Supply chain issues continued to hold back Q3 sales

Logitech’s better-than-expected quarterly results could have been stronger without ongoing supply chain issues, CEO Bracken Darrell told CNBC’s Jim Cramer Tuesday.

“We could be even better,” Darrell said in an interview with Mad Money. “We lost a few points of growth because we couldn’t supply everything we wanted, but we still had an amazing quarter.”

Nasdaq-listed Logitech stock jumped 4.47% on Tuesday in what was otherwise a difficult day for the technology-focused Nasdaq Composite, which fell 2.3%. Investors welcome the Swiss-American company third quarter results and raised its full-year forecast for fiscal 2022.

Ahead of the US market opening on Tuesday, the maker of computer peripherals such as keyboards, webcams and mice reported $1.63 billion in Q3 revenue, better than analysts had expected of $1.46 billion. dollars.

Logitech now expects annual sales to grow 2-5% in constant currency from its previous forecast of flat sales growth. Logitech’s revised forecast also calls for $850 million to $900 million in non-GAAP operating income, up from $800 million to $850 million.

“We are very excited about every area of ​​our business, including the concept of ubiquitous video,” Darrell said, referring to the increased demand for webcams during the Covid pandemic due to the widespread adoption of remote and hybrid workflows.

While Logitech still expects more people to buy webcams for their home offices, the CEO said the company expects demand from businesses to be especially strong as technology upgrades take place in conference rooms.

“So far, only about 10% or 11% of all rooms in the world support video, and this is partly because, due to the pandemic, IT departments and [human resource departments] not really moving yet,” Darrell said.

“Everything is just beginning,” he continued. “I mean, our conference room cameras are up double digits, so that’s ahead of us. We have just experienced significant growth in our video business.”

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