Logitech shows there is money in mice

Logitech shows there is money in mice

Distribution woes surrounding Dataflow's demise have not seemed to dampen sales at Logitech, which has posted record first-quarter results for the second consecutive year.

Although local figures have not been released, Logitech reported consolidated sales reached $243 million, a 17 per cent increase over last year's quarter, with a net income of $1.03 million, more than eight times more than last year.

According to Logitech Australia's general manager, Marco Manera, the company had just signed with Tech Pacific when Dataflow collapsed.

"Tech Pacific is now fully up to speed, although it was a bit of a problem for everyone out there. It is never pretty when a distributor goes under. Luckily Tech Pacific was there to pick up the pieces."

Along with the company's 14-year partnership with BJE Enterprises, the pickup in stock has been fairly seamless, Manera said.

"We became aware of the problem [with Dataflow] late last year, but as early as February a group of companies invested a substantial amount of money in Dataflow. It is surprising it went under just eight to 10 weeks afterwards.

"Because of the problems with service, BJE had already taken over quite a few retail chains because it has better service and systems."

It is too early to say how much Logitech will recoup from the liquidation of Dataflow - a creditors meeting was scheduled last week as this story went to press.

"There is a long list of creditors: banks, companies, vendors. It really depends on how much money the administrators can recoup from stock sales."

Meanwhile, sales are proving there is money to be made in mice, with the company aggressively targeting the corporate market.

"If anything, the reason we signed Tech Pacific was more to address the corporate market, where cordless products are doing really well. Prior to that, our distributors were mainly focusing on retail, whereas Tech Pacific is more of a broadband distributor," Manera said.

"Sales in cordless keyboards and mice have exploded. We see there are major opportunities there."

PC video cameras are becoming increasing popular, as the price point no longer restricts the technology to boardrooms and senior executives.

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