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Pandemic Induced Stay At Home Orders See’s A Surge In Logitech’s Sales


05/13/2020


Pandemic Induced Stay At Home Orders See’s A Surge In Logitech’s Sales
The work from home orders imposed all across the world because of the novel coronavirus pandemic has seen demand for products of Swiss American Company Logitech rise significantly in the latest completed quarter.
 
The company said demand for its webcams, mouse and keyboards, both online and in retail stores, surged in the last few weeks. Other products of the company that have been in good demand include its conference cameras, gaming headsets and top end gaming mice, the company said.
 
This surge in demand has resulted in a 62 per cent demand growth for the company’s video collaboration equipment gear and a 32 per cent sales growth for webcam. The company also reported a spike of 8 per cent in its gaming devices. On the overall, the company reported a year on year growth of 14 per cent in sale in the most recently completed quarter.
 
The company reported that during the quarter, the sale of the company’s products across all its brands – including Ultimate Ears and Jaybirds, were the highest ever at $2.98 billion. The cash flow from operations was also an all time record for the company at $425 million for the quarter compared to the $305 million in the comparable period a year ago.
 
During the three months to the end of March, there had been a boom in demand for video collaboration products, said the company’s Chief Executive Officer Bracken Darrell, primarily because of the shutting down of schools and offices to prevent the spread of the pandemic which induced people forced inside their homes having to depend on video conferencing equipment, software and webcams. Families also stayed connected with one another through video conferencing as they were prevented from seeing the loved ones during the pandemic.
 
“As people shelter and self-isolate from each other physically, you need some way to get an emotional connection, and video is the way to do that,” he said.
 
“We have delivered five consecutive years at or near double-digit growth, and Logitech’s products have never been more relevant,” Darrell said, after the company stocks rose by 6.6 per cent.  “Video conferencing, working remotely, creating, and streaming content, and gaming are long-term secular trends driving our business. The pandemic has not changed these trends: it has accelerated themm” he added.
 
“The COVID-19 pandemic introduces operational challenges, yet our ability to execute and strong long-term growth drivers give us the confidence to maintain our financial outlook for Fiscal Year 2021m” said Nate Olmstead, Logitech chief financial officer.
 
“It has accelerated a trend which was already moving sharply upward,” Darrell said.
 
He added that during the lockdown, schools continued to hold lessons over video conference, while the technology was used by hospitals to lower the risks of infection
 
“In my hometown Owensboro, Kentucky, they have mounted one of our video cameras inside a room with Covid-19 patients, and linked it to the nurse’s station,” Darrell said. “This has enabled the doctors and nurses to enter less often and limit their exposure.”
 
(Source:www.channelnews.com.au)