U.S. Markets closed

Blog Coverage GoPro Announces Corporate Restructuring Including 15% Job Cuts

Upcoming AWS Coverage on Ballantyne Strong Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 1, 2016 / Active Wall St. blog coverage looks at the headline from GoPro, Inc. (NASDAQ: GPRO) as the company announced on November 30, 2016 announced that the company will be undertaking restructuring of its corporate structure with an aim to reduce expenses and increase profitability. It aims to reduce its operating expenses by $650 million for the year 2017 and focus on its core business. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of GoPro's competitors within the Photographic Equipment & Supplies space, Ballantyne Strong, Inc. (NYSE: BTN), reported on November 08, 2016, its financial results for the third quarter ended September 30, 2016. AWS will be initiating a research report on Ballantyne Strong in the coming days.

Today, AWS is promoting its blog coverage on GPRO; touching on BTN. Get all of our free blog coverage and more by clicking on the links below:

http://www.activewallst.com/registration-3/?symbol=GPRO

http://www.activewallst.com/registration-3/?symbol=BTN

Commenting on the matter, Nicholas Woodman, CEO of GoPro said:

"Consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business. 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."

Decoding the Restructuring efforts

The restructuring would include stern steps like cutting of 200 jobs, i.e. approximately 15% of the Company's workforce, closing of its entertainment division, and reductions in amenities. The company expects the entire restructuring exercise to cost anywhere between $24 million-$33 million. This cost would include cash expenditure due to job cuts. The major part, i.e. approximately $13 million-$18 million of this would be towards severance pay to employees and $11 million-$15 million would be towards encashing stock options by employees. The entire costs for restructuring would be reflected in the Company's earnings results in the last reported quarter of 2016.

Apart from the restructuring, the company also announced changes at the helm. GoPro's current President, Tom Bates, will exit the company at the end of the year. Tom has been with the company since June 2014. He has earlier worked with Microsoft and Skype. There is no clarity regarding the exact reason for his exit.

Moreover, GoPro's entertainment division was started with the aim of cashing in on GoPro's user-generated content which would be streamed across multiple platforms. This user generated video content was promoted using a rewards system. GoPro's ambitions to become a media company have been thwarted at an early stage as the Company plans to shut down this division.

On the brighter side, GoPro disclosed on the same day, that Black Friday camera sales were up more than 35% on a year-on-year basis following Thanksgiving holiday. Its direct online sales surged as well by 33% during that period. However, the Company's products have been struggling to sustain and attract consumers.

GoPro's Woes

GoPro, which is mainly into action-cameras and a new drone product, has been struggling financially to stay profitable. GoPro Hero cameras face increased competition from established brands like Garmin, Sony, etc. as well as new-age companies like Apple and Snap, who have launched camera glasses, which offer similar/better consumer experience. GoPro's drone product too faces severe competition from Chinese manufacturer SZ DJI Technology Co.
GoPro launched its cube shaped action camera Hero 5 in September 2016 along with its "Karma" drone and started shipping both products in October 2016. However, in a major setback to the company, on November 08, 2016, GoPro announced that it was recalling all units of "Karma" drone sold since the launch, i.e. approximately 2,500 units. Some of the drones reportedly fell out of the sky as they lost power during operation. Due to this, GoPro faces a lawsuit that claims the company violated federal securities law and that it knowingly overstated the capabilities of the drone.

Stock Performance

At the close of trading session on November 30, 2016, GoPro's stock price rose 1.53% to end the day at $9.98. A total volume of 6.19 million shares were exchanged during the session. The stock currently has a market cap of $1.40 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street