Logitech's Net Income Rises

Logitech(LOGI Quote) posted a rise in quarterly earnings Tuesday on solid sales, despite lower prices in the computer peripherals market.

The company said fiscal second-quarter net income rose 1% to $21.2 million, or 44 cents per share, beating analysts' average estimate of 23 cents per share. In the year-ago period, the company reported earnings of $21 million, or 42 cents a share.

Sales rose 17% to $294 million, exceeding expectations of $275 million, according to Thomson First Call.

Operating income increased to $27.4 million, compared with $25.7 million a year earlier, beating estimates of $16.2 million, according to Reuters.

The stronger revenue offset narrower profit margins, which fell to 31.5% from 34.1% in the previous year, reflecting price reductions amid strong competition.

The company maintained its forecasts for a 15% rise in operating income next year and a 10% increase in sales. That would translate into sales of $1.2 billion and operating income of almost $143 million.

Logitech also said its board approved a plan to buy back up to $30 million in shares of the company within the next year.

The company's ADRs were up $6.74, or 20.3%, at $39.89 in afternoon trading Tuesday.