Logitech CEO Resigns Due to Disappointing Financial Results

The world renowned maker of computer and gaming peripherals, Logitech has recently announced that Gerald P. Quindlen has stepped down as the company's president and chief executive officer and resigned from the Board of Directors.

Until a suitable replacement is found, company Chairman Guerrino De Luca has taken on the additional role of acting president and chief executive officer for Logitech.

"On behalf of the entire board of directors and employees, I wish to thank Jerry for his service and his many accomplishments during his tenure at Logitech," said Guerrino De Luca.

Mr. De Luca held this role previously, from 1998 to 2008, prior to becoming chairman of the board.

"I resume my former role as CEO, on an acting basis, with unwavering commitment to Logitech and strong confidence in the company's future and growth potential," added Logitech's newly appointed CEO.

The CEO change was motivated by the poor financial results the company had during the first fiscal quarter of 2011.

During that period, the company reported revenues of $480M, up from the $479M recorded in the previous quarter, but down 4% from Q1 of last year.

These were also accompanied by a $45M operating loss, most of which, $34M to be more exact, came from the recent price reduction announced for the Logitech Revue Google TV set top box (this went from $249 to just $99).

Overall, the company's retail sales remained unchanged from the previous year, but Europe saw a 14% sales decrease, which is attributed to a series of bad marketing strategies and to the stagnant demand witnesses in this region.

All these disappointing results forces Logitech to lower its sales outlook for the coming year by $100M to $2.5B down from their previously forecast of $2.6B. (via Bright Side of News)