Fitbit, amid the ongoing lawsuit with Jawbone, reported a growth on Q3 revenue, beating the analysts' forecast. Shares, however, fell when the company made an announcement that certain shareholders suggested to sell 14 million shares.
The company reported a revenue of $409.3 million, a 168 percent year-on-year up, topping the $359 million forecast, the Business Insider learned via Bloomberg. Meanwhile, the company's stocks reportedly fell by as much as eight percent in the after-hours trading.
Fitbit said Monday that there were shareholders who proposed to sell another 14 million shares, aside from the proposed seven million shares of its common stock. The company will also release the lockup shares of 2.3 million effective Nov. 4, as per the report of CNBC.
The company said it would use the money for additional working capital for research and marketing, plus principal expenses.
"The principal purposes of the proposed offering are to increase Fitbit's financial flexibility, obtain additional capital, facilitate an orderly distribution of shares for the selling stockholders, and increase Fitbit's public float," the company reportedly said in a statement.
Part of Fitbit's 2015 third quarter financial highlight is selling 4.8 million health and fitness devices. Business Wire also reported that the company's Q315 cash from operations had increased 37 times to $121.3 million compared with the same quarter last year.
In a separate report, the issue between the company and Jawbone seems to be escalating. It was recently reported by MobiHealthNews that Jawbone had already filed a counterclaim against the company's patent infringement lawsuit.
Part of the counterclaim stated that none of its accused products infringed the asserted patents.
"Fitbit intends to use this case to intimidate and harass its most prominent competitor rather than legitimately enforce its intellectual property rights," the company reportedly said.
The company reportedly filed another patent lawsuit against Jawbone in a different court, but according to Jawbone, this move makes sense only as harassment.
The counterclaim also stated that Jawbone accused its competitor of "poaching its employees, stealing trade secrets and filing meritless patent lawsuits," according to the report of Market Watch.
Earlier, Jawbone reportedly requested for its competitor's imports to be blocked. On Monday, Fitbit filed a complaint to International Trade Commission to stop the U.S. imports of its competitor's product, which allegedly infringed their patents.
Fitbit reportedly said that the allegations were misguided publicity to deflect attention from its competitor's lack of performance, while Jawbone called its competitor's moves as "anticompetitive misconduct."
Both companies are based in San Francisco, selling wrist and clothing fitness trackers.
