Trading up today in reaction to guiding Q1 revenues at the upper end of previously announced guidance, and announcing restructuring activities, shares of mobile video equipment firm GoPro (GPRO 8.51, +1.16) trade about 15.8% higher.
GPRO’s move last night came less than a month after a Q4 period (Feb) where revenues grew about 24% compared to the prior year to about $540.6 million. To boot, revenues for the fiscal year 2016, which ended December 31, 2016, fell about -26.8% to about $1.19 billion.
Getting back to last night’s news, GPRO affirmed 2017 Q1 revenues in the upper end of its previously announced $190-210 million range and repeated its target of full-year non-GAAP profitability.
GPRO also announced a restructuring that would reduce its full-year GAAP operating expenses to below $585 million and non-GAAP operating expenses to below $495 million without impacting GPRO’s roadmap for new hardware and software products.
The reduction in operating expenses is achieved through the combination of cuts to program costs, headcount and open positions, totaling the elimination of about 270 positions. GPRO estimates that it will sustain total aggregate charges of up to $10 million for the restructuring, which are primarily cash expenditures related to severance costs. The company also expects to recognize these restructuring charges in Q1.
GPRO’s full Q1 results are confirmed for an April 27th release, after the market closes.