Logitech International , the world's largest computer mouse maker, on Wednesday reported a steep quarterly profit drop and predicted a rise in sales this year.

Logitech, which also makes speakers, webcams and keyboards, shocked markets with a profit warning last month, citing weakness in its retail division in Europe, the Middle East and Africa.

The company, based in Switzerland and Fremont, California, called the fourth quarter a disappointing conclusion to 2010.

Logitech said it expected $2.6 billion of sales in the current fiscal year, which ends in March 2012, up from $2.4 billion last year.

Net income fell to $2.8 million, or 2 cents a share, in the fourth quarter ended on March 31, compared to $24 million, or 14 cents, a year earlier. The results lagged expectations of 4 cents in a Reuters poll.

Quarterly sales rose 4 percent to $548 million -- just higher than Wall Street expectations.

(Reporting by Silke Koltrowitz and Jonathan Spicer; Editing by Lincoln Feast)