Overview
The Bedford, Massachusetts-based firm designs and sells
robots that help consumers to clean their homes. iRobot sells Roomba robot vacuums
and Braava robot mops through a variety of distribution channels, including
chain stores and other national retailers, on-line stores, and value-added
distributors and resellers worldwide. Apart from North America, the company
sells its products in EMEA, China and Japan regions.
Q1 performance
As the company previously stated in March, its Q1 revenue fell
short of the company’s original expectations. iRobot also withdrew its full-year
2020 guidance. First quarter revenue of $193 million declined 19% from the
prior year. The company reported a loss of $0.32 per share.
The disruption of COVID-19 affected the company’s sales and
supply chain activities in March. iRobot couldn’t completely fulfill first
quarter demand for its i7+ and s9+ products, due to design-driven engineering
and supply chain challenges that were unexpectedly complicated by the impact of
COVID-19.
Outlook
During the first quarter earnings reporting, iRobot projected Q2 revenue to be modestly below Q1 revenue of $193 million citing the challenges faced by its retail partners and consumers. iRobot now eyes Q2 revenue to be in the range of $260 million to $270 million. The company also expects to return to operating profitability for the second quarter. Earlier, the company had expected a sizeable second-quarter non-GAAP loss from operations.
CEO Colin Angle stated,
“Our anticipated second-quarter 2020 financial performance will be substantially better than we originally expected. We have experienced strong demand thus far into the second quarter, particularly in the U.S., with solid growth in our premium products. Maintaining a clean home has become a higher priority for many consumers as COVID-19 has forced people to spend more time in their homes.”
While the company expects second half results to be better
than first half results, it estimates 2020 revenue to be lower than the
previous year’s levels. iRobot will be reporting its second quarter results in
late July. We have to wait until then to get the complete details of the June
quarter ending results and 2020 outlook.