Logitech International announced the second quarter fiscal year 2021 results on Tuesday, reporting a surge in revenue and net profit. The Swiss-US based computer peripheral maker has reported a whopping 75% increase in quarterly sales, after benefiting hugely from the work-from-home trend induced by the COVID-19 pandemic.
An increase in 75% in sales translated to $1.26 billion, as the reported net income rose from $73 million a year to $266.9 million. This is the first time that Logitech’s quarterly revenue has exceeded the billion dollar mark-a testimony to the humongous growth of the PC industry caused by the pandemic.
Q2 non-GAAP operating income grew 295 percent to $354 million, compared to $89 million in the same quarter a year ago, which has led to Logitech adjusting its full year forecast. The company now says that it expects an increase in annual sales, a growth of 35%- 40% in constant currencies, and non-GAAP operating income of between $700 million and $725 million.
The Chief Executive Officer Bracken Darrell acknowledged the role of the pandemic in the increase in sales in a statement saying, “The growth trends that drive our business have accelerated as society adjusts to its new reality.”
“The organization leaders I speak to envision people increasingly working from multiple locations, a hybrid work culture that is emerging as the norm,” he added, pointing out another significant trend which contributed to the jump in sales.
The COVID-19 pandemic has forced most of the companies in the world to make a shift towards working from home, with some companies like Microsoft noting that employees can now work remotely indefinitely. This change involves investing in proper computer peripherals to make the transition as smooth as possible, and this is where Logitech comes into the picture.
Working from home requires one to have a computer fully equipped with the right hardware. The kind of hardware which allows people to make video calls, do presentations, and work without friction or limitations. This necessitates the use of computer peripherals such as webcams, headsets, presentation remotes, speakers, etc—all of which are offered by brands like Logitech.
The work-from-home trend is very likely to continue as long as the pandemic continues to reign, so there’s a high chance that companies like Logitech may see more growth in the revenues before the business returns to normal.