Computer goods maker Logitech International on Monday warned operating income for fiscal 2022 will drop back from a 2021 boom driven stoked by demand for mice and keyboards for work and leisure at home amid the coronavirus pandemic.

Logitech keyboards are seen in the computer shop in Zenica

FILE PHOTO: Logitech keyboards are seen in the computer shop in Zenica, Bosnia and Herzegovina October 20, 2020. REUTERS/Dado Ruvic

REUTERS: Computer goods maker Logitech International on Monday warned operating income for fiscal 2022 will drop back from a 2021 boom driven stoked by demand for mice and keyboards for work and leisure at home amid the coronavirus pandemic.

Operating income for fiscal 2022, measured under non-Generally Accepted Accounting Principles (non-GAAP), is expected to be between US$750 million and US$800 million, the Swiss-U.S. company said. That’s down from the US$1.1 billion it now expects for fiscal 2021, a fraction up from a previous estimate of US$1.05 billion.

Sales for fiscal 2022, measured in constant currency terms, will be about flat – plus or minus 5per cent. For fiscal 2021, Logitech raised its sales growth forecast to about 63per cent in constant currencies, up from the 57-60per cent range it previously expected.

In January, Logitech reported a more than three-fold jump in quarterly adjusted operating income, benefiting from the pandemic-driven boost in demand for work-from-home products and gaming accessories.

Sales at the company, which makes mobile speakers, keyboards, mice and video conferencing devices, increased 85per cent to US$1.67 billion in the third quarter, which has traditionally been the company’s biggest sales period.

The company also said on Monday its expectations of long-term sales growth in constant currency have increased to 8per cent to 10per cent, up from high-single digits and that its non-GAAP operating margin target has improved to between 14per cent and 17per cent, up from 11per cent to 14per cent.

(Reporting by Kanishka Singh in Bengaluru; Editing by Kenneth Maxwell)



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