Press Releases

iRobot Reports First-Quarter Financial Results
Exceeds Expectations; Increases Full-Year Outlook
BEDFORD, Mass.-- iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the first quarter ended March 30, 2013.

 

“We kicked off 2013 with an outstanding quarter. The results and outlook for our Home Robot business are excellent. We are very excited to have begun shipping our RP-VITA telemedicine robot in Q1 and our Defense & Security business delivered solid results,” said Colin Angle, chairman and chief executive officer of iRobot.

“Based on our view of the rest of the year, we are increasing our full-year financial expectations for both revenue and profit. The revenue increase is being driven by better than anticipated Home Robot demand in the United States. Improvements in gross margin due to favorable product mix, successful integration of Evolution Robotics (ER) and tighter operating expense control will each contribute to increased profitability and enable us to deliver on our commitment to profitable growth.”

  • Revenue for the first quarter of 2013 was $106.2 million, compared with $97.8 million for the same quarter one year ago.
  • Net income in the first quarter of 2013 was $8.4 million, compared with net income of $0.7 million in the first quarter of 2012.
  • Quarterly earnings per share were $0.29, compared with earnings per share of $0.02 in the first quarter last year. Q1 EPS this year includes a $0.08 benefit from investment tax credits.
  • Adjusted EBITDA for the first quarter of 2013 was $15.2 million, compared with $6.1 million in the first quarter of 2012.

Business Highlights

  • Domestic Home Robot revenue growth of 44 percent drove a 14 percent year-over-year increase in quarterly Home Robot revenue. International Home Robot revenue of $61.3 million comprised 66 percent of total Home Robot Q1 2013 revenue.
  • We launched Braava, our iRobot-branded version of the Mint® robot to select European distributors.
  • Due to the timing of Defense Department orders for spares, service and training (PLR) to support the fleet of 5,000 iRobot unmanned ground vehicles, D&S Q1 revenue was higher than anticipated. In addition, the government announced a $14.4 million order for FirstLook robots during the quarter which gives us confidence in achieving our full year expectations.
  • We began shipping the RP-VITA to InTouch Health during the quarter. Roughly one dozen of the robots are currently in use in hospitals.

Financial Expectations

Management provides the following expectations with respect to the second quarter ending June 29, 2013 and fiscal year ending December 28, 2013.

Q2 2013:

               
Revenue       $128 - $133 million        
Earnings Per Share      

$0.15 - $0.20

       
Adjusted EBITDA       $13 - $16 million        
                 

Fiscal Year 2013:

     

Current

     

Prior

Revenue       $485 - $495 million       $480 - $490 million
Earnings Per Share      

$0.80 - $1.00

      $0.57 - $0.72
Adjusted EBITDA       $55 - $61 million       $46 - $52 million
                 

Full-Year 2013 BU Revenue:

     

Current

     

Prior

Home Robots       $435 - $440 million       $430 - $435 million
Defense & Security Robots       $45 - $55 million       $45 - $55 million
                 

First-Quarter Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. ET to discuss its financial results for the first fiscal quarter 2013, business outlook, and outlook for second quarter and fiscal year 2013 financial performance. Pertinent details include:

Date:       Wednesday, April 24, 2013
Time:       8:30 a.m. ET
Call-In Number:       847-619-6818
Passcode:       34160563
         

A live, audio broadcast of the conference call will also be available at http://investor.irobot.com/phoenix.zhtml?c=193096&p=irol-eventDetails&EventId=4897482. An archived version of the broadcast will be available on the same website shortly after the conclusion of the live event. A replay of the telephone conference call will be available through May 1, and can be accessed by dialing 630-652-3000, passcode 34160563#.

About iRobot Corp.
iRobot designs and builds robots that make a difference. The company’s home robots help people find smarter ways to clean, and its defense & security robots protect those in harm’s way. iRobot’s consumer and military robots feature iRobot Aware® robot intelligence systems, proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, please visit www.irobot.com.

