GoPro revenue misses due to weak demand for new cameras
17:24 EDT Wednesday, October 28, 2015
* 3rd-qtr adj. EPS $0.25 vs. $0.29 est.
* 3rd-qtr rev $400.3 mln vs. $433.6 mln est.
* Ships 1.59 mln units vs. $1.08 mln year ago
* Shares down 14 pct after the bell (Adds details, background)
Oct 28 (Reuters) - GoPro Inc reported a lower-than-expected rise in quarterly revenue as its newly launched wearable cameras failed to click with customers, especially in the Americas.
The company's shares slumped 14 percent to $26.05 per share in extended trading on Wednesday.
GoPro's helmet- and body-mounted cameras are popular with surfers, skydivers and other adventure sports enthusiasts.
However, the recent advancement in video-shooting capabilities of smartphones, such as Apple Inc's iPhone 6 range, is likely eroding GoPro's consumer base.
The company launched its flagship "HERO4 Sessions" camera in July for $399.99, but slashed+ its price by $100 two months later.
Revenue from its Americas market, which accounted for nearly three quarters of its sales a year earlier, fell 7 percent to $190.8 million.
However, demand for its cameras globally was strong as revenue from its international market nearly tripled to about$210 million.
The company has benefited from its focus on Japan, South Korea and China, which, GoPro said, was the fastest growing market in its history.
GoPro shipped about 1.59 million units during the quarter, up from about $1.08 million units shipped a year earlier.
Net income rose to $18.8 million, or 13 cents per share, in the third quarter ended Sept 30 from net income of $14.6 million, or 10 cents per share, a year earlier.
Revenue rose 43 percent to $400.3 million.
Excluding one-time items, it earned 25 cents per share.
Analysts on average had expected the company to earn a profit of 29 cents per share on revenue of $433.6 million, according to Thomson Reuters I/B/E/S. (Reporting by AlanJohn Koshy and Lehar Maan in Bengaluru; Editing by Anil D'Silva)
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