Logitech first-quarter revenue falls by 2 percent to $470 million

Reuters News
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Posted: Jul 22, 2015 9:22 PM

(Reuters) - Swiss-American gadget maker Logitech International SA on Thursday posted a 2 percent drop in quarterly revenue, hurt by a strong dollar and falling demand for its computer accessories.

The Lausanne-based company reported adjusted operating profit for its first quarter ended June 30 of $31 million, or 16 cents a share, compared with 22 cents a share a year earlier.

Net sales fell to $470 million from $484 million a year earlier.

Logitech has been focusing on new lines like wireless music speakers, videoconferencing and video game controllers, to offset a decline in personal computers and weak demand for the mice and keyboards it has made since the dawn of the PC age.

More than half of Logitech's costs and expenses are in U.S. dollars and roughly 10 percent are in Swiss francs. The company's suppliers are based in Asia where currencies have been mostly stable.

Logitech's retail business, which generates 90 percent of sales, grew 7 percent in constant currency.

The company said it will exit the OEM business, which comprises its computer accessories segment such as mice, by the end of 2015.

It is also reorganizing its videoconferencing hardware called LifeSize via cloud, the company said.

Analysts on average were expecting earnings of 10 cents per share and revenue of $466.1 million, according to Thomson Reuters I/B/E/S.

(Reporting by Ankush Sharma in Bengaluru; Editing by Ken Wills and Diane Craft)