GoPro expects first-quarter revenue at top end of previous forecast

Wed Mar 15, 2017 6:43pm EDT
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(Reuters) - GoPro Inc (GPRO.O: Quote) on Wednesday estimated its first-quarter revenue at the top end of its previous forecast, and said it would cut about 270 jobs to reduce expenses in a bid to return to profitability in 2017.

Shares of the company, which had 1,552 employees as of Dec. 31, were up about 7 percent at $7.89 in extended trading.

GoPro had previously forecast its revenue to be $190 million to $210 million for the quarter ended March 31.

"We currently have no need to draw on our credit facility and we expect to be EBITDA positive for full-year 2017," Chief Financial Officer Brian McGee said in a statement.

"Actually, with where we are at, I think we will get to EBITDA positive ahead of the fourth-quarter (this year)", a GoPro executive told analysts on a conference call on Wednesday.

GoPro also said it expects to see double-digit revenue growth in 2017.

The company said it does not expect to restructure further in terms of job cuts this year to return to profitability.

The wearable action-camera maker has been struggling with slowing sales of its helmet- and body-mounted cameras as cheaper rivals emerge and smartphones feature increasingly advanced cameras.

GoPro has also been plagued by missteps: a delay in the launch of the Karma drone, production issues for the Karma and Hero5 camera once they launched in mid-September, and then a recall.   Continued...

Women record GoPro video at the Coachella Valley Music and Arts Festival in Indio, California April 10, 2015. REUTERS/Lucy Nicholson