Press Releases

iRobot Reports First-Quarter Financial Results
Exceeds Expectations; Reaffirms 2011 Outlook

BEDFORD, Mass., Apr 26, 2011 (BUSINESS WIRE) -- iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the first quarter ended April 2, 2011.

 

  • Revenue for the first quarter of 2011 increased 12 percent to $106.3 million, compared with $94.9 million for the same quarter one year ago.
  • Net income in the first quarter of 2011 was $7.5 million, compared with $6.2 million in the first quarter of 2010.
  • Quarterly earnings per share were $0.27, compared with $0.24 in the first quarter last year.
  • Adjusted EBITDA for the first quarter of 2011 was $15.1 million, compared with $13.7 million in the first quarter of 2010.

 

"Our success in the first quarter reflects the increasing diversification of products and markets in our two divisions," said Colin Angle, chairman and chief executive officer of iRobot. "Strong demand in both domestic and international markets drove Q1 home robot revenue growth. We recently received several significant government contracts in our Government and Industrial Robots division indicating the underlying demand for both PackBot and SUGV robots. We continue to anticipate stronger revenue and earnings growth in the second half of the year due to the timing of government orders, and we are reaffirming our financial expectations for the full year."

Business Highlights

 

  • In March, the company shipped two PackBot and two Warrior robots to Japan to explore a reactor building at Japan's crippled Fukushima Daiichi nuclear power plant following the devastating earthquake and tsunami.
  • Strong demand in both domestic and overseas markets drove a 29 percent year-over-year increase in first-quarter home robot revenue. In Q1, domestic home robot revenue grew 12 percent while international home robot revenue grew 37 percent and comprised 73 percent of total home robot revenue.
  • In April, the Government and Industrial Robots division received two new Indefinite Delivery/Indefinite Quantity contracts, with ceilings totaling $238 million, for delivery of PackBot and SUGV robots.
  • The company introduced prototypes of the iRobot FirstLook(TM) unmanned ground vehicle, a small, light, throwable robot, and launched its new Scooba 230 floor washing robot through the company's website.

 

Financial Expectations

Management provides the following expectations with respect to the second quarter ending July 2, 2011.

Q2 2011:

       
Revenue       $102 - $106 million
Earnings Per Share       $ 0.18 - $0.22
Adjusted EBITDA       $12 - $14 million

Management reaffirms the following expectations for the full year ending December 31, 2011.

Fiscal Year 2011:

         
Revenue         $450 - $465 million
Earnings Per Share         $ 0.90 - $1.00
Adjusted EBITDA         $58 - $62 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 and outlook for 2011 financial performance. Pertinent details include:

Date:         Wednesday, April 27, 2011
Time:         8:30 a.m. ET
Call-In Number:         630-691-2769
Passcode:         29575658

A live, audio broadcast of the conference call will also be available at http://investor.irobot.com/phoenix.zhtml?c=193096&p=irol-irhome. 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 5, and can be accessed by dialing 630-652-3042, passcode 29575658#.

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 government and industrial robots protect those in harm's way. iRobot's consumer and military robots feature iRobot Aware(R) robot intelligence systems, proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, please visitwww.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 and growth, anticipated revenue, Adjusted EBITDA and earnings per share for fiscal year 2011 and the second quarter of 2011. 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, our dependence on the U.S. federal government and government contracts, market acceptance of our products, 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 release includes Adjusted EBITDA, 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, and non-cash stock compensation. A reconciliation between net income and Adjusted EBITDA is provided in the financial tables at the end of this press release.

   
iRobot Corporation  
Consolidated Statement of Operations  
(in thousands, except per share amounts)  
(unaudited)  
           
           
    For the three months ended  
   

April 2,

 

April 3,

 
    2011   2010  
Revenue          
Product revenue   $ 96,711   $ 86,111  
Contract revenue     9,566     8,819  
Total     106,277     94,930  
           
Cost of Revenue          
Product revenue     56,190     55,600  
Contract revenue     6,633     6,613  
Total     62,823     62,213  
           
Gross Margin     43,454     32,717  
           
Operating Expense          
Research & development     8,729     4,499  
Selling & marketing     12,981     9,644  
General & administrative     10,600     8,476  
Total     32,310     22,619  
           
Operating income     11,144     10,098  
           
Other income (expense), net     238     29  
           
Pre-tax income     11,382     10,127  
Income tax expense     3,905     3,959  
Net income   $ 7,477   $ 6,168  
           
Net income per common share:          
Basic   $ 0.29   $ 0.25  
Diluted   $ 0.27   $ 0.24  
           
Shares used in per common share calculations:          
Basic     26,089     25,125  
Diluted     27,485     26,067  
           
           
Stock-based compensation included in above figures:          
Cost of product revenue   $ 250   $ 332  
Cost of contract revenue     95     126  
Research & development     81     32  
Selling & marketing     181     356  
General & administrative     1,172     1,044  
Total   $ 1,779   $ 1,890  
           
   
iRobot Corporation  
Condensed Consolidated Balance Sheet  
(unaudited, in thousands)  
                 
