iRobot Shares Rise on Good Earnings News
Despite this economy, iRobot (NSDQ: IRBT) has released good quarterly numbers–and not good like recent releases from the mega-banks. The news wasn’t that it lost less than expected; it actually had a better quarter than last year.
For the fiscal second quarter ended June 28, 2008, revenue grew 42.9 percent to $67.2 million, compared with $47 million for the same quarter a year ago. Revenue for the first half of 2008 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 a year earlier.
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 (18 cents per share), compared with a net loss of $4.8 million (20 cents per share) in the second quarter of 2007. Net loss in the first half of 2008 was $8.5 million (35 cents per share), compared with a 2007 first half net loss of $10.3 million (43 cents per share). Net loss per share results for the second quarter and first half 2008 were both favorably impacted by 4 cents because of a cumulative tax rate change booked in the second quarter.
iRobot’s stock is rallying because of the news. What’s more, the company also affirmed guidance for next quarter. 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.
I’ve been saying this was a bargain that got knocked down because consumer sales were likely to be weak, but the military side has kept it in the game. iRobot is still a buy at these levels.
For the fiscal second quarter ended June 28, 2008, revenue grew 42.9 percent to $67.2 million, compared with $47 million for the same quarter a year ago. Revenue for the first half of 2008 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 a year earlier.
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 (18 cents per share), compared with a net loss of $4.8 million (20 cents per share) in the second quarter of 2007. Net loss in the first half of 2008 was $8.5 million (35 cents per share), compared with a 2007 first half net loss of $10.3 million (43 cents per share). Net loss per share results for the second quarter and first half 2008 were both favorably impacted by 4 cents because of a cumulative tax rate change booked in the second quarter.
iRobot’s stock is rallying because of the news. What’s more, the company also affirmed guidance for next quarter. 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.
I’ve been saying this was a bargain that got knocked down because consumer sales were likely to be weak, but the military side has kept it in the game. iRobot is still a buy at these levels.
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