Logitech reported a 13.6 percent increase in quarterly sales on Tuesday as more people used its computer products while working from home due to the coronavirus crisis.
Logitech said demand accelerated three months from the end of March as schools and offices closed and staff began using video conferencing equipment, software and webcams to stem the spread of the disease.
The increase in remote work – with teachers teaching via video links and doctors offering virtual advice – contributed to the company’s financial fourth quarter growth of $ 624.3 million (approximately Rs. 4,700 crore) to $ 709.2 million (approximately Rs. 5,350 crore). A year ago.
“Video conferencing, working remotely, creating content and streaming and gaming are long-term secular trends that drive our business,” CEO Bracken Darrell said in a statement. “The epidemic has not changed these trends; it has accelerated them.”
On a non-GAAP accounting basis, Logitech’s operating income rose 23.3 percent to $ 79 million (approximately Rs. 596 crore).
For the full year, the company forecasts a 6.7 percent increase in sales, meeting the high-single-digit percent growth forecast, while its annual non-GAAP operating income, 387 million (approximately Rs 2,920 crore), its target range of $ 365-375. Million (about Rs 2,750 crore – about Rs 2,830 crore).
Logitech also forecasts a year-on-year increase in mid-unit-digit sales in constant currency for the year ending March 2021 and an increase in operating profit to 80 380-400 million.
Despite high tariffs and freight costs, operating results were better than expected, said Andreas Mারller, an analyst at Curatoralbank, a juror.
“The stock has remained attractive, thanks to a strong balance sheet,” Mueller said. Shares of the company rose 3.3 percent in early trade on the Swiss exchange.
During the fourth quarter, star performers were video collaboration devices – cameras, microphones and software that enabled online meetings. Sales increased by 60 percent. Logitech says it will continue to invest in the area with increased marketing and new products as it expects the trend to continue.
Sales of PC webcams grew 32 percent, especially with strong growth in the Americas and the Asia-Pacific region, Logitech said, adding that remote work also helped.
Despite a tough comparison compared to last year, sales of headsets for keyboards, mice and gaming increased by 8 percent due to the success of the Fortnite game, with people locked-in at home spending more time playing computer games.
ম Thomson Reuters 2020
Is the Mi 10 an expensive OnePlus 8 or a budget S20 Ultra? We discussed this in Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts or RSS, download episodes, or press the play button below.