October 23, 2018 / 5:57 AM / a year ago

Logitech maintains full-year outlook despite record second quarter sales

ZURICH (Reuters) - Swiss computer accessory maker Logitech International SA (LOGN.S) reported record second quarter sales on Tuesday, helped by growth in gaming and video collaboration, but maintained its sales and earnings outlook for the full fiscal year.

That disappointed some investors and helped send the company’s shares down nearly 6 percent, although Logitech said it was optimistic for the year-end holiday period.

Logitech, which was set up in the 1980s to make computer mice and keyboards, later diversified into a much wider range of accessories, including wireless headphones, digital pencils for tablets and gaming devices.

“We delivered our highest ever sales for a second quarter, with double-digit growth in both gaming and video collaboration and solid growth in our PC peripherals categories,” President and CEO Bracken Darrell said in a statement.

New products already released for the upcoming holiday season had been well received by consumers, said Darrell who has led a successful turnaround at Logitech, which was in the doldrums when he took over in January 2013.

Shares in the company, which have risen more than 20 percent this year, were down 5.7 percent at 0824 GMT, versus a 1.9 percent decline in the overall Swiss market .SLI, with traders citing profit taking.

One Zurich-based trader said Logitech had failed to further increase its guidance.

Logitech maintained its outlook for 9 to 11 percent sales growth in constant currency and $325 million - $335 million (258.4 million pounds) in non-GAAP operating income for its fiscal year to March 2019.

Sales rose 9 percent to $691 million in the second quarter, in line with forecasts in a Reuters poll, while non-GAAP operating income increased by 18 percent to $85 million, ahead of a $79 million estimate in the poll.

“Guidance was already increased in the previous quarter and now confirmed as expected,” said ZKB analyst Andreas Mueller, confirming his “overweight” recommendation on the stock.

Reporting by Silke Koltrowitz; Editing by Subhranshu Sahu and Susan Fenton

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