Logitech slides as takes hit from slowed production at chip supplier

(AWP Alliance News) - Logitech International SA on Wednesday reported a strong financial second quarter but shares fell after it warned of a revenue decline in the current period.

Shares in the Lausanne, Switzerland-based computer peripherals and software company fell 7.0% after hours in New York on Tuesday. They had earlier closed up 1.8% at USD111.82.

The company reported sales of USD1.22 billion for its financial second quarter to September 30, up 2.5% from USD1.19 billion a year ago. Net income rose 5.5% to USD180.0 million from USD170.7 million. Third quarter diluted earnings per share climbed to USD1.25 from USD1.15.

"We delivered our eleventh consecutive quarter of growth and launched 19 new products for the holiday quarter," said Hanneke Faber, chief executive officer. "Growth in the Americas, Video Collaboration and Gaming supported our topline growth. Our strategic priorities and operational discipline continue to deliver."

"This [second quarter] marks another strong performance from our teams," said Matteo Anversa, chief financial officer. "Our gross margins were very strong, driving non-GAAP operating income well ahead of our outlook. We continued to execute rigorous cost management while funding targeted investments that will drive growth. Our commitment to a disciplined capital allocation model allowed us to return USD406 million to shareholders, in the form of our annual dividend and share repurchases."

In June, the company said an incident at the manufacturing facility of a semiconductor supplier resulted in the closure of site.

The facility re-opened in September and began ramping up production. It is expected to return to full production by year-end, Logitech said.

However, this is expected to reduce net sales by between USD70 million and USD80 million in the current quarter.

For the third quarter, Logitech expects net sales to decline by 5% to 0% at constant currency to between USD1.36 billion to USD1.43 billion. compared to the third quarter of 2026.

The impact of the incident is expected to be largely resolved by the fourth quarter, the company said.

By Aidan Lane, Alliance News reporter

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