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Logitech Q2 Sales Flat, Income Down

10/27/2011 09:42:19 AM Eastern

Fremont, Calif. - Logitech
International's second-quarter sales were essentially flat for the fiscal year,
with operating and net income both down.

Sales for the second
quarter were $589 million, up 1 percent from $582 million in the prior-year
period. When the favorable impact of the exchange rate is taken out of the
equation, sales declined 2 percent.  

Operating income was $23
million, compared with the prior-year's $51 million, and net income was $17
million, compared with $41 million.

Gross margin for the
quarter was 33.7 percent, down from last year's 37.3 percent.

Retail sales increased 2
percent for the quarter, driven by a 22 percent increase in Asia. Sales in the
Americas and EMEA decreased 1 percent. OEM sales decreased 17 percent, but
sales for its LifeSize division were up 19 percent.

Regarding the results, Guerrino
De Luca, Logitech chairman of the board and acting president and CEO, said in a
statement they were consistent with expectations.

"As we focus on
reinvigorating our product offerings and executing in sales and marketing, we
expect our initiatives will begin to contribute to improved performance as we
move through the second half of fiscal year 2012," De Luca added.

De Luca became acting president and CEO after Logitech posted an
operating loss of $45 million in the first quarter and then-president/CEO Gerald
Quinlan stepped
down
. Last September, the company attributed
its losses
to the poor economic climate and the underperformance of its
Google Revue device.

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