Thursday, January 24, 2013

Logitech Q3 earnings reveal plans to sell off Harmony remote, video security divisions

Logitech Q3 earnings reveal plans to sell off Harmony remote, video security divisions

The fiscal 2013 Q3 numbers from Logitech are in, and according to new CEO Bracken P Darrell, the "disappointing" results will require immediate action to turn around -- action that includes selling off its remote control (read: Harmony) and digital video security divisions. Logitech notched an operating loss of $180 million, on sales of $615 million. At this time last year, we were still looking forward to a refresh of the line which resulted in the Harmony Touch, but that does not appear to have turned things around. Harmony remote sales fell off by 55 percent based on units, although a focus on higher end devices like the new Touch meant revenue declined only 24 percent.

According to a slide in the presentation, after a strategic review, Logitech is focusing on tablet accessories, wireless speakers as well as keeping its lead in PC-related products. Other "non-strategic" products are also on the chopping block, and we'd have to think that includes video conferencing after yesterday's announcement. Current owners worried about potential support should be taken care of however, as a post by Darrell on the support forums indicates company will continue to provide support during the sale process and all current warranties are still in effect. There's no word about a possible buyer, but we'll be tuning into the earnings call tomorrow morning to see what additional information is revealed.

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Source: Logitech, Logitech Forum

Source: http://feeds.engadget.com/~r/weblogsinc/engadget/~3/QLhJr2u9IRQ/

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