ZURICH, July 29 (Reuters) - Logitech International

reported better than expected quarterly results on

Tuesday, benefiting from increased demand for its computer

peripherals from businesses.

The Swiss-U.S. company said its non-GAAP operating income

rose to $202 million in the three months to the end of June,

beating the $167.2 million forecast by analysts in a consensus

gathered by Visible Alpha.

First-quarter sales increased to $1.15 billion,

exceeding expectations of $1.11 billion.

Logitech has been experiencing increasing demand for its

computer mice, keyboards, audiovisual equipment for meeting

rooms and webcams from business users re-equipping their

offices.

It sells around two-fifths of its products to

businesses, schools and hospitals and also has a

direct-to-consumer business.

"Our growth was driven by our strategic priorities and

strong demand. We executed well across all regions - with

notably strong performance in Asia Pacific," said CEO Hanneke

Faber.

Logitech in its shareholder letter posted on Tuesday noted a

120-basis-point drop in first-quarter non-GAAP gross margin

year-over-year, attributed to tariffs imposed by the Trump

administration as well as elevated promotional costs and other

factors.

However, it said price hikes in North America and ongoing

cost-cutting measures partially mitigated those impacts.

Logitech in April said it would raise prices in the United

States by around 10% to offset the tariffs.

The company has also been investing in shifting

production out of China to reduce the impact of increased U.S.

import duties.

Around 40% of its products that go to the United States

are currently produced in China, a figure Logitech is aiming to

reduce to 10% by the end of the 2025 calendar year.

That will involve switching production lines to Vietnam,

Taiwan, Thailand, Malaysia and Mexico, where Logitech has

arrangements with contract manufacturers.

Logitech said it expects its sales to grow by 3% to 7%

in its second quarter to between $1.15 billion and $1.19

billion. It expects non-GAAP operating income in the range of

$180 million to $200 million.

The company in April withdrew its guidance for its 2026

financial year, which runs to the end of March, citing

uncertainty caused by the global trade war.