Logitech, which partnered with Google on the launch of the Logitech Revue with Google TV this year, said third quarter 2011 sales were $754 million, up 22 percent from $617 in the same quarter a year ago. The company said net income was $65 million (36 cents per share), up from $57 millions (32 cents per share) in 3Q2010.
The company called its rollout of Logitech Revue and Google TV a "highlight of the quarter," and said it was confident of the long-term potential of the Google TV platform. It was the second vote of confidence the platform has received in the past two days during earnings reports. Netflix, in a letter to shareholders, yesterday said it hasn't given up on Google TV, expected more users to stream video over the platform because "the concept of Android and Chrome built into televisions and Blu-ray players is powerful." It said it would continue to invest in its own Google TV application.
For Fiscal Year 2011, ending March 31, 2011,meanwhile, Logitech has increased its sales outlook from the previous range of $2.35 to $2.4 billion to the new range of $2.4 to $2.42 billion. The target for operating income for the full year remains in the range of $170 to $180 million. Expected gross margin continues to be approximately 36 percent. The expected tax rate has been lowered to approximately 14 percent.
"We are very pleased with our Q3 performance, which included our highest-ever quarterly sales and strong year-over-year growth in both sales and operating income," said Gerald P. Quindlen, Logitech president and chief executive officer. "All of our retail product categories contributed to our sales growth, with double-digit increases in remote controls, pointing devices, video and gaming. OEM sales made a very solid contribution, and the momentum continued for our LifeSize division, which delivered the highest-ever quarterly sales in its history."
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