A major manufacturer of PC peripherals, Logitech, reported its results for the past quarter and improved its forecast for revenue and profit for the current year. At the same time, the founder of the company won in court the right to nominate a candidate for the position of chairman of the board of directors who himself does not want to occupy this post and does not suit all other members of the board of directors.
Image source: Logitech
As Reuters notes, Logitech now expects revenue from $4.34 to $4.43 billion for the current fiscal year, and this is slightly higher than the previous range of $4.3 to $4.4 billion. Operating profit for the current fiscal year should fall within the range from $700 to $730 million versus the $685–715 million forecast. The company’s first fiscal quarter ended on June 30, with revenue increasing by 12% to $1.1 billion. This is more than the analysts who follow the company’s activities expected.
Non-GAAP operating income rose 96% last quarter to $153 million, company officials said. It started the fiscal year with growth in all market segments and geographic regions. This is a good sign for the peripheral device manufacturer, because after the pandemic the company suffered from an overstocked market. At the beginning of the current calendar year, Logitech recorded revenue growth for the first time in two and a half years after the acute phase of the pandemic. The past quarter only confirmed this trend.
At the same time, Bloomberg reported that Logitech co-founder Daniel Borel confirmed in court the right to insist on the nomination of a candidate he supports to the post of the company’s board of directors. The court ruled that the agenda of the shareholders’ meeting scheduled for September 4 must include an item on voting on the candidacy of Guy Gecht for the post of chairman of the board of directors. The company’s founder believes that current chairman Wendy Becker does not have much experience in the technology field, and therefore she should be replaced by Hecht. Hecht himself, who is on the board of directors, not only supports Becker, but also does not express a desire to be nominated for this post. In this strange situation, according to the court, the last word will be with the meeting of shareholders of the company.