Computer peripherals company Logitech has reported a 71% decline in net income to $20.7m for the second quarter 2010, compared to a net income of $72.3m in the year-ago quarter. Revenue declined 25% to $498.09m. Skip related content
Operating income declined 66% to $27.34m, while diluted EPS fell 72% to $0.11. Gross margin was 30.5% compared to 34.3% in the same period last year.
The Switzerland-based company said its retail revenue fell 19%, with a 5% decline in the Americas, 24% decline in EMEA, and 28% decline in Asia. OEM revenue declined by 54%.
For the first half, Logitech reported a net loss of $16.62m compared to a net income of $101.6m a year ago. Revenue declined 30% to $824.2m.
Gerald P. Quindlen, president and chief executive at Logitech, said: "Our Q2 results demonstrate that we continue to deliver on our plan to navigate the downturn. We delivered the predicted return to profitability, driven by a substantial improvement in gross margin compared to Q1 and our diligence in controlling costs. Sales and profitability benefited from better-than-expected sell-through of our products in the Americas and EMEA. Our focus on working capital management resulted in cash flow from operations of $133m for the first half. We anticipate a return to year-over-year profit growth starting in Q3."
Looking ahead to the third quarter, the company expects revenue between $575m and $595m, gross margin of approximately 31%, and operating income in the range of $45m to $50m.
