000-51598 | 77-0259335 | |
(Commission File Number) | (IRS Employer Identification No.) | |
8 Crosby Drive, Bedford, Massachusetts | 01730 | |
(Address of Principal Executive Offices) | (Zip Code) |
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 | ||||||||
Item 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits: |
99.1 | Press Release issued by the registrant on February 9, 2011, furnished herewith. |
iRobot Corporation |
||||
February 9, 2011 | By: | /s/ Glen D. Weinstein | ||
Name: | Glen D. Weinstein | |||
Title: | General Counsel and Secretary |
Exhibit Number | Description | |||
99.1 | Press Release issued by the registrant on February 9, 2011, furnished herewith. |
Contacts: |
||
Elise Caffrey
|
Charlie Vaida | |
Investor Relations
|
Media Relations | |
iRobot Corp.
|
iRobot Corp. | |
(781) 430-3003
|
(781) 430-3182 | |
ecaffrey@irobot.com
|
cvaida@irobot.com |
| Strong demand in overseas markets drove a 70 percent year-over-year increase in full-year 2010 international home robot revenue. International home robot revenue of $151 million comprised 66 percent of total home robot revenue. |
| Driven by shipments of Small Unmanned Ground Vehicles and spares, government & industrial robot revenue grew 29 percent in 2010. |
| In 2010, operating cash flow was $49.2 million, compared with $40.6 million in 2009, as a result of improved Adjusted EBITDA driving our year-end cash and investment position to $122 million. |
Revenue
|
$450 - $465 million | |
Earnings Per Share
|
$0.90 - $1.00 | |
Adjusted EBITDA
|
$58 - $62 million |
Revenue
|
$102 - $106 million | |
Earnings Per Share
|
$0.20 - $0.24 | |
Adjusted EBITDA
|
$12 - $14 million |
Date: |
Thursday, February 10, 2011 | |
Time: |
8:30 a.m. ET | |
Call-In Number: |
617-614-6204 | |
Passcode: |
75920523 |
For the three months ended | For the twelve months ended | |||||||||||||||
January 1, | January 2, | January 1, | January 2, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue |
||||||||||||||||
Product revenue |
$ | 103,287 | $ | 90,819 | $ | 360,394 | $ | 262,199 | ||||||||
Contract revenue |
10,708 | 10,903 | 40,558 | 36,418 | ||||||||||||
Total |
113,995 | 101,722 | 400,952 | 298,617 | ||||||||||||
Cost of Revenue |
||||||||||||||||
Product revenue |
62,506 | 59,679 | 228,403 | 176,631 | ||||||||||||
Contract revenue |
6,001 | 7,657 | 27,117 | 30,790 | ||||||||||||
Total |
68,507 | 67,336 | 255,520 | 207,421 | ||||||||||||
Gross Margin |
45,488 | 34,386 | 145,432 | 91,196 | ||||||||||||
Operating Expense |
||||||||||||||||
Research & development |
8,434 | 4,114 | 24,809 | 14,747 | ||||||||||||
Selling & marketing |
19,576 | 13,482 | 50,535 | 40,902 | ||||||||||||
General & administrative |
9,925 | 8,195 | 36,618 | 30,110 | ||||||||||||
Total |
37,935 | 25,791 | 111,962 | 85,759 | ||||||||||||
Operating income |
7,553 | 8,595 | 33,470 | 5,437 | ||||||||||||
Other income (expense), net |
136 | 15 | 504 | (81 | ) | |||||||||||
Pre-tax income |
7,689 | 8,610 | 33,974 | 5,356 | ||||||||||||
Income tax expense |
689 | 3,478 | 8,460 | 2,026 | ||||||||||||
Net income |
$ | 7,000 | $ | 5,132 | $ | 25,514 | $ | 3,330 | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.27 | $ | 0.20 | $ | 1.00 | $ | 0.13 | ||||||||
Diluted |
$ | 0.26 | $ | 0.20 | $ | 0.96 | $ | 0.13 | ||||||||
Shares used in per common share calculations: |
||||||||||||||||
Basic |
25,604 | 25,059 | 25,394 | 24,998 | ||||||||||||
Diluted |
26,798 | 25,837 | 26,468 | 25,640 | ||||||||||||
Stock-based compensation included in above figures: |
||||||||||||||||
Cost of product revenue |
$ | 314 | $ | 369 | $ | 1,311 | $ | 1,127 | ||||||||
Cost of contract revenue |
109 | 111 | 446 | 575 | ||||||||||||
Research & development |
237 | 164 | 725 | 351 | ||||||||||||
Selling & marketing |
276 | 404 | 1,161 | 1,410 | ||||||||||||
General & administrative |
1,197 | 1,155 | 4,522 | 4,099 | ||||||||||||
