Technology
iRobot Reports Fourth-Quarter and Full-Year 2023 Financial Results
Published
2 years agoon
By
Provides Annual Guidance for 2024
BEDFORD, Mass., Feb. 26, 2024 /PRNewswire/ — iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the fourth quarter and full year ended December 30, 2023.
Fourth Quarter 2023 Financial Performance Highlights
Revenue was $307.5 million compared to $357.9 million last yearGAAP net loss per share was ($2.28) compared to GAAP net loss per share of ($3.07) last yearNon-GAAP net loss per share was ($1.82) compared to non-GAAP net loss per share of ($1.54) last year
Fiscal 2023 Financial Performance Highlights
Revenue declined to $890.6 million from $1,183.4 million in 2022GAAP net loss per share was ($11.01) compared to GAAP net loss of ($10.52) in 2022Non-GAAP net loss per share was ($7.73) compared to non-GAAP net loss per share of ($4.50) in 2022
“As we shared last month, we are actively implementing an operational restructuring plan designed to both stabilize the business in the current environment and advance our growth initiatives,” said Glen Weinstein, Interim CEO of iRobot. “The plan will simplify our cost structure, create a more sustainable business model, and enable us to focus on our core value drivers. As we move forward with urgency and focus, our management team and Board are confident in iRobot’s ability to build on our innovation and to navigate this period successfully as a standalone company.”
“We are managing through a challenging period and making critical strategic progress that we believe will help expand and better position our business for the future,” added Weinstein. “We are confident that the actions we are taking today will drive improved performance going forward.”
iRobot anticipates full year 2024 revenue between $825 and $865 million. iRobot expects full year 2024 GAAP net loss per share between ($3.13) and ($2.70) and non-GAAP net loss per share between ($3.73) and ($3.30).
iRobot’s top financial priorities are liquidity and careful cash management. With the operational restructuring plan announced last month, iRobot anticipates a significant improvement in cash outflow from operations in fiscal 2024 compared with the reported cash outflow from operations of ($114.8) million for full year 2023. Excluding the net proceeds from the $94 million break-up fee from Amazon, iRobot expects negative cash flow from operations in Q1 and Q2 and anticipates generating modest positive cash flow from operations in both Q3 and Q4 during fiscal 2024.
Operational Restructuring Plan
As announced on January 29, 2024, the Company has initiated an operational restructuring plan designed to more closely align its cost structure with near-term revenue expectations and drive bottom-line improvement. These measures include:
Achieving margin improvements through a focus on design-to-value and more attractive terms with manufacturing partners with an anticipated GAAP gross margin of between 31% and 33% and non-GAAP gross margin of between 32% and 34% in 2024;Reducing research and development expense by approximately $25 million through relocating certain non-core engineering functions and pausing work unrelated to iRobot’s core floorcare business to focus on innovation and development efforts on the Company’s key revenue generators;Centralizing global marketing activities to be more efficient in iRobot’s demand generation efforts, which we anticipate will result in a decrease in overall selling and marketing expenses by $40 million including working marketing reduction of $20 million;Streamlining the Company’s legal entity and real estate footprint to fit its current business needs and near-term revenue expectations; andImplementing workforce reductions of approximately 350 employees, which represents 31 percent of the Company’s workforce as of December 30, 2023, with the majority of notifications taking place by March 30, 2024. As part of this workforce reduction, iRobot expects to record restructuring charges totaling between $12 million and $13 million, primarily for severance and related costs.
Fourth-Quarter Operational and Recent Highlights
Geographically, fourth quarter 2023 revenue declined 20% in the U.S., 19% in Japan and 5% in EMEA over the prior period last year. Full year 2023 revenue declined 30% in the U.S., 21% in Japan and 11% in EMEA.Revenue from mid-tier robots (with an MSRP between $300 and $499) and premium robots (with an MSRP of $500 or more) represented 83% of total robot sales in the fourth quarter of 2023 versus 84% from the same period last year.iRobot’s product lineup received positive reviews across regions in media outlets including Reviewed, TechRadar, Homes & Gardens, CNN Underscored, Lifehacker, TechHive, ZDNET, Xataka, T3, Tom’s Guide and Gear Patrol.The iRobot Roomba Combo j9+ was named ‘Best Robot Vacuum’ by U.S. News & World Report. The Company’s products received other notable accolades from media outlets including GQ, Popular Mechanics, Gear Patrol and GoodsPress.iRobot products were featured as recommended deals and gifts in Black Friday/Cyber Monday and holiday gift guide-related coverage in TODAY, Good Morning America, Esquire and many other top media outlets.
2024 Financial Outlook
iRobot is providing GAAP and non-GAAP financial expectations for the fiscal year ending December 28, 2024. A detailed reconciliation between the Company’s GAAP and non-GAAP expectations is included in the attached financial tables.
Fiscal Year 2024:
Metric
GAAP
Adjustments
Non-GAAP
Revenue
$825 – $865 million
—
$825 – $865 million
Gross Margin
31% to 33%
~1%
32% to 34%
Operating Loss
($41) – ($29) million
~($17) million
($58) – ($46) million
Net Loss Per Share
($3.13) – ($2.70)
~($0.60)
($3.73) – ($3.30)
For the first half of 2024, revenue is expected to decline in the high teens to low 20s percentage range compared to the first half of 2023, with Q2 expected to be the weaker quarter as the Company expects a shifting of orders into Q3.For the second half of the year, the Company anticipates a mid-single-digit percentage improvement in revenue compared to the second half of 2023.iRobot anticipates that the majority of the gross margin improvement will occur in the second half of the year as the Company ramps its initiatives.
