GoPro Posts Q1 Loss, Delays Karma Drone
GoPro has posted a net income loss of US$107.46 million in the 2016 first quarter, down year-on-year from net income of US$16.75 million, while the launch of its Karma drone has been delayed.
GoPro’s revenue for the quarter was US$183.54 million, down from US$363.11 million year-on-year, with international sales accounting for more than 50 per cent of revenue.
GoPro stated it had charges of approximately US$8 million related to legacy products for excess purchase commitments, inventory write-downs and marketing development funds, with the charges due to lower sales estimates for end-of-life Hero products.
As reported by Reuters, GoPro’s shares were down 4.3 per cent in after-hours trading.
“Unit sell-thru was close to first quarter 2015 levels, a quarter which benefited from the launch of Hero4,” GoPro founder and CEO Nicholas Woodman commented.
“Revenue exceeded our guide and, importantly, unit sell-thru rates were approximately 50 per cent higher than sell-in, which drove global inventory levels down.
“And while we had to make the difficult decision to delay our drone, Karma, the upside is that Karma’s launch should now benefit from the holidays.”
GoPro had originally revealed plans for its Karma drone towards the end of last year.