Fremont, Calif. - Logitech International today announced strong year-over-year sales that resulted in a $20 million net profit in the first quarter of fiscal 2011.
Sales reached $479 million, up 47 percent from $326 million in the same quarter last year. Excluding the unfavorable impact of exchange rate changes, the company said sales increased by 50 percent.
Operating income was $12 million, compared with an operating loss of $35 million in the same quarter a year ago.
Net income was $20 million, compared with a net loss one year ago of $37 million.
Gross margin was 35.3 percent, up from 23.9 percent in last year's Q1.
Retail sales grew by 39 percent year over year, with sales up by 66 percent in the Americas, 24 percent in Asia and 21 percent in EMEA. OEM sales increased by 38 percent, the company said.
"We exceeded our sales and profitability targets and achieved our best-ever Q1 gross margin" said Gerald Quindlen, Logitech CEO/president. "And we had robust growth in most of our retail product categories, led by Harmony remotes and pointing devices. Based on our strong Q1 performance and improving consumer demand for our products, we are increasingly optimistic about our full-year performance and have raised our outlook accordingly. Furthermore, we are enthusiastic about the pending launch of Logitech products for Google TV and the potential for further upside to our sales outlook."
The company's forthcoming Logitech Revue system is comprised of an external companion box for Google TV that connects to a TV through an HDMI port and has Logitech Harmony Link technology built in for instant integration with a home-entertainment system, and an intuitive controller designed to optimize the functionality of the interactive platform, according to a Logitech company blog.
Logitech said it will offer video calling functionality as well as "a variety of controllers" for the platform going forward. It will also offer an app for iPhone, iPad and Android-based smartphones at launch.
More details will be available closer to the launch later this fall, Logitech said.