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Logitech is accelerating vigorously. At the beginning of the fiscal year 2018-2019, the computer manufacturer's numbers so increased that management has raised its forecast for the full year.
Sales rose: Logitech computer accessories manufacturer logo (archive image). (Photo: KEYSTONE / LAURENT GILLIERON)
(sda / awp)
In addition, the recovery of Blue Microphones will further stimulate growth.
Video game products and videoconferencing systems include cash from April to June. They jumped 75% and 65% respectively, as Logitech announced on Tuesday. According to Logitech's boss, Bracken Darrell, both product groups should remain the driving force in the future
Acquisition of Microphones
Darrell also expects growth thanks to his recent acquisition: With l & # 39; Acquisition of Blue Microphones, Logitech enters the microphones sector in studio quality Blue Microphones is currently still a small company, but growing strongly and having an attractive gross margin, said Darrell in a telephone interview with AWP.
The acquisition is expected to be late August 2018, contributing about one point of growth in the 2019 fiscal year. Logitech also continues to search for companies that could help it to enter a new segment .
According to Darrell, diversification is the key to Logitech's continued strong growth. This also includes more and more entry into the software industry. For example, Logitech recently launched "Rightsense", a video control and video optimization software for videoconferencing systems.
Restructuring initiated
In return, Logitech reduces its exposure to low-lying areas, particularly in high-growth areas. Restructuring costs cost the company $ 10 million in the first quarter.
Logitech has to adapt to the slower growth of the mobile speaker market, for example. Sales also decreased by 45% due to inventory adjustments. While some positions were eliminated as a result of the realignment, Logitech's bottom line has increased its staff, Darrell said.
Exceeding expectations
Logitech's growth strategy is underway. For example, the company – formerly known for its mice – with products ranging from keyboards to webcams to gaming controllers, sold $ 608 million in the first three months of its fiscal year, up 15% compared to the previous year. Logitech outperformed analysts' expectations in terms of growth.
The operating result was also significantly higher than expected. In the first quarter, operating profit (non-GAAP) jumped 41% to $ 61 million, with the legal settlement also helping. In the figures off Gaa, Logitech expects various items, such as acquisition-related costs and restructuring costs.
In US GAAP, EBIT remained virtually stable at $ 32 million. This has cost the restructuring costs $ 10 million. In the end, Logitech earned $ 37 million, compared to $ 38.5 million in the same quarter of the previous year.
Outlook Recorded
Logitech surprised by an unexpected quarter: Management raised the outlook for March. The company is now expecting sales growth of between 9 and 11% in local currencies, so far, a strong one-digit increase was expected. Non-Gaap Logitech operating profit is $ 325-335 million, compared with $ 310-320 million previously.
Although this is not common, since the forecasts have been published recently, Darrell said. "But with such a good start to the year, we assume that growth will remain strong throughout the year.
On the stock market, however, Logitech has hardly been able to convert the strong start of the year into higher prices. The stock gained in a weak market at 9:30, just 0.5%. However, the stock has already had a good performance this year with a 40% increase and is currently trading at record levels.
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