formal SEC probe for a revision it made to its fiscal 2013 results which was in turn tied to accruals for warranties on defective products from a distributor deal it had between 2007 and 2009. 

The company also confirmed in its filing on Saturday that it would take a non-cash, non-tax-deductible goodwill impairment charge of US$122.7mil (RM462.35mil) related to the acquisition of its Lifesize video-conferencing business. 

Last month, it said it expected a charge of between US$100mil (RM376.76mil) and US$123mil (RM463.48mil). It will be recorded in Logitech's fiscal fourth quarter ended March 31, 2015. 

In April, Logitech said it planned to reorganise its Lifesize office video-conferencing business around a cloud-based service it unveiled nine months ago. 

Logitech, once known mainly as a maker of computer mice, has been seeking to offset a decline in personal computer related accessories by diversifying into product lines like wireless music speakers, video-conferencing and videogame controllers. – Reuters 

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