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Logitech looking at acquisitions after strong Q4 - CEO
April 26, 2017 / 6:57 AM / 5 months ago

Logitech looking at acquisitions after strong Q4 - CEO

ZURICH, April 26 (Reuters) - Logitech is looking at acquisitions to accelerate growth and help expand into new product categories, Chief Executive Bracken Darrell said on Wednesday after the computer peripherals maker’s fourth-quarter results beat forecasts.

“We are always looking at all kinds of start-ups; I meet about five founders per week,” Darrell told Reuters.

“Our strategy does include looking where we can accelerate or differentiate our existing category development. We are generally looking at small bolt-on acquisitions, but we are not dependent on it.”

Logitech, the world’s largest maker of computer mice, posted a 52 percent increase in net profit during the three months ended March 31. Sales rose 15 percent to $496 million, ahead of forecasts. Analysts at Baader Helvea described the figures as a strong end to the year, while the company’s shares were 5 percent higher in pre-market indications.

Darrell, a former Procter & Gamble executive who took over as Logitech CEO in 2013, has led a turnaround at the company which also makes mobile speakers and detachable keyboards for tablet computers.

He highlighted growth in nearly all the company’s product categories during its fourth quarter. Despite tablet computer peripheral sales declining, there were no plans to ditch the business, which Darrell described as “very strategic”.

Research was under way into new product areas to provide new growth engines, he added.

”We are always looking at 10 or 13 new categories,“ he said. ”A lot of these won’t launch, but we are optimistic that some of them will be coming out.

“But we don’t need new categories, we can deliver what we have committed without entering new categories.”

Logitech, based in Switzerland and the United States, said in March it expected high-single-digit sales growth in constant currencies and $250-260 million in non-GAAP operating income for its next financial year which ends in March 2018.

Bracken confirmed the guidance, and his commitment to the company.

“I absolutely plan to stay, I am 100 percent committed,” he said. “I came here for a 10-year-plus run and I‘m not even half-way through what I intend to do.” (Reporting by John Revill; Editing by Michael Shields)

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