Logitech shares are trading sharply higher Thursday morning after the maker PC and consumer electronics peripherals posted better-than-expected profits for its fiscal fourth quarter ended March 31.
For the quarter, Logitech reported revenue of $532 million, down 3% from a year ago, and shy of the Street consensus at $538.4 million. But profits of 17 cents a share were well ahead of the Street at 7 cents, as gross margin expanded to 36.4% from 32.8% a year ago.
The company said it expects “improved” financial performance in the second half of the March 2013 fiscal year.
Logitech also unveiled some measures to streamline its management structure, taking out some costs in the progress.
“I look forward to leading Logitech to improved performance,” Logitech President Bracken Darrell said in a statement. “To get back to sustained, profitable growth, we need to be simpler, faster and more consumer-centric. Some of this transformation has already begun, with the management team’s work to reinvigorate the product portfolio. We now need to simplify the organization through restructuring. With board approval, I have eliminated a layer of business and sales executive management; the leaders of our business groups and sales regions now report directly to me. In addition, we will consolidate brand management and product portfolio management under the leadership of the business groups, and streamline most other functions. I expect most of this restructuring to be completed by the end of the current quarter, freeing up resources to pursue our growth opportunities. The restructuring should result in a reduction of approximately $80 million in annual operating costs.”
In a separate release, the company announced some executive changes, including the departure next month of Werner Held, senior VP of worldwide sales and marketing. His job is being eliminated.
LOGI this morning is up $1.10, or 14.1%, to $8.89.