Logitech raises forecast after sales jump
(Reuters) - Computer accessories maker Logitech International SA (LOGN.S) (LOGI.O) raised its forecast for the year after reporting better-than-expected quarterly results, helped by sales of covers for keyboards it makes for Apple Inc's (AAPL.O) iPads.
Logitech's shares rose as much as 15 percent on the Swiss Exchange on Thursday as the results and raised outlook forced short-sellers to unwind negative bets on the stock.
"It's mostly a squeeze from short-covering," a Paris-based trader said.
Logitech's U.S.-listed shares rose 15 percent to $15.20 in premarket trading.
Retail sales, which bring in almost all of the company's revenue, rose 4 percent to $563 million in the third quarter.
Logitech, best known as a computer mouse maker, has been focusing on accessories for tablets and smartphones. In 2013, the company's product launches included a keyboard for iPads and a wireless portable music player.
"We still have more work ahead, but our turnaround is on track ...," said CEO Bracken Darrell.
The company, which was slow to adapt to the shift to mobile devices, raised its sales forecast to $2.1 billion, from $2.0 billion, for the year ending March 2014.
Logitech also increased its non-GAAP operating income expectations to a range of $120 million to $125 million from the $100 million it had previously estimated.
Analysts were expecting full-year sales of $2.1 billion, according to Thomson Reuters I/B/E/S.
Logitech reported a net income of $48 million, or 30 cents per share, for the third quarter ended December 31, compared to a loss of $195 million, or $1.24 per share, a year earlier.
Revenue rose 2 percent to $628 million.
Analysts had expected earnings of 17 cents per share on revenue of $599.6 million.
Logitech's shares were up 12 percent at 13.70 Swiss francs in afternoon trading. The stock was the top percentage gainer on the Swiss Exchange.
(Reporting By Shubhankar Chakravorty and Sruthi Ramakrishnan; Editing by Sriraj Kalluvila)