GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

LOGITECH INTL NA SF -,25 Reports Operating Results (10-Q)

February 06, 2012 | About:

10qk

18 followers
LOGITECH INTL NA SF -,25 (LOGI) filed Quarterly Report for the period ended 2011-12-31.

Logitech International S.a. has a market cap of $1.44 billion; its shares were traded at around $8.31 with a P/E ratio of 31.96 and P/S ratio of 0.61. Logitech International S.a. had an annual average earning growth of 1.8% over the past 10 years.

Highlight of Business Operations:

Our total net sales for the nine months ended December 31, 2011 of $1.8 billion were slightly less than our total net sales for the nine months ended December 31, 2010. Retail sales decreased 1% and units sold increased 4%, while OEM sales and units decreased 19% and 15% for the nine month period ended December 31, 2011 compared with 2010. LifeSize sales increased 18% during the nine months ended December 31, 2011 compared with 2010. Retail sales in our Americas region decreased 5% in the nine month period, due to the inclusion of Google TV sales in the comparable 2010 period and weak performance in the digital home, video and pointing devices categories. Unfavorable economic conditions in Western Europe and product gaps in our video and remotes product categories led to the decrease in EMEA retail sales of 6% in the nine months ended December 31, 2011 compared with 2010. Retail sales in our Asia Pacific region increased 21% in the nine month period ended December 31, 2011 compared with 2010, driven by a 61% increase in sales in China. If foreign currency exchange rates had been the same in nine months ended December 31, 2011 and 2010, the percentage changes in our constant dollar retail sales would have been a decrease of 4% in the Americas, a decrease of 10% in EMEA, and an increase of 17% in Asia Pacific.

Retail units sold increased 8% in the three months and 4% in the nine months ended December 31, 2011 compared with the three and nine months ended December 31, 2010. Our overall retail average selling price was down 11% in the three months ended December 31, 2011 compared with 2010, and decreased 2% in the nine months ended December 31, 2011 compared with 2010. Sales of our retail products priced above $100 represented approximately 16% and 15% of total retail sales in the three and nine months ended December 31, 2011, compared with approximately 24% and 19% in the three and nine months ended December 31, 2010. Products priced below $40 represented approximately 53% of retail sales in the three months ended December 31, 2011 compared with 46% in the three months ended

Units sold to OEM customers declined 18% and 15% during the three and nine months ended December 31, 2011 compared with the same periods in the previous fiscal year, primarily due to decreased sales of microphones for console singing games, which declined 99% and 97% in the three and nine months ended December 31, 2011 compared with 2010. Console microphone sales are opportunistic and continue to be subject to significant variation from quarter-to-quarter and year-to-year. Sales of OEM keyboards and desktops increased 2% in dollars during the three months and decreased 17% in dollars during the nine months ended December 31, 2011 compared with the prior year. Keyboard and desktop units sold were flat for the three months ended December 31, 2011 compared with 2010, and increased 5% during the nine months compared with the previous year. Sales of mice to our OEM customers decreased 5% in the three and nine month periods ended December 31, 2011 compared with 2010, and units sold decreased 8% and 7% in the three and nine month periods.

Retail unit sales of pointing devices increased 14% in the three months and 8% in the nine months ended December 31, 2011 compared with the same periods in 2010. Dollar sales of cordless mice increased 9% in the three month period and 6% in the nine month period compared with 2010, while units grew 29% and 21% in the same periods. The growth differential between dollar and unit sales reflects sales increases in the low end of the product line, and sales declines in high-end cordless mice for the three and nine months ended December 31, 2011, indicating product gaps in the high-end of the category, which we plan to address in the coming quarters. Dollar sales of corded mice decreased 5% and 11% in the three and nine months ended December 31, 2011 compared with the previous fiscal year. Unit sales of corded mice declined 1% and 5% in the three and nine months ended December 31, 2011 compared with 2010.

Retail unit sales of our gaming peripherals decreased 8% and 5% in the three and nine months ended December 31, 2011 compared with the same period in 2010. PC gaming sales increased 7% in dollars and 10% in units in the three months ended December 31, 2011 compared with 2010, led by our G27 Racing Wheel. In the nine month period, PC gaming sales increased 26% in dollars and 3% in units. Console gaming sales declined 45% and 16% in dollars and decreased 57% and 40% in units in the three and nine months ended December 31, 2011 compared with 2010, due to lower sales of PC gaming steering wheels, particularly in the three months ended December 31, 2011.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK