Logitech surfs to another record year

Sales of Logitech's computer mice were up 69 per cent last year. Logitech

Logitech, the world’s biggest computer mouse maker, has announced record net profit and sales for the seventh successive year.

The firm, which is listed on the Swiss stock exchange, said on Tuesday that net profit in 2004 rose by 13 per cent to $149 million (SFr177 million).

Operating income climbed 18 per cent to $172 million on sales that were up 17 per cent to $1.48 billion, helped by strong demand for cordless computer gadgets.

Announcing the results, Logitech said it expected to see sales and operating-income growth of up to 15 per cent over the next five years.

Chief executive Guerrino De Luca said he was delighted with the company’s record-breaking performance in 2004.

“We invested significantly for future growth – and our results strongly indicate that these investments are starting to pay off,” he said.

Logitech started life in 1981 in canton Vaud in western Switzerland producing computer mice for large PC manufacturers. It has expanded production over the years to include keyboards, webcams, remote controls and gaming consoles.

Retail sales of cordless mice were up 69 per cent last year, while the company also shifted 25 million webcams.

“Logitech once more delivered an excellent set of numbers,” the equities sales team at Bank Julius Bär said in a note.

“Its innovation power is a kind of guarantee for future growth. Even if customers are buying fewer PCs, they are still buying computer accessories to upgrade their computer.”

Cautious outlook

But other analysts were more downbeat in their assessment of the figures and the company’s prospects.

“The outlook for the full-year 2006 appears to be somewhat more cautious,” analysts at Bank Leu said in a note.

“The expectation with Logitech is always for better-than-expected results. This time they were just in line and the gross margin [34 per cent] was slightly lower than expected,” added one Zurich-based trader.

The company’s share price on the Swiss stock exchange was down more than two per cent at SFr71.80 during mid-morning trading on Tuesday.

Although it has its operational base in California, Logitech is a Swiss public company with its headquarters for Europe, Africa and the Middle East at Romanel-sur-Morges near Lausanne.

swissinfo with agencies

Key facts

Logitech 2004 results:

Sales: $1.48 billion (+17%)
Operating income: $172 million (+18%)
Income before taxes: $176 million (+21%)
Net profit: $149 million (+13%)

In brief

Logitech is a Swiss public company traded on the Swiss stock exchange and in the United States on the Nasdaq National Market System.

Its corporate headquarters are in Fremont, California; its regional headquarters for Europe, the Middle East and Africa are in Romanel-sur-Morges. The company employs more than 6,500 staff worldwide.