Logitech Reports First Yearly Revenue Growth in Three Years

Apr 24, 2014 8:22 am ET

April 24 (Bloomberg) -- Logitech International SA, the world’s biggest maker of computer mice, reported its first annual sales growth in three years as revenue at its PC gaming, tablet and accessories and mobile speakers businesses surged.

Sales increased 1 percent to $2.12 billion in the 12 months through March, the company said in a statement today. Fourth- quarter revenue in what Logitech calls its growth category -- PC gaming, tablets and accessories, and mobile speakers -- increased almost 50 percent.

“We’re very pleased about where we are, and we’re pretty far ahead of our turnaround plan,” Chief Executive Officer Bracken Darrell said in an interview in Zurich today. “The key story is that we’re developing our growth category. As we go into next year and the year after, we’re going to move more into a story of growth, while continuing the turnaround.”

Full-year non-GAAP operating income more than doubled to $140 million, with earnings per share of 76 cents, compared with 31 cents a year earlier. The company also confirmed its full- year 2015 forecast for $2.16 billion in sales and $145 in non- GAAP operating income.

“At the start of our fiscal year we said we would deliver strong sales in our growth category, reduce operating expenses and improve profitability,” Bracken said in a statement today. “We delivered on our commitments across the board, concluding full-year 2014 ahead of our turnaround plan.”

The company has cut about $60 million of operating expenses in the past year, Darrell said in an interview today. The company’s cash flow from operations on a trailing 12-month basis amounted to $202 million, an increase of 72 percent. Logitech on March 6 also announced a share buyback program of $250 million, to be completed in three years.

Value Driver

“Logitech presented good numbers,” said Andreas Mueller, an analyst at Zuercher Kantonalbank AG in Zurich. He has an outperform rating for the shares, meaning investors should buy the stock. “To me, the massive increase in its operative cash flow is the most impressive number that is also the biggest value driver. It’s proof of the quality of Logitech’s results and that they’re on target regarding their long-term goals.”

Logitech declined 1.5 percent to 12.95 Swiss francs at 2:19 p.m. in Zurich, after jumping as much as 4.9 percent earlier. That gives the company a market value of 2.24 billion francs.