GPRO GoPro Inc

GoPro Inc.'s first drone is off to a troubled start.

The action-camera maker on Tuesday said it is recalling its new Karma drone after a few units lost power during flight. GoPro said no injuries or property damage have been reported.

GoPro said it will issue refunds for the 2,500 drones it has sold since its launch two weeks ago, and that it isn't offering replacements. The company didn't say what caused the power loss.

GoPro said it is working "in close coordination" with the U.S. Consumer Product Safety Commission and the Federal Aviation Administration on its recall.

The CPSC said that it doesn't regulate consumer drone recalls, according to a spokesman for the agency. The CPSC instructed GoPro to proceed with its recall, according to a GoPro spokesman.

The FAA wasn't immediately available to comment. Drone owners are required to register their devices with the FAA.

In after-hours trading, GoPro's stock was trading down more than 9%.

GoPro's Karma, which sold for $799, represented GoPro's first major attempt to diversify its products beyond its core action camera line. Chief Executive Nick Woodman placed his bets on the Karma and two new cameras to revive sales.

Last week, GoPro said production issues delayed shipments of its flagship camera, which also launched in the fourth quarter. At the same time, GoPro said revenue tumbled 40% in the third quarter.

In most cases, companies are required by law to announce recalls in partnership with the CPSC.

Samsung Electronics Co. came under fire in September for telling consumers to return their inflammable Galaxy Note 7 smartphones before allowing the CPSC to investigate and make the announcement. The Note 7 suffered problems with its lithium-ion batteries.

Another high-profile drone project also suffered a setback Tuesday: Google parent Alphabet Inc. pushed out two managers on its drone-delivery project who had called for more commercial tests.

Jack Nicas contributed to this article.

Write to Georgia Wells at Georgia.Wells@wsj.com

(END) Dow Jones Newswires

November 08, 2016 22:05 ET (03:05 GMT)

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