28
Jul
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Logitech recently released its Q1 earnings for fiscal year 2012, and lets just say that the company has seen better days. Sales are continuing to decline, and the company is facing a $34 million charge due to an upcoming price reduction of its Google TV box, the Revue. In order to promote interest in the device, Logitech will be dropping the price from an outrageous $249 down to a more reasonable $99, putting it in the same ballpark with Apple TV and Roku TV.

Once this price hits the street, this will be an excellent deal for anyone looking to pick up a Google TV device. With Honeycomb making its way onto Google TV boxes soon, I honestly can't think of a better time to grab one.

[Engadget]

FREMONT, Calif., July 27, 2011 and MORGES, Switzerland, July 28, 2011 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the first quarter of Fiscal Year 2012.

Sales for Q1 FY 2012 were $480 million compared to $479 million in Q1 FY 2011. Excluding the favorable impact of exchange rate changes, sales declined by 4 percent year over year. The Company posted an operating loss of $45 million, compared to operating income of $12 million in the same quarter a year ago. Included in Logitech’s Q1 FY 2012 operating loss is a $34 million charge to cost of goods sold due to a planned price reduction on Logitech Revue with Google TV. The net loss for Q1 FY 2012 was $30 million ($0.17 per share) compared to net income of $20 million ($0.11 per share) in Q1 of FY 2011. Gross margin for Q1 FY 2012, reflecting the charge related to repricing of Logitech Revue, was 26.1 percent, down from 35.3 percent one year ago.

Logitech’s retail sales for Q1 FY 2012 were flat year over year, with an increase in Asia of 29 percent, an increase in the Americas of 1 percent, and a decrease in EMEA of 14 percent. OEM sales decreased by 16 percent. Sales for the LifeSize division grew 34 percent.
In Q1, Logitech achieved strong growth in Asia, driven primarily by China. Also notable for the first quarter was continued sales momentum by the LifeSize division and a positive initial reception of the Company’s new tablet accessories.

While Logitech is making progress in improving operations in the Company’s EMEA sales region, the Q1 performance reflects sustained weakness in the region. The Company also experienced minimal sales growth in its Americas region, primarily due to very weak sales in the Digital Home category. Logitech’s loss in Q1 was compounded by the significant impact of the decision to reduce the price of Logitech Revue from $249 to $99 during Q2. The action was taken with the goal of accelerating adoption of the Google TV platform by removing price as a barrier to broad consumer acceptance.

In a separate announcement today, Logitech said that Chairman Guerrino De Luca has assumed the additional role of acting president and chief executive officer, succeeding departing CEO Gerald P. Quindlen.

“I resume my former role as CEO, on an acting basis, with unwavering commitment to Logitech and strong confidence in the Company’s future and growth potential,” said Guerrino De Luca. “My priorities will be to pursue our many opportunities with a strong sense of urgency and to renew the confidence in Logitech among all stakeholders.”

Outlook
For Fiscal Year 2012, ending March 31, 2012, Logitech has lowered its sales outlook from approximately $2.6 billion to approximately $2.5 billion. The Company has lowered its FY 2012 target for operating income from approximately $185 million to equal to or greater than FY 2011 operating income of $143 million.

Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results teleconference available online on the Logitech corporate Web site at http://ir.logitech.com. The remarks are posted in the Calendar section on the Investor home page.

Financial Results Teleconference and Webcast
Logitech will hold a financial results teleconference on Thursday, July 28, 2011 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer Time. A live webcast of the call, along with presentation slides, will be available on the Logitech corporate Web site at http://ir.logitech.com.

Cameron Summerson
Cameron is a self-made geek, Android enthusiast, horror movie fanatic, musician, and cyclist. When he's not pounding keys here at AP, you can find him spending time with his wife and kids, plucking away on the 6-string, spinning on the streets, or watching The Texas Chainsaw Massacre on repeat.

  • Kyle

    What can it do that a roku can't?

    • Donatom3

      It has a web browser for starters.

    • Codexx

      Web browser, Android Marketplace. And it's running Android. Which means you're going to get a lot more customization out of it.

  • Philip

    I always thought that $249 was too high, but $99 is fantastic. I have an old Roku and thought the new Roku 2 was a good deal at $99, but it fades in comparison to the Revue at the same price.

  • Rob

    When? I NEED this.

  • Yo-Yo Ma

    I will be buying this immediately when it is released at $99. It's too cheap to pass up at that point. I can't wait to boot the Wii and Roku for this.

    Will this be getting Ice Cream Sandwich when it launches? I thought I read that GTV will be integrated into ICS? No?

