The total sale revenues for the third quarter for Logitech International dropped by 22%, the tech giant reported on Tuesday. The results were in line with the preliminary results that depicted that the business customers of the company were postponing buying of new equipment because of their concerns about an impending economic slowdown.
There was a strong growth in demand for the home office products and computer gaming devices of the company during the COVID-19 lockdowns. However, that demand has slowed down considerably as various countries eased and lifted pandemic-induced restrictions as well as because of persistently high rates of inflation globally which has caused a rise in costs and consequently discouraged consumers from spending.
The rebound of COVID-19 pandemic in China in 2022 which forced multiple cities of the country to be placed under lockdowns for extended periods of time also resulted in the Swiss-American manufacturer of computer mice, keyboards, and webcams facing difficulty in acquiring parts and obtaining components from its factories in China.
In the three months ending December 31, Logitech's sales fell to $1.27 billion. The company's sales have dropped to between $1.26 and 1.27 billion, according to preliminary figures released on January 11.
Non-GAAP operating income fell 32% year on year to $204 million from $302 million. It had previously reported preliminary operating income ranging from $198 to $203 million.
"These quarterly results reflect the current challenging macroeconomic conditions, including currency exchange rates and inflation, as well as lower enterprise and consumer spending," Chief Executive Officer Bracken Darrell said.
The firm also maintained its forecast for the fiscal year 2023.
It still expects full-year sales to fall 13% to 15% in the fiscal year ending March 31, and non-GAAP operating income of $550 to $600 million.
(Source:www.theprint.in)
There was a strong growth in demand for the home office products and computer gaming devices of the company during the COVID-19 lockdowns. However, that demand has slowed down considerably as various countries eased and lifted pandemic-induced restrictions as well as because of persistently high rates of inflation globally which has caused a rise in costs and consequently discouraged consumers from spending.
The rebound of COVID-19 pandemic in China in 2022 which forced multiple cities of the country to be placed under lockdowns for extended periods of time also resulted in the Swiss-American manufacturer of computer mice, keyboards, and webcams facing difficulty in acquiring parts and obtaining components from its factories in China.
In the three months ending December 31, Logitech's sales fell to $1.27 billion. The company's sales have dropped to between $1.26 and 1.27 billion, according to preliminary figures released on January 11.
Non-GAAP operating income fell 32% year on year to $204 million from $302 million. It had previously reported preliminary operating income ranging from $198 to $203 million.
"These quarterly results reflect the current challenging macroeconomic conditions, including currency exchange rates and inflation, as well as lower enterprise and consumer spending," Chief Executive Officer Bracken Darrell said.
The firm also maintained its forecast for the fiscal year 2023.
It still expects full-year sales to fall 13% to 15% in the fiscal year ending March 31, and non-GAAP operating income of $550 to $600 million.
(Source:www.theprint.in)
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