ZURICH--Logitech International S.A. (LOGN.EB) reported a
significant jump in first-quarter net profit as the
computer-peripherals maker continued to turn around its business by
targeting products designed for tablets and other mobile
devices.
Net profit for the three months ended June 30 surged to $22
million from $1 million a year earlier, the Lausanne, Switzerland
and Newark, Calif.-based company said. Analysts had forecast a net
profit of $7.5 million.
"We have started the new fiscal year with a strong Q1
performance, delivering sales growth, year-over-year improvement in
profitability and improved cash generation," said Logitech
President and Chief Executive Bracken Darrell.
Quareterly sales in the firm's Growth category--which includes
PC gaming, tablet and other accessories, and mobile speakers-- rose
17%, with mobile-speaker sales more than doubling over last year,
he said.
Logitech affirmed its outlook of $2.16 billion sales for fiscal
year 2015 and raised its forecast for non-Gaap operating income to
$170 million from $145 million. First-quarter net sales rose 1.3%
to $484 million. Net income per share rose to $0.13 from $0.01.
Logitech was late in making products for mobile devices but has
reduced its product line-up and focused on detachable keyboards and
wireless speakers that work with tablet computers and smartphones.
The company has also sped up the introduction of its products so
they are often available immediately after the launch of new
devices.
The strategy shift has helped a turnaround at the company, which
plunged into the red in 2013 by remaining dependent on devices
linked to desktop computers. Desktop computers have lost popularity
to tablet computers, like Apple Inc.'s (AAPL) iPad and devices
running Google Inc.'s (GOOG) Android mobile-operating system.
Logitech has had to delay filing its annual report for the year
ended March 31, 2014, because of an accounting issue it is
investigating. The U.S. Securities and Exchange Commission is also
investigating some of the company's financial statements presented
last year.
The company has said it didn't believe these matters would
impact its ability to achieve near-term goals.
Write to John Revill at john.revill@wsj.com
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