iRobot soars on raised FY07 guidance
Robot maker iRobot Corp. (Nasdaq: IRBT) shares are soaring after the company raised its fiscal 2007 revenue outlook to a range of $240 million to $250 million, above analyst expectations of $236.14 million and from a previous range of $233 million to $243 million.
Before the opening, the Burlington, Mass.-based company reported third-quarter revenue of $63.8 million, slightly above analyst estimates of $63.46 million and from $55.05 million a year earlier. The firm swung to a quarterly loss of $1.38 million, or $0.06 per share, below Wall Street expectations of a $0.01 profit per share and from a profit of $10.04 million, or $0.43 per share, a year earlier.
“Our revenue and pre-tax loss for the third quarter were consistent with those reported in the preliminary earnings release we issued on Oct. 10,” CEO Colin Angle said in a statement. “This revenue growth was achieved in spite of the fact that production by our new contract manufacturer was slower than initially projected. The additional revenue and earnings that we anticipated achieving in the third quarter will now be realized in the fourth quarter.”
Angle said he is confident the company can meet its revenue guidance.
The company also noted that the U.S. Army froze its $280 million contract with Robotix FX, Inc., a Chicago-based robot maker being sued by iRobot for patent infringement and trade secret theft.
“Yesterday we were notified that the U.S. Army Program Executive Office for Simulation, Training and Instrumentation’s contracting officer has set aside the contract award to Robotic FX pending a reassessment,” Angle said. “We are monitoring this development and will continue to aggressively work to ensure that our interests are protected.”
Robotix FX last month announced it won a contract to provide up to 3,000 robots for bomb-disposal in Iraq and Afghanistan.
In morning trading, IRBT shares are up 16.36%, or $2.53, at $17.99. Over the last 52 weeks, shares have ranged from $12.76 to $26.70.
