Logitech rides iPod, PSP periphs to profits

Citing "continued explosive growth in audio sales, and strong growth in the video and console-gaming categories," Logitech International today reported stellar financials. For the company's second fiscal quarter that ended September 30, 2005, sales were $422 million, up 28 percent from $330 million the same quarter last year.

Operating income was $38.2 million, up 29 percent from $29.6 million last year, and net income for the quarter was $36.2 million, up 39 percent from $26 million in the prior year.

"Logitech has been introducing the right products and that pays off," Christoph Ladner, an analyst with Bank Sarasin & Cie. told Bloomberg today. "To succeed in that market, you must be trend-conscious, and Logitech has been very successful in meeting the taste and demand of customers."

The company's president and chief executive officer Guerrino De Luca said, "As demand exceeded our expectations, this Q2 delivered our best year-over-year sales growth in more than three years."

Logitech called out the following highlights: its best-ever quarter for retail sales of video products, with year-on-year growth of 28 percent; a doubling of retail sales of audio products compared to the same quarter last year; high demand for PC speakers, as well as audio products for Apple's iPod music player; high sales of the Logitech Harmony universal remote; sales of console game-related products, which increased by 62 percent thanks in large part to the company's Sony PSP line; and, finally, solid sales PC headsets, prompted by what it calls a "surge" in voice-over-IP communications.

The company also adjusted its guidance for the full fiscal year. It now sees sales growing by 18-20 percent for the full year, compared to an earlier target of 15 percent.