Shares in the wearable camera pioneer, trading as high as US$87 just over two years ago, tumbled 15.8% to US$10.05 in pre-market trading as the company’s bottom line turned negative.
The company reported an adjusted post-tax loss of US$84.3mln for the three months to the end of September, versus a profit of US$36.6mln in the same period of 2015.
Revenue slumped 39.9% to US$240.6mln from US$400.3mln as the company botched the launch of its Hero5 camera and its Karma drone device.
Heading into the peak trading period for the company, GoPro predicted revenue in the fourth quarter would be US$625mln, give or take US$25mln.
The company has had problems ramping up production of its new products, and while stockists have run down stocks of legacy products in expectation of receiving shed-loads of the new stuff, the company has been unable to restock its retail channels.
“Furthermore, we anticipate difficulty catching up to meet forecasted [sic] demand during the fourth quarter,” revealed Nicholas Woodman, the company’s founder and chief executive officer.
Despite the slide into the red, Woodman remained defiant, predicting a return to profitability in 2017 on the back of a projected double-digit percentage increase in revenue.
Story by ProactiveInvestors