iRobot Corp (IRBT), the company who designs and builds robots that make a difference, has reported an 36.80 percent plunge in profit for the quarter ended Mar. 29, 2014.
The company earned $5.28 million or $0.18 a share in the first-quarter, compared with $8.36 million or $0.29 a share a year ago. Analysts on average had predicted net income of $0.16 a share.
Revenue during the first-quarter rose 7.54 percent to $114.20 million from $106.20 million in the last year period.
Gross margin expanded by 147 basis points over the last year period to 45.28 percent.
Total expenses as a percentage of revenues increased to 93.01 percent from 91.56 percent in the same period last year. That resulted in contraction of 145 basis points in operating margin to 6.99 percent.
The company posted operating income of $7.98 million, compared with an operating income of $8.96 million in the previous year period.
''We kicked off 2014 with an excellent quarter. The results and outlook for our Home Robot business are excellent. We were very excited to announce the availability of our Ava 500 video collaboration robot, and our Defense & Security business performed as expected,'' said Colin Angle, chairman and chief executive officer of iRobot.
''Based on our Q1 results and our outlook for the rest of 2014, we are reaffirming our full-year financial expectations of revenue between $560 and $570 million, EPS of $1.00 to $1.15 and Adjusted EBITDA of $74 to $78 million, or roughly 14 percent of revenue. These expectations are a strong next step in progressing towards our three-year targets.''
Cash flow
iRobot Corp has spent $7.76 million in cash to meet operating activities during the quarter, as against cash inflow of $0.16 million in the last year period.
The company has spent $10.89 million in cash to meet investing activities during the quarter, as against cash outgo of $4.62 million in the year period. It has made net capital expenditure of $2.18 million during the quarter, which was higher by 102.14 percent or $1.10 million from a year ago.
The company has generated cash of $8.07 million from financing activities during the quarter, up by 533.44 percent or $6.80 million, when compared with the last year period.
It has raised net of $6.96 million by issuing common stocks.
As on Mar. 29, 2014, Irobot Corp's cash balance stood at $154.82 million, up 25.29 percent or $31.25 million from Mar. 30, 2013.
Working Capital
iRobot Corp witnessed an increase in the working capital over the year. It stood at $234.66 million as at Mar. 29, 2014, up by $60.78 million or 34.96 percent from $173.88 million on Mar. 30, 2013. The company's current ratio increased to 4.91 as at Mar. 29, 2014 from 4.20 on Mar. 30, 2013.
The company's cash conversion cycle (CCC) increased to 40 days for first-quarter from 23 days for the last year. CCC is a liquidity metric which expresses the length of time (in days) that a company uses to sell inventory, collect receivables and pay its accounts payable. Decreasing or steady CCCs are good for business.
Days' sales outstanding went up to 31 days for first-quarter compared with 26 days for the last year. This indicates the company has extended credit period to clients for making payment.
Days' inventory outstanding increased to 64 days for first-quarter compared with 53 days for previous year. This suggests the company took more time to convert the inventory into sales.
While days' payable outstanding was almost flat at 55 days for first-quarter, when compared with the last year period. This reflects that the company has made early payment to vendors compared to prior year period.
Shares of iRobot Corp rose by $0.73 or 1.88 percent to close at $39.65 on Tuesday.
