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Logitech said demand accelerated in the three months to the end
of March as schools and offices shut down to prevent the spread
of the disease and their staff started using its video
conferencing equipment, software and webcams.
The rise in remote working - teachers giving lessons via video
link and doctors giving virtual consultations - contributed to
an increase in sales in the company's fiscal fourth quarter to
$709.2 million from $624.3 million a year earlier.
"Video conferencing, working remotely, creating and streaming
content, and gaming are long-term secular trends driving our
business," Chief Executive Officer Bracken Darrell said in a
statement. "The pandemic hasn't changed these trends; it has
accelerated them."
Logitech's operating income on a non-GAAP accounting basis rose
23.3% to $79 million.
For the full year, the company reported a 6.7% rise in sales,
meeting its forecast for a mid- to high-single-digit percentage
increase, while its annual non-GAAP operating income, at $387
million, beat its target range of $365-375 million.
Logitech also retained the forecast it gave in March for
mid-single-digit percentage sales growth in constant currencies
for the year to the end of March 2021 and a rise in operating
profit to $380-400 million.
Andreas Mueller, an analyst at Zuercher Kantonalbank, said the
operating results were better than expected despite higher
customs duties and freight costs.
"The stock remains attractive, thanks in part to a strong
balance sheet," Mueller said. The company's shares rose 3.3% in
early trade on the Swiss exchange.
The star performers during the fourth quarter were video
collaboration devices - cameras, microphones and software that
enable online meetings. Sales increased by 60%. Logitech said it
would continue to invest in the area with increased marketing
and new products as it expects the trend to continue.
Sales of PC webcams jumped by 32%, with particularly strong
growth in the Americas and Asia Pacific region, Logitech said,
also helped by increased remote working.
People locked in at home were spending more time playing
computer games, with sales of keyboards, mice and headset sales
for gaming up 8% despite a tough comparison with last year when
demand surged due to the success of the Fortnite game.
(Reporting by John Revill and Aishwarya Nair in Bengaluru;
editing by Uttaresh.V and Mark Potter)
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