Review of the Roomba iRobot Vacuum Cleaner

7/31/2019 Review of the Roomba iRobot Vacuum Cleaner

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iRobot Reports Record Second-Quarter Revenue and Earnings.

Company Increases 2010 Outlook

BEDFORD Bedford, town, England

Bedford, town (1991 pop. 75,632), county seat of Bedfordshire, central England, on the Ouse

River. It is an important industrial center; diesel engines, pumps, turbines, agricultural machinery,

electrical equipment, and transistors, Mass. -- iRobot This article is about the robot company. For

other uses, see I, Robot (disambiguation). The iRobot Corporation is a public corporation

(NASDAQ: IRBT), based in Burlington, Massachusetts, that designs robots for businesses,

homes, and the military. Corp. (NASDAQ NASDAQ

in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of

Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : IRBT), a

leader in

delivering robotic robotic

adj.

Relating to, characteristic of, or employing robots. technology-based solutions, today announced

its

financial results for the second quarter ended July July: see month. 3, 2010.

"Revenue, earnings per share and Adjusted EBITDA (Earnings Before Interest, Taxes,Depreciation and Amortization) A metric used to show a company's profitability, but not its cash

flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts,

but has become significantly

exceeded expectations for the quarter," said Colin Angle Colin Angle is co-founder and chief

executive officer of iRobot Corporation, maker of the Roomba robotic vacuum cleaner. External

links

iRobot Corporation: Management Team Colin Angle 1: 14 Failed Business Models, chairman

and chief executive officer of iRobot. "Adjusted EBITDA was morethan $12 million,or 13 percent of revenue, and we generated $15 million

of operating cash flow Operating cash flow

Earnings before depreciation minus taxes. Measures the cash generated from operations, not

counting capital spending or working capital requirements.. Cash and investments increased $48

million

year-over-year to more than $98 million at quarter end.

"As a result of outstanding performance by both divisions in

the second quarter and good visibility for the rest of 2010, we are


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increasing our full-year financial expectations."

Revenue for the second quarter of 2010 increased 59 percent to $98

million, compared with $61 million for the same quarter one year ago.

Revenue for the first half of 2010 increased 63 percent to $193 million,

compared with $118 million a year ago. Gross margin for the second

quarter increased to 35 percent of revenue, compared with 27 percent of

revenue in the second quarter of 2009. For the first half of 2010, gross

margin was 35 percent, up from 28 percent for the first half of 2009.

Net income in the second quarter of 2010 was $5 million, compared with a

net loss of $3 million in the second quarter of 2009. Net income for the

first half of 2010 was $11 million, compared with a loss of $4 million

for the first half of 2009.

Business Highlights

* International home robot revenue in Q2 2010 was up more than 80

percent year-over-year to $36 million and comprised 67 percent of total

home robot revenue for the quarter. Domestic home robot revenue

increased 20 percent to $17 million from $14 million in the second

quarter of 2009.

* Government & Industrial robot An industrial robot is officially defined by ISO[1] as anautomatically controlled, reprogrammable, multipurpose manipulator programmable in three or

more axes. revenue increased 65 percent in

the second quarter over the second quarter of 2009, driven by shipments

of 138 PackBot PackBot is a series of robots by iRobot. PackBot EOD (Explosive ordnance

disposal) can be controlled by radio or wired control to handle situations involving potential

explosives, thereby reducing the risk of personal injury. robots and 100 Small Unmanned Ground

Vehicles during the

quarter.

* Year-to-date operating cash flow was $25 million, compared with

$12 million in the first half of 2009.

Financial Expectations

Management provides the following expectations with respect to the

year ending January January: see month. 1, 2011 and the third quarter ending October October:

see month. 2,

2010.


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Fiscal Year 2010:

Revenue

$385 - $390 million

Earnings Per Share

$0.51 - $0.54

Adjusted EBITDA

$36 - $38 million

Q3 2010:

Revenue


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rowspan="1">

$91 - $94 million

Earnings Per Share

$0.05 - $0.06

Adjusted EBITDA

$5 - $6 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 2010,

business outlook, and outlook for future financial performance.

Pertinent PERTINENT, evidence. Those facts which tend to prove the allegations of the partyoffering them, are called pertinent; those which have no such tendency are called impertinent, 8

Toull. n. 22. By pertinent is also meant that which belongs. Willes, 319. details include:

Date:

Thursday Thursday: see week., July 29, 2010


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Time:

8:30 a.m. ET

Call-In Number:

617-847-8705

Passcode:

90382275

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 August 5 and can

be accessed by dialing 617-801-6888, passcode 69265770.

