Logitech Cordless Desktop

Logitech Beats Estimates

Logitech International SA (LOGI) posted first-quarter 2011 revenues of $479 million, up 47% from the prior-year quarter. Earnings per share were 11 cents, exceeding the Zacks Consensus Estimate of 3 cents.

Logitech faced continued improvement in sell-through across Europe, the Middle East and Africa (EMEA), the Americas and Asia-Pacific, with the strongest growth in EMEA and sell-through of products improving in the Americas and Asia-Pacific. Remotes were the fastest growing retail product category, delivering an eightfold improvement in sales year over year. Pointing devices was the second fastest growing retail category, with growth of 46%, led by strong demand for cordless mice.

Gross margin at 35.3% was a significant improvement from the 23.9% posted in the first quarter of fiscal 2010.

Logitech's retail sales and units grew by 39%. Looking at regional sales in local currency, EMEA climbed by 31% and Asia by 22% compared with the U.S. dollar growth of 21% in EMEA and 24% in Asia. This was due to a stronger dollar versus other currencies. Units were up by 33% in the Americas, by 42% in EMEA and by 45% in Asia-Pacific. Overall, retail average selling price in the quarter was essentially unchanged from the prior-year quarter.

Sales of products priced above $100 represented 15% of retail sales in the first quarter, up from 12% in the prior-year quarter and unchanged from the prior quarter.

The remote category was the best performing product family in the quarter with sales over eight times higher than the prior year and units up by over three times.

Growth was led by the Harmony One with notable contributions from both the Harmony 300. It was a robust quarter in the pointing device category, with sales up 46% and units up 60%. The growth was achieved in all regions and was driven by cordless mice with sales up 57%. Logitech achieved triple-digit sales and unit growth in both the high-end and the low-end of the major cordless mice price bands.

In keyboard and desktop category sales rose by 31% and by double digits in all regions. The growth was driven entirely by cordless offerings. Cordless desktop sales were up by 50% with growth in both the high-end and the low-end of the cordless desktop category.

Logitech's sales in the video category grew by 10%, but units were up by 41%. The significantly stronger unit growth primarily reflects the phase out of several older products, for new, high definition webcams.

In the original equipment manufacturer (OEM) category there was double-digit growth for the first time in seven quarters, with sales up by 38% and units by 35%. The growth was led primarily by OEM mice, with sales up by 22% and units by 27%, as well as microphones for console singing games.

The cash position at the quarter end was $317 million, down by $250 million compared to the prior-year quarter. Logitech used $382 million for the acquisition of LifeSize in December 2009, and another $126 million for share repurchases over the past 12 months.

Logitech's cash flow from operations for the quarter was $6 million, a decrease of $69 million compared with the same quarter last year. The primary cause for the year-over-year decline was the sequential investment in inventory and receivables in the most recent quarter.

For fiscal 2011, Logitech is targeting sales of between $2.3 billion and $2.35 billion. The company anticipates gross margin at around 34%–35%, and anticipates operating income of roughly $160–$170 million.

We currently have a Neutral recommendation on Logitech.

About the Author

Logitech Beats Estimates

Logitech Cordless Desktop LX501 Keyboard & Optical Mouse 9674190403 967419-0403 $33.2 Logitech Cordless Desktop LX501 Keyboard & Optical Mouse 9674190403 967419-0403

Logitech Cordless Desktop MX 5500 Revolution Keyboard/Mouse 920000383 920-000383 $171.97 Logitech Cordless Desktop MX 5500 Revolution Keyboard/Mouse 920000383 920-000383

Logitech / Logitech 920-000383 Cordless Desktop MX 5500 Bluetooth Wireless Keyboard & Mouse Combo / 920-000383 $178.55 Logitech - Logitech 920-000383 Cordless Desktop MX 5500 Bluetooth Wireless Keyboard & Mouse Combo - 920-000383

Logitech Cordless Desktop EX100 Keyboard and Mouse $32.99 1000 dpi 920-000879 Windows XP or Windows Vista CD-ROM Drive 1 x USB Port Cordless Desktop Cordless Desktop EX100 Keyboard and Mouse Keyboard Keyboard & Mouse Logitech Mouse Optical RF RoHS Scroll Wheel Spill Resistant USB Wireless Yes www.logitech.com

Logitech Cordless Desktop S520 Keyboard and Mouse $57.99 5 Year Limited 920-000922 Cordless Desktop S520 Keyboard and Mouse USB Receiver 4 x AA Batteries CD with Software Quick Start Guide Keyboard with 15 months of battery life Mouse with 8 months of battery life When you're looking for the perfect companion to your flat screen, Logitech Cordless Desktop S520 Keyboard and Mouse has all the right qualities - stylish, compact, convenient, and comfortable. AA Cordless Desktop S520 Keyboard and Mouse Keyboard Keyboard & Mouse Laser Logitech Low-profile Keys Mouse Multimedia Quiet Keys RoHS Spill Resistant USB Volume Control Wireless Yes Zoom Slider www.logitech.com

Cordless Optical TrackMan® $59.95 A cordless trackball for those who use their computer day and night.

