Logitech International (LOGI) reported third quarter 2010 earnings per share of 32 cents per share, beating the Zacks Consensus Estimate of 27 cents.
Sales for the quarter were $617 million, a decrease of 2% compared to $627 million in the same quarter last year. Excluding the favorable impact of exchange rate changes, sales decreased by 7%.
Logitech’s retail sales were up 3% year over year, with sales up by 8% in the Americas and 6% in EMEA (Europe, Middle East, Africa) and down 17% in Asia. OEM sales were down by 38%.
Operating income for the quarter grew by 37%, to $58 million, compared to $43 million in the same quarter a year ago. Operating income includes the impact of $5.8 million in one-time transaction costs related to the Company’s acquisition of LifeSize Communications in December 2009.
Retail sales increased by 3% year over year with the largest contributions from pointing devices (11.8% year over year increase in sales) and remotes (45.4%).
For the fourth quarter of FY 2010, Logitech expects sales within the range of $500 million to $515 million, gross margin of approximately 34% and operating income between $15 million to $20 million, which includes the impact of amortization of the intangible assets of LifeSize Communications.
Logitech International S.A. engages in design, manufacture and marketing of personal peripherals for personal computers and other digital platforms in Europe, the Middle East, Africa, the Americas and Asia Pacific. Logitech International S.A. was founded in 1981 and is based in Apples, Switzerland. Its major competitor is Microsoft Corporation (MSFT).
We currently have an Outperform recommendation on LOGI.
Read the full analyst report on “LOGI”
Read the full analyst report on “MSFT”
Zacks Investment Research
