Logitech reveals continuing increase in global revenue
Peripheral and gaming accessory manufacturer Logitech has posted its Q2 financial results, marking the twenty-eighth consecutive quarter of positive, double-figure sales growth.
Peripheral and gaming accessory manufacturer Logitech has posted its second quarter financial results, marking the twenty-eighth consecutive quarter of positive, double-figure sales growth.
For the fiscal period ending 20th September, 2005, Logitech's sales were posted at USD 422 million; an increase of twenty-eight percent on the same period last year. Operating income increased twenty-nine percent to USD 38.2 million and net income was up thirty-nine percent at USD 36.2 million.
Logitech's president and CEO, Guerrino De Luca, stated: "As demand exceeded our expectations, this Q2 delivered our best year-over-year sales growth in more than three years."
"We are riding the wave of significant trends - the growing popularity of digital music, the pervasiveness of broadband connectivity, and the increasing role of the PC as an entertainment and communication platform. Even with a significantly higher proportion of audio products in the overall product mix, we grew our gross profit faster than our operating expenses," Guerrino added.
Sales of console gaming accessories have increased by sixty-two percent for Logitech, which, according to the company, has been greatly assisted by a high attachment rate of Logitech peripherals with the sales of Sony's PSP handheld. The PSP has so far sold ten million units worldwide, and Logitech has created a diverse range of audio and gaming enhancements, accessories and audio products for the device.
The company also attributed a large percentage of its revenue growth to its audio product range, with PC speakers and MP3 audio player products doubling in sales compared to the same period last year.
Looking ahead at the full 2005 fiscal results, Logitech has increased its revenue targets from fifteen percent sales growth to between eighteen and twenty percent. Operating income is expected to exceed the previous target of fifteen percent growth, while the gross margin is likely to sit at the lower end of the company's long-term forecast of thirty-two to thirty-four percent.
"We enter Q3 well positioned for the 2005 holiday buying season with innovative new products recently launched across our product portfolio, and a higher backlog of retail orders compared to this time last year," Guerrino concluded.