Logitech made hay during the pandemic, but like many businesses dependent on the computing ecosystem, turnover is down and revenue is down.
The peripheral manufacturer recorded revenue of $1.149 billion [PDF] for Q2 ended Sept. 30, down 12 percent year over year. During those six months, Logitech booked revenue of $2.308 billion, down from $310 million during the same period in 2021.
President and CEO Bracken Darrell said the company has twenty new products to entice consumers for the holidays because nothing says you love someone like a new mouse. This alignment, he says, can “affect the long-term trends of hybrid work, video everywhere, gaming and digital content creation.”
Almost all product divisions reported declining sales in the quarter: Pointing Devices decreased two percent to $185 million; Keyboard and Combos fell 15 percent to $200.8 million, Gaming dropped 10 percent to $297.6 million, and PC Webcams fell 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 wreaked havoc 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 drop since it began recording PC sales.
After the promising holiday push, Logitech claims many devices are lined up for 2023, when businesses are expected to start refreshing aging PC fleets with newer boxes capable of running Windows 11 and perhaps the Sight AI Camera for video collaboration, which has an existing traction
Logitech reported its Q3 operating profit at $127.4 million versus $179.4 million a year ago. This is despite the device manufacturer accounting for nearly 25 percent of operating expenses. During the six months, operating profit was $1834 million compared to $326.3 million.
The company also revealed Tuesday that CFO Nate Olmstead will be leaving Logitech but intends to stay on board while the search for a successor continues. ®