Computer peripherals maker Logitech said on Tuesday it could exceed its full-year targets for sales and profit and reported a 22 percent rise in third-quarter net income to $40.4 million. Read More...
For the next fiscal year to March 2004, the firm said it expected sales to rise by some 10 percent and operating profit by about 15 percent.
The Swiss-registered group, which has its operational base in Fremont, California, said the third quarter was its best quarter yet with strong holiday sales across both traditional and new product categories.
"We are extremely pleased with our continued ability to show significant growth during this prolonged period of difficulty for the high-tech industry and weaker consumer spending, " said Guerrino De Luca, president and chief executive officer.
Third-quarter revenues were up 18 percent at $351.8 million, while operating income rose 20 percent to $50.8 million. The gross margin slipped slightly to 33.3 percent from 34.7 percent for the same quarter in 2001.
For the fourth quarter, Logitech said it expected revenue of $285 million to $290 million and operating income of about $32 million.
"Reaching these targets would lead the company to exceed its revenue and operating income goals for the full fiscal year 2003 of $1.07 billion and $120 million respectively," it added.
Some financial analysts had expected Logitech to trim its full-year sales target again after it reduced the figure to $1.07 billion from $1.1 billion at the end of the second quarter.
The diluted per share profit for the third quarter jumped 21 percent to $0.80 from $0.66, boosted by the ongoing share buy-back program under which it acquired 325,030 shares between December 9 and 20.
Logitech was founded in 1981. Its main rivals are Microsoft , Creative Labs, Xirlink, Philips, Mad Catz, Altec Lansing, Plantronics and GN Netcom.
Logitech's recent expansion into headsets for mobile telephones also pits it against the main telecom equipment manufacturers.
The announcement came after the close of the market on Tuesday. Logitech shares had gained 1.27 percent to 43.85 francs.
Source: Reuters
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