Benzinga | Oct 26, 2021 06:07PM EDT

Logitech Sees Logistics, Component Crisis To Extend To 2022

* Logitech International SA (NASDAQ:LOGI) 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% year-on-year, above the consensus of $1.27 billion.

* The non-GAAP gross margin contracted 370 bps to 42% 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)% - 5%.

* 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% in the quarter and 82% 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% at $83.92 on the last check Tuesday.