GoPro's sales shrank by 31 percent to $436.6 million for the last quarter of 2015, which is aligned with the sharply downgraded guidance issued a few weeks ago, but the result was still worse than expected, with a net loss of $34.4 million against a profit of $122.3 million for the same quarter in 2014. The company's gross margin tumbled to 29.4 percent, due to a charge of $57 million for excess purchase order commitments, inventory and obsolete tooling from the base Hero model discontinuation. That charge was much heavier than the $30 million to $35 million estimate given in the preliminary announcement. The company explained that it had to write down the tooling to simplify its product range. For the full year, GoPro still managed a sales increase of 16 percent to nearly $1,620 million and net profit of $36.1 million, down from $128.1 million in 2014.

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