Logitech cuts targets, replaces CEO

Logitech , the world's biggest computer mouse maker, cut its sales target and replaced its chief executive on Thursday after weak sales in Europe pushed it into the red in the three months to the end of June.

Logitech, which also produces speakers, webcams and keyboards, faces sluggish consumer demand in Europe where a cloudy economic outlook is dampening willingness to spend.

Sales to Europe, the Middle East and Africa in the first quarter of its business year fell 14 percent, while in the Americas they rose only 1 percent.

After trying to entice buyers by slashing the price on its key Google TV set-top box by $150, the firm posted a first-quarter net loss of $30 million, versus a profit of $20 million a year earlier.

In a note to clients entitled "Logitech hasn't yet made it out of the mouse trap", analysts at Wegelin described the group's results and outlook as disappointing.

Shares in the company sank to their lowest since October 2001, and were down 9 percent to 7. 48 Swiss francs at 0 911 GMT, underperforming a 0.9 percent weaker Swiss index. They have plummeted more than 50 percent since January.

"The result is abysmal," said one trader in Zurich.Philips , Europe's biggest consumer electronics producer, has also been hit by sagging consumer demand, and issued a grim outlook after a surprise quarterly loss.

To help restore confidence, Chairman Guerrino De Luca, who headed the company from 1998-2008, will replace Gerald Quindlen as chief executive until a permanent replacement can be found, Logitech said.

"We welcome the return of De Luca as CEO (until another candidate is identified) which may help to restore some confidence," Michael Voeth of Vontobel said in a note.

After the weak first quarter, Logitech now expects sales of $2.5 billion for the 2012 fiscal year, down from an earlier forecast of $2.6 billion, a figure that had already disappointed some analysts