Logitech 1st Quarter Net Profit Jumps

ZURICH--Logitech International S.A. (LOGN.EB) reported a significant jump in first-quarter net profit as the computer-peripherals maker continued to turn around its business by targeting products designed for tablets and other mobile devices.

Net profit for the three months ended June 30 surged to $22 million from $1 million a year earlier, the Lausanne, Switzerland and Newark, Calif.-based company said. Analysts had forecast a net profit of $7.5 million.

"We have started the new fiscal year with a strong Q1 performance, delivering sales growth, year-over-year improvement in profitability and improved cash generation," said Logitech President and Chief Executive Bracken Darrell.

Quareterly sales in the firm's Growth category--which includes PC gaming, tablet and other accessories, and mobile speakers-- rose 17%, with mobile-speaker sales more than doubling over last year, he said.

Logitech affirmed its outlook of $2.16 billion sales for fiscal year 2015 and raised its forecast for non-Gaap operating income to $170 million from $145 million. First-quarter net sales rose 1.3% to $484 million. Net income per share rose to $0.13 from $0.01.

Logitech was late in making products for mobile devices but has reduced its product line-up and focused on detachable keyboards and wireless speakers that work with tablet computers and smartphones. The company has also sped up the introduction of its products so they are often available immediately after the launch of new devices.

The strategy shift has helped a turnaround at the company, which plunged into the red in 2013 by remaining dependent on devices linked to desktop computers. Desktop computers have lost popularity to tablet computers, like Apple Inc.'s (AAPL) iPad and devices running Google Inc.'s (GOOG) Android mobile-operating system.

Logitech has had to delay filing its annual report for the year ended March 31, 2014, because of an accounting issue it is investigating. The U.S. Securities and Exchange Commission is also investigating some of the company's financial statements presented last year.

The company has said it didn't believe these matters would impact its ability to achieve near-term goals.

Write to John Revill at [e-mail]

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