Ahead of the Bell: Logitech falls on outlook
NEW YORK (AP) — Shares of Logitech International SA skidded in premarket trading Thursday after it said that the second half of its fiscal year will likely be weaker than the first because of a weak personal computer market.
The Swiss company makes computer accessories, video conferencing equipment and other gadgets. Logitech said its net income more than tripled in the second quarter because of an income tax benefit, but it said PC sales slumped more than expected. That is partly because customers were waiting for Microsoft to launch Windows 8, the newest version of its operating system. But there were also poor sales in emerging markets.
"We are now planning for continued strong headwinds in all of our PC-related categories for the remainder of the fiscal year. We expect this weakness to more than offset the positive impact of our new product launches," said Chairman and CEO Guerrino De Luca.
Logitech shares slid 7.5 percent, to $8.10 in premarket trading.
In the second quarter, Logitech said its net income rose to $54.9 million, or 35 cents per share, from $17.4 million, or 10 cents per share. The results included an income tax benefit of $32 million from the closing of an audit. Revenue fell 7 percent, to $548 million from $589.2 million.
Analysts expected net income of 11 cents per share and $577.1 million in revenue, according to FactSet.