GoPro Cuts Staff, Sees Strong Demand
GoPro Inc (NASDAQ: GPRO) issued a press release on Wednesday announcing solid camera unit sales growth during the week of Black Friday, indicating restructuring efforts to trim costs and projecting strong holiday demand in the United States for its new HERO5 cameras.
Camera Unit Sales Growth
GoPro reported more than 35 percent year-over-year growth in camera unit sales at leading U.S. retailers during the week of Black Friday. Sales of camera units at GoPro.com surged about 33 percent year-over-year during Thanksgiving through Cyber Monday.
GoPro announced a company-wide restructuring initiative that was expected to reduce non-GAAP operating expenses to ~$650 million next year, enabling the company to meet its target of returning to non-GAAP profitability in 2017. The initiative includes closing GoPro’s entertainment division and eliminating more than 200 full-time positions as well as the cancelation of open positions, which would shrink the company’s workforce by ~15 percent.
GoPro estimated total aggregate charges of ~$24 million–$33 million for the restructuring and expects to recognize most of the charges in Q4 of 2016.
Solid Holiday Season
"Consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business," said founder and CEO Nicholas Woodman. "We are headed into 2017 with a powerful global brand, our best ever products, and a clear roadmap for restored growth and profitability in 2017."
At last check, GoPro shares were up 3.56 in Wednesday's pre-market session, trading at $10.18.
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