logo-loader
TechHardware & electrical equipment
GoPro Inc

GoPro swings the ax despite good first quarter

First quarter revenue was at the top end of company guidance, but the company is still laying off some 270 workers

Helmet-cam
We should have seen this coming

As inevitable as a wipe-out for an over-ambitious skateboarder, job cuts have been announced by struggling wearable camera maker GoPro Inc (NASDAQ:GPRO).

The market reacted positively to the news that the firm is laying off around 270 workers, as it did to news that first quarter revenue would be towards the upper end of the US$190 – 210mln range when the final numbers are totted up.

The group also indicated that it expected to make an underlying profit this year, sending the shares flying 16% higher to US$8.54 in early trading. On a generally accepted accounting principles basis, full-year operating expenses are set to fall below US$585mln.

The restructuring announced by what was once the darling of the tech sector should bring underlying operating expenses down to less than US$495mln this year without affecting the company’s plans to develop and release new hardware and software products.

GoPro estimates that it will incur total aggregate charges of up to US$10mln for the restructuring, which are primarily cash expenditures related to severance costs. The company expects to recognize the restructuring charges in the first quarter of 2017.

"We're determined that GoPro's financial performance match the strength of our products and brand. Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017," said GoPro founder and chief executive officer, Nicholas Woodman.

Quick facts: GoPro Inc

Price: $4.51

Market: NASDAQ
Market Cap: $695.85 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Capstone Turbine clinches new solar-power customer

Capstone Turbine Corporation (NASDAQ:CPST) EVP of Sales & Marketing Jim Crouse tells Proactive the California-based company has secured an order for two C200S microturbines with 247Solar Inc, which has developed a solar-power system that operates every hour of the year. Crouse says the...

53 minutes ago

2 min read