      April 2,       January 1,  
      2011       2011  
                 
Assets                
                 
Cash and equivalents     $ 107,999       $ 108,383  
Short term investments       16,306         13,928  
Accounts receivable, net       27,609         34,056  
Unbilled revenues       7,934         4,012  
Inventory       35,071         27,160  
Deferred tax assets       12,917         12,917  
Other current assets       8,048         6,137  
Total current assets       215,884         206,593  
Property, plant and equipment, net       27,646         25,620  
Deferred tax assets       8,099         8,338  
Other assets       13,673         13,780  
Total assets     $ 265,302       $ 254,331  
                 
Liabilities and stockholders' equity                
                 
Accounts payable     $ 44,244       $ 38,689  
Accrued expenses       14,779         15,790  
Accrued compensation       8,149         17,827  
Deferred revenue and customer advances       3,648         3,534  
Total current liabilities       70,820         75,840  
Long term liabilities       3,973         3,584  
Stockholders' equity       190,509         174,907  
Total liabilities and stockholders' equity     $ 265,302       $ 254,331  
                 
 
iRobot Corporation
Consolidated Statement of Cash Flows
(unaudited, in thousands)
             
             
      For the three months ended  
      April 2,   April 3,  
      2011   2010  
Cash flows from operating activities:            
Net income     $ 7,477     $ 6,168    
Adjustments to reconcile net income to net cash provided by operating activities:            
Depreciation and amortization       2,183       1,838    
Loss on disposal of property and equipment       470       45    
Stock-based compensation       1,779       1,890    
Benefit from deferred tax assets       -       -    
Non-cash director deferred compensation       38       33    
Changes in operating assets and liabilities -- (use) source            
Accounts receivable       6,447       9,092    
Unbilled revenue       (3,922 )     (1,460 )  
Inventory       (7,911 )     2,538    
Other assets       (1,929 )     753    
Accounts payable       5,555       (1,068 )  
Accrued expenses       (915 )     (41 )  
Accrued compensation       (9,678 )     (7,222 )  
Deferred revenue       114       (1,932 )  
Change in long term liabilities       389       (108 )  
Net cash provided by operating activities       97       10,526    
             
Cash flows from investing activities:            
Purchase of property and equipment       (4,554 )     (2,039 )  
Purchases of investments       (5,000 )     (17,580 )  
Sales of investments       2,500       -    
Net cash used in investing activities       (7,054 )     (19,619 )  
             
Cash flows from financing activities:            
Proceeds from stock option exercises       4,584       104    
Income tax withholding payment associated with restricted stock vesting       (453 )     (159 )  
Tax benefit of excess stock based compensation deductions       2,442       149    
Net cash provided by financing activities       6,573       94    
             
Net decrease in cash and cash equivalents       (384 )     (8,999 )  
Cash and cash equivalents, at beginning of period       108,383       71,856    
Cash and cash equivalents, at end of period     $ 107,999     $ 62,857    
                     
   
iRobot Corporation  
Supplemental Information  
(unaudited)  
             
             
      For the three months ended  
     

April 2,

 

April 3,

 
      2011   2010  
             
Revenue: *            
             
Home Robots     $ 67,882     $ 52,547    
             
Domestic     $ 18,058     $ 16,087    
International     $ 49,824     $ 36,460    
             
             
Government & Industrial     $ 38,395     $ 42,383    
             
Domestic     $ 32,438     $ 37,067    
International     $ 5,957     $ 5,316    
             
Product     $ 28,829     $ 33,564    
Contract     $ 9,566     $ 8,819    
             
Product Life Cycle     $ 12,702     $ 7,980    
             
             
Gross Margin Percent:            
Home Robots       45.5 %     38.0 %  
Government & Industrial       32.7 %     30.0 %  
Total Company       40.9 %     34.5 %  
             
             
Units shipped:            
Home Robots *       349       287    
Government & Industrial       114       266    
             
             
Average gross selling prices for robot units:            
Home Robots     $ 193     $ 189    
Government & Industrial *     $ 141     $ 96    
             
             
Government & Industrial Funded Product Backlog *     $ 8,302     $ 35,056    
             
             
Days sales outstanding       31       28    
             
Days in inventory       55       49    
             
Headcount       692       566    
             
             
* in thousands            
             
   
iRobot Corporation  
Adjusted EBITDA Reconciliation to GAAP  
(unaudited, in thousands)  
             
             
      For the three months ended  
      April 2,   April 3,  
      2011   2010  
             
Net income     $ 7,477     $ 6,168    
             
Interest income, net       (210 )     (170 )  
Income tax expense       3,905       3,959    
Depreciation       2,058       1,699    
Amortization       125       139    
             
EBITDA       13,355       11,795    
             
             
Stock-based compensation expense       1,779       1,890    
Merger and acquisition expense       -       10    
             
Adjusted EBITDA     $ 15,134     $ 13,695    

 

 

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, 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.

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 government and industrial 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 visitwww.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 concerning management's plans, objectives and strategies. 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. 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 including, without limitation, our most recent Annual Report on Form 10-K.

Contact:

Elise Caffrey
Investor Relations
iRobot Corp.
(781) 430-3003
ecaffrey@irobot.com
Charlie Vaida
Media Relations
iRobot Corp.
(781) 430-3182
cvaida@irobot.com