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 navigation, science and technology of finding the position and directing the

course of vessels and aircraft.Early Navigational Techniques


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In ancient times, mariners navigated by the guidance of the sun and stars and landmarks along

the coast., mobility, manipulation Manipulation

Dealing in a security to create a false appearance of active trading, in order to bring in more

traders. Illegal. 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 Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so

poorly regulated that the target itself is less attractive. provisions of the Private Securities

Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented

several significant substantive changes affecting certain cases brought under the federal securities

laws, including changes related to pleading, discovery, liability, class representation and awards

fees and of 1995. This press release contains express orimplied Inferred from circumstances; known indirectly.

In its legal application, the term implied is used in contrast with express, where the intention

regarding the subject matter is explicitly and directly indicated. forward-looking statements relating

to relating to relate prep concernant

relating to relate prep bezglich +gen, mit Bezug auf +acc, among other things,

iRobot Corp.'s expectations regarding future financial performanceand growth, anticipated revenue, Adjusted EBITDA and earnings per share

for fiscal year 2010 and the third quarter of 2010, 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


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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 hereof

adv.

Of this.

hereof

Adverb

Formal or law of or concerning this

Adv. 1. hereof - of or concerning this; "the twigs hereof are physic".

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 CIRCUMSTANCES, evidence. The particulars which

accompany a fact.

2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary

and improbable, recent or ancient; they may have happened near us, or afar off; they are public or

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 andExchange 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 Earnings before interest, taxes, depreciation

and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's

profitability. :EBITDA = Operating Revenue Operating Expenses + Other Revenue, merger and

acquisition expenses, and non-cash stock compensation. A reconciliationbetween net income and Adjusted EBITDA is provided in the financial

tables at the end of this press release.

iRobot Corporation


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Consolidated consolidate

v. consolidated, consolidating, consolidates

v.tr.

1. To unite into one system or whole; combine: Statement of Operations See Income statement.

(in thousands, except per share amounts)

(unaudited)

For the three months ended

For the six months ended

July 3,

June 27,

July 3,

June 27,


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2010

2009

2010

2009

Revenue

Product revenue

$

85,945

$

52,609

$

172,056

$


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102,300

Contract revenue

11,859

8,731

20,678

15,976

Total

97,804

61,340

192,734

118,276


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Cost of Revenue

Product revenue

55,825

37,098

111,425

70,537

Contract revenue

8,009

7,833


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rowspan="1">

14,622

15,124

Total

63,834

44,931

126,047

85,661

Gross Margin

33,970

16,409


13/80

66,687

32,615

Operating Expense Operating Expense

The essential things that a company must purchase in order to maintain business.

Notes:

For example, the payment of employees wages are an operating expense.

Also known as OPEX.

Research & development

5,691

3,896

10,190


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7,474

Selling & marketing

10,581

8,940

20,225

17,906

General & administrative

9,313

7,365

17,789

14,495


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Total

25,585

20,201

48,204

39,875

Operating income Operating Income

The profit realized from a business' own operations.

Notes:

This would not include income from things such as investments in other firms. Also referred to as

operating profit or recurring profit. (loss)

8,385

(3,792


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)

18,483

(7,260

)

Other income (expense), net

40

91

69

(208

)


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colspan="1" rowspan="1">

Pre-tax income (loss)

8,425

(3,701

)

18,552

(7,468

)

Income tax expense (benefit)

3,111

(1,092

)


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rowspan="1">

7,070

(3,072

)

Net income (loss)

$

5,314

$

(2,609

)

$

11,482

$

(4,396


19/80

)

Net income (loss) per common share:

Basic

$

0.21

$

(0.10

)

$

0.46

$


20/80

(0.18

)

Diluted dilute

tr.v. diluted, diluting, dilutes

1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.

$

0.20

$

(0.10

)

$

0.44

$

(0.18

)


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Shares used in Per Common Share Calculations:

Basic

25,294

24,967

25,217

24,946

Diluted

26,375

24,967


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rowspan="1">

26,226

24,946

Stock-based compensation included in above figures:

Cost of product revenue

$

355

$

278

$


23/80

687

$

491

Cost of contract revenue

110

162

236

325

Research & development

245

101


24/80

277

98

Selling & marketing

289

338

645

655

General & administrative

1,202

1,016

2,246


25/80

1,928

Total

$

2,201

$

1,895

$

4,091

$

3,497

iRobot Corporation

Condensed condense

v. condensed, condensing, condenses


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v.tr.