Total |
$ | 2,133 | $ | 2,203 | $ | 8,165 | $ | 7,562 | ||||||||
January 1, | January 2, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Cash and equivalents |
$ | 108,383 | $ | 71,856 | ||||
Short term investments |
13,928 | 4,959 | ||||||
Accounts receivable, net |
34,056 | 35,171 | ||||||
Unbilled revenues |
4,012 | 1,831 | ||||||
Inventory |
27,160 | 32,406 | ||||||
Deferred tax assets |
12,917 | 8,669 | ||||||
Other current assets |
6,137 | 4,119 | ||||||
Total current assets |
206,593 | 159,011 | ||||||
Property, plant and equipment, net |
25,620 | 20,230 | ||||||
Deferred tax assets |
8,338 | 6,089 | ||||||
Other assets |
13,780 | 14,254 | ||||||
Total assets |
$ | 254,331 | $ | 199,584 | ||||
Liabilities and stockholders equity |
||||||||
Accounts payable |
$ | 38,689 | $ | 30,559 | ||||
Accrued expenses |
15,790 | 14,384 | ||||||
Accrued compensation |
17,827 | 13,525 | ||||||
Deferred revenue and customer advances |
3,534 | 3,908 | ||||||
Total current liabilities |
75,840 | 62,376 | ||||||
Long term liabilities |
3,584 | 4,014 | ||||||
Stockholders equity |
174,907 | 133,194 | ||||||
Total liabilities and stockholders equity |
$ | 254,331 | $ | 199,584 | ||||
For the three months ended | For the twelve months ended | |||||||||||||||
January 1, | January 2, | January 1, | January 2, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income |
$ | 7,000 | $ | 5,132 | $ | 25,514 | $ | 3,330 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
1,868 | 1,921 | 7,541 | 8,074 | ||||||||||||
Loss on disposal of property and equipment |
87 | 26 | 204 | 202 | ||||||||||||
Stock-based compensation |
2,133 | 2,203 | 8,165 | 7,562 | ||||||||||||
Benefit from deferred tax assets |
(3,753 | ) | (2,970 | ) | (7,620 | ) | (3,317 | ) | ||||||||
Non-cash director deferred compensation |
33 | 33 | 132 | 132 | ||||||||||||
Changes in operating assets and liabilities (use) source |
||||||||||||||||
Accounts receivable |
(6,262 | ) | 8,763 | 1,115 | 759 | |||||||||||
Unbilled revenue |
(1,478 | ) | 706 | (2,181 | ) | 183 | ||||||||||
Inventory |
6,809 | (7,753 | ) | 5,246 | 2,154 | |||||||||||
Other assets |
(3,092 | ) | 295 | (2,082 | ) | (816 | ) | |||||||||
Accounts payable |
3,012 | 2,772 | 8,130 | 11,015 | ||||||||||||
Accrued expenses |
1,810 | 2,712 | 1,495 | 3,385 | ||||||||||||
Accrued compensation |
4,710 | 2,679 | 4,302 | 7,132 | ||||||||||||
Deferred revenue |
1,511 | (336 | ) | (374 | ) | 1,276 | ||||||||||
Change in long term liabilities |
(108 | ) | (108 | ) | (430 | ) | (430 | ) | ||||||||
Net cash provided by operating activities |
14,280 | 16,075 | 49,157 | 40,641 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Purchase of property and equipment |
(5,060 | ) | (1,637 | ) | (12,597 | ) | (5,038 | ) | ||||||||
Purchase of Nekton Research LLC, net of cash received |
| (2,500 | ) | | (2,500 | ) | ||||||||||
Purchases of investments |
| (5,000 | ) | (30,461 | ) | (5,000 | ) | |||||||||
Sales of investments |
2,500 | | 21,500 | | ||||||||||||
Net cash used in investing activities |
(2,560 | ) | (9,137 | ) | (21,558 | ) | (12,538 | ) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from stock option exercises |
4,293 | 243 | 6,590 | 738 | ||||||||||||
Income tax withholding payment associated with restricted stock vesting |
| | (284 | ) | (76 | ) | ||||||||||
Tax benefit of excess stock based compensation deductions |
1,767 | 1,928 | 2,622 | 2,239 | ||||||||||||
Net cash provided by financing activities |
6,060 | 2,171 | 8,928 | 2,901 | ||||||||||||
Net increase in cash and cash equivalents |
17,780 | 9,109 | 36,527 | 31,004 | ||||||||||||
Cash and cash equivalents, at beginning of period |
90,603 | 62,747 | 71,856 | 40,852 | ||||||||||||
Cash and cash equivalents, at end of period |
$ | 108,383 | $ | 71,856 | $ | 108,383 | $ | 71,856 | ||||||||
For the three months ended | For the twelve months ended | |||||||||||||||
