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After posting another consecutive loss for the quarter, Logitech International, a leading manufacturer of computer peripherals and various accessories, announced plans to reshape the company. The restructuring will include divestment of numerous product categories, including accessories for video game systems, remote controls and security appliances, and concentration on traditional PC peripherals as well as accesories for mobile devices.

“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. These results are unacceptable and we are taking decisive action as an outcome of my strategic review,” said Bracken P. Darrell, president and chief executive officer of Logitech.

Logitech’s sales for Q3 of fiscal 2013 were $615 million, down 14% from $715 million in Q3 FY2012. The company posted an operating loss of $180 million, which included a non-cash video conferencing business unit-related goodwill impairment charge, estimated to be $211 million. Net loss for Q3 FY 2013 was $195 million ($1.24 per share) compared to net income of $55 million ($0.32 per share) in Q3 FY 2012. Gross margin for the quarter was 34.2%, compared to 36.2% in the same quarter one year ago.



 

In a bid to improve the company’s revenue and profits, Logitech will put more attention in creating competitive accessories for media tablets and smartphones. The company will also make its best to sustain its leading position on the market of PC peripherals, such as keyboards, mice, webcams, speakers, etc. In order to focus resources around strategic products, Logitech will discontinue remote controls, security cameras, speaker docks and video game console peripherals.

“We are taking immediate actions to shape a faster and more profitable Logitech. We are developing more mobility-related products, leveraging the powerful growth of tablets and smartphones. We intend to sustain our leadership in PC platform-related products where we have engineering, distribution and scale advantages. […] 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 2013,” said Mr. Darrel.

Tags: Logitech, Playstation, Xbox, Wii

Discussion

Comments currently: 8
Discussion started: 01/25/13 10:53:25 AM
Latest comment: 01/28/13 10:00:08 PM
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Logitech IMO has lost their way in recent years much like Asus, Corsair and many other companies who branch off into many new product areas where they lack the technical expertise to deliver quality products to customers.

I have used Logitech keyboards and mice for many years but in recent days their mice in particular have become unreliable junk, IME. One after another they all fail in a different mode and then you need to pay to return the mouse under warranty. No thanks, I'll buy a different brand from now on.
0 0 [Posted by: beenthere  | Date: 01/25/13 10:53:25 AM]
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Ill say this.. logitech has one of the most solidly made products ive purchased. and on the few times something did go wrong, logitech has always sent me a replacement and told me to keep the old non working one. and not just on cheap mice but $100+ wireless combos. so Ive had the opposite experience then you.
1 0 [Posted by: carigis  | Date: 01/25/13 11:07:42 AM]
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I couldn't agree more. I have a lot of logitech Speakers (high end), webcams (high end), and mice and I have yet for any of them to fail.

When I go looking for any of the above I always go to Logitech first, and normally make the purchase of a logitech product.
0 0 [Posted by: fdunn  | Date: 01/26/13 09:07:51 AM]
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Yeah so you have a reference point of (1) and I have many mobos and mice over 15 years. I'd say my reference is far more accurate and confirmed by other Logitech owners... Waiting 2 weeks or more for a warranty replacement that fails in 3 months is not my idea of good product quality or service.
0 0 [Posted by: beenthere  | Date: 01/28/13 08:30:48 AM]
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If any company told you to keep the failed product, a red flag should be in your head. The failed product has no use for you and you will be throwing away that failed product. The company should have told you to send the failed product to them after you receive the replacement. The failed product has evidence what the company can improve on instead they told you to keep it.

The Logitech products that I have own is a mouse. During its years, it glitches and sometimes the buttons does not work. Other times it does not stand still, so my screensaver does not look like it works.

I prefer Microsoft for keyboards because of the ergonomic or the natural hand orientation. I tried using Logitech's keyboards that are ergonomic, but they are far from being ergonomic. They are still look closely to the standard straight keyboards. Also I recently bought a Thermaltake mouse. It is better built than Logitech's mouse. I went away from Logitech because they are cheaply made and I want a better mouse and keyboard. I use my computer components until they fail. I do not have the money to deal with something that glitches or does not work when I press the button.
0 0 [Posted by: tecknurd  | Date: 01/28/13 09:50:10 PM]
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2. 
Their stuff is too expensive. I'd buy a G400 or MX518 for $20, maybe $25, not the $35-50 it's priced at. Until that happens, 2nd echelon $20 mice seem like a better deal, or <$10 mice from eBay.

Regarding warranty, years ago I had a nice asymmetric $60 Logitech mouse with force feedback. I liked it despite the sometimes jumpy 2nd generation optical sensor, and despite the wheel that sometimes settled on jumpy borderline rest positions.

After the buttons started being spotty, single clicks that register as double, etc., I talked with customer support. Their warranty service seemed promising. They asked me to send the USB connector end of the cable and they'd send a replacement. Internationally!

But then, they said there's no more stock of the model I had, and offered instead a plain symmetric model of half the retail value. I asked for something similar to what I had, with asymmetric button configuration. They refused.
0 0 [Posted by: sanity  | Date: 01/26/13 09:38:23 AM]
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You got it good... by Logitech as have many others. They talk a good story but they rarely deliver in recent years. They dump so many poor quality products into the market and then discontinue these models every few months and use media hype to sell the next batch of crap.
0 0 [Posted by: beenthere  | Date: 01/28/13 08:32:50 AM]
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I just quote a paragraph from what I said.

If any company told you to keep the failed product, a red flag should be in your head. The failed product has no use for you and you will be throwing away that failed product. The company should have told you to send the failed product to them after you receive the replacement. The failed product has evidence what the company can improve on instead they told you to keep it.


If you just send the connector of a mouse to Logitech, that is just stupid of Logitech saying such thing. Any engineer knows in order to improve something you have to inspect what failed. An engineer can not inspect what went wrong with a mouse by just inspecting the connector. Logitech should have told you to send the mouse as is to them.
0 0 [Posted by: tecknurd  | Date: 01/28/13 10:00:08 PM]
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