SAN MATEO, Calif. (BRAIN) — In what it's calling a "strategic process," the GoPro Board of Directors announced Monday it's considering selling or merging the company to maximize its value for the stockholders.
The news comes on the same day GoPro announced its first-quarter earnings declined 26% year-over-year, continuing an ongoing financial decline.
"In authorizing this process, the board plans to work with independent financial and legal advisors," according to a news release. "The board and management team remain fully committed to acting in the best interests of the company and its stakeholders throughout this evaluation."
No deadline was set for evaluation to conclude.
The review comes after GoPro began working with Oliver Wyman, a defense-sector consultant, as it plans to expand into the defense and aerospace markets. Since announcing the expansion plans last month, the company said it has received several "unsolicited inbound strategic inquiries."
Last month, GoPro said as part of a restructuring plan, its global workforce would be reduced by 23%. At the end of the first quarter, the action camera brand had 631 employees, so about 145 will be laid off by the end of the year.
For the quarter ending March 31, revenue was $99 million, compared with $134 million at the same time last year. Retail channel revenue was $61 million, down 35% year-over-year. Sell-through was 313,000 units, down 29% year-over-year. Adjusted EBITDA was negative $50 million compared with negative $16 million at the same time last year.
GoPro's corporate headquarters are in San Mateo. Its stock is traded on NASDAQ under the GPRO symbol. GoPro stock quote at Marketwatch.com.
