Logitech Profit Up, Outlook Lifted On Strong Sales
January 26 2011 - 10:52PM
Dow Jones News
Swiss technology company Logitech International SA (LOGN.VX)
Thursday raised its full-year outlook after reporting a 14% rise in
net profit in the crucial end-year trading period.
The company said now expected to post full year sales of $2.4
billion-$2.42 billion, up from an earlier forecast of $2.35 billion
to $2.4 billion, but kept its earlier target of operating profit of
$170 million to $180 million, after a strong performance in Asia
and its LifeSize video-conferencing business in the three months to
Dec. 31.
The pre-Christmas period is when Logitech traditionally
generates around 40% of its annual profit.
Analysts had expected the Swiss-listed company, which is based
in Romanel-Sur-Morges, to suffer from the impact of growth in
touch-screen based products that reduce the need for some of its
mice and keyboard products, which made up nearly half of its sales
in 2010.
In October Logitech raised its full year sales guidance by $50
million, mainly to take into account contributions from set-top box
hardware it has developed for Google Inc.'s (GOOG) Google TV
product.
In the latest quarter Logitech's retail sales growth continued
in Asia, with a 51% increase following a 38% increase in the second
quarter.
In North America, retail sales rose 31% compared with a 19% rise
in the second quarter, while Europe turned around a 3% drop in
sales to report a 1% increase in the third quarter.
""All of our retail product categories contributed to our sales
growth, with double-digit increases in remote controls, pointing
devices, video and gaming," said Chief Executive Gerald Quindlen in
a statement. "OEM sales made a very solid contribution, and the
momentum continued for our LifeSize division, which delivered the
highest-ever quarterly sales in its history."
MAIN POINTS:
-3Q 2011 net profit at $65 million versus $57 million in 3Q
2010.
-3Q revenue $754 million versus $617 million in 3Q 2010.
- Performance beat analysts' expectations for revenue at $721.4
million and net profit of $67.7 million.
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ;
john.revill@dowjones.com
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