iRobot Net Plummets in First Quarter; Home Robot Business Grows

BEDFORD, Mass.-Net income for iRobot fell 91 percent in the first quarter ending on March 31, to $653,000.

Reduced revenues, lower margins and upticks in expenses combined to reduce the robot manufacturer's bottom line. Revenue in the first quarter fell 8 percent to $97.8 million, in spite of a 20 percent leap in sales, both domestically and internationally, in home robots. Among iRobot's products for the home are the Roomba vacuum robot and the Scooba floor-washing robot. Weak sales in the company's defense and security unit, which provides robots to the military, offset the pickup in the home business.

Gross margin dropped 611 basis points to finish the quarter at 34.8 percent. Operating expenses rose 3.2 percent in dollars and 368 basis points as a percentage of sales to 34.1 percent.

Colin Angle, iRobot's chairman and CEO, said he projects continued growth in the company's home business through the rest of the year, and a turn upward for the defense and security unit in the second half of 2012.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.