Infotech Lead Europe: Logitech International reported a net loss of $36 million in Q4 FY 2013, compared to its net income of $28 million in the prior year.
Logitech’s retail sales for Q4 FY 2013 dropped by 10 percent year over year, up 2 percent in Asia, down 2 percent in the Americas and down 25 percent in EMEA.
For the full 2013 fiscal year, ending March 31, 2013, sales amounted to$2.1 billion, compared to $2.3 billion in FY 2012. The net loss for the full fiscal year was $228 million compared to net income of $71 million in FY 2012.
Restructuring changes and impairment of goodwill and other assets impacted operating income as well.
Bracken P. Darrell, Logitech president and chief executive officer said that with the exception of EMEA, the company’s retail business has begun to stabilize. He attributed the company’s sluggish business volumes in Europe to the difficult macro-economic environment and very slowing growing PC market.
According to IDC, worldwide PC shipments were down by 13.9 percent in the first quarter of 2013 – the steepest decline ever noted in a single quarter.
Darell reported that the sales of Logitech mice and keyboards grew 6 percent. The company recently launched a version of their Ultrathin Keyboard Cover for the iPad mini and a range of new tablet folios.
“We have narrowed our strategic focus; restructured the company, including our LifeSize division; and prioritized our resources to create great new products for tablets. While the PC market continues to weigh upon parts of our business, and the ongoing economic uncertainty in much of Europe shows no signs of improvement, our product portfolio and indications of stabilization in the Americas and Asia, combined with the cost savings resulting from our FY 2013 restructuring initiatives, position us for improved profitability in FY 2014”, Darell commented.
Logitech currently expects to achieve sales of approximately $2 billion, operating income of approximately $50 million and gross margin of approximately 34 percent for Fiscal Year 2014, ending March 31, 2014.
Logitech has opened an exclusive store 685 square feet store in Bangalore to offer a range of Logitech’s consumer products with special focus on the wide portfolio of tablet, music, gaming and audio accessories.