IRobot Corp (IRBT) has reported a 29.23 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $13.68 million, or $0.49 a share in the quarter, compared with $19.33 million, or $0.65 a share for the same period last year.
Revenue during the quarter went up marginally by 2.94 percent to $212.49 million from $206.42 million in the previous year period. Gross margin for the quarter expanded 400 basis points over the previous year period to 50.19 percent. Total expenses were 91.19 percent of quarterly revenues, up from 88.86 percent for the same period last year. That has resulted in a contraction of 233 basis points in operating margin to 8.81 percent.
Operating income for the quarter was $18.72 million, compared with $23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $28.60 million compared with $35.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 350 basis points in the quarter to 13.46 percent from 16.96 percent in the last year period.
"2016 was a fantastic year for iRobot. Our Q4 and full year 2016 results exceeded our increased expectations. Record Q4 revenue was driven by very strong sales in the United States despite having the highest number of competitors we've ever seen. Higher revenue coupled with continued improvement in gross margin allowed us to increase investment and capitalize on our momentum executing on our business strategy, while returning additional profit to shareholders and setting a strong foundation for 2017 and beyond," said Colin Angle, chairman and chief executive officer of iRobot.
For fiscal year 2017, IRobot Corp expects revenue to be in the range of $770 million to $785 million. It expects operating income to be in the range of $57 million to $70 million. It projects diluted earnings per share to be in the range of $1.35 to $1.65 for the same period.
Operating cash flow improves significantly
IRobot Corp has generated cash of $116.42 million from operating activities during the year, up 335.85 percent or $89.71 million, when compared with the last year.
Cash flow from investing activities was $4.19 million from investing activities during the year as against cash outgo of $2 million in the last year.
The company has spent $86.01 million cash to carry out financing activities during the year as against cash outgo of $30.76 million in the last year period.
Cash and cash equivalents stood at $214.52 million as on Dec. 31, 2016, up 19.24 percent or $34.61 million from $179.92 million on Jan. 02, 2016.
Working capital declines
IRobot Corp has witnessed a decline in the working capital over the last year. It stood at $271.03 million as at Dec. 31, 2016, down 7.41 percent or $21.69 million from $292.72 million on Jan. 02, 2016. Current ratio was at 3.41 as on Dec. 31, 2016, down from 4.03 on Jan. 02, 2016.
Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 25 days for the last year period. Days sales outstanding went down to 16 days for the quarter compared with 25 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 27 days for the previous year period. At the same time, days payable outstanding went up to 29 days for the quarter from 27 for the same period last year.
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