Exhibit 99.1
FOR IMMEDIATE RELEASE
     
Contacts:
    
Elise Caffrey
  Nancy Smith
Investor Relations
  Media Relations
iRobot Corp.
  iRobot Corp.
(781) 430-3003
  (781) 430-3323
ecaffrey@irobot.com
  nsmith@irobot.com
iRobot Reports First Quarter 2008 Results
Revenue Up 45 Percent; Cautious About Retail Sector Second Half of 2008
BEDFORD, Mass., April 30, 2008 — iRobot Corp. (NASDAQ: IRBT) today announced its financial results for the fiscal quarter ended March 29, 2008.
“In Q1, we delivered our 15th consecutive quarter of year-over-year revenue growth,” said Colin Angle, chief executive officer of iRobot. “We continue to see strong demand for our products in both divisions. Home Robot revenue was up 55 percent with significant increases in international home robot revenue from Q1 2007. Government & Industrial revenue grew 35 percent in the first quarter from the first quarter a year ago. That said, we faced some macro economic challenges during the quarter that impacted our bottom line and changed our outlook for the rest of 2008,” he added.
“Over the past two months, the overall retail environment has deteriorated. Due to the financial condition of one of our key customers, Linens ‘n Things, we did not recognize revenue for $1.8 million of shipments made to them in Q1. As compared to first quarter 2007, this accounted for a 2.3 percentage point decline in gross margin and a $0.05 decrease in earnings per share.
“The financial expectations we shared on February 20th assumed a unit growth rate that we thought was reasonable in a recession, and we have seen sell through performance that meets or exceeds that model. In the current U.S. economic climate, however, we anticipate that it will be difficult for our retail partners to buy as aggressively as they have in the past to fill their shelves with product in the back half of the year. Therefore, we are reiterating our expectations for first half 2008 financial performance and modifying our expectations for full year 2008 financial performance.”
Current expectations for first half and full year 2008 financial performance are as follows:
         
    First Half   Full Year
Current Guidance
        
Revenue
  $109M — $112M   $295M — $305M
Pre-Tax Net Income (Loss)
  ($17M — $19M)   $5M — $7M
Earnings Per Share (Loss Per Share)
  ($0.42 — $0.45)   $0.12 — $0.17
 
        
iRobot Corporation
8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com

 

 

         
February 20, 2008 Guidance
        
Revenue
  $109M — $112M   $300M — $310M
Pre-Tax Net Income (Loss)
  ($17M — $19M)   $8M — $10M
Earnings Per Share (Loss Per Share)
  ($0.42 — $0.45)   $0.18 — $0.23
Financial Highlights:
•   Revenues for the first quarter of 2008 grew to $57.3 million, compared with $39.5 million in the first quarter of 2007.
•   Gross profit for the first quarter of 2008 increased to $15.4 million (26.8 percent of sales), compared with $11.1 million (28.2 percent of sales) in the first quarter of 2007.
•   Net loss in the first quarter of 2008 was $4.0 million compared with a net loss in the first quarter of 2007 of $5.5 million.
Business Highlights:
•   iRobot announced the company reached a funding agreement with the U.S. Army’s Lead Systems Integrator (LSI) of Boeing and Science Applications International Corporation team on the previously determined direction of SUGV acceleration on January 17, 2008 under the Future Combat Systems (FCS) Program. This contract has grown from $23 million in 2003 to its current level of approximately $63 million.
•   iRobot announced an expansion of the iRobot Verro™ Pool Cleaning Robot line. Three robots are available for the 2008 pool season, including two new models, the Verro 100 Pool Cleaning Robot at $399 and the Verro 500 Pool Cleaning Robot at $999.
•   iRobot announced it received an award under the Defense Advanced Research Projects Agency’s (DARPA) LANdroids program to develop a new portable communications relay robot that is small, inexpensive, intelligent and robust. The goal of the DARPA LANdroids program is to develop technologies to enable the warfighter operating in dense urban environments to rapidly deploy and maintain a vital communications infrastructure.
First-Quarter Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. ET to discuss its financial results for the fiscal quarter ended March 29, 2008, business outlook, and outlook for future financial performance. To access the call, investors should dial 719-325-4859 approximately 10 minutes prior to the initiation of the teleconference and reference iRobot. A live, audio broadcast of the conference call also will be available at http://investors.irobot.com/events.cfm. An archived version of the broadcast will be available on the same Web site shortly after the conclusion of the live event. A replay of the telephone conference call will be available through midnight on May 15, and can be accessed by dialing 719-457-0820, access code 3518435.
About iRobot Corp.
iRobot is a provider of robots that perform dull, dirty or dangerous missions in a better way. The company’s proprietary technology, iRobot AWARE Robot Intelligence Systems, incorporates advanced concepts in navigation, mobility, manipulation and artificial intelligence. This proprietary system enables iRobot to build behavior-based robots, including its family of consumer and military robots. For additional information about iRobot, please visit www.irobot.com.
iRobot Corporation
8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, 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 concerning future financial performance and demand for and market acceptance of its products. 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: general economic conditions, our ability to operate in an emerging market, fluctuations in our operating results and the seasonality of our business, our ability to enhance our current consumer robots or develop new consumer robots, our dependence on the U.S. federal government and government contracts, our ability to expand our product offering beyond our current markets, market acceptance of our products, our ability to manage our rapid growth, 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.
iRobot Corporation
8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com

