Benzinga | Jul 27, 2021 11:13AM EDT

Logitech Beats On Q1 Earnings, Posts Robust Growth Across Major Product Categories, Confirms FY22 Guidance

* Logitech International SA (NASDAQ:LOGI) reported first-quarter FY22 sales growth of 66% year-on-year to $1.31 billion, beating the analyst consensus of $1.06 billion.

* It posted double-digit growth across every major product category. The performance demonstrates the strength of its capabilities, operational execution, and ability to capitalize on long-term trends, like gaming, streaming and creating, hybrid work, and video everywhere, CEO Bracken Darrell stated.

* Net sales from Pointing Devices grew 52% Y/Y to $182.9 million, Keyboards & Combos jumped 50% to $218.4 million, PC Webcams revenue increased 81% to $109.9 million. Tablet & Other Accessories revenue rose 72% to $79.3 million.

* Gaming revenue expanded 84% to $335.4 million. Revenue from Video Collaboration increased 81% to $234.9 million.

* Net sales from Audio & Wearables rose 63% to $116.6 million, Mobile Speakers reduced 2% to $28.5 million, and Smart Home declined 9% to $6.2 million.

* The non-GAAP gross margin expanded 460 basis points to 43.8% due to substantial sales volume, favorable product mix, and currency exchange tailwinds. It remained with the company's target range of 39%-44%.

* The non-GAAP operating income grew 100% Y/Y to $235 million. The margin expanded 310 basis points to 17.9%.

* The non-GAAP EPS of $1.22 beat the analyst consensus of $0.87.

* It held $1.5 billion in cash and equivalents.

* The company used $115 million of net cash in operating activities.

* Outlook: Logitech confirmed its FY22 outlook of flat sales growth in constant currency, plus or minus 5%, and $800 million - $850 million in non-GAAP operating income.

* Price action: LOGI shares traded lower by 4.48% at $115.45 in the premarket session on the last check Tuesday.