Logitech reports a 13.6% increase in Q4 sales on higher demand for video collaboration tools

Logitech (SWX: LOGN) said that its quarterly sales came in 13.6% higher on Tuesday. Its computer products, the company added, were greatly in demand in the recent quarter as the Coronavirus pandemic pushed companies into resorting to work from home arrangements.

Logitech said that its software, video conferencing equipment, and webcams saw a sharp increase in demand as governments ordered schools and offices to temporarily shut down to minimize the fast transmission of the flu-like virus.

Logitech posts a 23.3% year over year increase in its quarterly operating income

The Swiss manufacturer reported its sales at £584 million in Q4 as compared to £505 million in the same quarter last year. According to CEO Bracken Darrell of Logitech:

“Video conferencing, working remotely, creating and streaming content, and gaming are long-term secular trends driving our business. The pandemic hasn’t changed these trends; it has accelerated them.”

The software and computer peripherals maker posted its quarterly operating income (non-GAAP) at £64 million that marks a 23.3% year over year increase.

For the full year, Logitech noted a 6.7% increase in sales that was reported in line with the forecast. Its annual operating income (non-GAAP), on the other hand, came in stronger than the target range, at £313 million.  

Logitech also maintained its full-year guidance that it gave in March that expected its sales to grow by a mid-single-digit percentage in fiscal 2021 and its operating profit to climb to the range of £307.50 million to £323.50 million.  

Higher demand for video collaboration tools fuels a 60% increase in sales

Its upbeat quarterly performance, as per the Swiss company, was primarily attributed to a higher demand for video collaboration tools like microphones, cameras, and software for online meetings that fuelled a 60% increase in sales in Q4.

The company said that it expects the new trend to remain in place even after the health crisis subsides, which is why it plans on launching new products in this segment. Logitech is also likely to expand its marketing expenditure and investment at large in video collaboration equipment.   

The Lausanne-headquartered company registered a 32% sales growth in PC webcams primarily in the Asia Pacific and Americas region.

Logitech is currently around 13% up year to date in the stock market. Its performance in 2019 was also reported largely upbeat with an annual gain of around 50%. At the time of writing, Logitech has a market cap of £7.51 billion and a price to earnings ratio of 32.57.