Mentioned in this article
- Logitech (LOGI) released its financial results for Q2 Fiscal Year (FY) 2020, with total sales revenues of $720M USD, up 4% YoY.
- The company’s gaming category sales remained the highest revenue-generating category at $161M, or 22% of total sales. Excluding headsets, sales in the category are up by double-digits.
- In September, Logitech signed an agreement to acquire live streaming tools and software developer Streamlabs for $89M.
Today, Swiss gaming and PC peripheral manufacturer Logitech announced financial results for the second quarter of Fiscal Year (FY) 2020 for the period ended Sep. 30, announcing total sales revenues were $720M, up 4% from $691M in the same period last year.
The company reported that Q2 generally accepted accounting principles (GAAP) operating income grew 4% to $68M, compared to $65M in the same quarter a year ago. Q2 GAAP earnings per share (EPS) grew 13% to $0.43, compared to $0.38 in the same quarter a year ago. Simultaneously, Logitech increased cash flow from operations to $107M, compared to $85M in the same period a year ago.
“Our solid Q2 demonstrates Logitech’s resilience as we continue to execute on our strategy,” said Bracken Darrell, Logitech president and chief executive officer. “This quarter, we delivered record sales in video collaboration, which grew nearly 60 percent, as well as strong growth in our PC peripherals categories. We continue to perform in spite of the challenging macroeconomic environment and are confirming our annual guidance heading into the second half of the fiscal year.”
Similar to the first quarter, Logitech pointed out that gaming sales were up 2% current currency in Q2 as the company continued to confront challenging Fortnite comparisons. Excluding ASTRO and PC gaming headsets, sales growth in the rest of gaming products remained in the double digits in Q2. The gaming category generated the most sales revenues out of Logitech’s categories at $161M in sales or 22% of the company’s total sales.
Regional sales were up in every region. Americas sales were up 5% with robust growth in the video collaboration category, offsetting a difficult gaming category comparison against last year. Europe, the Middle East, and Africa (EMEA) sales were up 10% YoY current currency representing the third consecutive quarter of double-digit growth in the region. Asia Pacific sales were up 3% current currency despite unfavorable currency exchange rates and China tariff headwinds.
On Sept. 26, Logitech announced it had agreed to acquire Streamlabs for $89M. Streamlabs offers software and tools for game streamers to engage with viewers, grow personal brands and channels, and monetize broadcasts across platforms such as Twitch, YouTube, Mixer, and Facebook. The acquisition is not expected to materially impact Logitech’s FY 2020 annual net sales or non-GAAP operating profitability, but the company did not repurchase any stock during Q2 due to the acquisition.
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