Logitech had a rough fourth fiscal quarter, with sales in Europe far below expectations, and the company’s Google TV business not exactly helping to turn things around. Logitech’s Revue Google TV set-top box and periphery devices, such as the a Revue-optimized webcam, only generated about $5 million in sales in the last quarter, according to Thursday’s earnings (PDF).
That’s far below expectations. Logitech had reported Google TV product sales of $22 million for the previous quarter, and estimated to sell another $18 million in the fiscal fourth quarter. The company missed these estimates by more than 70 percent. Tanking Google TV sales were also reflected by a 28-percent rise in inventory.
CEO Gerald P. Quindlen told investors in prepared remarks Thursday (PDF) that he’s still “enthusiastic about Google TV.” He also said that Logitech has scaled back marketing for its Google TV product, but added the company was “fully prepared to re-accelerate those activities at the appropriate time.” A look at the quarterly results reveals Logitech spent 19 percent more on marketing last quarter, with most of that money going towards pushing Google TV products and Harmony remote controls.
Logitech has been a Google TV launch partner since the search giant unveiled its TV play at its Google I/O conference last May. Its Revue set-top box went on sale last October. However, Google faced a huge backlash from consumers and reviewers who deemed the platform too complicated. That many TV networks have been blocking access to full episodes of their shows didn’t exactly help either.
Quindlen said Thursday that he sees “the next generation of Google TV” as one of the big growth opportunities for his company. Part of this next generation will be apps and access to the Android Market, which is expected to be launched at this year’s Google I/O conference, taking place next month.