MX™ 1100 Cordless Laser Mouse - Dented Box $79.99 A comfy cordless laser mouse that feels as natural as a handshake.

Desktop MK120 $24.99 A durable duo that brings comfort, style and simplicity together.

Logitech Cordless Desktop LX 310 Laser $55.99 1 5 Year Limited 920-000390 LX 310 Cordless Keyboard Cordless Laser Mouse USB RF Receiver 2 x AA Batteries 2 x AAA Alkaline Batteries CD with Software Quick Start Guide Zoom Windows Flip 3D LED battery level indicator Operating System(s): Microsoft Windows XP Microsoft Windows Vista Cordless Desktop LX 310 Laser Set enhances your PC's convenience with one-touch access to your digital music and enhanced function keys. Use customizable function keys on the keyboard to open applications, files, and folders instantly. Use convenient buttons on the left side of the keyboard to control your browser and navigate Web pages. Instantly adjust or mute PC audio from your keyboard. Press the Start button for direct access to the features in Windows Vista and previous versions of Windows. Included laser mouse works flawlessly on surfaces where optical mice cannot track and includes programmable buttons, a tilt wheel for vertical and horizontal scrolling, one-touch zoom, and Windows Flip 3D. Encrypted, secure cordless technology ensures a reliable connection without lags or dropouts. Batteries (included) for both keyboard and mouse last six months. Set includes an LED battery status indicator and plugs into a USB port. Compatible with Windows XP and Windows Vista. AA AAA Cordless Desktop LX 310 Laser Ergonomic Keyboard Keyboard & Mouse Laser Logitech Mouse RF RoHS Scroll Wheel USB Wireless Yes www.logitech.com

Wireless Desktop MK320 $39.99 You get a full-featured keyboard and an easy-to-tote mouse, for comfortable control at home or on the go.

Wireless Desktop MK710 $99.99 Where comfort and productivity go hand-in-hand.

V470 Cordless Laser Mouse for Bluetooth® $59.99 A Bluetooth® mouse that bumps you up to business-class mobility.

Cordless Desktop® MX™ 5500 Revolution $169.99 The speed you need. The control you crave.

Cordless Desktop® LX 310 Laser $59.99 Enjoy wireless access to precisely everything you want to do.

V220 Cordless Optical Mouse for Notebooks $24.99 A wireless mouse built for at-home and on-the-road comfort. Say good-bye to the touchpad.

Wireless Desktop MK710 - Dented Box $99.99 Where comfort and productivity go hand-in-hand.

Logitech / LOGITECH DESKTOP MICROPHONE USB / 980186-0403 $34.28 Logitech - LOGITECH DESKTOP MICROPHONE USB - 980186-0403

Logitech LOGITECH EX100 25.5 $50.63 Manufacturer: Logitech. Manufacturer Part Number: 920000879. Manufacturer Website Address: www.logitech.com. Brand Name: Logitech. Product Line: Cordless Desktop. Product Name: Cordless Desktop EX100 Keyboard and Mouse. Product Type: Keyboard amp; Mouse. Keyboard/Keypad Connectivity Technology: Wireless. Keyboard/Keypad Type: Keyboard. Keyboard/Keypad Wireless Technology: RF. Pointing Device Connectivity Technology: Wireless. Pointing Device Type: Mouse. Pointing Device Wireless Technology: RF. Movement Detection: Optical. Movement Resolution: 1000 dpi. Scroller Type: Scroll Wheel. Scroller: Scroll Wheel. Keyboard/Keypad Host Interface: USB. Pointing Device Host Interface: USB. Interfaces/Ports: USB Receiver. Color: Black. Green Compliance: Yes. Green Compliance Certificate/Authority: RoHS. Materials: Electronic Components. Dimensions: 8.0x18.2x2.6

V220 Cordless Optical Mouse for Notebooks (Pink) Dented Box $24.99 A wireless mouse built for at-home and on-the-road comfort. Say good-bye to the touchpad.

Logitech / CORDLESS MEDIABOARD PRO / 968011-0403 $87.29 Logitech - CORDLESS MEDIABOARD PRO - 968011-0403

Logitech Cordless Desktop MX 5500 Revolution Keyboard and Mouse $153.99 1 30 ft 920-000383 Bluetooth MX Revolution Laser Mouse USB Bluetooth Mini-Receiver (can be used as Bluetooth Hub) 4 x AA Alkaline Batteries CD with Software, Comfort Guidelines, and Help Center Quick-Start Guide Operating System(s): Microsoft Windows XP Microsoft Windows Vista A laser mouse with hyper-fast scrolling and a keyboard with an integrated LCD give you the speed you need. And the control you crave Bluetooth Cordless Desktop MX 5500 Revolution Keyboard and Mouse Keyboard Keyboard & Mouse LCD Display Laser Logitech Mouse Palm Rest RoHS Scroll Wheel USB Wireless Yes www.logitech.com

This entry was posted on Saturday, May 10th, 2008 at 10:07 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.