Logitech's acting CEO warns on profit

Reuters News
Posted: Sep 22, 2011 4:39 AM
Logitech's acting CEO warns on profit

ZURICH (Reuters) - Logitech, the world's largest computer mouse maker, issued its second profit warning in eight weeks, slashing its forecast for full-year profit and sales after a review by its acting chief executive, sending its shares down 11 percent.

Logitech, which also makers speakers, webcams and keyboards, said on Thursday it expected operating income of about $90 million for its 2011/12 year to end-March, compared with a previous target to meet or beat last year's level $143 million.

It cut its sales forecast to $2.4 billion from $2.5 billion, having cut it from $2.6 billion in July when announcing CEO Gerald Quindlen had resigned after weak first-quarter trading. Chairman Guerrino De Luca was named acting CEO.

De Luca said on Thursday he had conducted an in-depth assessment of the business for 2012 and beyond since taking over. "I am disappointed that our revised fiscal 2012 outlook is not higher, but we now have a thorough understanding of what needs to be fixed. Our strategy remains unchanged."

Logitech shares, which had lost more than half their value this year, were down 11 percent at 0755 GMT to a five-week low.

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The company said gross margin in its fiscal third and fourth quarters should be well above the full-year average.

Vontobel analyst Foeth said he expected De Luca to boost spending on sales and marketing. "Logitech forecast a recovery for 3Q and 4Q telling us that trough will be reached in the current quarter."

De Luca previously headed the company from 1998-2008.

(Reporting by Emma Thomasson; Editing by Dan Lalor)