Computer peripherals maker Logitech International SA beat profit expectations in its first-quarter results published today, but said sales growth disappointed because of logistical problems in the US.
The company, which grew revenues 14 per cent to $195 million, said it had ended the quarter to June 30 with $5 million of products it could have sold but failed to deliver. The company had forecast sales of $200 million.
It said it had meanwhile sorted out the problems which came with an effort to concentrate third party US warehouses.
Logitech's net profit in the three months to June 30 rose 71 per cent to $10.8 million. Operating profits swelled 55 per cent to $12.6 million, $1.6 million more than it had guided.
The company reiterated it expected full-year revenues to grow 16 per cent and operating income to grow 23 per cent in the 12 months to March 31, 2003, driven by a record number of new product launches which include mobile phone headsets, controllers for games consoles and an ultraslim digital camera.
Logitech also said it would use up to 75 million Swiss francs, or some $50 million of its $161 million cash pile to buy back its own shares over the next 12 months.
Logitech shares fell 4.7 per cent to $40.35 in New York trade, underperforming the tech-heavy Nasdaq index which declined 2.3 per cent.
But the shares fell in line with other European technology stocks. Logitech shares listed in Switzerland fell 3.9 percent to close at 60 Swiss francs before the news was announced, barely changed from the 60.75 francs where they closed out 2001.
Logitech also makes Internet video cameras, computer mice and trackballs, keyboards, audio and telephony products.