SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 23, 2008

iROBOT CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware
(State or Other Jurisdiction of Incorporation)

000-51598		77-0259335
(Commission File Number)		(IRS Employer Identification No.)

8 Crosby Drive, Bedford, Massachusetts		01730
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (781) 430-3000

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition.

     On July 23, 2008, iRobot Corporation (the “Company”) announced its financial results for the fiscal quarter ended June 28, 2008. A copy of the press release is being furnished as Exhibit 99.1 to this Report on Form 8-K.

     The information in this Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

     (d) Exhibits:

99.1

Press Release issued by iRobot Corporation on July 23, 2008, furnished herewith.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

Exhibit Number				Description
99.1				Press Release issued by iRobot Corporation on July 23, 2008, furnished herewith.

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 Strong Second Quarter 2008 Results

43 Percent Year-Over-Year Revenue Growth Driven By Home Robot Division;
Management Reaffirms Full Year Financial Expectations

BEDFORD, Mass., July 23, 2008 — iRobot Corp. (NASDAQ: IRBT) today announced its financial results for the fiscal quarter ended June 28, 2008. Revenue for the second quarter of 2008 grew 42.9 percent to $67.2 million, compared with $47.0 million for the same quarter one year ago. Revenue for the first half increased 43.9 percent to $124.5 million from $86.5 million for the first half of 2007.

Gross profit for the second quarter increased to $16.5 million (24.5 percent of revenue), compared with $15.2 million (32.4 percent of revenue) in the second quarter of 2007. During the quarter, gross profit was negatively impacted primarily by revenue mix. First half 2008 gross profit totaled $31.8 million (25.6 percent of revenue) up from $26.3 million (30.5 percent of revenue) in the first half of 2007.

Net loss in the second quarter of 2008 was $4.5 million compared with a net loss in the second quarter of 2007 of $4.8 million. Net loss in the first half of 2008 was $8.5 million compared with a 2007 first half net loss of $10.3 million. Net loss per share for the second quarter of 2008 was $0.18 compared with $0.20 for the second quarter of 2007. For the first half of 2008, net loss per share was $0.35 compared with $0.43 for the same period in 2007. Net loss per share results for the second quarter and first half 2008 were both favorably impacted by $0.04 due to a cumulative tax rate change booked in the second quarter.

“In the second quarter we achieved our 16th consecutive quarter of year-over-year revenue growth despite increasing economic headwinds. Our strong revenue performance drove first half results that were substantially better than the guidance we provided for the period,” said Colin Angle, chief executive officer of iRobot. “The company performed well in a difficult environment. The second quarter and first half results demonstrate the resiliency of our business in an unstable economic market,” he added.

Business Highlights:

•

In the second quarter, total home robot revenue increased 143 percent year-over-year. International home robot revenue was up more than five times the level of Q2 2007 and comprised approximately 40 percent of total home robot revenue in the quarter.

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com

•		iRobot received orders from PEO STRI totaling $39.5 million for its PackBot robots under the company’s xBot contract, as well as for robots to be used for explosive ordnance disposal missions.
•		U.S. Army announced acceleration of its Future Combat Systems (FCS) Program and inclusion of iRobot in SpinOut 1, under which the first FCS products will be delivered.
•		iRobot announced a sole licensing agreement with UW TechTransfer at the University of Washington to commercialize Autonomous Underwater Vehicle Seaglider technology.

Financial Expectations

Based on its financial results for the first half of 2008, and the outlook for the remainder of the year, management today is reaffirming its outlook for revenue and pre-tax income for the full year 2008. Management currently expects revenues to be between $295 million and $305 million and pre-tax income to be between $5 million and $7 million. Estimated effective tax rate is expected to be 43.9 percent for the full year, consistent with the first half rate.

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 28, 2008, business outlook and outlook for future financial performance. To access the call, investors should dial 719-325-4867 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 August 7, and can be accessed by dialing 719-457-0820, access code 4007782.

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.

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

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730, Phone: 781-430-3000, Fax:781-430-3100, www.irobot.com

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)
(unaudited)

		For the three months ended								For the six months ended
		June 28,				June 30,				June 28,				June 30,
		2008				2007				2008				2007
Revenue
Product revenue		$	60,676			$	41,361			$	111,251			$	75,482
Contract revenue			6,526				5,653				13,253				11,019
Total			67,202				47,014				124,504				86,501
Cost of Revenue
Product revenue			44,382				27,238				80,577				50,724
Contract revenue			6,352				4,552				12,099				9,436
Total			50,734				31,790				92,676				60,160
Gross Profit			16,468				15,224				31,828				26,341
Operating Expense
Research & development			4,718				4,179				8,691				8,335
Selling & marketing			13,471				10,944				24,929				18,993
General & administrative			7,340				5,752				14,118				11,079
Total			25,529				20,875				47,738				38,407
Operating loss			(9,061	)			(5,651	)			(15,910	)			(12,066	)
Other income, net			242				887				737				1,818
Pre-tax loss			(8,819	)			(4,764	)			(15,173	)			(10,248	)
Income tax expense (benefit)			(4,306	)			12				(6,655	)			29
Net loss		$	(4,513	)		$	(4,776	)		$	(8,518	)		$	(10,277	)
Net loss per common share:
Basic and diluted		$	(0.18	)		$	(0.20	)		$	(0.35	)		$	(0.43	)
Shares used in Per Common Share Calculations:
Basic and diluted			24,610				24,226				24,561				24,064
Stock-based compensation included in above figures:
Cost of product revenue		$	216			$	239			$	370			$	359
Cost of contract revenue			114				134				173				211
Research & development			128				127				95				118
Selling & marketing			267				450				428				607
General & administrative			808				578				1,405				890
Total		$	1,533			$	1,528			$	2,471			$	2,185

iRobot Corporation
Condensed Consolidated Balance Sheet
(in thousands)

