Logitech tells Wall Street off

Mouse maker Logitech posted a nine-fold jump in fourth-quarter profit, beating the expectations of the cocaine nose jobs in Wall Street.

The Swiss company also makes speakers, webcams and keyboards and is apparently on a cost cutting exercise to boost profits as its European customers suffer from an economic downturn.

Logitech has removed a layer of business and sales management and plans to streamline most other functions by the end of the current quarter.

This means that the mouse maker will cut about $80 million in annual operating costs through the restructuring.

But what is surprising is that the company’s net income rose to $28 million in the fourth quarter from $3 million last year.

Reuters said that Wall Street predicted the company would make just  $12.2 million

Logitech said it expects to make a bit more cash in the second quarter having launched some new products.

Logitech is doing rather well. Its most recent forecast was for full-year sales of some $2.3 billion and operating income of around $60 million.