Company’s Strong Results Exceed Revenue and Earnings Estimates
iRobot Corp. (NASDAQ: IRBT) today announced its financial results for
the fiscal quarter ended June 27, 2009. Revenue for the second quarter
of 2009 decreased 8.7 percent to $61.3 million, compared with $67.2
million for the same quarter one year ago. Revenue for the first half of
2009 decreased 5.0 percent to $118.3 million from $124.5 million for the
first half of 2008.
Gross margin for the second quarter increased to 26.8 percent of
revenue, compared with 24.5 percent of revenue in the second quarter of
2008. First-half 2009 gross margin increased to 27.6 percent of revenue,
up from 25.6 percent of revenue in the first half of 2008.
Loss per share for the second quarter of 2009 improved to $0.10,
compared with $0.18 for the same period a year ago. For the first half
of 2009, loss per share improved to $0.18, compared with $0.35 for the
same period in 2008.
Adjusted EBITDA improved to $0.1 million for the second quarter of 2009,
compared with a loss of $5.8 million in the second quarter of 2008. For
the first half of 2009, Adjusted EBITDA loss improved to $0.1 million
from $10.2 million in the first half of 2008.
“We delivered revenue and profit results for the second quarter at the
top end of expectations in a very challenging environment,” said Colin
Angle, chairman and chief executive officer of iRobot. “Adjusted EBITDA
far exceeded expectations and represented nearly a $6 million
improvement over last year’s results. The most profound change over the
course of the last year has been our focus on driving operating cash
flow. Over the past year we have generated operating cash flow of $31
million and improved our cash position by $21 million to nearly $51
million at the end of the second quarter.
“Based on our performance through the first half, we are narrowing the
range of our expectations for full-year revenue and reaffirming our
expectations for earnings per share and Adjusted EBITDA. Continuing
uncertainty about retail demand during the second half of the year and
the potential impact on defense spending of the government’s actions to
fund the U.S. economic recovery makes us cautious,” Angle concluded.
Business Highlights
-
International home robot revenue in the second quarter of 2009
increased 9 percent from the second quarter of 2008 and comprised more
than half of total home robot revenue in the quarter.
-
Government & Industrial revenue was generated primarily from the sale
of the iRobot PackBot 510 with FasTac Kit. During the quarter, the
first PackBot 510 EOD’s with advanced vision and surveillance
capabilities were shipped. The first ten small unmanned ground
vehicles, SUGV 310’s (mini-EOD), were also delivered to the Army.
-
In the first half of 2009, operating cash flow was $11.9 million,
compared with $0.2 million in the first half of 2008, as aggressive
working capital management led to a $14.7 million reduction of
inventory versus last year.
Financial Expectations
Management provides the following expectations with respect to the
fiscal year ending January 2, 2010 and the third quarter ending
September 26, 2009.
|
Fiscal Year 2009:
|
|
Revenue
|
|
$295-$305 million
|
|
Adjusted EBITDA
|
|
$14-$17 million
|
|
Earnings Per Share
|
|
$0.00 - $0.04
|
|
|
|
Q3 2009:
|
|
Revenue
|
|
$75-$80 million
|
|
Adjusted EBITDA
|
|
$3 – $5 million
|
|
Earnings Per Share
|
|
$0.00 – $0.03
|
Second-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 June 27, 2009,
business outlook, and outlook for future financial performance.
Pertinent details include:
|
Date: Thurs., July 23, 2009
|
|
Time: 8:30 a.m. ET
|
|
Call-In Number: 719-325-4811
|
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 and can be accessed by
dialing 719-457-0820, access code 2717744.
