Logitech offloads units in 'disappointing' quarter

Logitech offloads units in 'disappointing' quarter

Summary: Blaming a weak global economy on poor financial results, Logitech said that it plans to sell its Harmony remotes division.

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TOPICS: Tech Industry
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Logitech, maker of mice, keyboards, gaming accessories, and peripheral devices, has announced its intentions to sell its Harmony remotes division in the face of a "disappointing" Q3.

logitech poor quarter financial result sell unit
(Credit: Logitech)

The firm's posted Q3 earnings report said that sales fell by 14 percent from $715 million in Q3 FY2012 to $615 million. In addition, Logitech suffered an operating loss of $180 million, including an impairment charge estimated to be worth $211 million.

Sales for the firm fell 8 percent in the Americas, 11 percent in Asia, and 20 percent in Europe, the Middle East, and Africa (EMEA).

Net loss for Q3 was $195 million--$1.24 per share--compared to net income of $55 million--$0.32 per share--in 2012.

Naturally, these kinds of results are not going to warm investor hearts, and Logitech CEO Bracken P Darrell, branding the third quarter as "disappointing," has outlined his plan to take "immediate action" to bring the firm back to profit. Darrell said:

These results are unacceptable and we are taking decisive action as an outcome of my strategic review. Our goal with PC-platform products is to maximize profitability, while investing selectively in growing categories. We have also identified a number of product categories that no longer fit with our current strategic direction.

As a result, we have initiated the process to divest our remote controls and digital video security categories, and we plan to discontinue other non-strategic products, such as speaker docks and console gaming peripherals, by the end of Calendar Year 2013.

These "non-strategic product" removals include the electronics firm's Harmony remotes division in order to focus on the more lucrative mobile computing market--in other words, tablets and smartphones. Naturally, as mice are not used in relation these types of devices, the Harmony line has to go.

The Harmony line was acquired by Logitech in 2004 for a purchase price of $24 million.

Topic: Tech Industry

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4 comments
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  • Harmony remotes

    Harmony remotes are the best universal remotes at an affordable price. Hopefully they get picked up by a company that continues with their development.
    kstap
  • Ridiculously overpriced remotes!

    In an age when you can buy a 50" flat-panel for $450, any company that charges $250 (or more) for a remote is out of their minds!
    shoutout
  • Remotes replaced by tablets..

    Also..in a an age when every iPad doubles as an advanced remote, it's kind of hard to sell someone a $250 remote.
    shoutout
  • Remote NOT replaced by iPad

    Since the iPad does not have an infrared transmitter, I find it hard to believe it will function as a remote. How does that work: I throw it at my components? I will buy a tablet with an infrared transmitter, like the Sony S, if no one picks up the Logitech line.

    Here's why I bought a Harmony 1000: I program it online, tell the database what brand and model components I have, what my favorite channels are, & it is all uploaded. My wife pushes 2 buttons (Activity hard button, then chooses the activity) to turn on the 3 or 4 components needed for whatever she wants to do; inputs are changed and it is transparent to the user. One button turns it all off. Another ingredient for a happy household.
    common sense