Logitech CEO says major acquisitions unlikely as company focuses on steady growth

By John Revilla

ZURICH (Reuters) – Logitech CEO Bracken Darrell said major acquisitions are unlikely as the maker of gaming keyboards and wireless speakers forecasts sales growth to slow next year.

The Swiss-American company said on Tuesday it expects sales to increase by a high single-digit amount in its next fiscal year, which ends in March 2019.

This would represent a decline of 12 to 14 percent compared to Logitech’s projected results for the period ending March 2018.

“Our long-term business model is to grow in the upper single digits, so this isn’t really a change,” Darrell said.

“We were forecasting 12 to 14 percent growth this year, last year we grew 15 percent, the year before that 9 percent. We want to make sure we deliver steady and predictable growth,” he told Reuters in an interview.

Darrell said he wasn’t aiming low after the company twice raised its earnings and sales forecasts for fiscal 2018.

In 2019, Logitech aims to increase operating profit by 15 percent to $310-320 million.

Since taking over in January 2013, Darrell has led a dramatic turnaround, accelerating new product introductions and improving design.

Since the former Procter & Gamble executive and Whirlpool took over, Logitech’s share price rose more than 400 percent. Its shares were up about 1 percent in Zurich at 1238 GMT.

He was especially confident in the gaming category, where Logitech makes fast keyboards for online gamers playing League Of Legends and other games.

“We have more than enough hardware capabilities, and we’re adding software capabilities,” he said. “We have the global reach to do this, along with award-winning manufacturing and design capabilities.”

Darrell added that the company will consider acquisitions, although large deals are unlikely.

“We look at everything. We look at hundreds of things every year, most of them small technology add-ons.

“But I would say that when you get to really large numbers, the likelihood factor goes down dramatically because there are so many factors involved.”

The company could also pursue more share buybacks in the future, he said. Logitech invested about $30 million in a $250 million share buyback program launched in March 2017.

(Reporting by John Revill; Editing by Michael Shields)