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 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 anticipated revenue, Adjusted
EBITDA and earnings per share for fiscal year 2009 and for the third
quarter ending September 26, 2009, 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:
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, and non-cash
stock compensation. A reconciliation between net loss 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
|
|
For the six months ended
|
|
|
|
June 27,
|
|
June 28,
|
|
June 27,
|
|
June 28,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Product revenue
|
|
$
|
52,609
|
|
|
$
|
60,676
|
|
|
$
|
102,300
|
|
|
$
|
111,251
|
|
|
Contract revenue
|
|
|
8,731
|
|
|
|
6,526
|
|
|
|
15,976
|
|
|
|
13,253
|
|
|
Total
|
|
|
61,340
|
|
|
|
67,202
|
|
|
|
118,276
|
|
|
|
124,504
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenue
|
|
|
|
|
|
|
|
|
|
Product revenue
|
|
|
37,098
|
|
|
|
44,382
|
|
|
|
70,537
|
|
|
|
80,577
|
|
|
Contract revenue
|
|
|
7,833
|
|
|
|
6,352
|
|
|
|
15,124
|
|
|
|
12,099
|
|
|
Total
|
|
|
44,931
|
|
|
|
50,734
|
|
|
|
85,661
|
|
|
|
92,676
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
16,409
|
|
|
|
16,468
|
|
|
|
32,615
|
|
|
|
31,828
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense
|
|
|
|
|
|
|
|
|
|
Research & development
|
|
|
3,896
|
|
|
|
4,718
|
|
|
|
7,474
|
|
|
|
8,691
|
|
|
Selling & marketing
|
|
|
8,940
|
|
|
|
13,471
|
|
|
|
17,906
|
|
|
|
24,929
|
|
|
General & administrative
|
|
|
7,365
|
|
|
|
7,340
|
|
|
|
14,495
|
|
|
|
14,118
|
|
|
Total
|
|
|
20,201
|
|
|
|
25,529
|
|
|
|
39,875
|
|
|
|
47,738
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(3,792
|
)
|
|
|
(9,061
|
)
|
|
|
(7,260
|
)
|
|
|
(15,910
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
91
|
|
|
|
242
|
|
|
|
(208
|
)
|
|
|
737
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss
|
|
|
(3,701
|
)
|
|
|
(8,819
|
)
|
|
|
(7,468
|
)
|
|
|
(15,173
|
)
|
|
Income tax benefit
|
|
|
(1,092
|
)
|
|
|
(4,306
|
)
|
|
|
(3,072
|
)
|
|
|
(6,655
|
)
|
|
Net loss
|
|
$
|
(2,609
|
)
|
|
$
|
(4,513
|
)
|
|
$
|
(4,396
|
)
|
|
$
|
(8,518
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.10
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.35
|
)
|
|
Diluted
|
|
$
|
(0.10
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.35
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in Per Common Share Calculations:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
24,967
|
|
|
|
24,610
|
|
|
|
24,946
|
|
|
|
24,561
|
|
|
Diluted
|
|
|
24,967
|
|
|
|
24,610
|
|
|
|
24,946
|
|
|
|
24,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in above figures:
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
$
|
278
|
|
|
$
|
216
|
|
|
$
|
491
|
|
|
$
|
370
|
|
|
Cost of contract revenue
|
|
|
162
|
|
|
|
114
|
|
|
|
325
|
|
|
|
173
|
|
|
Research & development
|
|
|
101
|
|
|
|
128
|
|
|
|
98
|
|
|
|
95
|
|
|
Selling & marketing
|
|
|
338
|
|
|
|
267
|
|
|
|
655
|
|
|
|
428
|
|
|
General & administrative
|
|
|
1,016
|
|
|
|
808
|
|
|
|
1,928
|
|
|
|
1,405
|
|
|
Total
|
|
$
|
1,895
|
|
|
$
|
1,533
|
|
|
$
|
3,497
|
|
|
$
|
2,471
|
|
|
|
|
iRobot Corporation
|
|
Condensed Consolidated Balance Sheet
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
June 27,
|
|
December 27,
|
|
|
|
2009
|
|
2008
|
|
|
|
(unaudited)
|
|
(audited)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
50,989
|
|
$
|
40,852
|
|
Accounts receivable, net
|
|
|
31,291
|
|
|
35,930
|
|
Unbilled revenues
|
|
|
3,459
|
|
|
2,014
|
|
Inventory, net
|
|
|
28,638
|
|
|
34,560
|
|
Deferred tax assets
|
|
|
7,565
|
|
|
7,299
|
|
Other current assets
|
|
|
5,498
|
|
|
3,340
|
|
