Logitech Reports 2Q Results

Logitech LOGI reported second-quarter results Thursday morning, and we are maintaining our fair value estimate. Revenues declined 25% versus last year, but increased 52% from the previous quarter, highlighted by strong performance across almost all of its product segments. The company's cash flow generation remains strong, and profitability moved up from the June quarter. More encouragingly, Logitech expects sales and operating margins to continue to rise in the December quarter. The company is still far away from reaching the sales and margins it had before the financial crisis struck. However, we believe the worst of the downturn is behind them, and we expect results to continue to improve in the coming quarters.