Logitech has revealed plans to jettison their Harmony remote control and digital video security divisions. The news comes directly from newly appointed CEO Bracken P Darrell follow disappointing fiscal third quarter results.
Darrell said the results were unacceptable and they were taking decisive action based on the outcome of his strategic review. The executive did note that he was pleased with the continued demand for their Ultrathin Keyboard Cover – the best selling product in their entire catalog.
The decision to shed the Harmony division comes as part of an overall restructuring effort. Sales of Harmony remotes reportedly fell 55 percent based on units, leaving the company little choice but to ditch the unit and focus on PC-related products as well as tablet accessories and wireless speakers.
All other non-strategic products are also getting the axe, we’re told. One has to wonder if this includes webcams or if that would fall under Logitech’s definition of PC-related accessories.
In the event that you own a Harmony remote or any other product on the chopping block, you can rest easy with regards to product support and warranty coverage. Darrell reportedly addressed this in the company’s support forums, saying Logitech would continue to provide support during the sale process and that existing warranties are still valid.
Much like others in the industry, Logitech cited a continued weakness in the global PC market as one of the reasons for poor results. Specifically, sales in Europe were even lower than expected. They recorded a net loss of $195 million based on sales of $615 million.
No word yet on who might be interested in buying the Harmony division.