January 1, | January 2, | January 1, | January 2, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: * |
||||||||||||||||
Home Robots |
$ | 69,247 | $ | 54,607 | $ | 229,348 | $ | 165,860 | ||||||||
Domestic |
$ | 24,841 | $ | 24,736 | $ | 77,918 | $ | 76,705 | ||||||||
International |
$ | 44,406 | $ | 29,871 | $ | 151,430 | $ | 89,155 | ||||||||
Retail |
$ | 60,600 | $ | 45,208 | $ | 203,026 | $ | 137,438 | ||||||||
Direct |
$ | 8,647 | $ | 9,399 | $ | 26,322 | $ | 28,422 | ||||||||
Government & Industrial |
$ | 44,748 | $ | 47,115 | $ | 171,604 | $ | 132,757 | ||||||||
Domestic |
$ | 41,779 | $ | 45,986 | $ | 158,266 | $ | 122,535 | ||||||||
International |
$ | 2,969 | $ | 1,129 | $ | 13,338 | $ | 10,222 | ||||||||
Product |
$ | 34,039 | $ | 36,212 | $ | 131,046 | $ | 96,339 | ||||||||
Contract |
$ | 10,709 | $ | 10,903 | $ | 40,558 | $ | 36,418 | ||||||||
Product Life Cycle |
$ | 11,490 | $ | 9,356 | $ | 38,110 | $ | 23,655 | ||||||||
Gross Margin Percent: |
||||||||||||||||
Home Robots |
42.4 | % | 36.1 | % | 40.0 | % | 32.2 | % | ||||||||
Government & Industrial |
36.0 | % | 31.1 | % | 31.3 | % | 28.4 | % | ||||||||
Total Company |
39.9 | % | 33.8 | % | 36.3 | % | 30.5 | % | ||||||||
Units shipped: |
||||||||||||||||
Home Robots * |
380 | 324 | 1,269 | 988 | ||||||||||||
Government & Industrial |
169 | 329 | 871 | 789 | ||||||||||||
Average gross selling prices for robot units: |
||||||||||||||||
Home Robots |
$ | 194 | $ | 188 | $ | 189 | $ | 181 | ||||||||
Government & Industrial * |
$ | 133 | $ | 82 | $ | 107 | $ | 92 | ||||||||
Government & Industrial Funded Product Backlog * |
$ | 23,869 | $ | 42,160 | $ | 23,869 | $ | 42,160 | ||||||||
Days sales outstanding |
30 | 33 | 30 | 33 | ||||||||||||
Days in inventory |
40 | 50 | 40 | 50 | ||||||||||||
Headcount |
657 | 538 | 657 | 538 |
* | in thousands |
For the three months ended | For the twelve months ended | |||||||||||||||
January 1, | January 2, | January 1, | January 2, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income |
$ | 7,000 | $ | 5,132 | $ | 25,514 | $ | 3,330 | ||||||||
Interest income, net |
(193 | ) | (47 | ) | (765 | ) | (88 | ) | ||||||||
Income tax expense |
689 | 3,478 | 8,460 | 2,026 | ||||||||||||
Depreciation |
1,741 | 1,782 | 7,002 | 7,545 | ||||||||||||
Amortization |
127 | 139 | 539 | 529 | ||||||||||||
EBITDA |
9,364 | 10,484 | 40,750 | 13,342 | ||||||||||||
Stock-based compensation expense |
2,133 | 2,203 | 8,165 | 7,562 | ||||||||||||
Merger and acquisition expense |
73 | | 205 | | ||||||||||||
Adjusted EBITDA |
$ | 11,570 | $ | 12,687 | $ | 49,120 | $ | 20,904 | ||||||||
For the three months ended | For the twelve months ended | |||||||||||||||
January 1, | January 2, | January 1, | January 2, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP net income |
$ | 7,000 | $ | 5,132 | $ | 25,514 | $ | 3,330 | ||||||||
Less one-time net income tax benefit associated with release of state deferred tax asset valuation allowance |
| | (2,259 | ) | | |||||||||||
Non-GAAP net income |
$ | 7,000 | $ | 5,132 | $ | 23,255 | $ | 3,330 | ||||||||
GAAP net income per common share: |
||||||||||||||||
Basic |
$ | 0.27 | $ | 0.20 | $ | 1.00 | $ | 0.13 | ||||||||
Diluted |
$ | 0.26 | $ | 0.20 | $ | 0.96 | $ | 0.13 | ||||||||
Less one-time net income tax benefit associated with release of state deferred tax asset valuation allowance: |
||||||||||||||||
Basic |
$ | | $ | | $ | (0.08 | ) | $ | | |||||||
Diluted |
$ | | $ | | $ | (0.08 | ) | $ | | |||||||
Non-GAAP net income per common share: |
||||||||||||||||
Basic |
$ | 0.27 | $ | 0.20 | $ | 0.92 | $ | 0.13 | ||||||||
Diluted |
$ | 0.26 | $ | 0.20 | $ | 0.88 | $ | 0.13 | ||||||||
Shares used in per common share calculations: |
||||||||||||||||
Basic |
25,604 | 25,059 | 25,394 | 24,998 | ||||||||||||
Diluted |
26,798 | 25,837 | 26,468 | 25,640 |