 

 

iRobot Corporation
Consolidated Statement of Operations
(in thousands, except per share amounts)
                 
    For the three months ended
    March 29,   March 31,
    2008   2007
    (unaudited)
Revenue
                
Product revenue
   $ 50,575     $ 34,121  
Contract revenue
     6,727       5,366  
     
Total
     57,302       39,487  
     
Cost of Revenue
                
Product revenue
     36,195       23,486  
Contract revenue
     5,747       4,884  
     
Total
     41,942       28,370  
     
Gross Profit
     15,360       11,117  
 
                
Operating Expense
                
Research & development
     3,973       4,156  
Selling & marketing
     11,458       8,049  
General & administrative
     6,778       5,327  
     
Total
     22,209       17,532  
     
Operating loss
     (6,849 )     (6,415 )
Other income, net
     495       931  
     
Pre-tax loss
     (6,354 )     (5,484 )
Income tax expense (benefit)
     (2,349 )     17  
     
Net loss
   $ (4,005 )   $ (5,501 )
     
 
                
Net loss per common share:
                
Basic and diluted
   $ (0.16 )   $ (0.23 )
 
                
Shares used in Per Common Share Calculations:
                
Basic and diluted
     24,506       23,902  
 
                
Stock-based compensation included in above figures:
                
Cost of product revenue
   $ 154     $ 120  
Cost of contract revenue
     59       77  
Research & development
     (33 )     (9 )
Selling & marketing
     161       157  
General & administrative
     597       312  
     
Total
   $ 938     $ 657  
     
iRobot Corporation
8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com

 

 

iRobot Corporation
Condensed Consolidated Balance Sheet
(in thousands)
                 
    March 29,     December 29,  
    2008     2007  
    (unaudited)     (audited)  
Assets
                
 
                
Cash and equivalents
   $ 22,861     $ 26,735  
Short term investments
     —       16,550  
Accounts receivable, net
     21,923       47,681  
Unbilled revenues
     2,609       2,244  
Inventory, net
     46,216       45,222  
Deferred tax assets
     5,905       5,905  
Other current assets
     6,337       2,268  
 
            
Total current assets
     105,851       146,605  
Property, plant and equipment, net
     18,020       15,694  
Deferred tax assets
     4,293       4,293  
Long term investments
     15,401       —  
Other assets
     2,500       2,500  
 
            
Total assets
   $ 146,065     $ 169,092  
 
            
 
                
Liabilities and stockholders’ equity
                
 
                
