Net income of $33 million ($0.66 per share/ADS) was 67 percent higher than last year’s net income of $19.9 million ($0.42 per share/ADS). Operating income of $42 million, compared with $26 million for the same quarter last year, represented a 65 percent growth. Gross margin at 37.9 percent grew by 233 basis points sequentially and 324 basis points over the same quarter last year.
The Company’s retail business grew by 45 percent year over year and accounted for 87 percent of third quarter revenue, continuing to thrive, with new offerings entering the market in each major product category. Of special note is the ongoing success of Logitech’s cordless products, especially cordless keyboards and cordless optical mice, as well as strong sales of Internet video cameras.
Highlights of the third quarter included:
Over one million cordless desktops (cordless mouse + keyboard combination) sold.
Over one million Internet video cameras sold.
Launch of new dualcam video cameras, the ClickSmartTM family, which combine digital camera mobility with Internet video communications.
Introduction of the MouseMan TravelerTM, a compact optical mouse designed for the burgeoning mobile environment.
Positive initial response to the new high-end Momo Force designer-style steering wheel since its introduction in early September. Strong overall sales of steering wheels for the PlayStation 2 platform.
Successful launch of Z-series speakers in the U.S. market. These initial Logitech-branded high-end audio products underscore the opportunity afforded by the acquisition of Labtec.
We are extremely pleased with our third-quarter performance, commented Guerrino De Luca, president and chief executive officer. Our business, driven by compelling, innovative products at affordable price points, coupled with a largely untapped installed base, expanding usage of the PC, and our increasing presence on additional platforms, has further proven its ability to generate growth and to deliver powerful earnings leverage.
In the midst of an extremely challenging market and economy, we have delivered our best quarter yet, and we remain confident in our ability to grow across a broad spectrum of platforms and products.
The Company updated its guidance for the full Fiscal Year 2002, ending March 31, 2002, indicating that it now expects revenue growth for the full year to slightly exceed its original target of 25 percent, and operating income to significantly surpass previous guidance and reach the $90 million to $92 million range, a 65 percent increase over the past fiscal year.
The Company also gave the first indications of its expectations for Fiscal 2003, ending March 31, 2003. Revenues should grow approximately 15 percent, with operating income expected in the $110 million to $120 million range, a growth of 25 to 30 percent over Fiscal 2002.
