Logitech to pay dividend, reiterates outlook

Thu May 23, 2013 3:37am EDT

* Full-year dividend of 0.21 francs per share

* Reiterates 2014 financial outlook

* Says new products will help it return to growth

ZURICH, May 23 (Reuters) - Computer accessories company Logitech International plans to pay an annual dividend every year as new products help it return to sales and profit growth, the company said on Thursday.

After announcing an ordinary dividend of 0.21 Swiss francs per share for the year to March 31, Logitech said it would discuss its longer-term goals at its investor event in Zurich later in the day.

It said it expects $2.25 billion of sales, operating income of $150 million and a gross margin of about 35 percent in the year to March 31, 2016.

The company also reiterated its forecast for this financial year, with sales of about $2 billion, operating income of $50 million and gross margin of about 34 percent.

"Logitech will need to come forward with strong arguments to support its growth strategy in order to convince investors that the company will be able to deliver on its targets," Vontobel analyst Michael Foeth said.

"We further believe that it will take several quarters and proof by numbers to show that the company is on the right path."

The company, which makes computer peripherals such as mice, keyboards, cameras and speakers, has been struggling to adapt to the rise of touch-screen tablets and smartphones.

It posted a net loss of $228 million for the full year but said its efforts to accelerate growth in mobility products, maximise profitability in PC peripherals and reduce operating expenses should help it to meet its forecasts.

Shares in the company, which recently launched new products including a wireless portable music player and a keyboard to be used with Apple's iPad, were up by 1.6 percent by 0836 GMT.

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