On Wednesday Logitech announced its third quarter results for fiscal 2013, reporting that sales were $615 million, down 14-percent from $715 million in Q3 fiscal 2012. Net loss for Q3 fiscal 2013 was $195 million ($1.24 per share) compared to a net income of $55 million ($0.32 per share) in Q3 fiscal 2012.
"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, Logitech president and chief executive officer. "These results are unacceptable and we are taking decisive action as an outcome of my strategic review."
He went on to say that Logitech plans to expand its presence in the growing tablet accessories category. However the company also plans to sustain its leadership in PC platform-related products where it has engineering, distribution and scale advantages.
"Our goal with PC-platform products is to maximize profitability, while investing selectively in growing categories," he said. "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."
The first to go will be Logitech's Harmony remote business. Sales were reportedly down 24-percent with units declining by 55-percent. The high end of this market increased only 4-percent, fueled by the recently-launched Harmony Touch high-end remote.
And as stated, also out the door will be the company's line of console peripherals. These have seemingly already disappeared from Logitech's site save for the G27 and Driving Force GT racing wheels which are compatible with the PlayStation 3 and Windows PC. Most of what Logitech offers now is focused on Windows and Mac-based gaming.
"We are NOT exiting PC gaming, only console accessories," Logitech confirmed on Twitter. "PC gaming continues to be a priority for the company."
Darrell added on Wednesday that his goal is to get Logitech back to sustained profitability as quickly as possible, "This requires unwavering focus on developing great products both for large and for fast-growing markets, removing unnecessary costs and a commitment to move at least as fast as the markets in which we participate," he said.
