Logitech International has announced a 16 per cent increase in third-quarter sales — the best quarterly financial performance in its history.
For Logitech’s third quarter, ending December 31 sales were $US410 million, up 16 per cent from $US352 million for the same quarter the previous year.
Net income for the quarter was $US66.8 million up from $US40.4 million in the prior year. Excluding a one-time favourable impact of $US13.4 million from the previously announced release of a valuation allowance on specific deferred tax assets, net income was $US53.5 million, an increase of 32 per cent over last year.
OEM sales showed strong growth, up 39 per cent year on year, fuelled by sales to Sony, such as the Logitech’s EyeToy camera designed for the Sony PlayStation 2.
Retail sales were up 12 per cent from last year, driven by compelling product line-ups in each of Logitech’s categories. Logitech saw particularly robust retail sales of webcams, PC speakers, cordless desktops and gaming controllers.
Retail sales for Logitech’s cordless desktop products increased 37 per cent from the same quarter last year. Console gaming product sales were up 174 per cent and unit shipments totalled 2.5 million, nearly twice the unit shipments for any prior quarter.
For the fiscal year ending on March 31, Logitech reaffirmed its target of 15 per cent growth in operating income but now expects higher sales growth than originally anticipated.
Net sales should exceed $US1.24 billion, up about 13 per cent on 2003 numbers.
Logitech also confirmed its sustained growth prospects by providing preliminary targets of 10 per cent growth in revenue and 15 per cent growth in operating income, for the fiscal year 2005.