Computer parts maker Logitech lifts outlook after upbeat quarter
Technology
Computer parts maker Logitech lifts outlook after upbeat quarter
ZURICH (Reuters) - Computer mouse maker Logitech International raised its full-year sales and profit outlook on Tuesday, after a strong performance across nearly all product categories and a rising contribution from artificial intelligence-equipped devices.
The Swiss-American company reported sales growth of more than 10% in its devices for computer gamers, keyboards, tablets, and headsets during the three months to the end of June.
While sales of other product categories grew more slowly, only mobile speakers and webcams reported sales declines.
The performance pushed Logitech into a second consecutive quarter of higher group sales, ending a period of lower demand that followed the pandemic-driven sales boom.
"We should be on the way to sustainable growth," CEO Hanneke Faber, a former Unilever executive, took charge of the company in December 2023.
"It's quality growth. It's broad-based across our categories, across the regions," she told Reuters in an interview.
The company now expects its full-year sales in the range of $4.34-$4.43 billion, up from a previous projection of $4.3-$4.4 billion, and representing an increase of 1-3% from 2024 levels.
It added that it expects non-GAAP operating income to be between $700 and $730 million for fiscal year 2025, compared with $685 million-$715 million earlier.
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The upgrade came after Logitech reported sales rising 12% to $1.1 billion in its first quarter ended June 30, beating the analysts' consensus forecast of $1.025 billion compiled by Visible Alpha.
Non-GAAP operating income for the quarter soared 67% to $182 million, added Logitech, which is based in Lausanne, Switzerland, and San Jose, California.
During the period, Logitech also launched 11 new products, many using AI which made them more profitable.
Faber said AI was playing an increasingly important role, for example, software that enables users to easily access AI platforms such as ChatGPT through mice and keyboards.
Earlier this year, Faber outlined plans to expand the customer base beyond offices and into education and healthcare.
"Today we are mostly focused on offices... but most people in the world don't work in offices," said Faber, noting that Logitech's educational products had increased sales by 20% during the quarter.
