EXCLUSIVE: Ultra 4K Camera Pulled As Arlo Shares Slump
Arlo the Company that was spun out from Netgear has seen their share value fall 49% after major problems were detected with their all new Arlo Ultra offering with the launch in Australia now been put on hold.
ChannelNews suspected problems after the Company introduced the camera to technology media back in November and then failed to follow up with review units.
Now major US retailer Best Buy has pulled the new Arlo offering from their stores after complaints by customers about wireless connectivity, battery life, and the ability to successfully stream in 4K.
In the past Arlo customers have had a lot of problems connecting their cameras to a network using the Arlo app now the Company has pulled its Arlo Ultra security camera from being launched in Countries such as Australia.
At the recent Australian launch Arlo claimed that their new Ultra was the first 4K home security camera from a major manufacturer. However local security Company Swann Communications is set to launch a 4K camera with motion detection shortly.
Arlo said that they are currently working fix the problems with several firmware updates being tested. This program saw updates pumped out on the 15, 20, 29, and 30th of January in the USA.
“That said, after end-user sales began, we identified some performance challenges in specific user environments. As such, we have aggressively worked to release firmware updates to solve these challenges. As a result of the firmware updates, we are now seeing positive feedback on the forums from users.”
In Australia the company wants to get the software right before releasing more of the cameras.
It was scheduled release in late January 2019.
The slump in Arlo share value came after the Company admitted to shareholders that growth had significantly slowed in the fourth quarter of 2018.
For 2019, the company is predicting lower annual revenues of $380 million to $420 million, a potential drop of more than 19 percent, and well below what some analysts were predicting, which was in the $600M+ range.
Arlo’s 2019 revenue predictions equate out to an operating loss between $118.7 million and $128.7 million.