Zurich, Switzerland -- Logitech International surprised Wall Street and turned a profit in its fiscal first quarter.
Net income came in at $1 million, compared with a net loss of $51 million in last year's Q1.
The company reported sales of $478 million for the quarter, up 2 percent year over year. Gross margin surged to 35.2 percent, up from 31 percent a year ago.
Logitech’s retail sales for Q1 increased by 8 percent over the prior year. OEM sales decreased by 6 percent and sales for the company's LifeSize division decreased by 18 percent.
Analysts had anticipated a net loss in the quarter of about $12 million. The company's shares rose 10 percent on the news.
“These results – sales growth and significant year-over-year profitability improvement – demonstrate our turnaround is on track,” said Bracken Darrell, Logitech president and CEO. “I’m happy to see double-digit sales growth in our Americas region. And I’m pleased with the performance in our growth categories: combined: tablet accessories, PC gaming and wireless speakers grew about 90 percent year over year."