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

August 06, 2012 | About:
10qk

10qk

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LOGITECH INTL NA SF -,25 (LOGI) filed Quarterly Report for the period ended 2012-06-30.

Logitech International Sa (usa) has a market cap of $1.35 billion; its shares were traded at around $8.25 with a P/E ratio of 17 and P/S ratio of 0.6. Logitech International Sa (usa) had an annual average earning growth of 2.4% over the past 10 years.

Highlight of Business Operations:

Our retail sales in the three months ended June 30, 2012 were flat compared with the prior fiscal year, as the retail sales increase in the EMEA region was offset by a decline in the Americas region. Retail units sold increased 4% during the three months ended June 30, 2012, compared with the preceding fiscal year. Our overall retail average selling price declined 4% in the three months ended June 30, 2012, compared with the preceding fiscal year. Products priced below $40 represented approximately 53% and 61% of retail sales in the three months ended June 30, 2012 and 2011, while products priced above $100 represented 13% and 14% of retail sales in the three months ended June 30, 2012 and 2011. If foreign currency exchange rates had been the same in the three months ended June 30, 2012 and 2011, our constant dollar retail sales increase would have been 3%.

Retail sales of our pointing devices decreased 5% in the three months ended June 30, 2012 compared with 2011, while retail units sold decreased 1% during this period. The sales decline was concentrated in our Americas region, and was only partly offset by increases in our Asia Pacific and EMEA regions. The primary weakness was in our mid-priced cordless mice. Sales of all cordless mice decreased 8% in the three months ended June 30, 2012, while units sold increased 1%. Corded mice sales decreased 5% and units sold decreased 7% in the three months ended June 30, 2012 compared with 2011.

Retail sales of keyboards and desktops increased 17% during the three months ended June 30, 2012, compared with the preceding fiscal year, while units sold increased 15% during this period. Sales growth was experienced in all regions, led by a 47% increase in EMEA. Sales of cordless keyboards and desktops increased 24% and units increased 42% in the three months ended June 30, 2012 compared with 2011. Sales of corded keyboards and desktops decreased 12% in dollars and 4% in units in the three months ended June 30, 2012. Our tablet keyboards made a significant contribution, as sales nearly doubled, led by very strong initial demand for the Logitech Ultrathin Keyboard Cover.

Retail sales of our gaming peripherals declined 27% in the three months ended June 30, 2012 compared with 2011, while retail units sold increased 10% during this period. The decrease was primarily from PC gaming, due to sales declines in steering wheels, and from continued sales declines in console gaming. PC gaming sales decreased by 16% in dollars and increased by 16% in units in the three months ended June 30, 2012, compared with the prior fiscal year. The difference between the decline in PC gaming sales and the increase in units reflects a mix shift away from steering wheels to lower-priced mice, keyboards and gamepads. Console gaming sales decreased by 93% in dollars and 81% in units in the three months ended June 30, 2012, compared with 2011.

Retail sales of our digital home category, which includes Harmony remotes and our discontinued Google TV peripherals, increased 5% in the three months ended June 30, 2012 compared with the prior fiscal year, while retail units sold increased 26% during this period. The significant difference between the sales increase and growth in units reflects stronger unit growth in the low end of this category. Sales of Harmony remotes declined 10% in dollars and increased 16% in units in the three months ended June 30, 2012, compared with the prior fiscal year. We plan to strengthen our Harmony line-up in the coming months. Sales of refurbished Logitech Revue and related peripherals were $1.0 million in the quarter ended June 30, 2012. In the quarter ended June 30, 2012, sales of Logitech Revue were negative $1.3 million due to product returns.

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