Palm Beach, FL 1/26/12 (StreetBeat) -- Home entertainment and PC peripherals maker Logitech (Nasdaq: LOGI) is down sharply Thursday morning on weak results for its fiscal third quarter ended December 31.For the quarter the company posted sales of $715 million, down 5% from a year ago, and well below the Street consensus at $766 million. Profits of 32 cents a share likewise came up short of the Street at 39 cents.
Logitech also reduced its outlook for the March 2012 fiscal year. It now sees sales of $2.3 billion, down from $2.4 billion, with operating income of $60 million, down from $90 million.
The company saw sales fall 5% year-over-year in EMEA, and 8% in the Americas.
“While weak economic conditions continue to weigh heavily on consumer sentiment in several mature markets in Western Europe, negatively impacting our sales in Italy, Spain and several other countries, we continued to achieve strong growth in emerging markets, particularly Russia,” the company said it remarks prepared for its conference calls with the Street. “The 5% decline in the region’s total sales compared to the prior year also reflected significant weakness in the webcam and remotes categories due to product gaps that we are in the process of addressing.”
As for the Americas, the company said that a major factor was the drop in sales for the Logitech Revue device for Google TV. “We began shipments of Logitech Revue in Q3 of the prior year and delivered sales of $22 million that quarter,” the company said. “Sales of Logitech Revue this year were down by $15 million due to the combination of a significant price reduction in Q2 of this fiscal year and our previously announced intention to exit the category. We are now sold out of all new Logitech Revue units.”
LOGI this morning is down $1, or 12.2%, to $7.18.
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