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To: Johnny Canuck who wrote (39833)	6/30/2003 3:43:22 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 71627

Logitech CEO expects pickup in demand By Reuters June 26, 2003, 9:45 AM PT Computer accessories maker Logitech on Thursday stuck by its ambitious financial goals for 2003, predicting an upturn in consumer demand in the next 12 months. "Discussions with retailers make us comfortable that we can reach the growth that we have anticipated," Guerrino De Luca, chief executive of Logitech, said in an interview with Reuters. "I personally believe that, over the course of the next 12 months, there will be some improvement in consumer demand," he added. His comments cheered investors and pushed Logitech shares, which have gained almost a quarter since the start of the year, 2.4 percent higher on the Swiss market. The Swiss-American maker of keyboards, mice, Webcams and audio speakers is looking for 2003-2004 sales of $1.21 billion and operating income of $142 million as it seeks to extend a string of five consecutive years of record sales and profits. To propel growth, Logitech targets the higher-margin retail market for Webcams, gaming peripherals and PC audio products. On Thursday, Logitech launched new products including a wider range of speaker equipment, Bluetooth wireless desktop devices and new Webcam technology. The company, founded in 1981, reiterated its gross-margin target of about 33 percent for the year ending March 2004. It confirmed its three-year targets for an operating margin of 12 percent and net profit margin of 10 percent. De Luca declined to give guidance for the first quarter. Analysts have worried that the effects of the severe acute respiratory syndrome (SARS) epidemic on sales in Asia, where Logitech gets 15 percent of revenue, and fading consumer demand in Europe could affect first-quarter results. "Perhaps the quarter will be slightly better in North America than we expected, and slightly worse in Asia and Europe, due to SARS and weaker retail sales in Europe," bank Pictet & Cie said.