Plans Incremental 2016 Investment to Drive Longer-Term GrowthBEDFORD, Mass., Feb. 10, 2016 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the fourth quarter and full year ended January 2, 2016.
"2015 was another great year for iRobot. Throughout the year, we made strategic investments in our business that drove record quarterly revenue and resulted in revenue and EPS that exceeded our expectations," said Colin Angle, chairman and chief executive officer of iRobot. "The divestiture of the Defense & Security business announced on February 4, 2016 will allow us to focus on the home and deliver accelerated revenue growth in 2016 and beyond.
"Revenue, excluding D&S, is expected to grow 11 - 13% in 2016 as we expand worldwide distribution of Roomba 980, tap further into a large and growing market in China and build our wet floor care business. Our Roomba marketing programs were highly successful in the United States, where Q4 sell through at our top 5 retailers was up more than 70% year-on-year, resulting in a significant return on our investment. We are highly confident that we have the right marketing mix to export overseas to accelerate growth in those markets, and we expect revenue in all three geographic regions to grow in the low to mid-teens in 2016.
"Looking over a 3-year horizon, it is critical that we make strategic investments today to drive diversification of Home revenue for the future. This will include product diversification through more significant contributions from wet floor care as well as future revenue opportunities from connected, mapping products. This will also include more significant regional diversification as China continues to ramp and Japan returns to growth. The capital allocation and investment decisions we are making today will pave the road for higher revenue acceleration in 2017 and 2018.
"For 2016, we expect revenue of $630 to $642 million, EPS of between $1.20 and $1.40, and Adjusted EBITDA of $80 to $90 million. Expectations include a stub period of one quarter of Defense & Security results as well as the impact of one-time divestiture costs, most of which we expect to incur during Q1 2016."
- Revenue for the fourth quarter of 2015 was $206.4 million, compared with $159.3 million for the fourth quarter of 2014. Revenue for the full year 2015 was $616.8 million, compared with $556.8 million for the full year 2014.
- Net income for the fourth quarter of 2015 was $19.3 million, compared with $9.4 million for the fourth quarter of 2014. Net income for the full year 2015 was $44.1 million, compared with $37.8 million for full-year 2014.
- Quarterly earnings per share were $0.65, compared with $0.31 in the fourth quarter last year. Full-year earnings per share were $1.47, compared with $1.25 last year. The enactment of the 2015 R&D credit in December 2015 positively impacted fourth-quarter and full-year 2015 EPS by $0.05. In 2014, there was a positive $0.04 impact on fourth-quarter and full-year EPS from the R&D credit enacted in December 2014.
- Adjusted EBITDA for the fourth quarter of 2015 was $35.0 million, compared with $19.7 million in the fourth quarter of 2014. Adjusted EBITDA for the full year 2015 was $92.0 million, compared with $79.8 million for full-year 2014.
- Domestic Home Robot business grew 46% in Q4 and 25% for the full year over 2014, due primarily to investment in ad media, national promotions, and the launch of Roomba 980.
- Growth in China was more than 70% year-over-year in 2015 driven by successful execution of our e-commerce strategy, particularly on the 11/11 and 12/12 holidays.
- Our Defense & Security business delivered full-year results consistent with our expectations. On February 2, 2016, we signed a definitive agreement to sell the business.
- Announced a $65 million addition to the 2016 share repurchase program, bringing the total 2016 program to over $100 million.