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GoPro swings the ax despite good first quarter
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.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/174931/gopro-swings-the-ax-despite-good-first-quarter-174931.html
