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Logitech Q1 net profit rises 11.5%

Logitech International, the world's largest maker of computer mice, posted an 11.5% rise in Q1 net profit, boosted by the strong performance of Harmony-brand remotes.

First-quarter net profit rose to $29 million, or 16 cents per share, weaker than market expectations, and compared with $26 million, or 14 cents per share, last year.

The group was expected to post a 27% jump in net profit to $33 million, the average estimate in a Reuters poll of 12 analysts showed.

The company confirmed in a statement its financial targets of 15% growth in both sales and operating income for fiscal year 2009.

Gross margin in 2009 was expected to be above the company's long-term target range of 32%-34%.

Logitech, which also makes speakers, webcams and keyboards, said its first-quarter gross margin rose to 34.1% from 33.7% in the year-ago period and retail sales grew 19%.

Sales of webcams, which are part of the group's video category, disappointed investors in the fiscal year 2008 as Logitech faced increased competition from Microsoft. (Reuters)