IRobot says it will lose money in 4Q
BEDFORD, Mass. (AP) — IRobot Corp. said Tuesday that third-quarter profit rose, but the maker of robotic vacuum cleaners said it would lose money in the fourth quarter and the shares tumbled in late trading.
The company makes Roomba vacuum cleaners, Scooba floor washers and robots for military purposes. Chairman and CEO Colin Angle said the outlook for the defense and security business weakened — revenue fell 38 percent in the third quarter — and is expected to decline further next year.
Angle said the company would restructure the defense business, taking a fourth-quarter charge of $4 million to $5 million, and invest in the home-robot business. The consumer business had a 33 percent increase in third-quarter revenue and higher profit margins than the defense segment.
The company said it would lose between 33 cents and 39 cents per share in the fourth quarter on revenue of $98 million to $102 million. About 28 to 32 cents per share of the loss would be related to an acquisition and restructuring the defense business. Analysts were expecting a profit of 20 cents per share on revenue of $148.8 million.
The weak fourth quarter will drag down full-year results. The company said it would post 2012 earnings of 44 cents to 50 cents per share, down from a prior forecast of 90 cents to $1 per share and below analysts' prediction of 84 cents per share, according to FactSet.
Full-year revenue was pegged at $434 million to $438 million, down from $465 million to $485 million. Analysts were expecting $484.5 million.
Shares of iRobot lost 7 cents in regular trading to close at $22.64. In extended trading after the results were released, the shares fell $3.86, or 17.1 percent, to $18.78, which is below the stock's 52-week low of $19.09 for in-session trading.
For the third quarter, net income was $15.2 million, or 54 cents per share, including items that added 10 cents per share to earnings. That compared with $14.1 million, or 50 cents per share, a year earlier.
Analysts, who usually exclude items, expected 34 cents per share.
Revenue rose to $126.3 million from $120.4 million a year earlier, below analysts' forecast of $128.2 million.