ZURICH--Logitech International SA (LOGN.EB) Thursday said fiscal
fourth-quarter earnings jumped 58% on strong sales of gaming and
tablet accessories and mobile speakers.
Logitech, based in Newark, Calif., and Lausanne, Switzerland,
reported a net profit of $16.7 million for the three months ended
March 31, up from $10.6 million a year earlier.
Net sales slipped 4.7% to $467.2 million from $490.3 million,
but beat analysts" forecasts for $463.7 million. Sales rose a
better-than-expected 1% in constant currency, the maker of computer
mice, keyboards and wireless speakers said.
Logitech, like other companies that report in U.S. dollars but
sell around the world, was hit by the strength of the greenback,
particularly against the euro. The single currency has given up
around 12% versus the dollar this year, reducing Logitech's sales
in the eurozone where it generates around a quarter of its
revenue.
Most of Logitech's manufacturing costs are in dollars or
currencies linked to the dollar, which means the company has a
mismatch between its costs and revenues.
"We closed Fiscal Year 2015 with a better-than-expected
performance and good momentum in spite of currency headwinds," said
Logitech President and Chief Executive Bracken Darrell. Sales in
its growth category, which includes gaming, tablet and other
accessories, mobile speakers and video, grew 28% in constant
currency over the full year, and 45% in the fourth quarter.
The company exceeded fiscal year 2015 expectations, posting the
best earnings in seven years, it said.
Logitech has successfully rebooted its business to focus on
detachable keyboards for tablet computers, like Apple Inc.'s iPad
and Samsung Electronic Co.'s Galaxy line, as well as wireless
speakers that play music from mobile phones and other devices. The
peripherals maker has also launched specialty products, such as
keyboards aimed at online gamers.
The company is also trying to bring out new products more
quickly in response to shorter product lifecycles, a way to
maximize their selling time. This year, the company aims to launch
around 25 devices.
Mr. Darrell said Logitech expected to incur restructuring
charges of approximately $15 million to $20 million over the coming
year. The company will focus on growing its retail business, exit
OEM operations and target cost-cutting in production and
infrastructure.
Write to John Revill at john.revill@wsj.com
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