Things are not looking so rosy for Logitech International, at least in the last three months this year, based on latest figures from the company.
Logitech International stated that its net income for the first quarter of fiscal year 2023 decreased to $100.84 million, or $0.61 per share, from $186.84 million, or $1.09 per share, in the same period of the previous fiscal year.
While macroeconomic concerns impacted the performance this quarter, Logitech president and CEO Bracken Darrell is still very optimistic.
While macroeconomic concerns impacted the performance this quarter, Logitech president and CEO Bracken Darrell is still very optimistic.
The non-GAAP earnings per share for the quarter decreased from $1.22 to $0.74.
First-quarter sales were $1.16 billion, a decrease of 12 percent in US dollars and 9 percent in constant currency compared to the same period last year.
The performance reflected the industry's difficult macroeconomic situation and contrasted with the previous year's fourth quarter, which climbed by 66 percent in US dollars.
Logitech lowered its expectation for fiscal year 2023 to between negative 8 percent and negative 4 percent constant currency sales growth and between $650 million and $750 million in non-GAAP operating income.
The Company's previous expectation anticipated constant currency sales growth between 2 and 4 percent and non-GAAP operating income between $875 million and $925 million.
Logitech said that its board of directors has authorized an enhanced share repurchase program of up to $1.5 billion. It enhances the company's current $1 billion, three-year authorization to repurchase shares.
Subject to the approval of the Swiss Takeover Board, the increase will result in a total authorisation of nearly $800 million for repurchases during the next 12 months of the program, which will conclude in July 2023.
During the most recent reporting period, a number of the company's product lines had a considerable sales fall.
In the most recent reported quarter, revenue from the video collaboration, PC webcams, tablet and other accessories, audio and wearables, mobile speakers, and smart home product categories shed significant numbers.
LOGI's revenue growth is likely to have been hindered by a strong comparison with the same quarter a year ago.
The ongoing Russian invasion of Ukraine and industry-wide increases in component costs are expected to have had a detrimental influence on the company's quarterly sales.
According to Gartner, the U.S. and EMEA have already experienced a 17.5 percent and 18 percent decline in PC shipments, respectively.
In addition, Logitech's strong investment in retail point-of-sale marketing and increased promotional spending may have had a negative impact on its first-quarter profit.
