Logitech Sees Logistics, Component Crisis to Extend to 2022

President Joe Biden holds a semiconductor chip as he speaks prior to signing an executive order, aimed at addressing a global semiconductor chip shortage, in the State Dining Room at the White House on Feb. 24, 2021. (Jonathan Ernst/Reuters)

Logitech International SA CEO Bracken Darrell expects logistics problems and component shortages to continue at least into early 2022, Reuters reports.

“We will have some issues delivering at the levels of demand that are out there. But we have strong levels of inventory,” Darrell said.

Logitech was also adding new suppliers and relying on its long-term relationships with some manufacturers to deal with the semi-conductor chip crisis, he said.

Logitech reported Q2 revenue of $1.31 billion, up 4 percent year-on-year, above the consensus of $1.27 billion.

The non-GAAP gross margin contracted 370 bps to 42 percent due to increased promotional spending, higher logistics rates, inventory reserves, and higher product costs.

The adjusted EPS of $1.05 beat the consensus of $1.10.

Logitech held $1.1 billion in cash and equivalents and used $63 million in operating cash flow.

Logitech reaffirmed its FY22 revenue outlook of (5) percent – 5 percent.

Logitech reiterated a non-GAAP operating income of $800 million – $850 million.

“In Q2 we delivered record sales which beat last year’s exceptional sales levels, growing 4 percent in the quarter and 82 percent compared to two years ago. We also grew market share in the majority of our key product categories,” Darrell said.

Price Action

LOGI shares traded lower by 6.14 percent  at $83.92 on the last check