Logitech Declares Q3 FY 2013 Results, Acknowledges Weak PC Market
Logitech Declares Q3 FY 2013 Results, Acknowledges Weak PC Market by UCStrategies Staff
Logitech International announces the company’s financial results for the third quarter fiscal year 2013. The Switzerland-based company’s Q3 FY 2013 sales amounted to $615 million, a 14 percent dip from its reported $715 million in Q3 FY 2012, without significant influence from exchange rates.
Logitech, considered as the top manufacturer of computer mice, struggled to fit in with a market increasingly taken over by no-mouse-needed touch screen mobile devices, such as smartphones and tablets.
The company declared a $180-million operating loss, which includes a non-cash charge of approximately $211 million for goodwill impairment. A net loss of $195 million ($1.24 per share) for Q3 FY 2013 is posted, compared to the same period in 2012 reporting a net profit of $55 million ($0.32 per share). Retail sales for Q3 FY 2013 fell by 14 percent year over year, down by eight percent in the Americas, 20 percent in EMEA, and 11 percent in Asia. Year over year OEM sales were reduced by 23 percent, while LifeSize sales decreased by four percent.
“As we articulated when we started the third quarter, continued weakness in the global PC market was the primary factor in our disappointing Q3 results,” said Bracken P. Darrell, president and chief executive officer of Logitech. “These results are unacceptable and we are taking decisive action as an outcome of my strategic review.”
Darrell went on to say that he was pleased with the robust demand in Q3 for Logitech’s Ultrathin Keyboard Cover. He also mentioned the company’s plan to grow its presence in tablet accessories by launching a number of new products this quarter.
Darrell said that Logitech is embarking on immediate steps to make the company more profitable, including making products related to mobility, such as tablets and smartphones. And when it comes to PC-platform products, Logitech’s objective is “to maximize profitability, while investing selectively in growing categories.”
Logitech’s chief executive officer Darrell said that the company has pinpointed product types that no longer align with the company’s current strategic focus and has instituted a move to divest categories associated with remote controls and digital video security. And by the end of 2013, Logitech will cease manufacturing “non-strategic products, such as speaker docks and console gaming peripherals.”
“As we execute our plans over the coming quarters, we will reduce costs significantly across the company beyond the $80M annual cost savings (FY 2014 over FY 2012) resulting from the restructuring we announced last April,” Darrell said. (KOM) Link. Link.