Logitech Q2 Sales Down

Lisa Johnston On Oct 25 2012 - 1:52pm

Keyboard and desktop set sales were a lone growth area for Logitech.
Keyboard and desktop set sales were a lone growth area for Logitech.


Newark, Calif. — Logitech International said sales were down for its fiscal second quarter, ended Sept. 30, but operating income and net income were up.

Sales for the quarter were $548 million, down 7 percent from $589 million in the prior-year period. Excluding the unfavorable impact of exchange rates, sales were down 4 percent compared with the same quarter in the prior year, Logitech said.

Sales were down 14 percent in its audio segment, 17 percent in its video segment, and 31 percent in its digital home segment. The digital home decline could be attributed to the company discontinuing sales of its Google TV peripherals.

Sales for its keyboard and desktop sets were up 20 percent for the quarter. The company said its Ultrathin keyboard cover was its best-selling product across all categories for the quarter.  

Operating income was $24 million, up 3 percent from operating income of $23 million in the same quarter a year ago. Net income was $55 million vs. $17 million. Net income for the quarter includes a net tax benefit of $32 million from the closure of an income tax audit.

Logitech’s retail sales decreased by 5 percent year over year. They were down 3 percent in EMEA countries, 6 percent in the Americas and 7 percent in Asia. OEM sales decreased by 27 percent, and sales for the LifeSize division decreased by 7 percent.

"In Q2, the PC market weakened more significantly than anticipated, in advance of the launch of Windows 8,” said Guerrino De Luca, Logitech chairman and CEO, in a statement. “This factor, as well as a general slowdown in emerging markets, negatively impacted our Q2 sales. Despite this environment, we executed effectively during the quarter, improving our gross margin and operating results. We also recently launched compelling new products for tablets, smartphones, the digital home, Macs and Windows 8 PCs in time for the holiday season.”

De Luca said the company is planning for “continued strong headwinds in all of our PC-related categories for the remainder of the fiscal year.” Logitech expects the sales and operating for the next quarter will also be down in comparison with the prior-year period.

 

Alert to All Users of the Disqus commenting system:

Because of a recent global security issue, the Disqus website recommends that all users change their Disqus passwords. Heres a URL about the issue:

http://engineering.disqus.com/2014/04/10/heartbleed.html

 

 

 

 

Connect

 

PHOTOS

Enjoy the greatest pictures taken from famous shows and events this year.

Current Issue

Webcast

This TWICE webinar,  hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.