Erinn Murphy, analyst at Piper Jaffray stated that GoPro, Inc. (NASDAQ:GPRO) [Detail Analytic Report] is entering the drone market a little bit too late, a day after GoPro declared that quarterly sales dropped around 50 percent from the prior year, according to CNBC. GoPro, which had pushed back the launch of Karma, its drone camera, is looking to release it later in 2016 and sees it as a possible catalyst for growth.
Nicholas Woodman, founder and Chief Executive of GoPro stated in a statement that while they had to make the difficult decision to delay their drone, Karma, the upside is that Karma’s launch should now benefit from the holidays. Piper Jaffray is worried about the release timing due to competitive pressure that has been building. Murphy added the category has been on fire for a few years. What you’re really seeing in earnest since the starting of 2016 is price competition, which is something that GoPro has felt in its core action camera market. If GoPro’s drone falls flat it could raise major concerns about the firm’s growth.
According to Murphy, the action camera maker appears to have hit a wall in terms of the addressable market for its action cameras. Murphy added that GoPro’s efforts to monetize content recorded on those cameras have been stymied as customers increasingly rely on their smartphones to shoot, edit and share video on social media.
Kellogg Company (NYSE:K) [Detail Analytic Report] declared that Ron Dissinger, Chief Financial Officer has decided to step down at the end of the year. Dissinger will resign as Chief Financial Officer effective December 31, but he will remain with the firm into 2017 to help ensure an orderly transition to his successor. An internal and external search for a new firm Chief Financial Officer will now commence.
John Bryant, Chairman and Chief Executive of Kellogg Company stated that Ron has had an extraordinary, nearly three-decade career with the firm, including the past six years as Chief Financial Officer and a highly valued member of their Global Leadership Team. Over the years, they have relied on Ron’s business acumen, disciplined approach to finance and extensive knowledge of their worldwide organization to provide strategic financial leadership across every aspect of their business.
Bryant added Ron has also led or played a central role in a number of other major initiatives that have helped to position Kellogg for the future. These include buyouts such as Pringles and Bisco Misr, as well as Kellogg Integrated Margin Management, Project K, Zero-Based Budgeting and the development of their 2020 Growth Plan. They thank Ron for his many contributions to Kellogg during the years, as well as for continuing to serve their firm in 2017 before he transitions into retirement.