During Logitech International SA’s (LOGI - Free Report) third quarter 2013 earnings release commentary, it’s newly appointed CEO Bracken P. Darrell announced plans to focus on product innovation for the fast-growing markets to improve profitability. Following this announcement, the company has already launched a number of new products in line with its strategic decisions adopted to lay emphasis on priority products that will improve its profitability, going forward.
In order to sustain its growth in the LifeSize category and achieve profitability by the end of fiscal year 2014, the company introduced its new mobile and desktop video conferencing solution titled LifeSize UVC ClearSea.The product will support organizations with better connectivity amongst customers, vendors, partners and stakeholders and will be available on any PCs, Macs, tablets and smart phones. This product has the unique feature of unlimited user accounts, which will give it a competitive advantage over its peers. This solution is globally available at an MSRP (Manufacturer’s Suggested Retail Price) of $1,199.
Logitech is benefiting immensely from the increasing trend among businesses and institutions to use video conferencing due to high travel costs and productivity gain achieved by a high-quality face-to-face meeting that does not require traveling away from the office. Despite fierce competition from companies like Cisco (CSCO - Free Report) and Hewlett-Packard (HPQ - Free Report) , Logitech will be well-positioned to compete with differentiated video and audio solutions that will support the emerging UC (Unified communications) platforms.
Logitech currently has a Zacks Rank #3 (Hold). Electronics for Imaging, Inc. (EFII - Free Report) , another sector participant,carries a Zacks Rank #1 (Strong Buy).