Logitech, #1 computer peripheral maker in the world, posted a FQ4 net profit of $0.29/share ($56 million), up 10% from last year's $0.26 ($51 million), but short of analyst forecasts of $59.3 million. Sales were up 10% to $513 million, but lagged analyst estimates of $552 million. The company said that an unexpected 32% drop in webcam sales caused it to miss its 17% annual revenue growth target -- full year sales were up 15% to $2.07 billion. Logitech reiterated guidance that both revenue and operating profit will rise 15% in F2008. CEO Guerrino De Luca said he is confident the company can 'reignite webcam market growth' over the next few quarters through targeted marketing. Q4 sales of cordless keyboards were up 30%, gaming peripherals gained 35%, and remote controls jumped 78%. Shares fell as much as 8.3% in Zurich this morning, after losing 1.1% yesterday.
Sources: Press release, Bloomberg, Reuters, AFX
Commentary: Why Logitech Is Making Us Nervous • Logitech: Solid But Overpriced • CEOs Discuss the PC Market: Microsoft, Intel, AMD, Logitech, Symantec
Stocks/ETFs to watch: Logitech International S.A. (LOGI). Competitors: Creative Technology Ltd. (OTCPK:CREAF), Plantronics Inc. (PLT), Microsoft Corp. (MSFT), Koninklijke Philips Electronics N.V. (PHG)
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