IRobot Reports Sharp Increase in Revenue

by Darcie | Wednesday, Feb 8, 2012 | 430 views

Robot maker Irobot declared it fourth quarter results for December 2011. Income for the quarter has increased sharply. However investors battered the stock on news of a dis-appointing outlook for the future.  Income for the quarter rose by almost 52 percent. Robots for the consumer market include disc-shaped devices that automatically vacuum floors. The company also makes military robots that can dispose of bombs and carry out other dangerous jobs.

Commenting on the results CEO Colin Angle has warned that robot sales to government agencies might slow in 2012. The company makes devices sea diving robots for government and industries. While sales to government agencies might shrink, Angle said military contracts are likely to boost revenue in the second half of 2012. The company has forecasted revenue between $465 million to $ 485 million for the financial year 2012. The company expects a projected income of $90 million to $ 95 million.

The company said that its net income for the quarter ended Dec. 31 was $10.6 million, or 38 cents per share, compared to $7 million, or 26 cents per share, in the same period the year before.  Top line for the quarter was $130.8 million, up 15 percent from $114 million during the same period the year before.  The company has performed better than the estimates provided by the analysts. However the company has admitted that it does needs the governments supports in its plans if it has to grow over the future.

Shares fell 8.07, or 21 percent, to $30.23 in aftermarket trading. They had raised $1.44, or 4 percent, to close at $38.30 in regular-session trading Wednesday. We maintain a sell on the scrip as the company’s management has declared that the prospects do not look good for the upcoming year.


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