Trading in shares of wearable camera manufacturer GoPro (NASDAQ:GPRO) had to be halted for 25 minutes after a disastrous earnings performance. The GoPro stock tanked almost 20% in after-market trading following the company’s Q4 2015 earnings call where the company posted a double-miss, and then proceeded to issue terrible Q1 2016 guidance. GoPro reported Q4 2015 revenue of $436.6M, down a massive 31.1%Y/Y, and $59.5M below the consensus on Wall Street. Non-GAAP EPS of -$0.08 compared poorly to the $0.99 posted by the company during last year’s comparable quarter.Wall Street expected GoPro to break even. On a GAAP basis, GoPro’s bottom line performance looked even worse after posting a net loss of $34.451M (EPS of -$0.25), compared to a net income of $122.26M (EPS of $0.83) that the company posted in Q4 2014.

Flickr

GoPro has its deep product price cuts to blame for the huge losses. The company slashed prices of its Hero4 Session camera from $400 to $200. The effect on GoPro’s gross margin was incredible. GoPro’s gross margin fell from 48% in Q4 2014 to just 29.6% in Q4 2015.

That said, it was GoPro’s terrible Q1 2016 guidance that really did the damage. GoPro said that it expects revenue of $160M-$180M during the current quarter, a massive 50.4%-56% year-over-drop, and way below Wall Street’s expectation of $298M for the period. To contrast that with what it achieved in Q1 2015, GoPro’s top line had expanded 54%Y/Y, to $363M. So, the guidance implies a big fall. Meanwhile, the company said that it expects gross margins to come in at 36%, an improvement over fourth quarter gross margins, but still way below the 45.1% gross margins it posted during Q1 2015.

For the full year, GoPro said that it expects sales of $1.4B-$1.5B, a year-over-year decline of 6.3%-12.5% compared to $1.6B revenue the company posted in 2015. The current year will, therefore, mark the first time that GoPro records revenue decline for a full year.