		June 28,				December 29,
		2008				2007
		(unaudited)				(audited)
Assets
Cash and equivalents		$	14,760			$	26,735
Short term investments			1,200				16,550
Accounts receivable, net			24,253				47,681
Unbilled revenues			2,190				2,244
Inventory, net			43,288				45,222
Deferred tax assets			5,905				5,905
Other current assets			10,384				2,268
Total current assets			101,980				146,605
Property, plant and equipment, net			24,612				15,694
Deferred tax assets			4,293				4,293
Long term investments			13,639				—
Other assets			2,500				2,500
Total assets		$	147,024			$	169,092
Liabilities and stockholders’ equity
Accounts payable		$	23,965			$	44,697
Accrued expenses			8,166				7,987
Accrued compensation			6,625				4,603
Deferred revenue			950				1,578
Total current liabilities			39,706				58,865
Long term liabilities			4,659				—
Stockholders’ equity			102,659				110,227
Total liabilities and stockholders’ equity		$	147,024			$	169,092

iRobot Corporation
Consolidated Statement of Cash Flows
(in thousands)

		For the three months ended								For the six months ended
		June 28,				June 30,				June 28,				June 30,
		2008				2007				2008				2007
		(unaudited)								(unaudited)
Cash flows from operating activities:
Net loss		$	(4,513	)		$	(4,776	)		$	(8,518	)		$	(10,277	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			1,725				1,253				3,291				2,459
Loss on disposal of fixed assets			23				—				68				35
Stock-based compensation			1,533				1,528				2,471				2,185
Non-cash director deferred compensation			23				27				47				55
Changes in working capital — (use) source
Accounts receivable			(2,330	)			(1,442	)			23,428				10,831
Unbilled revenue			419				54				54				472
Inventory			2,928				(5,809	)			1,934				(1,118	)
Other assets			(4,047	)			(147	)			(8,116	)			883
Accounts payable			(4,001	)			9,291				(20,732	)			(579	)
Accrued expenses			2,240				(114	)			179				(2,021	)
Accrued compensation			1,501				968				2,022				286
Deferred revenue			(180	)			1,388				(628	)			1,457
Change in long term liabilities			4,659				—				4,659				—
Net cash provided by (used in) operating activities			(20	)			2,221				159				4,668
Cash flows from investing activities:
Purchase of property and equipment			(8,340	)			(2,123	)			(12,277	)			(3,921	)
Purchases of investments			—				(6,600	)			(29,997	)			(22,000	)
Sales of investments			—				7,000				29,050				26,800
Net cash provided by (used in) investing activities			(8,340	)			(1,723	)			(13,224	)			879
Cash flows from financing activities:
Income tax withholding payment associated with stock option exercise			—				—				—				(1,588	)
Proceeds from stock option exercises			162				366				732				719
Tax benefit of disqualifying dispositions			97				—				358				—
Net cash provided by (used in) financing activities			259				366				1,090				(869	)
Net increase (decrease) in cash and cash equivalents			(8,101	)			864				(11,975	)			4,678
Cash and cash equivalents, at beginning of period			22,861				9,397				26,735				5,583
Cash and cash equivalents, at end of period		$	14,760			$	10,261			$	14,760			$	10,261

iRobot Corporation
Supplemental Information
(unaudited)

		For the three months ended								For the six months ended
		June 28,				June 30,				June 28,				June 30,
		2008				2007				2008				2007
Revenue by business unit (in thousands):
Home Robots
Product		$	41,705			$	17,197			$	71,798			$	36,638
Contract			—				—				55				—
Government & Industrial
Product			18,971				24,165				39,453				38,844
Contract			6,526				5,652				13,198				11,019
		$	67,202			$	47,014			$	124,504			$	86,501
Direct Revenue — Home Robots (in thousands)		$	7,884			$	7,509			$	15,745			$	12,724
Product Lifecycle Revenue — Government & Industrial (in thousands)		$	2,172			$	1,855			$	5,374			$	4,857
International Revenue (in thousands):
Home Robots		$	18,175			$	3,454			$	28,581			$	5,301
Government & Industrial		$	398			$	4,319			$	1,209			$	4,869
Average selling prices for robot units:
Home Robots		$	157			$	147			$	160			$	139
Government & Industrial (in thousands)		$	99			$	146			$	104			$	136
Gross Profit by business unit (in thousands):
Home Robots		$	10,759			$	5,392			$	18,828			$	11,269
Government & Industrial			5,709				9,832				13,000				15,072
		$	16,468			$	15,224			$	31,828			$	26,341
Units shipped by business unit:
Home Robots (in thousands)			237				99				406				227
Government & Industrial			170				152				326				249
Government & Industrial Funded Backlog (in thousands)		$	22,355			$	19,086			$	22,355			$	19,086
Days sales outstanding			36				37				36				37
Inventory turnover			4.1				5.0				4.1				5.0
Net cash provided by (used in) operating activities (in thousands)		$	(20	)		$	2,221			$	159			$	4,668
Headcount			482				409				482				409