For the third quarter ended December 31, the Romanel-Sur-Morges, Switzerland-based company posted net income up 34% at $94.3m from $71.3m in the year-ago quarter. Sales rose 15% to $658.5m from $574m in the same quarter a year ago. Growth was mostly driven by retail, where sales rose 16%, while unit sales increased 10%. OEM sales rose 4% while unit sales declined 3%.
This was our best quarter ever, reflecting significantly improved margins across all major product categories, said chief executive Guerrino De Luca.
In Europe retail sales rose 19% with unit shipments up 10%, while in North America retail sales rose 14% with unit shipments up 12%. The company reported strong sales of its audio, cordless mice and remotes in these two regions. In Asia Pacific retail sales rose only 2%, with unit shipments up 4%. Logitech blamed the impact of an organizational transition in Japan on the restrained growth.
Product-wise, Logitech recorded sales growth in all but one of its product categories, when the Console Platform of the gaming sector declined 46%. PC gaming rose 82%.
Overall, sales of cordless devices rose 10%, with cordless mice up 19% and cordless keyboards up 1%. Corded products rose 9%, while video (web cams) rose 16%. But the undoubted star performer was audio (headphones and speakers), which 27% year-on-year rise in sales during the quarter.
One highlight for the quarter was our outstanding year-over-year growth in audio, demonstrating the continued consumer appetite for iPod and PC speakers that enhance the digital music experience, said De Luca.
Sales were also helped by a 42% rise in its Harmony remote controls.
Looking forward, it continues to expect sales growth of 17% and raised its operating income growth target from 20% to 25%, to 25% to 30%. For 2008, it expects operating income up 15% with sales also up 15%.
Shares in the Swiss computer peripherals maker rose 3.36% to $29.56 on Nasdaq on Thursday.
