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Shares of consumer robot maker iRobot Corp (NASDAQ:IRBT) are trading lower in premarket on Wednesday after the fourth-quarter FY24 earnings.
The company reported fourth quarter sales decline of 44% year-on-year to $172.03 million, beating the analyst consensus estimate of $171.00 million.
Adjusted EPS loss of $2.06 missed the consensus estimate loss of $1.73.
Gross margin for the quarter contracted 940 basis points to 9.4% and the gross profit plunged 71% to $16.4 million.
Operating expenses for the quarter decreased 30% to $77.5 million. The operating loss widened to $61 million.
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As of December 28, 2024, the company’s cash and equivalents totaled $137.95 million. Inventory reduced by 50% to $76 million.
As of December 28, 2024, iRobot had reduced its total headcount by approximately 51% to 541 since year-end 2023.
Yesterday, the company announced the availability of a suite of new Roomba vacuums and 2-in-1 vacuums and mops with advanced features.
Strategic Review: iRobot’s Board of Directors has initiated a formal strategic review to evaluate a broad range of alternatives, including, but not limited to, refinancing the company’s debt and exploring a potential sale or strategic transaction.
“As we move ahead, we will continue to take decisive action to reclaim our position as the industry leader and build on iRobot’s strong foundation centered around our globally recognized, iconic brand, Roomba,” said CEO Gary Cohen.
The company has added Neal P. Goldman as an independent director to its Board of Directors, effective immediately, expanding the size of the Board to nine directors, eight of whom are independent.
Goldman has a deep background in strategic planning, financial management and corporate turnaround consulting.
The company also disclosed there is substantial doubt about its ability to continue as a going concern for a period of at least 12 months from the date of the issuance of its consolidated 2024 financial statements.
In light of such developments, the company has canceled its fourth-quarter results conference call, originally scheduled for today, March 12, 2025, and is not providing a 2025 outlook at this time.
Price Action: IRBT shares are trading lower by 34.5% at $4.13 in premarket at last check Wednesday.
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