Accounts payable
   $ 27,966     $ 44,697  
Accrued expenses
     5,926       7,987  
Accrued compensation
     5,124       4,603  
Deferred revenue
     1,130       1,578  
 
            
Total current liabilities
     40,146       58,865  
 
            
Stockholders’ equity
     105,919       110,227  
 
            
Total liabilities and stockholders’ equity
   $ 146,065     $ 169,092  
 
            
iRobot Corporation
8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com

 

 

iRobot Corporation
Consolidated Statement of Cash Flows
(in thousands)
                 
    For the three months ended  
    March 29,     March 31,  
    2008     2007  
    (unaudited)  
       
Cash flows from operating activities:
                
Net loss
   $ (4,005 )   $ (5,501 )
Adjustments to reconcile net loss to net cash provided by operating activities:
                
Depreciation and amortization
     1,566       1,206  
Loss on disposal of fixed assets
     45       35  
Stock-based compensation
     938       657  
Non-cash director deferred compensation
     24       28  
Changes in working capital — (use) source
               
Accounts receivable
     25,758       12,273  
Unbilled revenue
     (365 )     418  
Inventory
     (994 )     4,691  
Other assets
     (4,069 )     1,030  
Accounts payable
     (16,731 )     (9,870 )
Accrued expenses
     (2,061 )     (1,907 )
Accrued compensation
     521       (682 )
Deferred revenue
     (448 )     69  
       
Net cash provided by operating activities
     179       2,447  
       
 
                
Cash flows from investing activities:
                
Purchase of property and equipment
     (3,937 )     (1,798 )
Purchases of investments
     (29,997 )     (15,400 )
Sales of investments
     29,050       19,800  
       
Net cash provided by (used in) investing activities
     (4,884 )     2,602  
       
 
                
Cash flows from financing activities:
                
Income tax withholding payment associated with stock option exercise
     —       (1,588 )
Proceeds from stock option exercises
     570       353  
Tax benefit of disqualifying dispositions
     261       —  
       
Net cash provided by (used in) financing activities
     831       (1,235 )
       
 
                
Net increase (decrease) in cash and cash equivalents
     (3,874 )     3,814  
Cash and cash equivalents, at beginning of period
     26,735       5,583  
       
Cash and cash equivalents, at end of period
   $ 22,861     $ 9,397  
       
iRobot Corporation
8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com

 

 

iRobot Corporation
Supplemental Information
(unaudited)
                 
    For the three months ended  
    March 29,     March 31,  
    2008     2007  
       
Revenue by business unit (in thousands):
                
Home Robots
                
Product
   $ 30,093     $ 19,441  
Contract
     55       —  
Government & Industrial
                
Product
     20,482       14,680  
Contract
     6,672       5,366  
       
 
   $ 57,302     $ 39,487  
       
 
                
Direct Revenue — Home Robots (in thousands)
   $ 7,861     $ 5,215  
Product Lifecycle Revenue — Government & Industrial (in thousands)
   $ 3,203     $ 3,001  
 
                
International Revenue (in thousands):
                
Home Robots
   $ 10,405     $ 1,847  
Government & Industrial
   $ 812     $ 550  
 
                
Average selling prices for robot units:
                
Home Robots
   $ 158     $ 136  
Government & Industrial (in thousands)
   $ 111     $ 120  
 
                
Gross Profit by business unit (in thousands):
                
Home Robots
   $ 8,069     $ 5,877  
Government & Industrial
     7,291       5,240  
       
 
   $ 15,360     $ 11,117  
       
 
                
Units shipped by business unit:
                
Home Robots (in thousands)
     169       129  
Government & Industrial
     156       97  
 
                
Government & Industrial Funded Backlog (in thousands)
   $ 13,358     $ 29,898  
 
                
Days sales outstanding
     39       41  
Inventory turnover
     3.1       5.8  
Net cash provided by operating activities (in thousands)
   $ 179     $ 2,447  
Headcount
     452       387  
###
iRobot Corporation
8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com