For iRobot Investors
Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, iRobot Corp.'s expectations regarding future financial performance, operating performance and growth, demand for our robots, anticipated growth of our Home Robots business, anticipated improvement in gross margin due to product mix, anticipated levels of operating expenses, anticipated revenue, earnings per share and Adjusted EBITDA for fiscal year 2013 and the second quarter ending June 29, 2013, and anticipated business unit revenue for the fiscal year 2013. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: our ability to operate in an emerging market, the financial strength of our customers and retailers, general economic conditions, market acceptance of our products, our dependence on the U.S. federal government and government contracts, the timing of government contracts and orders, changes in government policies or spending priorities, and competition. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. iRobot Corp. undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by iRobot Corp., see the disclosure contained in our public filings with the Securities and Exchange Commission.

This press release includes Adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G. We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, merger and acquisition expenses, net intellectual property litigation expenses, restructuring expenses, and non-cash stock compensation. A reconciliation between net income (loss) and Adjusted EBITDA is provided in the financial tables at the end of this press release.

iRobot Corporation
Consolidated Statement of Income
(in thousands, except per share amounts)
(unaudited)
                 
                 
        For the three months ended
        March 30,       March 31,
        2013         2012
Revenue                
Product revenue       $ 101,405         $ 91,742
Contract revenue         4,790           6,065
Total         106,195           97,807
                 
Cost of Revenue                
Product revenue         57,815           56,297
Contract revenue         1,853           3,936
Total         59,668           60,233
                 
Gross Margin         46,527           37,574
                 
Operating Expense                
Research & development         14,408           13,522
Selling & marketing         10,697           12,333
General & administrative         12,458           11,042
Total         37,563           36,897
                 
Operating income         8,964           677
                 
Other income (expense), net         (96 )         220
                 
Income before income taxes         8,868           897
Income tax expense         513           244
Net income       $ 8,355         $ 653
                 
Net income per common share:                
Basic       $ 0.30         $ 0.02
Diluted       $ 0.29         $ 0.02
                 
Shares used in per common share calculations:                
Basic         27,930           27,352
Diluted         28,558           28,283
                 
                 
Stock-based compensation included in above figures:                
Cost of product revenue       $ 118         $ 214
Cost of contract revenue         -           -
Research & development         501           454
Selling & marketing         366           237
General & administrative         1,944           1,608
Total       $ 2,929         $ 2,513
                       
                       
iRobot Corporation
Condensed Consolidated Balance Sheet
(unaudited, in thousands)
                 
        March 30,       December 29,
        2013       2012
                 
Assets                
                 
Cash and equivalents       $ 123,576       $ 126,770
Short term investments         13,869         12,430
Accounts receivable, net         27,280         29,413
Unbilled revenues         2,252         1,196
Inventory         32,160         36,965
Deferred tax assets         19,340         19,266
Other current assets         9,811         8,853
Total current assets         228,288         234,893
Property, plant and equipment, net         23,629         24,953
Deferred tax assets         8,623         8,792
Goodwill         48,951         48,951
Intangible assets, net         27,259         28,224
Other assets         10,501         8,500
Total assets       $ 347,251       $ 354,313
                 
Liabilities and stockholders' equity                
                 
Accounts payable       $ 29,804       $ 42,515
Accrued expenses         13,977         13,642
Accrued compensation         6,997         11,864
Deferred revenue and customer advances         3,629         6,257
Total current liabilities         54,407         74,278
Long term liabilities         5,033         4,218
Stockholders' equity         287,811         275,817
Total liabilities and stockholders' equity       $ 347,251       $ 354,313
                     
                     
iRobot Corporation
Consolidated Statement of Cash Flows
(unaudited, in thousands)
                 
                 
        For the three months ended
        March 30,       March 31,
        2013       2012
Cash flows from operating activities:                
Net income       $ 8,355         $ 653  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization         3,284           2,602  
Loss on disposal of property and equipment         182           69  
Stock-based compensation         2,929           2,513  
Deferred income taxes, net         (449 )         (6,694 )
Tax benefit of excess stock based compensation deductions         (43 )         (705 )
Non-cash director deferred compensation         11           22  
Changes in operating assets and liabilities — (use) source                
Accounts receivable         2,133           13,431  
Unbilled revenue         (1,056 )         1,122  
Inventory         4,805           (592 )
Other assets         (983 )         2,832  
Accounts payable         (12,711 )         (4,104 )
Accrued expenses         379           2,003  
Accrued compensation         (4,867 )         (10,149 )
Deferred revenue and customer advances         (2,628 )         895  
Change in long term liabilities         815           (66 )
Net cash provided by operating activities         156           3,832  
                 
