Rumors that Snap Inc. grossly overestimated demand for its camera-equipped glasses were seemingly on point.

In its third quarter earnings report issued Tuesday, Snap wrote off $39.9 million in charges related to excess inventory reserves and purchase commitment cancellations.

In other words, Snap is sitting on a lot of Spectacles that it can’t sell.

The company’s issues extend beyond unsold inventory.

For the three-month period ending September 30, Snap generated $207.9 million in revenue.

Wall Street was expecting around $237 million.

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