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

iROBOT CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware

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

63 South Avenue, Burlington, Massachusetts		01803
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (781) 345-0200

     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 October 26, 2006, iRobot Corporation announced its financial results for the quarter ended September 30, 2006. 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 the registrant on October 26, 2006, 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.

		iRobot Corporation
October 26, 2006		By:		/s/ Glen D. Weinstein
		Glen D. Weinstein
		General Counsel and Secretary

EXHIBIT INDEX

Exhibit Number		Description
99.1		Press Release issued by the registrant on October 26, 2006, furnished herewith.

Exhibit 99.1

Contacts:
Elise Caffrey		Parna Sarkar
Investor Relations		Media Relations
iRobot Corp.		iRobot Corp.
(781) 418-3003		(781) 418-3135
ecaffrey@irobot.com		psarkar@irobot.com

iRobot Reports Record Third Quarter 2006 Results

BURLINGTON, Mass., Oct. 26, 2006 — iRobot Corp. (NASDAQ: IRBT) today announced its financial results for the third fiscal quarter ended Sept. 30, 2006.

Highlights:

•		Revenues for the third quarter of 2006 grew to $55.0 million, compared with $52.5 million for the same quarter one year ago. Revenues for the nine months ended Sept. 30, 2006 increased to $127.8 million, compared with $95.5 million for the same period a year ago.
•		Gross profit for the third quarter grew to $23.0 million (41.8 percent of sales), compared with $20.7 million (39.5 percent of sales) in the third quarter of 2005.
•		Net income in the third quarter of 2006 was $10.0 million compared with net income in the third quarter of 2005 of $9.8 million. Net income for the nine months ended Sept. 30, 2006 increased to $5.3 million, compared with $2.6 million for the same period a year ago.
•		iRobot expanded its line of home robots. The company introduced the iRobot Dirt Dog™ Workshop Robot, designed for garages, basements and workbench zones, and the iRobot Roomba® for Pets.
•		iRobot unveiled the pre-prototype iRobot Small Unmanned Ground Vehicle, or iRobot SUGV, and the iRobot Warrior™ robot. The 30-pound, lightweight SUGV is being developed under iRobot’s $54 million, multi-year contract with the U.S. Army’s Future Combat Systems program. The Warrior is a 250-pound multi-mission platform with a ground speed of 12 mph and a heavy-lift carrying capacity.

“We reported record quarterly revenues and earnings, the highest in our company’s history, while continuing to invest in the growth of the company,” said Colin Angle, co-founder and chief executive officer of iRobot. “Moving forward, we will continue our product line expansion and invest in cutting edge research programs, while strengthening iRobot’s position as the leader in robot technology.”

Financial Guidance
The company improved its expectations for revenue for the full fiscal year 2006 and expects full-year revenue to be within a range of $185 million and $192 million. This compares with the previously issued full fiscal year 2006 revenue range of $182 million to $192 million. The company reaffirmed its previously issued full fiscal year 2006 pre-tax earnings guidance range of breakeven to 2 percent of revenues, or $3.8 million.

iRobot Corporation
63 South Avenue, Burlington, MA 01803-4903 • 781.345.0200 • Fax 781.345.0201 • www.irobot.com

Third-Quarter Conference Call
iRobot will host a conference call today at 5:30 p.m. ET to discuss its financial results for the third fiscal quarter ended Sept. 30, 2006, business outlook, and outlook for future financial performance. To access the call, investors should dial 913-981-5509 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 Nov. 1, and can be accessed by dialing 719-457-0820, access code 6822414.

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, investments in and expansion of its business, product development and marketing plans, 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, 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 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
63 South Avenue, Burlington, MA 01803-4903 • 781.345.0200 • Fax 781.345.0201 • www.irobot.com

iRobot Corporation
Consolidated Statement of Operations
(in thousands, except per share amounts)
(unaudited)

		For the three months ended								For the nine months ended
		September 30,				October 1,				September 30,				October 1,
		2006				2005				2006				2005
Revenue
Product revenue		$	48,359			$	48,315			$	111,309			$	83,039
Contract revenue			6,688				4,143				16,508				12,375
Royalty revenue			—				—				—				62
Total			55,047				52,458				127,817				95,476
Cost of Revenue
Product revenue			28,398				28,578				69,698				55,338
Contract revenue			3,666				3,173				11,166				8,953
Total			32,064				31,751				80,864				64,291
Gross Profit			22,983				20,707				46,953				31,185
Operating Expense
Research & development			4,345				2,590				10,946				8,335
Selling & marketing			4,712				4,887				19,197				11,582
General & administrative			4,663				3,448				14,074				8,852
Total			13,720				10,925				44,217				28,769
Operating income			9,263				9,782				2,736				2,416
Other income (expense), net			978				60				2,847				271
Pre-tax income			10,241				9,842				5,583				2,687
Income tax expense			199				90				235				92
Net income		$	10,042			$	9,752			$	5,348			$	2,595
Net income attributable to common stockholders		$	10,042			$	5,040			$	5,348			$	1,332
Net income per common share:
Basic		$	0.43			$	0.49			$	0.23			$	0.13
Diluted		$	0.39			$	0.40			$	0.21			$	0.11
Shares used in Per Common Share Calculations: (1)
Basic			23,560				10,223				23,455				10,080
Diluted			25,502				12,600				25,610				12,268

Stock-based compensation included in above figures:
Cost of product revenue		$	92			$	9			$	215			$	18
Cost of contract revenue			72				18				183				29
Research & development			91				27				271				59
Selling & marketing			133				9				239				12
General & administrative			336				109				854				244
Total		$	724			$	172			$	1,762			$	362

iRobot Corporation
63 South Avenue, Burlington, MA 01803-4903 • 781.345.0200 • Fax 781.345.0201 • www.irobot.com

iRobot Corporation
Condensed Consolidated Balance Sheet
(in thousands)

		September 30,				December 31,
		2006				2005
		(unaudited)				(audited)
Assets
Cash and equivalents		$	8,318			$	76,064
Short term investments			63,850				—
Accounts receivable, net			30,643				23,045
Unbilled revenues			1,113				1,424
Inventory, net			23,824				15,903
Other current assets			1,161				1,533
Total current assets			128,909				117,969
Property, plant and equipment, net			8,062				6,966
Total assets		$	136,971			$	124,935
Liabilities and stockholders’ equity
Accounts payable		$	27,959			$	23,721
Accrued expenses			5,361				3,484
Accrued compensation			5,994				4,002
Provision for contract settlement			—				5,154
Deferred revenue			2,198				1,018
Total current liabilities			41,512				37,379
Stockholders’ equity			95,459				87,556
Total liabilities and stockholders’ equity		$	136,971			$	124,935

iRobot Corporation
63 South Avenue, Burlington, MA 01803-4903 • 781.345.0200 • Fax 781.345.0201 • www.irobot.com