Logitech soars after 4Q results beat estimates

Associated Press

NEWARK, Calif. (AP) — Shares of Logitech International SA spiked nearly 19 percent Thursday after the maker of computer accessories, video conferencing equipment and other gadgets reported better-than-expected results for its fourth quarter.

Logitech earned $28.3 million, or 17 cents per share, in the January-March quarter. That's up from $2.8 million, or 2 cents per share, a year earlier.

Revenue fell 3 percent to $532 million from $547.6 million.

Analysts, on average, were expecting earnings of 9 cents per share on revenue of $499.4 million, according to a poll by FactSet.

Profit margins improved in the latest quarter and gross profit was 36.4 percent of sales, up from 32.8 percent a year earlier. Operating costs also fell 3 percent to $170.1 million from $175.7 million.

Logitech also said it is simplifying its business organization so it can move faster and focus better.

"With board approval, I have eliminated a layer of business and sales executive management; the leaders of our business groups and sales regions now report directly to me," said Bracken Darrell, its president, in a statement. "In addition, we will consolidate brand management and product portfolio management under the leadership of the business groups, and streamline most other functions."

He said most of the restructuring will be completed by the end of the quarter. Werner Heid, who'd served as senior vice president of worldwide sales and marketing, will be leaving the company.

Shares of the Switzerland's Logitech International SA rose $1.45 to $9.24 in midday trading. The stock has traded in the 52-week range of $7.10 and $14.12.

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