Owlet said it learned of a safety-incident report involving exposed camera cables. In response, it issued an update for the cable guard accessory included with its cameras and began shipping, free upon request, a replacement system with enclosed cables to every Owlet camera owner.

The company expects the update to interrupt retail sales in the fourth quarter and bring remediation expenses, retailer returns and near-term uncertainty about demand. Chief Executive Kurt Workman said the update would affect the quarter but that the company remained confident in Owlet’s long-term opportunity.

The withdrawal of the outlook followed a third quarter in which Owlet recorded lower profit and revenue.