Logitech delivers record Q2 sales and double-digit profit growth

Logitech International has announced financial results for the second quarter of Fiscal Year 2019. Q2 sales were $691 million, up 9 percent in US dollars and 10 percent in constant currency, compared to Q2 of the prior year. Q2 GAAP operating income reached $65 million, compared to $59 million in the same quarter a year ago. Q2 GAAP earnings per share (EPS) grew 15 percent to $0.38, compared to $0.33 in the same quarter a year ago.

Q2 non-GAAP operating income grew 18 percent to $85 million, compared to $71 million in the same quarter a year ago. Q2 non-GAAP EPS grew 26 percent to $0.49, compared to $0.39 in the same quarter a year ago. Q2 cash flow from operations was $85 million, up 24 percent compared to Q2 of the prior year. Cash flow from operations for the fiscal year to date was $97 million, compared to $67 million for the same period a year ago.

“Q2 showcased the power and diversity of our portfolio,” said Bracken Darrell, Logitech president and chief executive officer. We delivered our highest ever sales for a second quarter, with double-digit growth in both gaming and video collaboration and solid growth in our PC Peripherals categories. Our innovation engine is on display as we move into the holiday quarter with a line-up of new, innovative products already well-received by consumers.”

Vincent Pilette, chief financial officer, said, “With healthy sales growth of 10 percent in constant currency, we delivered a strong gross margin, above our long-term target. Our constant and obsessive focus on operational efficiency allowed us to continue to invest for future growth while growing non-GAAP operating profit 18 percent and once again delivering strong leverage to the bottom line.”

Logitech confirmed its Fiscal Year 2019 outlook of 9 to 11 percent sales growth in constant currency and $325 million to $335 million in non-GAAP operating income. Technology highlights over the quarter included the introduction of an intelligent software suite for Logitech’s video collaboration portfolio, Logitech RightSense. Together these technologies automate light, colour, sound, and camera control to deliver a more natural and engaging video conferencing experience for more effective collaboration. These new technologies are integrated into Logitech’s most advanced video collaboration devices, including Logitech Rally, enabling more natural meetings with most software-based video conferencing services.

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