Logitech's successful turnaround allows it to lift guidance

ZURICH, March 6 Thu Mar 6, 2014 3:00am EST

ZURICH, March 6 (Reuters) - Computer accessories maker Logitech raised its guidance for the fiscal year starting in April and said the current year's performance would be at the upper end of its outlook, signs its focus on accessories for tablets and smartphones is paying off.

The firm has been adjusting its product offering after the rise of portable devices hit demand for traditional computer mice and webcams.

Logitech is aiming for $2.16 billion in sales and $145 million in non-GAAP operating income in fiscal year 2014/15, up from a forecast for $2.1 billion in sales and $90 million in operating income given in May last year, the group said in a statement ahead of a day of presentations to investors.

In the current fiscal year ending this month, Logitech expects $2.1 billion in sales and $125 million in operating income, at the upper end of the outlook provided in January, the group said.

"We're very confident that we are on the right track with our turnaround strategy," Bracken Darrell, president and chief executive officer, said in the statement.

"Consumers are showing their approval of our renewed emphasis on product design. We're building momentum in our growth categories and we're becoming a faster and more profitable Logitech," Darrell said.

The company also announced a share buyback programme worth $250 million, saying it aimed "to create shareholder value by making opportunistic repurchases during periods of favourable market conditions". The buyback is expected to be completed in three years.

Logitech's recent product launches include protective cases for notebooks and tablets, a mobile gaming console to be used with a smartphone and mobile speakers. (Editing by David Holmes)

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