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Logitech Q2 Sales Down

10/25/2012 09:52:00 AM Eastern

Newark, Calif. — Logitech International said sales were down for its fiscal second quarter, ended Sept. 30, but operating income and net income were up.

Sales for the quarter were $548 million, down 7 percent from $589 million in the prior-year period. Excluding the unfavorable impact of exchange rates, sales were down 4 percent compared with the same quarter in the prior year, Logitech said.

Sales were down 14 percent in its audio segment, 17 percent in its video segment, and 31 percent in its digital home segment. The digital home decline could be attributed to the company discontinuing sales of its Google TV peripherals.

Sales for its keyboard and desktop sets were up 20 percent for the quarter. The company said its Ultrathin keyboard cover was its best-selling product across all categories for the quarter.  

Operating income was $24 million, up 3 percent from operating income of $23 million in the same quarter a year ago. Net income was $55 million vs. $17 million. Net income for the quarter includes a net tax benefit of $32 million from the closure of an income tax audit.

Logitech’s retail sales decreased by 5 percent year over year. They were down 3 percent in EMEA countries, 6 percent in the Americas and 7 percent in Asia. OEM sales decreased by 27 percent, and sales for the LifeSize division decreased by 7 percent.

"In Q2, the PC market weakened more significantly than anticipated, in advance of the launch of Windows 8,” said Guerrino De Luca, Logitech chairman and CEO, in a statement. “This factor, as well as a general slowdown in emerging markets, negatively impacted our Q2 sales. Despite this environment, we executed effectively during the quarter, improving our gross margin and operating results. We also recently launched compelling new products for tablets, smartphones, the digital home, Macs and Windows 8 PCs in time for the holiday season.”

De Luca said the company is planning for “continued strong headwinds in all of our PC-related categories for the remainder of the fiscal year.” Logitech expects the sales and operating for the next quarter will also be down in comparison with the prior-year period.


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