Logitech has posted its best quarter yet, with strong holiday sales across both traditional and new product categories. Revenue for the quarter ended 31 December 2002 reached $351.8 million, an increase of 18% over the same quarter last year. Operating income was $50.8 million, an increase of 20% over the same quarter of the previous year. Net income of $40.4 million ($0.80 per share) was 22% higher year over year. Gross margin was 33.3%, compared with 34.7% for the same quarter last year.
Retail sales increased by 15% over the same quarter last year and represented 85% of total revenue for the quarter. OEM sales grew by 37% year over year, as the company continued to expand its OEM offerings.
"We are extremely pleased with our continued ability to meet challenges and show significant growth during this prolonged period of difficulty for the hi-tech industry and weaker consumer spending, " said Guerrino De Luca, president and chief executive officer.
"Our third-quarter results reflect both a solid foundation and the ability to innovate within our core product lines, as well as our increasing success in markets we have entered more recently, such as PC speakers and gaming consoles. We believe this speaks to the soundness of our strategy of expanding our PC-based product portfolio while at the same time introducing personal interface products that address alternate computing platforms."
Third quarter highlights included:
Reaching a cordless milestone: 30 million cordless devices sold.
23% increase in overall unit sales of Logitech branded products.
Revenue from products for gaming console systems more than doubled.
142% increase in revenue from sales of Logitech branded speakers.
Establishment of a strategic distribution partnership with Digital China, the largest systems integrator and distributor of IT products in China.
Introduction of pen and paper to the digital world with the launch of the Logitech io Personal Digital Pen.
"During calendar year 2002, we passed the $1 billion mark in sales for the first time in Logitech`s history," added De Luca. "In acknowledging this milestone, we are optimistic that our product portfolio, our geographic presence and the skills and dedication of our employees will allow us to maintain double-digit growth and sustained profitability."
For the current quarter ending 31 March 2003, the company expects revenue to range between $285 million and $290 million and operating income to reach approximately $32 million. Reaching these targets would lead the company to exceed its revenue and operating income goals for the full fiscal year 2003 of $1.07 billion and $120 million respectively.
Logitech provided a preliminary target for the coming fiscal year 2004, ending 31 March 2004, of revenue growth in the order of 10% and operating income growth in the order of 15% over the current fiscal year. There will be an earnings teleconference today at 9am Pacific Time/12pm Eastern Time/6pm Central European Time to discuss these results as well as guidance regarding revenues and operating income for both the fourth quarter and year ending 31 March 2003, and the full fiscal year ending 31 March 2004. In addition, a live webcast of the teleconference will be accessible at http://www.logitech.com. A replay of this teleconference will be made available through 7 February 2003 on the Logitech Web site.
Please visit the Web site at least 10 minutes early to register for the teleconference webcast.
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Founded in 1981, Logitech designs, manufactures and markets personal interface products that enable people to effectively work, play and communicate in the digital world.
With corporate headquarters through its US subsidiary in Fremont, California, and regional headquarters through local subsidiaries in Switzerland, Taiwan and Hong Kong, Logitech International is a Swiss public company traded in Switzerland on the Swiss Stock Exchange (LOGN) and in the US on the Nasdaq National Market System (LOGI). The company has manufacturing facilities in Asia and offices in major cities in North America, Europe and Asia Pacific.