Sub-prime loan problems have begun to nibble at the liquid reserves of computer mouse maker Logitech, which has taken a $67.4m impairment loss on its short-term investment portfolio. As a result of the write-down, Logitech said second-quarter income fell 76.5% to $11.6m on revenue that rose 18.6% to $595.5m.
It will get half of this money back because after the close of its last quarter it sold 50% of the securities and will record a gain of $33.7m in the next quarter’s figures.
An unnamed member of staff has been dismissed over the incident, and while Logitech insisted it only invests in triple-A rated securities, it said company procedures had not been followed.
Romanel-Sur-Morges, Switzerland-based Logitech is the first IT company to suffer a fallout from the sub-prime crisis. Large cash-rich companies in the industry have billions invested in short-term investments and this could be the first of a series of announcements.