New York/Zurich : Logitech, the world's largest computer mouse maker, expects double-digit sales growth in the next three months as people spend more on computer accessories, adding to hopes the technology sector is recovering.

The maker of speakers, webcams and keyboards smashed forecasts with a 43 per cent rise in third-quarter net profit to $57 million (Dh209.19 million) as demand picked up during the Christmas period.

"The third quarter marks a turning point in our plan to emerge stronger from the economic downturn," Chief Executive Gerald Quindlen said in a statement issued yesterday.

"There were many highlights in the quarter, starting with improved sell-through in all of our retail regions, driven by the success of our new products across multiple categories."

At 1150 GMT, Logitech shares were up 0.7 per cent at 19.31 Swiss francs, after having earlier risen some 4 per cent, while the DJ Stoxx European technology index was up 0.45 per cent.

The group's shares have rallied strongly over recent weeks on hopes of improved demand over Christmas and traders said investors were now consolidating gains.

"Even though Logitech's top and bottom lines were undoubtedly boosted by a weakening dollar, these third quarter 2009-10 results are clearly better than expected, suggesting Logitech did not suffer as much as we had been fearing from shoppers still demanding discounts," Helvea analyst Stefan Gaechter said.

Consumers slashed spending on computer accessories during the downturn, but the group is now benefitting from its recent product launches.

Upbeat comments

Signs are mounting that the technology industry is on the road to recovery after recent upbeat comments from such groups as Intel and Samsung.

Logitech said it expected sales of between $500 million and $515 million in the fourth quarter, up from the $408 million posted in the previous year.

It forecast a gross margin of around 34 per cent in the fourth quarter after it rose to 33.9 per cent in the third quarter from the 29.9 per cent posted a year earlier.

Sales for the third quarter fell two per cent to $617 million. Excluding the favourable impact of exchange rate changes, sales decreased by seven per cent.

The group expects fourth-quarter operating income to be in the range of $15 million to $20 million.