Logitech First Quarter Results Top Estimates, Backs 2014 Outlook

(RTTNews) - Computer interface devices manufacturer Logitech International S.A. (LOGI) reported Wednesday a profit for the first quarter of fiscal 2014 compared to a loss last year, reflecting significantly improved margins and revenue growth. The company also maintained its revenue forecast for the full-year 2014, while committing to improve profitability.

"These results - sales growth and significant year-over-year profitability improvement - demonstrate our turnaround is on track. I'm happy to see double-digit sales growth in our Americas region," President and CEO Bracken Darrell said in a statement.

Darrell added, "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."

The Apples, Switzerland-based company reported net income of $1.04 million or $0.01 per share for the first quarter, compared to a net loss of $51.37 million or $0.32 per share in the prior-year quarter.

On average, four analysts polled by Thomson Reuters expected the company to report a loss of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 2 percent to $477.92 million from $468.60 million in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $423.20 million.

Net sales through retail channel grew 5 percent to $413 from the year-ago quarter. Retail sales rose 12 percent in Americas region, and 4 percent in the Asian region, while it dropped 3 percent in the Europe, Middle East and Asia or EMEA region.

Excluding "Retail - Other," Logitech's retail sales rose by 8 percent over the prior-year quarter.

Sales to OEMs decreased 6 percent to $35 million from the prior-year quarter, and sales for LifeSize Communications, acquired in December 2009, declined 18 percent to $30 million from last year.

Among the product families sold through retail channel, five of the eight product families posted improvement in sales, with pointing devices continuing to be the best performing category in terms of contribution, followed by keyboard & desktops and then audio products.

Gross profit margin for the quarter expanded 420 basis points to 35.2 percent from last year's 31.0 percent.

Looking ahead to fiscal 2014, Logitech continues to expect sales view of about $2 billion, operating income outlook of about $50 million and gross margin of about 34 percent. Street is currently looking for full-year 2014 sales of $1.99 billion.

"Logitech continues to be focused on becoming faster and more profitable. We've shortened key product cycles and delivered early momentum for the product lines we launched into retail environments in Q1, including tablet accessories, PC gaming peripherals and our UE BOOM wireless speaker. There is more to come. I am excited about the potential within the business and remain committed to improving our profitability in FY 2014," Darrell noted.

LOGI closed Wednesday's regular trading session at $6.47, down $0.12 or 1.82% on a volume of 0.38 million shares.