Delayed Karma: GoPro pushes drone launch to winter

Thu May 5, 2016 8:12pm EDT
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By Rishika S

(Reuters) - Wearable action camera GoPro Inc (GPRO.O: Quote) said on Thursday it would delay the launch of its drone, Karma, until the holiday shopping season.

The company's shares were down 4.3 percent at $10.25 in after-hours trading.

The drone, which was expected to release in the first half of the year, was seen by analysts as key in turning around the company's fortunes.

"The biggest surprise is that they delayed Karma," Wedbush Securities analyst Michael Pachter said.

"They said they wanted to work on the features... they did not explain the delay and why they did not notice it three months ago," he said.

GoPro's helmet-and body-mounted cameras are popular with surfers, skydivers and other adventure sports enthusiasts.

But the company is facing pressure from improved video-shooting abilities of smartphones that are likely affecting sales of traditional cameras.

The company's revenue halved to $183.5 million in first quarter ended March 31.   Continued...

A Re-fuel rechargeable battery for GoPro Hero cameras is displayed during the 2015 International Consumer Electronics Show (CES) in Las Vegas, Nevada January 4, 2015.  REUTERS/Steve Marcus