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Apr-28-2011Logitech Fourth-Quarter Net Drops 89% on Lower Regional Sales(topic overview)
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'''The disappointing conclusion was due to weaker-than- anticipated demand in the second half of fourth quarter for our products in Europe, Middle East and Africa,''' Chief Executive Officer Gerald Quindlen said in the release. Logitech lowered its full-year sales and profit forecasts on March 31 because of '''projected shortfalls''' mainly due to '''weakness''' in the company'''s Europe, Middle East and Africa retail sales region. The company said it had seen lower-than- expected demand for retail products in the region, which accounts for about 45 percent of total sales, from both distribution partners and consumers. [1] NEW YORK (Reuters) - Logitech International ( LOGN.VX ), the world's largest computer mouse maker, on Wednesday reported a steep quarterly profit drop and predicted a rise in sales this year. Logitech, which also makes speakers, webcams and keyboards, shocked markets with a profit warning last month, citing weakness in its retail division in Europe, the Middle East and Africa. [2] Logitech International SA (LOGN), the world'''s biggest maker of computer mice, said fourth-quarter profit fell 89 percent on lower sales in Europe, the Middle East and Africa. [1]
Retail sales surged 32 percent in the Asian region and increased 11 percent in the Americas region, while it declined 17 percent in Europe, Middle East and Asia or EMEA region. [3]
Net sales through retail channel increased 2 percent to $463.23 million from the year-ago quarter. [3] Net sales for the quarter increased 4 percent to $547.62 million from $525.44 million in the same quarter last year, but missed six Wall Street analysts' consensus estimate of $556.18 million. [3]
Net sales for the full year increased 20 percent to $2.36 billion from $1.97 billion in the previous year. [3]
For Fiscal Year 2012, ending March 31, 2012, Logitech expects sales of approximately $2.6 billion, operating income of approximately $185 million and gross margin of approximately 35 percent. [4] Logitech forecast revenue will increase to about $2.6 billion in the fiscal year through March 2012 and operating profit will be up to $185 million. [1]
Logitech said it expected $2.6 billion of sales in the current fiscal year, which ends in March 2012, up from $2.4 billion last year. [2] For the full fiscal year, sales were $2.36 billion, up 20 percent from $1.97 billion in FY 2010. [4]
Sales to OEMs declined 11 percent to $45.03 million from the prior-year quarter, and LifeSize Communications, acquired in December 2009, contributed total sales of $39.36 million, up 88 percent from last year. [3] Operating income was $3.6 million, a decrease of 87 percent compared to $27.7 million in the same quarter a year ago. [4] Net income fell to $2.8 million, or 2 cents a share, in the fourth quarter ended on March 31, compared to $24 million, or 14 cents, a year earlier. [2] The Apples, Switzerland-based company reported net income of $2.78 million or $0.02 per share for the fourth quarter, sharply lower than $24.49 million or $0.14 per share in the prior-year quarter. [3] For fiscal 2011, the company reported net income of $128.46 million or $0.72 per share, doubling from $64.96 million or $0.36 per share in the prior year. [3]
Net income for Q4 was $2.8 million ( $0.02 per share) compared to $24.5 million ( $0.14 per share) in Q4 of FY 2010. [4]
Net income in the quarter ended March 31 declined to $2.8 million from $24.5 million a year earlier, the Romanel-sur- Morges, Switzerland-based company said in a statement. [1] The company in March predicted full-year sales in a range of $2.35 billion to $2.37 billion and operating income between $140 million and $150 million. [1] The company predicts 2012 operating income of about $185 million and gross margin of about 35%. [5] '''The disappointing conclusion to FY 2011 ''' which resulted in lower-than expected full-year sales, operating income and gross margin ''' was due to weaker than anticipated demand in the second half of Q4 for our products in EMEA. The weakness in demand in EMEA was compounded by poor execution of channel pricing and promotional programs within the region, which we have begun to remedy.''' [4]
Gross margin for Q4 FY 2011 was 32.8 percent, down from 35.8 percent one year ago. [4] Gross margin for the quarter contracted 300 basis points to 32.8 percent from last year's 35.8 percent. [3]
Gross margin for FY 2011 was 35.4 percent compared to 31.9 percent in FY 2010. [4]
The shares rose 1.3 percent to 12.31 francs in Zurich on April 27, giving the company a market value of 2.4 billion francs ($2.8 billion). [1] On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share for the fourth quarter. [3] Both earnings per share and quarterly revenues missed analysts' expectations. [3]
Analysts have a consensus revenue estimate of $2.59 billion for fiscal year 2012. [5] ZURICH (Dow Jones)--Computer technology maker Logitech International S.A. (LOGN.VX) Thursday said fourth quarter profit fell 89% on year, resulting in a weak end to what the company described as an otherwise'strong' year, but it expects its performance to improve in the current fiscal year. [6] NEW YORK (Reuters) - Logitech International (LOGN.VX), the world's largest computer mouse maker, on Wednesday reported a steep quarterly profit drop and predicted a rise in sales this year. [2]
Quarterly sales were $548 million, up 4% from $525 million a year earlier. [5] Net income had been predicted at $6.5 million on sales of $548 million, according to analyst estimates compiled by Bloomberg. [1]
Six analysts had a consensus revenue estimate of $556.18 million for the quarter. [5] Total operating expenses were $175.73 million, up from $160.62 million in the year-ago quarter. [3] Operating income was $3.6 million, a decrease of 87% compared to $27.7 million a year ago. [5]
Logitech, which also produces home-entertainment control, gaming and wireless devices, bought LifeSize Communications Inc. in 2009 for $405 million to expand into the videoconferencing market. [1] In the last quarter of 2010, the company started Logitech Revue, a set-top box to access Google Inc. (GOOG) '''s TV, which it offers for about $300 in the U.S. The company said at the time it was '''confident''' about the long-term potential of the Google TV platform, which combines Internet access with on-demand TV. [1] For more information about Logitech and its products, visit the company'''s website at www.logitech.com. [4]
We refer to our net sales excluding the impact of foreign currency exchange rates as constant dollar sales. Constant dollar sales are a non-GAAP financial measure, which is information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. GAAP. Our management uses these non-GAAP measures in its financial and operational decision-making, and believes these non-GAAP measures, when considered in conjunction with the corresponding GAAP measures, facilitate a better understanding of changes in net sales. [4] Excluding the favorable impact of exchange rate changes, sales increased by 3 percent. [4] Constant dollar sales are calculated by translating prior period sales in each local currency at the current period's average exchange rate for that currency. [4]
Among the product families sold through retail channel, all of the products posted sales growth, except audio as well as gaming products, with pointing devices continuing to be the best performing category in terms of contribution, followed by keyboard & desktops. [3] Sales for the LifeSize division grew 88 percent, reaching a record high for a quarter. [4] Global personal-computer shipments unexpectedly fell 3.2 percent in the first quarter as businesses and consumers held off on purchasing new machines and shifted focus to tablet computers, market-research company IDC said on April 13. [1]
SOURCES
1. Logitech Fourth-Quarter Net Drops 89% on Lower Regional Sales - Bloomberg
2. Logitech profit drops | Reuters
3. Logitech Q4 Profit Plunges, Misses View; Guides 2012 Above Estimates
4. Insurance News - Logitech Announces Fourth Quarter and Full-Year Financial Results for FY 2011
5. Logitech Q4 Profit Declines; Provides FY12 View - Quick Facts
6. Logitech International 4Q Net $2.8 Million Vs $24.5 Million - WSJ.com
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