Logitech Profit Drops on Slump in Demand for Computer Accessories

Swiss-American gadget maker Logitech International SA said its quarterly profit fell 33 percent as the demand for new music and video game add-ons was not enough to offset falling demand for its computer accessories.

The Lausanne-based company reported a non-GAAP operating profit of $14.5 million for the fourth quarter ended March 31, compared with $21.8 million a year earlier.

The consensus forecast for non-GAAP operating profit was $8.22 million, according to a Reuters poll of five analysts.

Net sales fell 4.71 percent to $467.2 million, beating a mean forecast of $463 million by seven analysts polled by Reuters.

The strength of the Swiss franc has been hurting the earnings of Swiss companies.

Logitech said it plans to exit its original equipment manufacturing (OEM) business and reorganize the Lifesize segment to sharpen focus on its cloud-based offering.

The company said it expects restructuring charges of about $15 million to $20 million over the coming year.

Logitech last month forecast sales of $2.15 billion and a non-GAAP operating profit of $150 million for the fiscal year ending March 2016.

The company also said it planned to return up to half a billion dollars to shareholders via dividends and share buybacks over three years.

© Thomson Reuters 2015