Logitech International (LOGI) has reported a 12.75 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $25.04 million, or $0.15 a share in the quarter, compared with $28.70 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $34.98 million, or $0.21 a share compared with $22.98 million or $0.14 a share, a year ago. Revenue during the quarter grew 15.16 percent to $496.16 million from $430.84 million in the previous year period. Gross margin for the quarter expanded 398 basis points over the previous year period to 36.96 percent. Total expenses were 95.58 percent of quarterly revenues, down from 97.60 percent for the same period last year. This has led to an improvement of 202 basis points in operating margin to 4.42 percent.
Operating income for the quarter was $21.93 million, compared with $10.36 million in the previous year period.
However, the adjusted operating income for the quarter stood at $36.12 million compared to $22.42 million in the prior year period. At the same time, adjusted operating margin improved 207 basis points in the quarter to 7.28 percent from 5.20 percent in the last year period.
Bracken Darrell, Logitech president and chief executive officer, said, "Our FY 2017 performance demonstrates the strength of our strategy. For the fourth consecutive year, we accelerated growth in retail sales. We grew across almost all our product categories and in all our regions. Many categories - Video Collaboration, Mobile Speakers, Gaming, and Smart Home - grew double digits, and PC Peripherals saw solid growth too. And we’re just getting started. I’m excited by our pipeline of innovative products and the amazing world of opportunities unfolding in front of us."
For financial year 2018, Logitech International forecasts adjusted operating income to be in the range of $250 million to $260 million.
Operating cash flow improves significantly
Logitech International has generated cash of $278.73 million from operating activities during the year, up 52.22 percent or $95.62 million, when compared with the last year. The company has spent $98.96 million cash to meet investing activities during the year as against cash outgo of $60.69 million in the last year.
The company has spent $146.06 million cash to carry out financing activities during the year as against cash outgo of $141.67 million in the last year period.
Cash and cash equivalents stood at $547.53 million as on Mar. 31, 2017, up 5.46 percent or $28.34 million from $519.20 million on Mar. 31, 2016.
Working capital remains almost stable
Logitech International has witnessed a decline in the working capital over the last year. It stood at $506.28 million as at Mar. 31, 2017, down 0.98 percent or $5.03 million from $511.32 million on Mar. 31, 2016. Current ratio was at 1.99 as on Mar. 31, 2017, down from 2.23 on Mar. 31, 2016.
Cash conversion cycle (CCC) was almost stable at 13 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 16 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 36 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 40 days for the quarter from 38 for the same period last year.
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