updated 11:25 am EDT, Thu July 26, 2012
Net loss widens to $52 million
Today's Logitech quarterly financial report revealed a loss larger than what had been expected.The computer peripheral maker cited global economic woes as the cause behind its underperforming. As Reuters details, Logitech believes, though, that it is in the course of a turnaround, with profitability not too far in the offing.
In the quarter ended June 30, Logitech posted a net loss of $52 million, up from $29 million for the same quarter last year. Analysts had expected that the company would only lose $24.7 million in the quarter.
The soft euro, though, has weakened Logitech's sales; and the global economic doldrums have pushed down demand for the computer mice and other devices Logitech manufactures. The company has since last year been working to retool itself. Previously, it replaced its chief executive; and it is now in the process of cutting $80 million in annual costs, with job cuts as a part of that profitability strategy.
Going forward, Logitech views the next two quarters as ripe for exploitation. The company is preparing to roll out products that target consumer trends in music, tablets, touch-based navigation, and the digital home. Those products are expected to roll out over the next two quarters, and Logitech will likely be making a big marketing push for the holiday season.