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Logitech Profit Rises 19% on Demand for Cordless Products

Logitech International SA, announced late Wednesday its first-quarter profit rose 19% as demand grew for cordless devices including headphones designed for Apple's iPod digital media device.

The world's largest maker of computer mice, said net income climbed to US$22.4 million, or 23 cents as share, in the fiscal three months through June from $18.9 million, or 19 cents, a year earlier. It was the 27th straight three-month period of double-digit growth and the company's best-ever first-quarter results, Logitech said.

�We are particularly pleased with the better-than-expected market response to our wide range of audio products, which we attribute to the growing popularity of both the MP3 music format and voice communications over the Internet,� said Guerrino De Luca, Logitech�s president and chief executive officer. "Even with a significantly higher proportion of audio products in the overall product mix, our gross margin remained in the targeted bracket of 32 to 34%, aided by healthy year-over-year improvement in gross margin for the audio category.�

Sales of cordless personal computer accessories and cordless headphones for the iPod made by Logitech have risen recently as more consumers buy portable products, such as mobile phones and MP3 players. Surging sales of MP3 digital music players and video-game consoles have fueled demand for Logitech portable speakers and joysticks as well, the company said.

First-quarter operating income rose 17%t to $25.2 million, the company said. Logitech said it is targeting 15% growth in both sales and operating income for the year ending March 31, 2006.

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