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Logitech retains goals after bounce back into black

Thu, 10/27/2011 - 9:00am
Logitech is sticking to its full-year outlook after bouncing back into the black with second-quarter net profit of $17 million.

Logitech, which also makes speakers, webcams and keyboards, has struggled with a weak economic environment in mature markets, posting a loss in the previous quarter and issuing a number of profit warnings over the year.

But it retained full-year guidance on Thursday after sales in the quarter edged up 1 percent to $589 million, just ahead of the $583 million mean estimate in a Reuters poll, as robust demand in Asia offset sluggish markets in the Americas and Europe, the Middle East and Africa.

The company added it was looking to amend its $250 million share buyback program to enable the future repurchase of shares for cancellation.

At 0723 GMT, Logitech shares were 14.2 percent higher, going some way to reversing the near-57 percent lost so far this year.

"The recently revised guidance was confirmed and is clearly achievable in our view. Continued share repurchases and a $250 million amendment to the current program for future share cancellation will lend support to the share price," Vontobel analyst Michael Foeth said.

Logitech sees full-year sales of $2.4 billion and operating income of around $90 million.

The group expects a gross margin for its full year, which ends March 31, of 33 percent, and it is likely to be well above the full-year average in the third and fourth quarters.

(Reporting by Katie Reid; Editing by David Cowell and David Hulmes)

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