cut its estimated first-quarter operating income in half Tuesday, saying an increase in competition led to weak demand from retailers.
Shares of the company were dropping $12.20, or 30%, in Instinet premarket trading to $28.79.
The maker of computer keyboards and mice said it now expects operating income to be $7 million to $8 million in the quarter ended June 30. Previously, the company had forecast operating income of $14 million.
Analysts expect the company to earn 21 cents a share in the quarter. The company earned 22 cents a share in the first quarter last year.
"In the latter part of the quarter, we experienced greater-than-expected competition and weaker-than-expected market demand in many of our key markets," Guerrino De Luca, Logitech's chief executive, said in a press release.
Revenue is expected to be $218 million, in line with the company's targets and ahead of analysts' estimates of $215 million. The company said strong growth in its third-party retail business resulted in a larger percentage of lower-margin third-party sales. The company will release results on July 22.
Looking to the second quarter, which ends Sept. 30, Switzerland-based Logitech expects revenue of $270 million to $280 million. Analysts are looking for $277 million. The company estimated operating income at $15 million to $17 million with gross margins of about 30%.