Outlook for the entire FY 2011 raised to $2.3-$2.35 billion

Jul 29, 2010 10:01 GMT  ·  By

Even though Europe seems to be having some economical trouble, the IT industry, overall, appears to be doing much better than last year. Most companies that have, so far, reported their financial situation for the late quarter were able to show on-year increases, even though sequential performance was not always ideal. Logitech appears to be one of the companies that managed to score higher figures on-year and lower revenues sequentially. Still, the general outlook is positive and the company hopes that its FY results will exceed those of earlier predictions.

During the first quarter of Fiscal Year 2011, Logitech's revenues amounted to $479 million, 47% more than last year but 10% less than during the previous three months. Exchange rates impacted negatively on the general performance, but sales managed to grow by 50%. Also, net income was of $20 million, or $0.11 per share, as opposed to an operating loss of $37 million ($0.21 per share). Furthermore, retail sales grew by 39% on-year, as sales jumped by 66% in the Americas, 24% in Asia and 21% in EMEA. Finally, operating income was of $12 million and OEM sales increased by 38%.

“Logitech’s Fiscal Year 2011 is off to a strong start,” stated Gerald P. Quindlen, Logitech president and chief executive officer. “We exceeded our sales and profitability targets and achieved our best-ever Q1 gross margin. 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 for Fiscal Year 2011 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 FY11 sales outlook.”

Logitech hopes to reach between $2.3 and $2.35 billion in sales before FY 2011 in out, namely March 31 next year.