Cash flows from investing activities:                
Purchase of property and equipment         (1,077 )         (1,643 )
Change in other assets         (2,000 )         (6,000 )
Purchases of investments         (2,547 )         -  
Sales of investments         1,000           2,500  
Net cash used in investing activities         (4,624 )         (5,143 )
                 
Cash flows from financing activities:                
Proceeds from stock option exercises         1,744           1,323  
Income tax withholding payment associated with restricted stock vesting         (513 )         (227 )
Tax benefit of excess stock based compensation deductions         43           705  
Net cash provided by financing activities         1,274           1,801  
                 
Net increase (decrease) in cash and cash equivalents         (3,194 )         490  
Cash and cash equivalents, at beginning of period         126,770           166,308  
Cash and cash equivalents, at end of period       $ 123,576         $ 166,798  
                         
                         
iRobot Corporation
Supplemental Information
(unaudited)
                 
                 
        For the three months ended
        March 30,       March 31,
        2013       2012
                 
Revenue: *                
                 
Home Robots       $ 92,699         $ 81,583  
                 
Domestic       $ 31,391         $ 21,815  
International       $ 61,308         $ 59,768  
                 
                 
Defense & Security       $ 11,100         $ 14,162  
                 
Domestic       $ 9,134         $ 10,115  
International       $ 1,966         $ 4,047  
                 
Product       $ 8,035         $ 9,004  
Contract       $ 3,065         $ 5,158  
                 
Product Life Cycle       $ 6,131         $ 4,584  
                 
                 
Gross Margin Percent:                
Home Robots         48.2 %         47.0 %
Defense & Security         47.5 %         37.9 %
Total Company         43.8 %         38.4 %
                 
                 
Units shipped:                
Home Robots *         421           392  
Defense & Security         16           132  
                 
                 
Average gross selling prices for robot units:                
Home Robots       $ 230         $ 214  
Defense & Security *       $ 119         $ 33  
                 
                 
Defense & Security Funded Product Backlog *       $ 30,110         $ 6,000  
                 
                 
Days sales outstanding         25           29  
                 
Days in inventory         51           50  
                 

Headcount

        531           620  
                 
                 
* in thousands
 
 
iRobot Corporation
Adjusted EBITDA Reconciliation to GAAP
(unaudited, in thousands)
                 
                 
        For the three months ended
        March 30,       March 31,
        2013       2012
                 
Net income       $ 8,355         $ 653  
                 
Interest income, net         (164 )         (262 )
Income tax expense         513           244  
Depreciation         2,219           2,394  
Amortization         1,065           208  
                 
EBITDA         11,988           3,237  
                 
                 
Stock-based compensation expense         2,929           2,513  
Merger and acquisition expense         280           12  
Net intellectual property litigation expense         33           37  
Restructuring expense         -           278  
                 
Adjusted EBITDA       $ 15,230         $ 6,077  
                 
                 
                 
Use of Non-GAAP Financial Measures
                 

In evaluating its business, iRobot considers and uses Adjusted EBITDA as a supplemental measure of its operating performance. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, merger and acquisition expenses, net intellectual property litigation expenses, restructuring expenses and non-cash stock compensation. The Company also presents Adjusted EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance.

The term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the Company's operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, Adjusted EBITDA does not reflect the Company's actual cash expenditures. Other companies may calculate similar measures differently than iRobot, limiting their usefulness as comparative tools. iRobot compensates for these limitations by relying primarily on its GAAP results and using Adjusted EBITDA only supplementally.

 

Contact:

Elise Caffrey
Investor Relations
iRobot Corp.
(781) 430-3003
ecaffrey@irobot.com
Matt Lloyd
Media Relations
iRobot Corp.
(781) 430-3720
mlloyd@irobot.com