Logitech‘s Q3 financial report has been published, and the results are cringe-worthy, with the company suffering a $180 million operating loss. Sales have fallen a sharp 14-percent since last year, and as a result, the company has been forced to make some drastic changes to pull out of its nosedive. Among the changes includes the divestment of its remote control division.
Logitech’s Q3 sales came in at $615 million, a substantial drop from last Q3’s $715 million. Net loss is pegged at $195 million, contrasting the quarter’s $55 million net income. Dissecting the sales numbers, we see that sales for the company dropped 8-percent in the Americas, 20-percent in EMEA, and 11-percent in Asia.
According to the company, the lagging global PC market is the main cause of Logitech’s financial woes, and as a result, the company is implementing fairly large changes to mitigate the issue. Among the changes is an expansion in table accessories, as well as dropping the categories that have become deadweight. Among those categories is the company’s Harmony remote division and video security products.
Logitech’s President and CEO Bracken Darrell had this to say. “We are taking immediate actions to shape a faster and more profitable Logitech … 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.”