Total current assets
|
|
|
127,440
|
|
|
123,995
|
|
Property, plant and equipment, net
|
|
|
21,672
|
|
|
22,929
|
|
Deferred tax assets
|
|
|
4,508
|
|
|
4,508
|
|
Other assets
|
|
|
12,000
|
|
|
12,246
|
|
Total assets
|
|
$
|
165,620
|
|
$
|
163,678
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
21,108
|
|
$
|
19,544
|
|
Accrued expenses
|
|
|
10,966
|
|
|
10,989
|
|
Accrued compensation
|
|
|
7,027
|
|
|
6,393
|
|
Deferred revenue and customer advances
|
|
|
2,974
|
|
|
2,632
|
|
Total current liabilities
|
|
|
42,075
|
|
|
39,558
|
|
Long term liabilities
|
|
|
4,229
|
|
|
4,444
|
|
Stockholders' equity
|
|
|
119,316
|
|
|
119,676
|
|
Total liabilities and stockholders' equity
|
|
$
|
165,620
|
|
$
|
163,678
|
|
|
|
iRobot Corporation
|
|
Consolidated Statement of Cash Flows
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the six months ended
|
|
|
|
June 27,
|
|
June 28,
|
|
June 27,
|
|
June 28,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,609
|
)
|
|
$
|
(4,513
|
)
|
|
$
|
(4,396
|
)
|
|
$
|
(8,518
|
)
|
|
Adjustments to reconcile net loss to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,950
|
|
|
|
1,725
|
|
|
|
3,864
|
|
|
|
3,291
|
|
|
Loss on disposal of fixed assets
|
|
|
87
|
|
|
|
23
|
|
|
|
102
|
|
|
|
68
|
|
|
Stock-based compensation
|
|
|
1,895
|
|
|
|
1,533
|
|
|
|
3,497
|
|
|
|
2,471
|
|
|
Benefit from deferred tax assets
|
|
|
(511
|
)
|
|
|
-
|
|
|
|
(511
|
)
|
|
|
-
|
|
|
Non-cash director deferred compensation
|
|
|
33
|
|
|
|
23
|
|
|
|
66
|
|
|
|
47
|
|
|
Changes in working capital — (use) source
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(8,099
|
)
|
|
|
(2,330
|
)
|
|
|
4,639
|
|
|
|
23,428
|
|
|
Unbilled revenue
|
|
|
(326
|
)
|
|
|
419
|
|
|
|
(1,445
|
)
|
|
|
54
|
|
|
Inventory
|
|
|
2,104
|
|
|
|
2,928
|
|
|
|
5,922
|
|
|
|
1,934
|
|
|
Other assets
|
|
|
(1,001
|
)
|
|
|
(4,047
|
)
|
|
|
(2,163
|
)
|
|
|
(8,116
|
)
|
|
Accounts payable
|
|
|
1,981
|
|
|
|
(4,001
|
)
|
|
|
1,564
|
|
|
|
(20,732
|
)
|
|
Accrued expenses
|
|
|
225
|
|
|
|
2,240
|
|
|
|
(33
|
)
|
|
|
179
|
|
|
Accrued compensation
|
|
|
1,656
|
|
|
|
1,501
|
|
|
|
634
|
|
|
|
2,022
|
|
|
Deferred revenue
|
|
|
256
|
|
|
|
(180
|
)
|
|
|
342
|
|
|
|
(628
|
)
|
|
Change in long term liabilities
|
|
|
(108
|
)
|
|
|
4,659
|
|
|
|
(215
|
)
|
|
|
4,659
|
|
|
Net cash provided by (used in) operating activities
|
|
|
(2,467
|
)
|
|
|
(20
|
)
|
|
|
11,867
|
|
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(1,672
|
)
|
|
|
(8,340
|
)
|
|
|
(2,448
|
)
|
|
|
(12,277
|
)
|
|
Purchases of investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(29,997
|
)
|
|
Sales of investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,050
|
|
|
Net cash used in investing activities
|
|
|
(1,672
|
)
|
|
|
(8,340
|
)
|
|
|
(2,448
|
)
|
|
|
(13,224
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from stock option exercises
|
|
|
132
|
|
|
|
162
|
|
|
|
459
|
|
|
|
732
|
|
|
Income tax withholding payment associated with restricted stock
award vesting
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
Tax benefit of excess stock based compensation deductions
|
|
|
268
|
|
|
|
97
|
|
|
|
268
|
|
|
|
358
|
|
|
Net cash provided by financing activities
|
|
|
391
|
|
|
|
259
|
|
|
|
718
|
|
|
|
1,090
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(3,748
|
)
|
|
|
(8,101
|
)
|
|
|
10,137
|
|
|
|
(11,975
|
)
|
|
Cash and cash equivalents, at beginning of period
|
|
|
54,737
|
|
|
|
22,861
|
|
|
|
40,852
|
|
|
|
26,735
|
|
|
Cash and cash equivalents, at end of period
|
|
$
|
50,989
|
|
|
$
|
14,760
|
|
|
$
|
50,989
|
|
|
$
|
14,760
|
|
|
|
|
iRobot Corporation
|
|
Supplemental Information
