Logitech's Margins Widen During Q3

Logitech LOGI reported third-quarter results Thursday, January 21. We're maintaining our fair value estimate. Revenues were flat with the same quarter during the year-ago period, but profitability improved, as cost cutting allowed the company to expand operating margins to 10%. Cash flow generation remains strong, and it is clear that the company is successfully recovering from the downturn in business it witnessed during the last year. With strong sales expected in PCs and TVs during calendar 2010, we believe Logitech will be able to continue improving its results during the next few quarters.