By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Logitech International reported double-digit gains in sales and net income for its fiscal third quarter, ended Dec. 31, 2006, saying it was the best quarter ever in company history.
Fiscal third-quarter sales were $659 million, up 15 percent from $574 million for the same quarter one year ago.
Logitech's retail sales for the quarter increased by 16 percent worldwide and up 14 percent in the Americas and 2 percent in Asia Pacific. Retail sales were driven by year-over-year growth across most product categories, with particular strength in audio (up 27 percent), and remote controls (up 42 percent). The company's OEM sales grew by 4 percent.
Cash flow from operations for the quarter was $171 million, an increase of $126 million compared to the prior year and the highest cash flow from operations for a single quarter in the company's history.
"This was our best quarter ever, reflecting significantly improved margins across all major product categories, strong demand for our holiday lineup, and effective management of our working capital," said Guerrino De Luca, Logitech president/CEO. "We have been increasingly successful in bringing a wealth of innovation to our product categories. And our record-setting gross margin is a clear indication of the value consumers place on that innovation."
He added, "One highlight for the quarter was our outstanding year-over-year growth in audio, demonstrating the continued consumer appetite for iPod and PC speakers that enhance the digital music experience, as well as the impact of our strongly differentiated offering. We're also very pleased by the continued growth in our line of universal remote controls, as consumers continue to simplify and enrich their living room entertainment systems with the unique benefits of a Harmony remote control."
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.