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Logitech sees sales increase

by on12 May 2020

Silver lining to coronavirus

Logitech reported a 13.6 per cent rise in quarterly sales on Tuesday as more people used its computer products while working from home due to the coronavirus pandemic.

Logitech said demand accelerated in the three months to the end of March as schools and offices shut down to prevent the spread of the disease and their staff started using its video conferencing equipment, software and webcams.

The rise in remote working - teachers giving lessons via video link and doctors giving virtual consultations - contributed to an increase in sales in the company’s fiscal fourth quarter to $709.2 million from $624.3 million a year earlier.

“Video conferencing, working remotely, creating and streaming content, and gaming are long-term secular trends driving our business,” Chief Executive Officer Bracken Darrell said in a statement. “The pandemic hasn’t changed these trends; it has accelerated them.”

Logitech’s operating income on a non-GAAP accounting basis rose 23.3 per cent to $79 million.

 For the full year, the company reported a 6.7 per cent rise in sales, meeting its forecast for a mid- to high-single-digit percentage increase, while its annual non-GAAP operating income, at $387 million, beat its target range of $365-375 million.

Logitech also retained the forecast it gave in March for mid-single-digit percentage sales growth in constant currencies for the year to the end of March 2021 and a rise in operating profit to $380-400 million.

The star performers during the fourth quarter were video collaboration devices - cameras, microphones and software that enable online meetings. Sales increased by 60%. Logitech said it would continue to invest in the area with increased marketing and new products as it expects the trend to continue.

 Sales of PC webcams jumped by 32 per cent, with particularly strong growth in the Americas and Asia Pacific region, Logitech said, also helped by increased remote working.

People locked in at home were spending more time playing computer games, with sales of keyboards, mice and headset sales for gaming up eight per cent despite a tough comparison with last year when demand surged due to the success of the Fortnite game.


Last modified on 12 May 2020
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