Where a number of companies have been adversely affected by the coronavirus pandemic, some have seen a significant surge in demand. One of them is Logitech International, a Swiss manufacturer of computer peripherals and applications.
The company reported an increase in quarterly sales of 13.6 percent as the demand for its computer products in the midst of the worldwide lockdown. One of the key reasons for this is the abrupt move of work-from-home.
Logitech delineated the demand increased with offices and schools shutting down in the three months to the end of March. Professionals and students around the world have resorted to equipment, software, and webcams for video conferencing that have proven beneficial to the Swiss business.
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 boosted Logitech ‘s revenue from $624.3 million a year earlier, to $709.2 million. In addition, the company ‘s non-GAAP accounting operating profit rose 23.3 percent to $79 million. It stands at $387 million per year, exceeding its goal range of $365-375 million.
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According to Andreas Mueller, an analyst at Zuercher Kantonalbank told the media that given the customs duties and freight costs, Logitech’s operating results were better than expected. He said, “Thanks to a strong balance sheet, the stock remains attractive”
The shares of the company saw an early trading rise of 3.3 percent on the Swiss exchange.