Computer peripheral maker Logitech International SA (NASDAQ: LOGI) dipped in Thursday trading as the company reported lower than expected revenue on low webcam sales.
The Romanel-sur-Morges, Switzerland-based company posted a 10 percent rise in its fourth quarter profit, earning $56.2 million, or 29 cents per share. The results were in line with analysts polled by Thomson Financial. However sales figures of $512.7 million missed expectations of $540 million.
While the premium peripheral maker reported 30 percent growth in sales of desktop keyboards and mice, and 78 percent growth in gaming hardware, webcam sales plummeted by 32 percent during the quarter.
Unexpected category slowdown led to a Q4 decline in webcam sales, which caused us to miss our 17 percent revenue growth target for the full fiscal year,â€ said Guerrino De Luca, Logitech president and chief executive officer.
Webcams account for 15 percent of the company's total sales. Software giant Microsoft (NASDAQ: MSFT), which also makes consumer products for computers, recently entered into the webcam market.
There was no mention of Microsoft, but the company's recent entry into the webcam market could have contributed to the slower growth seen by Logitech.
De Luca stated that over the next few quarters Logitech can reignite webcam market growth by targeting its marketing activities toward growing the overall category.
We plan to leverage partnerships to broaden consumer awareness and increase in-store activities, he said.
Shares of Logitech finished down $2.25, or 7.9 percent to $26.11 on the Nasdaq Stock Market.