iRobot Reports Second-Quarter Financial Results

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iRobot Reports Second-Quarter Financial Results

Home Robot business drives 17 percent year-over-year growth

BEDFORD, Mass.--(BUSINESS WIRE)-- iRobot Corp. (NAS: IRBT) , a leader in delivering robotic technology-based solutions, today announced its financial results for the second quarter ended June 29, 2013.


"I am very excited to report that we had an excellent quarter following an outstanding Q1. Our Home Robot business delivered strong results both domestically and overseas, and the outlook continues to be good. We announced our second remote presence market initiative, Enterprise Telepresence, in partnership with Cisco, and our Defense & Security business performed as expected," said Colin Angle, chairman and chief executive officer of iRobot.

"Based on our view of the rest of the year, our expectations for revenue and Adjusted EBITDA remain unchanged, but we are increasing the low end of our EPS range due to a one-time tax benefit received in Q2. We expect to deliver fiscal 2013 revenue of $485 to $495 million, EPS between $0.88 and $1.00 and Adjusted EBITDA of $55 to $61 million. Our strong second-quarter results, driven by our Home Robot business, give us confidence that we will achieve our full-year expectations."

  • Revenue for the second quarter of 2013 was $130.4 million, compared with $111.4 million for the same quarter one year ago. Revenue for the first half of 2013 was $236.6 million, compared with $209.3 million last year.
  • Net income in the second quarter of 2013 was $8.3 million, compared with $7.4 million in the second quarter of 2012. For the first half, net income was $16.6 million, compared with $8.0 million a year ago.
  • Quarterly earnings per share were $0.28, compared with $0.26 in the second quarter last year. First-half earnings per share were $0.57, compared with $0.28 in 2012. EPS in Q2 and first-half 2013 included a $0.07 one-time tax benefit associated with the prior period sale of government robots to the U.S. military, which were used outside of the U.S.
  • Adjusted EBITDA for the second quarter of 2013 was $17.0 million, compared with $16.2 million in the second quarter of 2012. For the first half, Adjusted EBITDA was $32.3 million, compared with $22.3 million a year ago.

Business Highlights

  • Domestic revenue growth of 26 percent, coupled with international growth of 18 percent, fueled a 20 percent year-over-year increase in Home Robot revenue.
  • Announced contracts from Brazil totaling $7.2 million and a $3.0 million order under a $30.0 million IDIQ from the U.S. Army during the quarter, which gives us confidence that we will achieve our full-year Defense & Security expectations.
  • Announced a joint marketing agreement with Cisco to bring the enterprise-grade Ava 500 video collaboration robot to market, the second initiative of our Remote Presence business.

Financial Expectations

Management provides the following expectations with respect to the third quarter ending September 28, 2013 and fiscal year ending December 28, 2013.

Q3 2013:

          
Revenue$124 - $128 million
Earnings Per Share$0.20 - $0.25
Adjusted EBITDA$14 - $17 million
 

Fiscal Year 2013:

Current

Prior

Revenue$485 - $495 million$485 - $495 million
Earnings Per Share$0.88 - $1.00$0.80 - $1.00
Adjusted EBITDA$55 - $61 million$55 - $61 million
 

Full-Year 2013 BU Revenue:

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

Second-Quarter Conference Call

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

Date:     Wednesday, July 24, 2013
Time:8:30 a.m. ET
Call-In Number:847-619-6818
Passcode:34160570
 

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=4897483. 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 August 1, and can be accessed by dialing 630-652-3000, passcode 34160570#.

About iRobot Corp.

iRobot designs and builds robots that make a difference. The company's home robots help people find smarter ways to clean, its defense & security robots protect those in harm's way, and its remote presence robots enable virtual presence from anywhere in the world. 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 and performance of our Home Robots business, anticipated performance of our Defense & Security business, anticipated revenue, earnings per share and Adjusted EBITDA for fiscal year 2013 and the third quarter ending September 28, 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 Statements of Income
(in thousands, except per share amounts)
(unaudited)
     
 
For the three months endedFor the six months ended
June 29,June 30,June 29,June 30,
 2013   2012 2013   2012
Revenue
Product revenue$127,966$107,760$229,371$199,502
Contract revenue 2,396   3,685 7,186   9,750
Total 130,362   111,445 236,557   209,252
 
Cost of Revenue
Product revenue67,87357,089125,688113,322
Contract revenue 884   1,540 2,737   4,562
Total 68,757   58,629 128,425   117,884
 
Gross Margin61,60552,816108,13291,368
 
Operating Expense
Research & development15,99714,18230,40528,682
Selling & marketing22,30917,97633,00630,309
General & administrative 15,395   10,022 27,853   21,064
Total 53,701   42,180 91,264   80,055
 
Operating income7,90410,63616,86811,313
 
Other income (expense), net (105)  60 (201)  280
 
Income before income taxes7,79910,69616,66711,593
Income tax expense (benefit) (495)  3,321 18   3,565
Net income$8,294  $7,375$16,649  $8,028
 
Net income per common share:
Basic$0.29$0.27$0.59$0.29
Diluted$0.28$0.26$0.57$0.28
 
Shares used in per common share calculations:
Basic28,41627,52228,17327,441
Diluted29,22628,18228,97228,259
 
 
Stock-based compensation included in above figures:
Cost of product revenue$128$218$246$426
Cost of contract revenue----
Research & development7934461,294906
Selling & marketing118179484416
General & administrative 2,224   2,059 4,168   3,667
Total$3,263  $2,902$6,192  $5,415
 
 
iRobot Corporation
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
   
June 29,December 29,
 2013 2012
 
Assets
 
Cash and equivalents$133,857$126,770
Short term investments19,01412,430
Accounts receivable, net51,10429,413
Unbilled revenues1,0511,196
Inventory41,56036,965
Deferred tax assets19,24519,266
Other current assets 13,598 8,853
Total current assets279,429234,893
Property, plant and equipment, net23,06024,953
Deferred tax assets10,4388,792
Goodwill48,75148,951
Intangible assets, net24,50628,224
Other assets 10,501 8,500
Total assets$396,685$354,313
 
Liabilities and stockholders' equity
 
Accounts payable$53,905$42,515
Accrued expenses14,04513,642
Accrued compensation13,11311,864
Deferred revenue and customer advances 3,274 6,257
Total current liabilities 84,337 74,278
Long term liabilities 4,138 4,218
Stockholders' equity 308,210 275,817
Total liabilities and stockholders' equity$396,685$354,313
 
 
iRobot Corporation
Consolidated Statements of Cash Flows
(unaudited, in thousands)
     
 
For the three months endedFor the six months ended
June 29,June 30,June 29,June 30,
 2013   2012  2013   2012 
Cash flows from operating activities:
Net income$8,294$7,375$16,649$8,028
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization3,2652,7116,5495,313
Loss on disposal of property and equipment9997281166
Goodwill and intangible assets impairment1,988 Read Full Story

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