Computer peripheral maker Logitech announced a 70 percent drop in net income for the quarter ending December 31, 2008. Logitech reported a net income of $40.25 million, down from $133.6 million the year before.
The company also announced it will axe 550-600 jobs to cut costs.
Like other vendors in the computer industry, Logitech is also being adversely impacted in the US market by the bankruptcy and liquidation of the Circuit City retail chain.
However, Logitech's sales were down during the most recent quarter in all regions of the world except for Asia, where revenues stepped up 8%.
Specifically, Logitech's net income for the third fiscal quarter ending December 31, 2008 fell to $40.5 million, or 22 cents a share, from $133.6 million, or 71 cents per share, for the same quarter the year before. Gross margin (the percentage of sales remaining after production costs) declined to 29.9% from 36.9%.