Where the coronavirus pandemic has affected a number of businesses adversely, some have seen a major surge in demand. Logitech International, a Swiss manufacturer of computer peripherals and software, is one of them.
The company has reported a 13.6% rise in quarterly sales as the demand for its computer products amidst the worldwide lockdown. One of the main reasons behind this is the sudden shift to working from home.
Logitech delineated that the demand accelerated in the three months to the end of March when offices and schools shut down. Professionals and students around the world have resorted to video conferencing equipment, software, and webcams that have proved beneficial for the Swiss company.
The company’s Chief Executive Officer Bracken Darrell said in a statement:
Video conferencing, working remotely, creating and streaming content, and gaming is long-term secular trends driving our business. The pandemic hasn’t changed these trends; it has accelerated them.
All this increased the revenue of Logitech to $709.2 million from $624.3 million a year earlier. Additionally, the company’s operating income on a non-GAAP accounting basis rose 23.3% to $79 million. Its annual stands at $387 million, beating its target range of $365-375 million.
According to Andreas Mueller, an analyst at Zuercher Kantonalbank told the media that Logitech’s operating results were better than expected despite the customs duties and freight costs. He said, “The stock remains attractive, thanks in part to a strong balance sheet.”
The company’s shares saw a 3.3% increase in early trade on the Swiss exchange.