BRIEF-Fitbit to cut 6 percent of its workforce
REUTERS 9:53 AM ET 1/30/2017
Symbol Last Price Change
FIT 6.24down -0.97 (-13.45%)
QUOTES AS OF 09:53:33 AM ET 01/30/2017
Jan 30 (Reuters) - Fitbit Inc(FIT) :
* Fitbit(FIT) announces preliminary fourth quarter 2016 results
* Sees Q4 non-gaap loss per share $0.51 to $0.56
* Sees Q4 2016 revenue $572 million to $580 million
* Sees fy revenue up about 17 percent
* Sees FY 2017 revenue $1.5 billion to $1.7 billion
* Says cutting about 110 jobs
* Says cutting workforce by about 6 percent
* Says cutting about 110 jobs
* Fitbit Inc(FIT) says for full-year 2016, fitbit expects annual revenue growth to be approximately 17pct from previous forecasted growth of 25pct to 26pct
* Says expects to report 6.5 million devices sold and revenue for Q4 of 2016 to be in range of $572 million to $580 million
* Fitbit Inc(FIT) - cost of reorganization efforts is expected to be approximately $4 million to be recorded in q1 of 2017
* Fitbit Inc(FIT) - targeting a reduction in 2016 exit operating expense run rate of approximately $200 million, to approximately $850 million for 2017
* Fitbit Inc(FIT) sees 2017 preliminary non-gaap free cash flow guidance of approximately negative $50 to $100 million
* Fitbit Inc(FIT) sees preliminary 2017 long-term non-gaap gross margin of approximately 45% versus previous 50% target
* Says for full-year 2016, fitbit expects to earn approximately $32 million in non-gaap free cash flow
* Fitbit Inc(FIT) - expects a challenging year over year comparison in first half of 2017
* Fitbit(FIT) - fitbit's two co-founders, ceo james park and chief technology officer eric friedman have announced intention to reduce their 2017 salary to $1
* Sees one-time write downs of tooling equipment and component inventory of approximately $68 million in quarter
* Fitbit Inc(FIT) - "will take action to reset performance incentives"
* Fitbit(FIT) - challenging year over year comparison in h1 2017 given that new product introductions represented 52% of revenue in first half of 2016
* Fitbit Inc(FIT) - "experienced softer-than-expected holiday demand for trackers in our most mature markets, especially during black friday"
* Fitbit Inc(FIT) - "continued to grow rapidly in select markets like emea, where revenue grew 58% during q4"
* Fitbit Inc(FIT) - "expects stabilization in financial performance in second half of 2017"
* Fitbit(FIT) - to seek stockholder approval for program for certain employees to relinquish out-of-money options in return for fewer restricted stock units
* FY2017 earnings per share view $0.64, revenue view $2.38 billion -- Thomson Reuters I/B/E/S
* Q4 earnings per share view $0.17, revenue view $736.4 million -- Thomson Reuters I/B/E/S
* Fitbit Inc(FIT) - expects minimal dilution from program for employees to relinquish out-of-money options Source text for Eikon: Further company coverage:
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