Logitech also recorded one of the best fourth-quarter performances in the company’s history, with net income up 44% at $38.5m, on revenue up 15% at $347m. The year-end figures were equally healthy, with net income up 34% at $132m, on sales up 15% at $1.26bn.
At the same time, Logitech announced it would spend $192m to buy back its own shares to boost investor returns. Currently, Logitech owns approximately 6% of its shares outstanding, and the buyback will lift this to a maximum of 10%.
The Swiss-founded, Fremont, California-based company sold 47 million Logitech-branded products during 2003. It has also reached a remarkable milestone of selling 500 million mice.
More importantly, Logitech has been expanding its range of wireless products (including keyboards and webcams) to reduce its dependence on its main product line. Logitech and Microsoft Corp each account for about one third of the computer mouse market.
Logitech’s OEM sales were up 32% for 2003, primarily due to sales to Sony Corp of the popular EyeToy camera and USB headset for the PlayStation gaming platform. OEM console sales grew 193% during the year, and sales of mice to OEMs was also up 16% for the year.
Retail sales were up 12% for the entire year, helped by strong demand for webcams, PC headsets, and PC gaming peripherals. During the fourth quarter alone, sales of webcams grew by 93%, while PC headsets grew 41%, reflecting the increased popularity of video instant messaging, and voice over IP.
PC gaming sales in the fourth quarter grew by a staggering 89% compared to the same quarter in 2002.
Looking forward to the coming fiscal year ending March 31, 2005, Logitech expects year-on-year sales to grow by 10% and operating income to grow by 15%.
During a briefing in Zurich, CEO Guerrino de Luca revealed that the company plans small and medium-sized acquisitions, without giving any details.
This article is based on material originally published by ComputerWire