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the six months ended
|
|
|
|
June 27,
|
|
June 28,
|
|
June 27,
|
|
June 28,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by business unit (in thousands):
|
|
|
|
|
|
|
|
|
|
Home Robots
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
34,099
|
|
|
$
|
41,705
|
|
|
$
|
66,922
|
|
$
|
71,798
|
|
Contract
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
55
|
|
Government & Industrial
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
18,510
|
|
|
|
18,971
|
|
|
|
35,378
|
|
|
39,453
|
|
Contract
|
|
|
8,731
|
|
|
|
6,526
|
|
|
|
15,976
|
|
|
13,198
|
|
|
|
$
|
61,340
|
|
|
$
|
67,202
|
|
|
$
|
118,276
|
|
$
|
124,504
|
|
|
|
|
|
|
|
|
|
|
|
Direct Revenue - Home Robots (in thousands)
|
|
$
|
6,037
|
|
|
$
|
7,884
|
|
|
$
|
11,689
|
|
$
|
15,745
|
|
Product Lifecycle Revenue - Government & Industrial (in thousands)
|
|
$
|
4,542
|
|
|
$
|
2,172
|
|
|
$
|
8,931
|
|
$
|
5,374
|
|
|
|
|
|
|
|
|
|
|
|
International Revenue (in thousands):
|
|
|
|
|
|
|
|
|
|
Home Robots
|
|
$
|
19,741
|
|
|
$
|
18,175
|
|
|
$
|
37,279
|
|
$
|
28,581
|
|
Government & Industrial
|
|
$
|
1,640
|
|
|
$
|
398
|
|
|
$
|
4,455
|
|
$
|
1,209
|
|
|
|
|
|
|
|
|
|
|
|
Average selling prices for robot units:
|
|
|
|
|
|
|
|
|
|
Home Robots
|
|
$
|
159
|
|
|
$
|
157
|
|
|
$
|
160
|
|
$
|
160
|
|
Government & Industrial (in thousands)
|
|
$
|
93
|
|
|
$
|
99
|
|
|
$
|
88
|
|
$
|
104
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin by business unit (in thousands):
|
|
|
|
|
|
|
|
Home Robots
|
|
$
|
10,109
|
|
|
$
|
10,759
|
|
|
$
|
20,261
|
|
$
|
18,828
|
|
Government & Industrial
|
|
|
6,300
|
|
|
|
5,709
|
|
|
|
12,354
|
|
|
13,000
|
|
|
|
$
|
16,409
|
|
|
$
|
16,468
|
|
|
$
|
32,615
|
|
$
|
31,828
|
|
|
|
|
|
|
|
|
|
|
|
Units shipped by business unit:
|
|
|
|
|
|
|
|
|
|
Home Robots (in thousands)
|
|
|
192
|
|
|
|
237
|
|
|
|
375
|
|
|
406
|
|
Government & Industrial
|
|
|
151
|
|
|
|
170
|
|
|
|
301
|
|
|
326
|
|
|
|
|
|
|
|
|
|
|
|
Government & Industrial Funded Backlog (in thousands)
|
|
$
|
17,537
|
|
|
$
|
22,355
|
|
|
$
|
17,537
|
|
$
|
22,355
|
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding
|
|
|
52
|
|
|
|
36
|
|
|
|
52
|
|
|
36
|
|
Inventory turnover
|
|
|
5.2
|
|
|
|
4.1
|
|
|
|
5.2
|
|
|
4.1
|
|
Net cash provided by (used in) operating activities (in thousands)
|
|
$
|
(2,467
|
)
|
|
$
|
(20
|
)
|
|
$
|
11,867
|
|
$
|
159
|
|
Headcount
|
|
|
508
|
|
|
|
482
|
|
|
|
508
|
|
|
482
|
|
|
|
iRobot Corporation
|
|
Adjusted EBITDA Reconciliation to GAAP
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the six months ended
|
|
|
|
June 27,
|
|
June 28,
|
|
June 27,
|
|
June 28,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,609
|
)
|
|
$
|
(4,513
|
)
|
|
$
|
(4,396
|
)
|
|
$
|
(8,518
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
(15
|
)
|
|
|
(260
|
)
|
|
|
(36
|
)
|
|
|
(829
|
)
|
|
Income tax benefit
|
|
|
(1,092
|
)
|
|
|
(4,306
|
)
|
|
|
(3,072
|
)
|
|
|
(6,655
|
)
|
|
Depreciation
|
|
|
1,820
|
|
|
|
1,725
|
|
|
|
3,613
|
|
|
|
3,291
|
|
|
Amortization
|
|
|
128
|
|
|
|
-
|
|
|
|
251
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
(1,768
|
)
|
|
|
(7,354
|
)
|
|
|
(3,640
|
)
|
|
|
(12,711
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
1,895
|
|
|
|
1,533
|
|
|
|
3,497
|
|
|
|
2,471
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
127
|
|
|
$
|
(5,821
|
)
|
|
$
|
(143
|
)
|
|
$
|
(10,240
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 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.
|
iRobot Corp.
Elise Caffrey, Investor Relations
781-430-3003
ecaffrey@irobot.com
or
Nancy
Smith, Media Relations
781-430-3323
nsmith@irobot.com
www.irobot.com
