GoPro shares sink to an all-time low.

GoPro's Business Is Doing the Kind of Swan Dive You'd Want to Capture on GoPro

GoPro's Business Is Doing the Kind of Swan Dive You'd Want to Capture on GoPro

Business Insider
Analyzing the top news stories across the web
Jan. 13 2016 5:46 PM

GoPro's Business Is Doing the Kind of Swan Dive You'd Want to Capture on GoPro

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A GoPro Hero 4 camera is displayed at the 2015 International CES at in Las Vegas on January 6, 2015.

Photo by David Becker/Getty Images

 

This post originally appeared on Business Insider.

GoPro shares are crashing to all-time lows after the company said it is cutting about 7 percent of its staff and sales are not great.

In a statement on Wednesday, the digital-camera maker also announced its preliminary fourth-quarter and full-year 2015 results.

It said that it expects Q4 revenue to be about $435 million ($511 million expected, according to Bloomberg) and $1.6 billion for 2015—worse than forecast due to lower-than-anticipated sales.

"Fourth quarter revenue reflects lower than anticipated sales of its capture devices due to slower than expected sell through at retailers, particularly in the first half of the quarter," it said.

GoPro shares had been halted for news pending after the closing bell, and collapsed by as much as 24 percent after trading resumed.

Shares of Ambarella, a major supplier of chips in GoPro cameras, were down about 10 percent.

GoPro's performance in the fourth quarter was also affected by the unspectacular launch of its compact Hero4 model. Analysts at Morgan Stanley cut their price target on the stock in October and essentially described the launch as a flop after the company slashed the product's price not long after it was released.

Several analysts have expressed concern about the potential for GoPro's point-of-view cameras to gain mass appeal beyond the core group of extreme-sports enthusiasts and the like.

GoPro said it will incur a $21 million charge related to further price changes to the Hero4 in December.

The layoffs, which follow a headcount-growth pace of about 50 percent in the past two years, will cost GoPro between $5 million and $10 million. Much of this will be severance costs, according to the company.

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Akin Oyedele is a markets and finance intern at Business Insider.