Logitech sales rise nearly 14% as work from home boosts demand

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Logitech sales rise nearly 14% as work from home boosts demand

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Logitech International(Nasdaq: LOGI) reported a big jump in sales of computer products in its fourth quarter results on 12th May as more people worked from home and families turned to technology to keep in touch during the coronavirus crisis.

Logitech will hold a financial results teleconference to discuss the results for Q4 and the full Fiscal Year 2020 on Tuesday, May 12, 2020 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. Logitech international reported 13.6% rise in forth quarter sales. Logitech, that manufacture web cams, keyboards, mouse as well as video conferencing devices and software showed sales of $709.2 million in quarter four sales report as there is an increase in demand as more people are working from home due to coronavirus crisis.

(REUTERS): Logitech International reported a 13.6% rise in quarterly sales on Tuesday as more people used its computer products while working from home due to the coronavirus crisis.

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As there is a rise in online working – teachers giving lessons via video calls and doctors giving virtual consultations – contributed to an increase in sales in the company’s fiscal fourth quarter to US$709.2 million from US$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.”

Financial Highlights

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

The company reported for the full year there is rise in sales of 6.7%. Chief Executive Officer Bracken Darrell said “The pandemic hasn’t changed these trends; it has accelerated them.”

During its fourth quarter, sales of video collaboration equipment jumped 60% and sales of webcams by 32%, the star performers as group sales rose 14% to $709.2 million. The Swiss-American company’s operating income on a non-GAAP accounting basis rose 23% to $79 million, while net income rose 10% to $71 million. The company also retained the outlook it gave in March for a mid-single digit percentage sales growth in constant currencies for the year to the end of March 2021 and expects a rise in operating profit to $380 million-$400 million.

Individuals secured at home were investing more energy playing PC games, with deals of consoles, mice and headset deals for gaming up 8% in spite of an intense correlation with a year ago when request flooded because of the accomplishment of the Fortnite game.

Logitech also reported that fourth-quarter sales rose to US$709.2 million, compared with US$624.3 million a year ago.

For the full year, the company reported a rise of 6.7% in sales, meeting its FY20 outlook of a mid to high single digit percentage rise, while its annual non-GAAP operating income, at US$387 million, beat its FY20 target range of US$365 million-US$375 million.

Logitech had reduced its full-year profit outlook in March to take into account supply chain disruptions due to the coronavirus crisis. The company had reiterated its sales forecast.

“The stock remains attractive, thanks in part to a strong balance sheet,” Mueller said. The company’s shares rose 3.3per cent in early trade on the Swiss exchange.

For the fiscal year 2020:

  • Sales were Logitech’s highest ever at $2.98 billion, up 7 percent in US dollars and 9 percent in constant currency compared to the prior year.
  • GAAP operating income grew 5 percent to $276 million, compared to $263 million a year ago. GAAP earnings per share (EPS) grew 75 percent to $2.66, compared to $1.52 a year ago.
  • Non-GAAP operating income grew 10 percent to $387 million, compared to $352 million a year ago. Non-GAAP EPS grew 7 percent to $2.15, compared to $2.01 a year ago.
  • Cash flow from operations was a record $425 million, compared to $305 million a year ago.

For Q4 Fiscal Year 2020:

  • Sales grew to $709 million, up by 14% in US dollars and 15% in constant currency compared to Q4 of the prior year.
  • GAAP operating income was $32 million, down 24 percent primarily due to a one-time, acquisition-related charge. Non-GAAP operating income grew 23 percent to $79 million, compared to Q4 of the prior year.

Logitech(Nasdaq: LOGI) confirmed its Fiscal Year 2021 outlook of mid single-digit sales growth in constant currency and $380 million to $400 million in non-GAAP operating income.

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

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