Accessory manufacturer Logitech is planning to discontinue a number of products that do not fit the company's "current strategic direction," such as remote controls and console peripherals, after posting an operating loss of $180 million for the third quarter of fiscal year 2013, the company announced today.
According to a statement from president and CEO Bracken P. Darrell,the company is developing more mobile products to keep up with growth in the smartphone and tablet market. Logitech will continue to make products for select PC product categories "where [it has] engineering, distribution and scale advantages," Darrell said.
Darrell also stated Logitech has "initiated the process" of discontinuing remote controls and digital security systems and is planning to end production on other "non-strategic products," with Darrell specifically identifying console peripherals and speaker docs.
Logitech sales for the third quarter totaled $615 million, a 14 percent decrease from third quarter 2012 results of $715 million. The company's $180 million operating loss included a non-cash goodwill impairment charge of about $211 million, and net loss for the quarter was $195 million at $1.24 per share.
"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," Darrell said. "These results are unacceptable and we are taking decisive action as an outcome of my strategic review.
"We plan to expand our presence in the growing tablet accessories category with the launch of a number of exciting new products later this quarter," he added.
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