Logitech’s second-quarter earnings boosted by AI-enabled merchandise

By John Revill

ZURICH (Reuters) -Logitech on Tuesday reported better-than-expected gross sales and earnings for the second quarter as the pc peripherals maker bought extra of its synthetic intelligence-enabled merchandise.

The Swiss-American firm mentioned its gross sales rose 6% to $1.19 billion for the three months ended September 30.

The determine got here in barely forward of the analyst estimate of $1.18 billion, in line with Seen Alpha.

In the meantime, non-GAAP working revenue rose 19% to $230 million, beating analysts’ estimates of $196 million.

Logitech mentioned it was being helped by elevated gross sales to companies, which have been investing extra in merchandise resembling video conferencing gear and pc peripherals to assist with hybrid work.

Gross sales of pc keyboards rose 12%, whereas these of mice jumped 13% within the quarter. Gross sales of video collaboration units rose 5%.

Gaming product gross sales rose 8%, helped by 12 new launches, together with steering wheels and particular mice aimed toward pc players.

“We delivered one other sturdy quarter, driving development and wonderful profitability,” CEO Hanneke Faber mentioned in an announcement.

The corporate noticed sturdy demand from companies and shoppers, Faber added.

Logitech – which is predicated in Lausanne, Switzerland, and San Jose, California – has not too long ago been shifting manufacturing strains from China to minimize the impression of U.S. tariffs, whereas its plant in Suzhou will proceed to produce China.

Logitech additionally elevated costs by 10% within the U.S. in April to counter the tariff impression.

For the approaching quarter, Logitech expects gross sales of $1.38 billion to $1.42 billion, a rise of three%-6% when transformed to U.S. {dollars}.

It additionally mentioned it anticipated non-GAAP working revenue of $270 million to $290 million.

(Reporting by John Revill; Enhancing by Anil D’Silva)