LiveSize sales up 6% in otherwise dismal Logitech 3Q; firm again lowers 2012 guidance

Citing weak demand and an eroding Euro, Logitech (Nasdaq: LOGI) today lowered its full-year outlook, saying it would likely earn $60 million on revenue of $2.3 billion for the fiscal year ending March 31.

Reporting financials for the quartet that ended Dec. 31, Logitech said profits were down 15 percent to $55 million in the quarter on sales that eroded 5 percent to $715 million. Analysts had expected the company to report earnings of $61.2 million on sales of $749 million.

One of the lone bright spots for the company was in its videoconferencing business. The company said revenue at LifeSize Communication was up 6 percent for the quarter. Logitech bought LifeSize in 2009 and has steadily been improving its position in the market, rolling out apps for Apple (Nasdaq: AAPL)'s iPhone and iPad as it looked to expand its mobile footprint.

But the surge in tablet sales in the fourth quarter hit Logitech hard, cutting into its traditionally strong market for mice and webcams.

"The euro has weakened considerably during the last three months," said chairman and interim chief executive Guerrino DeLuca. "In addition, webcams and remotes continue to be impacted more than expected by product portfolio and market weakness."

The downward revision for the year was the third for the company in recent months, and it prompted its biggest share price tumble in nine months, about 14 percent. Most recently, Logitech in September said it expected earnings of $90 million on sales of $2.4 billion for the year.

"The biggest disappointment is the guidance revision," Michael Foeth, an analyst at Vontobel Holding AG, said in a note today. "With that we fear confidence in management is eroding further."

Last quarter, DeLuca crowed about the company's solid performance, saying: "People are happy to see we're back on track. We're showing that we can do what we said we would do, and we've somewhat re-established confidence in the company." 

Logitech stock has fallen 64 percent in the past 12 months.

For more:
- see this Bloomberg article

Special Report: Enterprise Communications earnings in the fourth quarter 2011

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