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Posts Tagged ‘‘restructuring’’

Nikon restructuring and strong D850 sales lead to 8x increase in annual profit

15 May

All of the camera manufacturers have been reporting their annual profits over the last month or two, and while we don’t typically cover individual company financial results, Nikon’s report stands out. That’s because, despite a modest 4% drop in revenue, the company reported a whopping 776% increase in overall profit year-over-year.

The report—which compares the fiscal year ending March 31st 2018 with the year ending March 31st 2017—shows that Nikon’s attempts to “improve profitability through restructuring” and the release of the ultra-popular Nikon D850 in July of 2017 have led to an impressive year. How impressive? Despite revenue dropping by approximately 3.2 billion yen (~$ 29 million USD), Nikon’s profits managed to jump by more than 34 billion yen (~$ 318 million USD). This translates into an 8x increase over last year’s results, which showed a profit of just 3.9 billion yen (~$ 35 million USD).

Of course, this reflects Nikon Corporation as a whole, but the news out of the Imaging division was also positive. While overall unit sales fell—due to the continued demise of the compact camera segment—strong demand for the D850 is said to have increased the sales of “high-class” cameras “significantly,” leading to a 76.2% year-on-year increase in operating profit. Restructuring helped here, too.

Here’s a relevant excerpt from the report:

As a result, revenue for the Imaging Products Business decreased by 5.8% year on year to 360,703 million yen. Operating profit, however, rose by 76.2% year on year to 30,222 million yen due to the efforts to improve profitability through the restructuring, such as the shift to a business strategy of selection and concentration and the discontinuation of operations of Nikon Imaging (China) Co., Ltd., a manufacturing consolidated subsidiary.

You can read the full report at this link, but the short version of the news seems positive, and may even push Nikon to continue focusing on the high-end market that responded so positively to the release of the D850. Does that mean a full-frame mirrorless is that much more likely? We can only speculate… and hope.

Articles: Digital Photography Review (dpreview.com)

 
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GoPro to cut 270 jobs as part of restructuring effort

17 Mar

GoPro plans to eliminate another 270 jobs, the company revealed in its Q1 2017 guidance report, via a combination of layoffs and open position cancellations. The workforce reduction follows a similar layoff of 200 workers announced in November 2016, and is part of a larger business restructuring effort to cut costs and maintain profitability.

According to the new guidance report, GoPro is ‘tracking to full-year non-GAAP profitability in 2017.’ The company anticipates taking on about $ 10 million in severance charges as part of its layoff, a cost that will be factored into its first quarter financial results. Overall, the company estimates that it will announce between $ 190 and $ 210 million in Q1 2017 revenue.

GoPro has increasingly reduced its focus to its core products, a move that necessitated the recent elimination of its entertainment division, as well as reductions in some of its facilities. Last November, company CEO Nicholas Woodman stated, ‘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.’

Via: GoPro

Articles: Digital Photography Review (dpreview.com)

 
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GoPro ‘restructuring’ effort will layoff 200 full-time employees

01 Dec

GoPro has announced plans to restructure the company, saying it will layoff 200 full-time workers, close its entertainment division, reduce its facilities, and cancel open positions. By doing these things, GoPro will reduce its workforce by 15% and will, it anticipates, reduce its non-GAAP operating expenses next year.

GoPro announced the news today as part of its quarterly earnings report. According to the company, GoPro camera sales in the U.S. were up more than 35% this past Black Friday in comparison to the same time period last year. However, its turbulent financial state over the past year has spurred the company to make some big changes.

In addition to shedding 15% of its workforce, GoPro President Tony Bates will step down from his position at the end of 2016. GoPro didn’t provide a reason for his departure. Assuming all goes as planned, GoPro expects to reach non-GAAP profitability next year, with its full 2017 non-GAAP operating expenses dropping to about $ 650 million.

Press release

Solid Holiday Demand In The U.S. For GoPro HERO5

Nov 30, 2016

Week of Black Friday Camera Unit Sales Up 35% YoY in U.S.
Company Restructuring to Reduce Operating Expenses and Improve Efficiency

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.”

Articles: Digital Photography Review (dpreview.com)

 
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