Logitech Q1 Revenue Dips 2%, To Exit OEM Business
Swiss-American gadget maker Logitech International on Thursday posted a 2% 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 US dollars and roughly 10% 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% of sales, grew 7% 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.