Logitech shares up as outlook raised on Google TV

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  1. JimMariner

    JimMariner Member

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    (Reuters) - Shares in Logitech International (LOGN.VX), the world's largest computer mouse maker, rose on Thursday after second-quarter profit beat forecasts and it raised its outlook on its hopes for Google TV (GOOG.O).

    The group which also makers speakers, webcams and keyboards raised its outlook for the fiscal year ending on March 31, 2011 to $2.35 billion-$2.4 billion from $2.3 billion-$2.35 billion previously.
    "We have raised our sales outlook for the full fiscal year to include our initial estimate of sales for our line of products for Google TV," Chief Executive Gerald Quindlen said in a statement.
    "We're very encouraged ... by early indicators of enthusiasm," he said, adding he saw Google TV as "another long-term growth driver for our business."

    Logitech launched its $300 set-top box for Google's new Web TV service this month along with other peripheral products like a keyboard controller and a video calling device.
    Google TV, which became available this month in the United States, lets consumers access Web content on their television screens.

    Shares in Logitech were up 2.4 percent at 19.24 Swiss francs at 0921 GMT, outperforming a 1.2 percent firmer tech index .SX8P.

    "The Google TV products could show a certain potential. At least here, more investor enthusiasm is possible," Wegelin analyst Martin Koch wrote in a note.

    "The share is still an interesting addition in the tech field and crossing the 20 franc mark is just a question of time."

    Logitech second-quarter net income of $41 million, or 23 cents per share, beat analyst forecasts and was up 95 percent from $21 million, or 11 cents per share, a year ago.

    "As in past quarters, the strong result and the raised outlook from the business model show that the ambitious long-term goals seem increasingly achievable," wrote analysts at broker ZKB in a note.
    Logitech also raised its operating income outlook to $170 million to $180 million from $160 million to $170 million previously. Sales were $582 million for the second quarter, up 17 percent from $498 million a year ago.

    Logitech has said it expects tablet computers, such as Apple Inc's (AAPL.O) iPad and Samsung Electronics' (005930.KS) Galaxy Tab, will provide an additional avenue for sales.
    (Additional reporting by Emma Thomasson in Zurich and Helen Kearney in New York; Editing by Michael Shields)

    By Catherine Bosley
    Thu Oct 28, 2010 5:27am EDT

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