GoPro released the earnings results from its first fiscal quarter after closing bell tonight, posting adjusted losses of 63 cents per share on $183.5 million. Analysts had been expecting $169 million in revenue and losses of 60 cents per share, and management had guided for sales of $160 million to $180 million. In last year’s first quarter, the company posted earnings of 24 cents per share on $363 million in revenue.

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GoPro swings to a loss

GoPro’s reported loss was 78 cents per share, compared with last year’s profit of 11 cents per share. The non-GAAP gross margin tumbled from 45% to 33% this year. Adjusted EBITDA was -$86.8 million, against the consensus of -$95 million and management’s guidance of -$95 million, +/-$2.5 million. Management defined consumer demand as “solid” and unit sell-through as “close to first quarter 2015 levels.”

Before tonight’s report, Dougherty & Company analysts said before tonight’s print that unit sell-through appeared to be down by about 20% year over year in the first quarter and that average selling prices may have declined by more than 15%, assuming the unsuccessful Session camera made up about one-third of the product mix.

They also said that GoPro’s two biggest problems are the fact that its product portfolio has gone “stale” and its delay in improving editing software and overall usability of its products. They note that the action camera maker has significantly increased research and development and sales and marketing spend in order to combat these problems, which is why it will post losses in the near term.

GoPro reiterates full-year guidance

Management reiterated their full-year revenue outlook of $1.35 billion to $1.5 billion. For the full year, Wall Street expects earnings of 77 cents per share and $1.36 billion in sales.  For the second quarter, Wall Street is expecting $252 million in revenue and losses of 42 cents per share. Also CEO Nicholas Woodman said they are delaying the release of the Karma drone, which should now benefit from the holiday shopping season.

GoPro shares climbed by as much as 3% to $11.03 in after-hours trades following tonight’s earnings release.