iRobot to shift revenue, record loss in Q3
Shares of iRobot Corp. (Nasdaq: IRBT) are losing ground in pre-market trading today after the developer and marketer of robots said this morning that it expects revenues originally anticipated to be recognized in the third quarter to be shifted into the fourth quarter because of slower-than-anticipated production from its new contract manufacturer.
Specifically, the company said its third quarter results will be impacted by initial production delays experienced on its iRobot Roomba 500 Series Vacuum Cleaning Robot. As a result, iRobot expects to recognize revenue of between $63 million and $64 million for the third quarter. Five analysts polled by Thomson Financial were projecting revenues of $68.01 million.
Additionally, the firm said delayed revenue coupled with unanticipated litigation expenses associated with legal action against a former employee will result in a pre-tax loss of $1 million to $1.5 million for the third quarter. Six analysts polled by Thomson Financial were expecting earnings of $0.17 per share.
The company, however, reaffirmed its full year outlook and reiterated its expectations for revenues of between $233 million and $243 million and pre-tax income of between $3 million and $5 million.
Shares of iRobot (IRBT) slid $1.13, or 5.73%, to $18.60 in pre-market trading. Shares of iRobot have been trading in the range of $12.76 to $24.98 for the past 52 weeks.
