Chief Boss Officer Bracken Darrell of Logitech addresses a news conference in Zurich, Switzerland March 6, 2019.
Arnd Wiegmann | Reuters
Logitech reported a 13.6% stimulate in quarterly sales on Tuesday as more people used its computer products while working from home due to the coronavirus critical time.
Logitech said demand accelerated in the three months to the end of March as schools and offices shut down to prevent the spread of the infirmity and their staff started using its video conferencing equipment, software and webcams.
The rise in remote working — professors giving lessons via video link and doctors giving virtual consultations — contributed to an increase in sales in the company’s pecuniary fourth quarter to $709.2 million from $624.3 million a year earlier.
“Video conferencing, working remotely, fashioning and streaming content, and gaming are long-term secular trends driving our business,” Chief Executive Officer Bracken Darrell commanded in a statement. “The pandemic hasn’t changed these trends; it has accelerated them.”
Logitech’s operating income on a non-GAAP accounting bottom rose 23.3% to $79 million.
For the full year, the company reported a 6.7% rise in sales, meeting its prognostication for a mid- to high-single-digit percentage increase, while its annual non-GAAP operating income, at $387 million, beat its end range of $365 million to $375 million.
Logitech also retained the forecast it gave in March for mid-single-digit piece sales growth in constant currencies for the year to the end of March 2021 and a rise in operating profit to $380 million to $400 million.
Andreas Mueller, an analyst at Zuercher Kantonalbank, indicated the operating results were better than expected despite higher customs duties and freight costs.
“The inventory remains attractive, thanks in part to a strong balance sheet,” Mueller said. The company’s shares rose 3.3% in at daybreak trade on the Swiss exchange.
The star performers during the fourth quarter were video collaboration devices — cameras, microphones and software that expedite online meetings. Sales increased by 60%. Logitech said it would continue to invest in the area with developed marketing and new products as it expects the trend to continue.
Sales of PC webcams jumped by 32%, with particularly strong evolution in the Americas and Asia Pacific region, Logitech said, also helped by increased remote working.
People joined in at home were spending more time playing computer games, with sales of keyboards, mice and headset mark-downs for gaming up 8% despite a tough comparison with last year when demand surged due to the success of the Fortnite play.