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What: Shares of PC peripherals specialist Logitech International (NASDAQ:LOGI) plunged as low as 10% today after the company's quarterly results disappointed Wall Street.
So what: Logitech shares have been beaten over the past couple of years on rapidly declining PC demand, and today's third quarter -- a loss of $195 million on a 14% revenue drop -- suggests that things aren't turning anytime soon. While management has tried to adapt steadily to the increasingly mobile world, the recent string of poor results seems to be forcing them to take more drastic measures.
Now what: Management said that it has already started to divest the remote controls and digital video security segments, and plans to discontinue other non-strategic lines -- speaker docks, gaming gear, etc. -- by the end of 2013. "We are developing more mobility-related products, leveraging the powerful growth of tablets and smartphones," said CEO Bracken Darrell. "We intend to sustain our leadership in PC platform-related products where we have engineering, distribution, and scale advantages." Of course, given the risk and uncertainty associated with such a tall turnaround, I'd wait on the sidelines until some solid strides are made.
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Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Logitech International. The Motley Fool owns shares of Logitech International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.