Logitech Considers Selling LifeSize Video Conferencing Unit
After another poor financial quarter, Logitech executives are looking to shed some businesses, and LifeSize could be among those sent packing.Logitech executives will decide in the next three months whether to sell off its LifeSize Communications video collaboration unit, which is struggling to compete in a market that includes such heavyweights as Cisco Systems and Polycom. In an interview with Reuters after announcing the company’s most recent quarterly financial numbers, Bracken Darell—who became Logitech’s CEO Jan. 1 after joining the company a year ago—said the LifeSize business was strong in the small and midsize business space, but that he and other Logitech officials would need to decide whether it would be better to keep it or sell it off. "This is such a tough market, and that's the biggest driver of the impairment," Darrell told Reuters. "It's not an easy decision. Is this an asset that makes more sense for us to own or for someone else to own?" The decision will come after a difficult quarter for Logitech. In the company’s fiscal year 2013 third quarter, Logitech saw revenues fall 14 percent—to $615 million—over the same period the year before, and losses of $195 million. In the same period in 2011, the company made $55 million.
Officials with the company, who announced the quarterly earning numbers Jan. 24, said the primary culprit in the poor showing was the declining worldwide sales of PCs as consumers turn more of their attention and technology dollars to tablets and smartphones. Logitech sells such PC-related peripherals as mice, webcams and keyboards, among other products, and Darrell said the company will look to build up its portfolio of tablet accessories.