Logitech third-quarter operating profit falls

Reuters News
Posted: Jan 20, 2016 10:30 PM

(Reuters) - Swiss-American technology accessories maker Logitech International <LOGN.S> said late Wednesday its quarterly operating profit fell 1.5 percent, as strong year-end demand for newer music and video accessories failed to offset shrinking demand for computer add-ons.

It reported a non-GAAP operating profit of $74.2 million for the fiscal third quarter ended Dec. 31, a decline from $78.6 million, reflecting the move to exit its historic computer mouse business over the past year.

The results beat analyst profit forecasts.

Analysts were looking for an operating profit of $73.11 million, on average, according to Thomson Reuters I/B/E/S data.

Net sales in the December quarter rose about 3 percent to $621.1 million compared to the mean estimate by analysts of $631.6 million.

Logitech has refocused on new accessory lines like wireless music speakers, video conferencing and video game controllers, offsetting a secular decline in personal computers and demand for its mice and keyboards that defined the brand for decades.

(Reporting By Aurindom Mukherjee in Bengaluru; Editing by Sunil Nair)