1. To reduce the volume or compass of.

2. To make more concise; abridge or shorten.

3. Physics

a. Consolidated Balance Sheet consolidated balance sheet

A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries

are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they

were a single firm.

(unaudited, in thousands)

July 3,

January 2,

2010

2010

Assets

Cash and equivalents


27/80

$

75,810

$

71,856

Short term investments

22,957

4,959

Accounts receivable accounts receivable n. the amounts of money due or owed to a business or

professional by customers or clients. Generally, accounts receivable refers to the total amount due

and is considered in calculating the value of a business or the business' problems in paying, net

27,133

35,171

Unbilled unbilled

adj.

1. Not having been billed or charged for: unbilled medical charges.


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2. Appearing, as in a movie, without being credited: an unbilled walk-on. revenues

2,313

1,831

Inventory

30,684

32,406

Deferred tax assets

8,669

8,669

Other current assets Other Current Assets

A balance sheet item that includes the value of non-cash assets due within one year.

Notes:

Examples are things like prepaid expenses and accounts receivable.


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3,290

4,119

Total current assets Current Assets

Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory,

marketable securities, prepaid expenses, and other assets that can be converted to cash within

one year.

170,856

159,011

Property, plant and equipment, net

22,374

20,230

Deferred tax assets

5,623


30/80

6,089

Other assets other assets

Assets of relatively small value. For financial reporting purposes, firms frequently combine small

assets into a single category rather than listing each item separately.

14,008

14,254

Total assets

$

212,861

$

199,584

Liabilities and stockholders' equity

Accounts payable


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$

31,768

$

30,559

Accrued accrue

v. accrued, accruing, accrues

v.intr.

1. To come to one as a gain, addition, or increment: interest accruing in my savings account.

2. expenses

13,363

14,384

Accrued compensation

11,153

13,525


32/80

Deferred revenue and customer advances

1,969

3,908

Total current liabilities Current Liabilities

Usually appearing on a company's balance sheet, it represents the amount owed for interest,

accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one

year.

58,253

62,376

Long term liabilities

3,799

4,014

Stockholders' equity


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150,809

133,194

Total liabilities and stockholders' equity

$

212,861

$

199,584

iRobot Corporation

Consolidated Statement of Cash Flows



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July 3,

June 27,

July 3,

June 27,

2010

2009

2010

2009

Cash flows from operating activities:

Net income (loss)


35/80

$

5,314

$

(2,609

)

$

11,482

$

(4,396

)

Adjustments to reconcile net income (loss) to net cash provided by

(used in) operating activities:

Depreciation and amortization


36/80

1,917

1,950

3,755

3,864

Loss on disposal of property and equipment

2

87

47

102

Stock-based compensation


37/80

2,201

1,895

4,091

3,497

Benefit from deferred tax assets

-

(511

)

-

(511

)

Non-cash director deferred compensation


38/80

33

33

66

66

Changes in operating assets Operating Assets

Another term for working capital. and liabilities -- (use) source

Accounts receivable

(1,054

)

(8,099

)


39/80

8,038

4,639

Unbilled revenue

978

(326

)

(482

)

(1,445

)

Inventory


40/80

(816

)

2,104

1,722

5,922

Other assets

44

(1,001

)

797

(2,163


41/80

)

Accounts payable

2,277

1,981

1,209

1,564

Accrued expenses

(990

)

225

(1,031

)


42/80

(33

)

Accrued compensation

4,850

1,656

(2,372

)

634

Deferred revenue

(7

)


43/80

256

(1,939

)

342

Change in long term liabilities

(107

)

(108

)

(215

)

(215


44/80

)

Net cash provided by (used in) operating activities

14,642

(2,467

)

25,168

11,867

Cash flows from investing activities:

Purchase of property and equipment


45/80

(3,629

)

(1,672

)

(5,668

)

(2,448

)

Purchases of investments

(7,831

)

-


46/80

(25,411

)

-

Sales of investments

7,500

-

7,500

-

Net cash used in investing activities

(3,960

)


47/80

(1,672

)

(23,579

)

(2,448

)

Cash flows from financing activities:

Proceeds from stock option exercises

1,823

132


48/80

1,927

459

Income tax withholding Withholding

Any tax that is taken directly out of an individual's wages or other income before he or she

receives the funds.

Notes:

In other words, these funds are "withheld" from your wages. payment associated with restricted

stock

vesting Vesting

The process by which employees accrue non-forfeitable rights over employer contributions that

are made to the employee's qualified retirement plan account.

