Logitech profit tops forecasts as gaming and video equipment demand grows

Logitech International posted second-quarter non-GAAP operating income of $231 million on October 27, exceeding analysts’ expectations as demand increased for gaming and video conferencing equipment. Revenue for the quarter ended in September rose 3% to $1.22 billion.

The Swiss-U.S. computer peripherals maker surpassed the $204 million profit consensus compiled by Visible Alpha and its own projected range of $185 million to $210 million. Revenue matched analysts’ estimates and reached the top of Logitech’s $1.19 billion to $1.22 billion outlook.

CEO Hanneke Faber said sales of pointing devices and keyboards increased by mid-single digits despite a 20% decline in global PC shipments during the quarter. She cited new products as a contributor to growth, including 15 gaming launches.

Revenue from video collaboration equipment increased 12% as corporate customers updated workplaces following efforts to bring employees back to offices. Faber also reported strong demand from government and healthcare customers.

Logitech lowered its estimate of lost sales linked to the forced shutdown of a semiconductor supplier’s factory at the end of June. After sourcing chips elsewhere, it now expects a $70 million to $80 million impact, compared with its initial estimate of up to $200 million.

For the quarter ending in December, Logitech forecast revenue of $1.36 billion to $1.43 billion and non-GAAP operating income of $220 million to $255 million. The company attributed the expected profit decline from $312 million a year earlier to increased component and transportation costs, alongside sales lost because of the factory closure.