Switzerland-based Logitech has reported Q1 sales of $608m, up 15% in dollars and 12% in constant currency, compared to Q1 of the prior year. Based on the performance in Q1 and the acquisition of Blue Microphones, Logitech raised its Fiscal Year 2019 outlook to 9% to 11% sales growth in constant currency, up from its previous outlook of high single-digit sales growth.
Q1 GAAP operating income reached $32m, compared to $31m in the same quarter a year ago. Q1 non-GAAP operating income grew 41% to $61m, compared to $43m in the same quarter a year ago.
“We’ve delivered a great start to the year and are raising our guidance,” said Bracken Darrell, Logitech president and chief executive officer. “The diversity of our portfolio and strength of our innovation engine are working. Our Gaming and Video Collaboration categories both grew more than 60% in Q1. But as we always say, ‘you’re only as good as what you’re doing in the future.’ With that in mind, we’re playing offense. While innovation investments continue to advance and our business is strong, we are realigning our organization to put more firepower against growth opportunities. We also agreed to acquire Blue Microphones, a leading player in the microphone space.”
Logitech has agreed to acquire Blue Microphones (range pictured), based in Southern California, for approximately $117m in cash, assuming breakeven net working capital at close. Blue Microphones makes studio-quality microphones for professionals and consumers. The Blue Microphones acquisition is a new adjacent opportunity for Logitech, consistent with the Company’s approach to M&A, it says.
During Q1, Logitech realigned resources to support the continued evolution of its capabilities, portfolio and growth opportunities.
