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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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