14 DAY TRIAL // Logitech International, world's No.1 peripherals manufacturer, confirmed today what the analyst said one month ago - the eight consecutive year in which it has posted record sales - $1.8 billion, up 21 % from $1.48 billion in the same period of 2005, it is said in the company's press release. Logitech's net income for the last quarter sums up $51 million ($0.52 per share), up 27% from $40.2 million ($0.41 per share) last year.
It seems that, even if the American market is believed to be the strongest, Logitech's retail sales moved up only 18%, less in Asia - 15%, the European market being Logitech's main retail market, as demand increased, in only three months, by 18%.
"We are very pleased with the Company's strong performance in FY 06, and with our record-breaking results in the fourth quarter," said Guerrino De Luca, Logitech's president and CEO.
As I said before, analysts expected this spectacular sales growth, as we all did, because Logitech applied the same "traditional strategy" that made the company over the years a leader in peripherals manufacturing.
More precisely, the company has launched more than 130 new products, 143 million units shipped (23% more than last year), retail audio sales increased by 112% to the same period last year, retail sales of video products were up by 36 percent and 92% for PC headsets. Also, it seems that retail sales for the Harmony remote controls tripled every year, and that the demand for mice is back on track.
After eight years of leadership, Logitech said they are expecting another spectacular growth, of 15%, in the year to come, because of new products being launched, estimating a net income of $16-$19 million.
Also in the press release, it is said that Logitech "pays tribute to" iPod for its record profit, as portable speakers, with Logitech's logo imprinted, were made, more or less, especially for the little music player.
In order to understand the sentence: "The Company's line of portable speakers for the iPod contributed to the strong growth.", we should remember that, in 2005, iPod sales were estimated at $37 million by the analyst Gene Munster and that iPod "is to blame" for a part in Apple's place 7 in Amazon.com top for computer sales.
This is why we can't stop wondering how much of Logitech's profits are based on iPod sales. However, this doesn't' mean that someone can blame Logitech for taking advantage from what was an iPod madness, disregarding the performances of the company's peripherals. But we're still searching the Internet for more facts.
So you can understand this dilemma, we must remind you also of the episode in which iPod's designer, Jonathan Ive, has been decorated with CBE Order (Commander of the Order of the British Empire) given by the Queen of Great Britain, owner of a silver plated iPod, worth 169 ?.
