Logitech, who had a bitter falling out with Harvey Norman early in 2011 and has upset several other retailers by selling online in Australia, has reported a net loss of $52 million in the first quarter of its fiscal year, compared with a net loss of $30 million in the same quarter last year.Sales have slumped 2% as the Company struggles to deliver new products to the market. Revenue for the quarter was $469 million, down 2 percent from $480 for the same quarter last year.
A former senior Logitech employee said that the Australian operation’s year on year has been “adversly” impacted by the Swiss Company’s exit from Harvey Norman.
Logitech posted an operating loss of $59 million compared with a loss of $45 million in last year’s Q1. Included in the operating loss is a previously announced restructuring charge of $31 million, as well as $3 million in restructuring-related costs.
“Our results are consistent with our expectations,” said Guerrino De Luca, Logitech chairman and CEO. “We are in the middle of our turnaround, with most of the plans we put in place in past quarters expected to bear fruit beginning in the second half of fiscal 2013. And we incurred several one-time charges in the first quarter that are expected to positively impact future profitability. I’m also very pleased by the strong initial sales of the new generation of products recently added to our portfolio, such as the Logitech Ultrathin keyboard cover and our wireless speakers for digital music.”
Looking ahead, De Luca told analysts that he was optimistic. “The majority of our new products, targeting consumer trends in music, tablets, touch-based navigation and the digital home, will be launched in Q2 and early Q3, as we prepare for the holiday selling season. In addition to strengthening our product portfolio, we continue to expect to benefit from the simplification of our organisation and processes, and cost savings from the restructuring. We remain on track with the plan we set a quarter ago to deliver improved performance starting in the second half of fiscal year 2013.”