  • Randy A

    This isn't to spur consumer interest, it's to clear stock. Logitech just got out of the Google TV business. You are buying an abandoned device from a troubled manufacturer, but for $99 what the hell.

    • Yo-Yo Ma

      This is a great point. I'll look into the development scene, if any, for this device. If it looks OK and looks like there is a chance HC will find it's way on there, I'll pull the trigger.

      • http://dualsub.com Randy A

        Last I looked (and it's been a while) you had to crack the case and break out a soldering iron to root the Revue.

    • Codexx

      Except they've already announced that they're making a second hardware generation. I don't think any set-top boxes for TVs did great on their first iterations, except perhaps Roku which was hardly the first to offer such a service and mostly copied from others. The rest that I'm aware of started out at software that you could install rather than actual products. The first AppleTV bombed completely, worse than the Revue did.

      A second improved generation of hardware and an upgrade to Honeycomb/ICS? Yes please. I've been waiting to buy the second generation. I'd give them my money if only they'd release it.

      • http://dualsub.com Randy A

        Well, Logitech may have announced a second version, but they just took a $34 million charge to sell the Revues that they have on hand well below cost. The CEO quit. Logitech isn't a company with deep pockets. They may not be able to justify version 2 given the loss they just absorbed on version 1.

        Unless/until version 2 shows up I will consider Logitech to be out of the Google TV business.

        And Roku might not have been the first set top box, but they were first to offer Netflix streaming. Long before I could stream Netflix on my Blu-Ray player or Apple TV, I could stream to my Roku.

  • ChumbleSpuzz

    Heck, the wireless keyboard with touchpad alone is worth it!

  • Philip

    EXACTLY!!! It's superior to any other remote out there. I can't wait!

  • Philip

    EXACTLY!!! It's superior to any other remote out there. I can't wait to get this!

  • jason

    $249 was always a ridiculous price considering there's not a significant amount of storage. $99 makes it a reasonable product that i can actually recommend to people.

    • http://dualsub.com Randy A

      $99 isn't reasonable to Logitech as they are selling each one at a loss. That's why they took the $34 million charge and the CEO quit.

      And I'm not sure why you would recommend it to people. There's really not a whole lot to it given the amount of content that is blocked from being used on it.

      I love Google, but Google TV was a gigantic muff. Time to move on.

  • http://Techgadgetsnews.com Techgadgetsnews

    Cheaper is always better, but hopefully the poor sales won't results in firing employees.

  • Anon

    I hope it get's discounted in the UK to around £100 or less.

    If it's not, maybe I'll have to import one.

  • https://plus.google.com/117702410245683101961/posts Lucian Armasu

    Maybe if they had thought it for $99 to begin with, they wouldn't have had such bad sales.
    What is it with manufacturers that are getting Google's products for free wanting to rip off early adopters? First Logitech, then Motorola, later Samsung and Acer with Chromebooks...
    It's like they want to rip off as much as possible the early adopters because they know there aren't any other options in the beginning for that type of product, and they want to set the standard pricing high.
    That's not cool at all, and they should've learned by now that it doesn't work. Offer the product for a very fair price from day one,and you'll get lot of buzz and sales. Don't do that, and you won't get any sales + bad press.

    • http://dualsub.com Randy A

      What's with Logitech? $99 is BELOW cost for them. Google made Google TV available for free, does that obligate Logitech to take a loss so that you can have a $99 Google TV device?

      Of course it doesn't. You have no idea what it cost to make the Revue so you don't have any idea if anyone is ripping you off.

      Yours is the prevalent attitude among Android and Google users; it has to be free or I won't touch it. If you want the cool toys and the nice apps you have to be willing to pay.

      If Google TV had access to content like the Boxee does it would be a bargain at $249. Of course, you wouldn't buy one. You'd be on the sidelines waiting for a company on a suicide mission to sell you a piece of crap hardware with horrible specs, no support and no future.

  • Dan

    Google dropped the ball on this one promising app support and the world, I thought GTV and Honeycomb were getting intergrated before ICS. What the hell? Google left all the manufacturers who invested in GTV early out to dry.

  • jason

    there's a lot of space between $249 and $99. i don't know at what point they're taking a loss, but $249 or the original price of $299 was way too much considering that was about the price of an apple tv that had significant storage and better software.

    at $99, it's a great box for connecting to netflix and accessing the web, etc. the honeycomb update for google tv is supposed to be out by the end of the summer. surely, logitech will update since it was a launch partner.

    for the record, i bought a revue for $299 when it was first released. the main problem to me is the lack of apps, coming soon, and lack of websites optimized for it. accessing amazon vod sucks.

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