SAN MATEO, Calif., Nov. 30, 2016 /PRNewswire/ -- GoPro Inc.
(NASDAQ: GPRO) today announced solid holiday quarter sell-thru in
the U.S. for its new HERO5 cameras.
Based on internal data, GoPro's week of Black Friday camera unit
sales were up more than 35% year-over-year at leading U.S.
retailers. Thanksgiving through Cyber Monday sales of camera
units at GoPro.com were up approximately 33% year-over-year.
According to the NPD Group, since the launch on October 2, HERO5 Black has been the best-selling
Digital Imaging device in the United
States.
HERO5 cameras are available at major US retailers including
Amazon, Best Buy, Target and Walmart.
"We have a lot of work to do to finish the quarter and our
fiscal year, however our HERO5 cameras have been very well-received
by critics and consumers alike," said Nicholas Woodman, Founder & CEO of GoPro.
"Both HERO5 cameras can now auto-offload new content to the cloud
and our Quik mobile app makes accessing and editing your footage
fun. Its clear consumers are excited about these new features."
GoPro also announced a company-wide restructuring that will
reduce full-year 2017 non-GAAP operating expenses to approximately
$650 million (GAAP: $735 million) and achieve its goal of returning
to non-GAAP profitability in 2017. The restructuring includes the
closure of its entertainment division, facilities reductions, and
the elimination of more than 200 full-time positions plus the
cancelation of open positions for a reduction in force of
approximately 15 percent.
Additionally, Tony Bates will
depart his position as president of the Company at the end of the
year. "My time at GoPro has been an incredible experience,"
said Tony Bates. "In the past
three years, GoPro has seen enormous progress in camera technology,
software and international growth. Today GoPro has a solid
leadership team deeply focused on its core business and
profitability."
GoPro estimates that it will incur total aggregate charges of
approximately $24 million to $33
million for the restructuring, including approximately
$13 million to $18 million of cash
expenditures as a result of the workforce restructuring,
substantially all of which are severance costs, and approximately
$11 million to $15 million of
non-cash expenditures, consisting primarily of stock-based
compensation expense and accelerated depreciation associated with
office consolidations. The company expects to recognize most of the
restructuring charges in Q4 2016.
"Consumer demand for GoPro is solid and we've sharply narrowed
our focus to concentrate on our core business," said Nicholas Woodman. "We are headed into 2017 with
a powerful global brand, our best ever products, and a clear
roadmap for restored growth and profitability in 2017."
About GoPro, Inc. (NASDAQ: GPRO)
GoPro, Inc. is transforming the way people share themselves and
their experiences. What began as an idea to help athletes
self-document themselves engaged in sport, GoPro has become a
storytelling solution that helps people capture and share
themselves engaged in life.
For more information, visit www.gopro.com or connect with GoPro
on Facebook, Instagram, LinkedIn, Pinterest, Twitter, YouTube, and
GoPro's The Inside Line.
Forward-Looking Statements
This press release may contain projections or other
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements in this press release
include, but are not limited to, expectations regarding product
sales, the restructuring and reduction in workforce, the number of
employees impacted by the reduction in workforce, the aggregate
charges for employee terminations and other costs associated with
the restructuring including office consolidations, the estimates of
related cash expenditures by the Company in connection with the
restructuring and the timing to recognize these charges. These
statements involve risks and uncertainties, and actual events or
results may differ materially. Among the important factors
that could cause actual results to differ materially from those in
the forward-looking statements are the Company's ability to
implement the restructuring in various jurisdictions; possible
changes in the size and components of the expected costs and
charges associated with the restructuring; risks associated with
the Company's ability to achieve the benefits of the restructuring;
completion of quarter-end and annual financial reporting processes
and review and the risks more fully described in the Risk Factors
section of the Company's Annual Report on Form 10-K for the year
ended December 31, 2015 and in our
Quarterly Report on Form 10-Q for the quarter ended September
30, 2016, which are on file with the Securities and Exchange
Commission. These forward-looking statements speak only as of
the date hereof or as of the date otherwise stated
herein. GoPro disclaims any obligation to update these
forward-looking statements whether as a result of new information,
future events, or otherwise.
Note Regarding Use of Non-GAAP Financial Measures
GoPro provides estimates of future operating expenses in
accordance with U.S. generally accepted accounting
principles (GAAP) and on a non-GAAP basis. The Company uses
non-GAAP financial measures, including non-GAAP operating expenses,
to evaluate the core operating performance of its business, for
comparison with forecasts and strategic plans and for calculating
return on investment. Non-GAAP financial measures are not in
accordance with, nor serve as an alternative for GAAP. Since
the Company finds non-GAAP financial measures to be useful, it
believes that investors benefit from seeing results reviewed by
management in addition to seeing GAAP results. The Company believes
that non-GAAP financial measures, when read in conjunction with its
GAAP financials, provide useful information to investors by
facilitating:
- the comparability of its on-going operating results over the
periods presented;
- the ability to identify trends in its underlying business;
and
- the comparison of its operating results against analyst
financial models and operating results of other public companies
that supplement their GAAP results with non-GAAP financial
measures.
Explanations of each type of adjustment that the Company
incorporates into non-GAAP operating expenses and a reconciliation
of estimated 2017 GAAP operating expenses to non-GAAP operating
expenses are presented in the financial statement portion of the
Company's press release issued November 3,
2016 to report its financial results for its third quarter
ended September 30, 2016.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/solid-holiday-demand-in-the-us-for-gopro-hero5-300370396.html
SOURCE GoPro