January 8, 2018 / 2:11 PM / 8 months ago

BRIEF-GoPro Reduces Global Workforce From 1,254 Employees As Of Sept 30, 2017 To Fewer Than 1,000 Employees Worldwide

Jan 8 (Reuters) - GoPro Inc:

* GOPRO ANNOUNCES PRELIMINARY FOURTH QUARTER 2017 RESULTS

* - REDUCING ITS GLOBAL WORKFORCE FROM 1,254 EMPLOYEES AS OF SEPTEMBER 30, 2017 TO FEWER THAN 1,000 EMPLOYEES WORLDWIDE

* - GOPRO FOUNDER AND CEO NICHOLAS WOODMAN WILL REDUCE HIS 2018 CASH COMPENSATION TO $1

* GOPRO - ‍Q4 REVENUE GUIDANCE INCLUDES NEGATIVE IMPACT OF ABOUT $80 MILLION FOR PRICE PROTECTION ON HERO6 BLACK, HERO5 BLACK & HERO5 SESSION CAMERAS

* - “HOSTILE REGULATORY ENVIRONMENT IN EUROPE AND UNITED STATES WILL LIKELY REDUCE TOTAL ADDRESSABLE MARKET IN YEARS AHEAD”

* - RESTRUCTURING OF GOPRO’S BUSINESS WILL RESULT IN AN ESTIMATED AGGREGATE CHARGE OF $23 MILLION TO $33 MILLION

* - “‍AT THE START OF HOLIDAY QUARTER WE SAW SOFT DEMAND FOR OUR HERO5 BLACK CAMERA​”

* - EXPECTS TO RECOGNIZE MOST OF RESTRUCTURING CHARGES IN Q1 OF 2018

* - EXPECTS GAAP GROSS MARGIN FOR Q4 OF 2017 TO BE BETWEEN 24% AND 26%​

* - ‍NON-GAAP GROSS MARGIN FOR Q4 OF 2017 IS EXPECTED TO BE BETWEEN 25% AND 27%​

* SEES Q4 2017 REVENUE ABOUT $340 MILLION

* - RESTRUCTURING CHARGE OF $23 MILLION TO $33 MILLION, INCLUDES ABOUT $13 MILLION TO $18 MILLION OF CASH EXPENDITURES AS A RESULT OF A REDUCTION IN FORCE

* GOPRO - “‍DESPITE SIGNIFICANT MARKETING SUPPORT, WE FOUND CONSUMERS WERE RELUCTANT TO PURCHASE HERO5 BLACK AT SAME PRICE IT LAUNCHED AT ONE YEAR EARLIER​”

* GOPRO -SHARPER FOCUS TO ENABLE $80 MILLION REDUCTION IN 2018 OPERATING EXPENSES VERSUS 2017, RESULTING IN TARGET 2018 NON-GAAP OPERATING EXPENSE OF BELOW $400 MILLION

* SAYS ‍KARMA PRODUCT FACES MARGIN CHALLENGES IN AN “EXTREMELY COMPETITIVE AERIAL MARKET​”

* - EXPECTS TO RETURN TO PROFITABILITY AND GROWTH IN SECOND HALF OF 2018

* - ‍GOPRO WILL EXIT AERIAL MARKET AFTER SELLING ITS REMAINING KARMA INVENTORY​

* SAYS “‍HOSTILE REGULATORY ENVIRONMENT” IN EUROPE AND UNITED STATES WILL LIKELY REDUCE TOTAL ADDRESSABLE AERIAL​ MARKET IN YEARS AHEAD

* Q4 REVENUE VIEW $472.1 MILLION — THOMSON REUTERS I/B/E/S

* - ON JANUARY 7, GOPRO LOWERED PRICE OF ITS PREMIUM MODEL, HERO6 BLACK FROM $499 TO $399 Source text for Eikon: Further company coverage:

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