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Fitbit to Trim 6% Workforce After Poor Q4 Performance

Fitbit also said it expects an adjusted net loss of 51-56 cents per share in the quarter.

Reuters

Updated:January 31, 2017, 7:51 AM IST
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Fitbit to Trim 6% Workforce After Poor Q4 Performance
Fitbit also said it expects an adjusted net loss of 51-56 cents per share in the quarter. (Image: REUTERS/Brendan McDermid)

Wearable fitness device maker Fitbit estimated fourth-quarter revenue below its own forecast and said it would cut about 6% of its workforce after a weaker-than-expected holiday quarter.

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Fitbit's shares fell nearly 14% to $6.20 in early trading on Monday.

The company said it now expects fourth-quarter revenue between $572 million and $580 million from its previous forecast of $725 million-$750 million.

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Fitbit also said it expects an adjusted net loss of 51-56 cents per share in the quarter, compared with a previously announced profit of 14-18 cents.

Analysts on average were expecting a profit of 17 cents per share and revenue of $736.36 million, according to Thomson Reuters I/B/E/S.

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Fitbit said it estimates sales of 6.5 million devices in the quarter compared with 8.2 million devices a year earlier.

The company also forecast 2017 revenue of $1.5 billion-$1.7 billion, widely missing analysts' average estimate of $2.38 billion.

The company expects a challenging year-over-year comparison in the first half of 2017.

Fitbit, which had about 1,627 employees as of October 1, said it expects to record about $4 million in restructuring charges in the first quarter of 2017.

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