Notes:

(120

)

(9

)

(279


49/80

)

(9

)

Tax benefit of excess stock based compensation deductions

568

268

717

268

Net cash provided by financing activities

2,271

391


50/80

2,365

718

Net increase (decrease) in cash and cash equivalents

12,953

(3,748

)

3,954

10,137

Cash and cash equivalents, at beginning of period

62,857


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54,737

71,856

40,852

Cash and cash equivalents, at end of period

$

75,810

$

50,989

$

75,810

$

50,989


52/80


iRobot Corporation

Supplemental Information

(unaudited)



July 3,

June 27,

July 3,

June 27,

2010


53/80

2009

2010

2009

Revenue: *

Home Robots

$

52,904

$

34,099


54/80

$

105,451

$

66,922

Domestic

$

17,160

$

14,358

$

33,247


55/80

$

29,643

International

$

35,744

$

19,741

$

72,204

$

37,279


56/80

Retail

$

47,525

$

27,263

$

93,792

$

54,079

Direct

$

5,379

$


57/80

6,836

$

11,659

$

12,843

Government & Industrial

$

44,900

$

27,241

$


58/80

87,283

$

51,354

Domestic

$

43,406

$

25,404

$

80,473

$


59/80

46,695

International

$

1,494

$

1,837

$

6,810

$

4,659

Product


60/80

$

33,041

$

18,510

$

66,605

$

35,378

Contract

$

11,859

$


61/80

8,731

$

20,678

$

15,976

Product Life Cycle

$

9,581

$

4,542

$


62/80

17,561

$

8,931

Gross Margin Percent:

Home Robots

39.2

%

29.6

%


63/80

38.6

%

30.3

%


29.5

%

23.1

%

29.8

%

24.1


64/80

%

Total Company

34.7

%

26.8

%

34.6

%

27.6

%


65/80

Units shipped:

Home Robots *

294

192

581

375


250

151

516


66/80

301

Average gross selling prices for robot units:

Home Robots

$

188

$

189

$

189


67/80

$

185

Government & Industrial *

$

94

$

93

$

95

$

88


68/80


Government & Industrial Funded Product Backlog Backlog

The total value of sales orders waiting to be fulfilled.

Notes:

This figure is used mainly in the manufacturing industry. Increases or decreases in a company's

backlog indicate the future direction of sales and earnings. *

$

12,164

$

17,537

$

12,164

$

17,537


69/80


Days sales outstanding In accountancy, Days Sales Outstanding is a company's average

collection period. A low figure indicates that the company collects its outstanding receivables

quickly. Typically it is looked at either quarterly or yearly (90 or 365 days).

27

52

27

52

Days in inventory

50

70


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rowspan="1">

50

70

Headcount head count or headcount

n.

1. The act of counting people in a particular group.

2. The number of people counted in this way.

Noun 1.

613

508

613

508


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* in thousands

iRobot Corporation

Adjusted EBITDA Reconciliation to GAAP GAAP

See: Generally Accepted Accounting Principles

GAAP

See generally accepted accounting principles (GAAP).





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July 3,

June 27,

July 3,

June 27,

2010

2009

2010

2009

Net income (loss)

$

5,314

$


73/80

(2,609

)

$

11,482

$

(4,396

)

Interest income, net

(197

)

(15


74/80

)

(367

)

(36

)

Income tax expense (benefit)

3,111

(1,092

)

7,070

(3,072

)


75/80

Depreciation

1,778

1,820

3,477

3,613

Amortization

139

128

278

251


76/80

rowspan="1">

EBITDA

10,145

(1,768

)

21,940

(3,640

)

Stock-based compensation expense

2,201


77/80

1,895

4,091

3,497

Merger and acquisition expense

61

-

71

-

Adjusted EBITDA

$


78/80

12,407

$

127

$

26,102

$

(143

)

Use of Non-GAAP Financial Measures


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rowspan="1">

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 The standard accounting rules, regulations, and procedures used by

companies in maintaining their financial records.

Generally accepted accounting principles (GAAP) provide companies and accountants with aconsistent set of guidelines that cover both broad accounting, or U.S. GAAP, and is not a measure

of operating

income, operating performance or liquidity presented in accordance Accordance is Bible Study

Software for Macintosh developed by OakTree Software, Inc.[]

As well as a standalone program, it is the base software packaged by Zondervan in their Bible

Study suites for Macintosh. with

U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, andwhen 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 consolidated income statement

An income statement that combines the income statements of two or more organizations. As with

other consolidated statements, a consolidated income statement eliminates any funds owed to or

due from firms within the same group. 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


80/80

usefulness as comparative tools. iRobot compensates for these

limitations by relying primarily on its GAAP results and using Adjusted

EBITDA only supplementally.

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