ZURICH, Oct 27 (Reuters) – Logitech International on Tuesday reported a better-than-expected profit for the second quarter, with the computer mouse and keyboard maker seeing higher demand for its gaming and video conferencing devices.
The Swiss-U.S. company reported non-GAAP operating income of $231 million for the three months to the end of September, beating forecasts for $204 million in a consensus gathered by Visible Alpha and the company’s own guidance for $185 million to $210 million.
Sales rose 3% to $1.22 billion, in line with analyst forecasts and towards the upper end of the company’s own outlook of $1.19 billion to $1.22 billion.
Logitech said the growth was driven by strong performance in the United States, as well as video collaboration and gaming products, while profit margins also rose as the company achieved a more favourable product mix and faced lower import tariffs into the US.
Gaming products, which include racing wheels, microphones and mice adapted for computer game players, increased sales by 8%, helped by the launch of 15 new products during the period.
Sales of video collaboration equipment rose 12% as business customers refreshed their workplaces after encouraging staff back to the office.
Logitech also said it had suffered a lower-than-expected impact from the forced closure at a factory of one of its semiconductor suppliers earlier this year, which it originally expected to cost it $200 million in lost sales in the next quarter.
After finding other suppliers the company said it now expects the impact to be $70 million to $80 million. The factory reopened in September, with full production expected to be resumed by the end of 2026.
As a result, Logitech said its sales would be in the range of $1.36 billion to $1.43 billion for the three months to the end of December.
It also expects non-GAAP operating income of $220 million to $255 million down from $312 million a year earlier, due to higher component and transport costs, as well as the lost sales caused by the factory shutdown.
(Reporting by John Revill; Editing by Shailesh Kuber)
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