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Logitech, that canary in PC coal mine, just fell off its perch
Pandemic gold rush for hardware slingers is over?
Logitech made hay during the pandemic but like many businesses dependent on the PC ecosystem, turnover is tanking and income is tumbling.
The peripheral maker recorded revenue of $1.149 billion [PDF] for Q2 ended 30 September, down 12 percent year-on-year. For those six months, Logitech booked revenue of $2.308 billion, down a near $310 million on the same period of 2021.
President and CEO Bracken Darrell said the company has twenty new products to lure consumers for the holidays because nothing says you love someone like a new mouse. This lineup, he says, can “tap into the long-term trends of hybrid work, video everywhere, gaming and digital content creation.”
Nearly all product divisions reported declining sales in the quarter: Pointing Devices was down two percent to $185 million; Keyboard and Combos fell 15 percent to $200.8 million, Gaming was down 10 percent to $297.6 million, and PC Webcams shrank 36 percent to $60 million.
The only relief came from the Video Collaboration unit, which grew two percent to $236.2 million.
The PC market swelled in 2021, in terms of the number of units shipped, but inflation and other factors have taken a toll in 2022, with declines recorded in calendar Q1, Q2 and a sharp correction in Q3. Gartner, for example, estimates that shipments plunged 19.5 percent in the June to September quarter – the steepest fall since it began recording PC sales.
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After the hopeful holiday push, Logitech claims plenty of gadgets are lined up for 2023 when enterprises are expected to start refreshing aging PC fleets with newer boxes capable of running Windows 11 and possibly the Sight AI Camera for video collaboration that has existing traction.
Logitech reported its Q3 operating profit at $127.4 million versus $179.4 million a year ago. This is despite the device maker lopping almost 25 percent off operating expenses. For the six months, operating profit was $1834 million compared to $326.3 million.
The company also revealed on Tuesday that CFO Nate Olmstead will be leaving Logitech but intends to remain on board while the search for a successor continues. ®