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Logitech posts 35 per cent increase in earnings

Videogaming peripheral manufacture Logitech has posted its financial report for the first fiscal quarter, revealing an increase in earnings which sent the company's share price soaring.

Videogaming peripheral manufacture Logitech has posted its financial report for the first fiscal quarter, revealing an increase in earnings which sent the company's share price soaring.

Logitech's earnings for the quarter ending June 30th stood at US$30.1 million (27.4 million Euro) - up 35 per cent from the same period last year and exceeding the company's expectations.

Retail sales were up by 20 per cent from US$335 million last year to US$393 million (309.9 million Euro), with Logitech reporting growth in all regions - particularly in the Americas, where the figure stood at 30 per cent. Sales of remote controls rose by 122 per cent, while video products (56 per cent) and cordless products (18 per cent) also proved more popular during the quarter.

"With our solid performance in Q1, Logitech is on track to achieve our financial goals for FY 2007," said CEO Guerrino De Luca.

"As we anticipated, gross margin for the quarter was below our long-term target range of 32-34 per cent; we expect to see substantial sequential and year-over-year improvement in gross margin in Q2 as we roll out a range of exciting new products."

Shares rose by 9 per cent following the report's release, up to US$19.77 (15.59 Euro) from around US$18 previously.

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Ellie Gibson

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Ellie spent nearly a decade working at Eurogamer, specialising in hard-hitting executive interviews and nob jokes. These days she does a comedy show and podcast. She pops back now and again to write the odd article and steal our biscuits.