They need to start thinking how to their products can leverage on the growing tablet markets.
I believe most of their products (accessories for PC) do not transit well for the tablet market.
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Logitech Cuts Its Full-Year Forecasts
http://www.bloomberg.com/news/2012-01-2 ... casts.htmlLogitech International SA (LOGN), the world’s biggest maker of computer mice, cut its forecasts for sales and operating income, citing the weaker euro and decreased demand for products such as web cameras and remote controls.
The company changed its sales forecast for the fiscal year ending March 31 to $2.3 billion, with operating income estimated at $60 million. Logitech, which also produces gaming devices, in September cut its forecast for full-year operating profit to about $90 million on sales of about $2.4 billion.
“The euro has weakened considerably during the last three months,†Chairman and interim Chief Executive Officer Guerrino De Luca said in the statement. “In addition, webcams and remotes continue to be impacted more than expected by product portfolio and market weakness.â€
The revision, the third since July, came as Logitech reported profit for the quarter ended Dec. 31 that fell 15 percent to $55 million, missing analysts’ estimates. The Morges, Switzerland-based company is under pressure from the proliferation of tablet computers that aren’t controlled by mice, which is eroding its traditional desktop and notebook business.
Third-quarter sales fell 5 percent to $715 million, the company said today in a statement. Its profit and sales figures missed analyst estimates of $61.2 million and $749 million, respectively, based on the average of 10 and 13 estimates compiled by Bloomberg.
Profit Forecasts
Logitech cut profit forecasts for a second time in two months in September, putting pressure on De Luca to find a successor to replace Gerald Quindlen, who left in July. Logitech, which also produces home-entertainment control, gaming and wireless devices, also cut its forecast for operating profit in September to about $90 million for the year ending March 31, 2012, on sales of about $2.4 billion.
Revenue at LifeSize Communications Inc., the videoconferencing unit that Logitech bought in 2009, rose 6 percent in the period.
Logitech shares fell 1.8 percent to 7.45 francs in Zurich trading yesterday. The stock has fallen 59 percent in the past 12 months, compared with a 7.9 percent decline in the Swiss Market Index. (SMI)
Cash flow from operations in the third quarter was $153 million, and the company ended with $523 million in cash, De Luca said. The company can buy back as much as $177 million in shares, he said.