Fourth-Quarter 2023 Results Conference Call
iRobot will host a live webcast and conference call tomorrow at 8:30 a.m. ET to discuss its fourth-quarter 2023 financial results and its outlook for fiscal year 2024. Pertinent conference call details include:
Date: February 27, 2024
Time: 8:30 a.m. ET
Call-In Number: 203-518-9783
Conference ID: IRBTQ423
A live webcast of the conference call will be accessible on the event section of the Company’s website at https://investor.irobot.com/events/event-details/q4-2023-irobot-corp-earnings-conference-call. An archived version of the broadcast will be available on the same website shortly after the conclusion of the live event. A replay of the telephone conference call will be available through March 5, and can be accessed by dialing 402-220-7330.
About iRobot Corp.
iRobot is a global consumer robot company that designs and builds thoughtful robots and intelligent home innovations that make life better. iRobot introduced the first Roomba robot vacuum in 2002. Today, iRobot is a global enterprise that has sold more than 50 million robots worldwide. iRobot’s product portfolio features technologies and advanced concepts in cleaning, mapping and navigation. Working from this portfolio, iRobot engineers are building robots and smart home devices to help consumers make their homes easier to maintain and healthier places to live. For more information about iRobot, please visit www.irobot.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which relate to, among other things: the Company’s expectations regarding future financial performance, including with respect to 2024 revenue, gross margin, operating loss and loss per share; and the Company’s implementation of its operational restructuring plan, the expected business and financial impacts thereof, and related restructuring charges. These forward-looking statements are based on the Company’s current expectations, estimates and projections about its business and industry, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the Company’s ability to obtain capital when desired on favorable terms, if at all; (ii) our restructuring efforts may not be successful; (iii) the impact of the COVID-19 pandemic and various global conflicts on the Company’s business and general economic conditions; (iv) the Company’s ability to implement its business strategy; (v) the risk that disruptions from the proposed restructuring will harm the Company’s business, including current plans and operations; (vi) the ability of the Company to retain and hire key personnel, including successfully navigating its leadership transition; (vii) legislative, regulatory and economic developments affecting the Company’s business; (viii) general economic and market developments and conditions; (ix) the evolving legal, regulatory and tax regimes under which the Company operates; (x) potential business uncertainty, including changes to existing business relationships that could affect the Company’s financial performance; (xi) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, (xii) current supply chain challenges including current constraints in the availability of certain semiconductor components used in the Company’s products; (xiii) the financial strength of the Company’s customers and retailers; (xiv) the impact of tariffs on goods imported into the United States; and (xv) competition, as well as the Company’s response to any of the aforementioned factors. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” in the Company’s most recent annual and quarterly reports filed with the SEC and any subsequent reports on Form 10-K, Form 10-Q or Form 8-K filed from time to time and available at www.sec.gov. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability and similar risks, any of which could have a material adverse effect on the Company’s financial condition, results of operations, or liquidity. The forward-looking statements included herein are made only as of the date hereof. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
iRobot Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
For the three months ended
For the twelve months ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Revenue
$ 307,544
$ 357,872
$ 890,580
$ 1,183,383
Cost of revenue:
Cost of product revenue
249,112
272,367
693,217
830,478
Amortization of acquired intangible assets
301
280
1,166
2,812
Total cost of revenue
249,413
272,647
694,383
833,290
Gross profit
58,131
85,225
196,197
350,093
Operating expenses:
Research and development
26,951
40,615
144,087
166,508
Selling and marketing
59,673
95,952
201,676
293,307
General and administrative
18,903
33,527
109,148
118,112
Amortization of acquired intangible assets
4,837
(54)
5,366
12,549
Total operating expenses
110,364
170,040
460,277
590,476
Operating loss
(52,233)
(84,815)
(264,080)
(240,383)
Other expense, net
(4,758)
(1,393)
(28,975)
(21,300)
Loss before income taxes
(56,991)
(86,208)
(293,055)
(261,683)
Income tax expense (benefit)
6,603
(2,107)
11,655
24,612
Net loss
$ (63,594)
$ (84,101)
$ (304,710)
$ (286,295)
Net loss per share:
Basic
$ (2.28)
$ (3.07)
$ (11.01)
$ (10.52)
Diluted
$ (2.28)
$ (3.07)
$ (11.01)
$ (10.52)
Number of shares used in per share calculations:
Basic
27,880
27,379
27,676
27,214
Diluted
27,880
27,379
27,676
27,214
Stock-based compensation included in above figures:
Cost of revenue
$ 935
$ 620
$ 3,160
$ 2,194
Research and development
3,653
2,816
12,391
10,473
Selling and marketing
1,622
1,558
5,843
6,358
General and administrative
3,966
3,402
14,662
12,880
Total
$ 10,176
$ 8,396
$ 36,056
$ 31,905
iRobot Corporation
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
December 30, 2023
December 31, 2022
Assets
Cash and cash equivalents
$ 185,121
$ 117,949
Accounts receivable, net
79,387
66,025
Inventory
152,469
285,250
Other current assets
48,513
59,076
Total current assets
465,490
528,300
Property and equipment, net
40,395
60,909
Operating lease right-of-use assets
19,642
26,084
Deferred tax assets
8,512
16,248
Goodwill
175,105
167,724
Intangible assets, net
5,044
11,260
Other assets
19,510
24,918
Total assets
$ 733,698
$ 835,443
Liabilities and stockholders’ equity
Accounts payable
$ 178,318
$ 184,016
Accrued expenses
97,999
98,959
Deferred revenue and customer advances
10,830
13,208
Total current liabilities
287,147
296,183
Term loan
201,501
–
Operating lease liabilities
27,609
33,247
Other long-term liabilities
20,954
30,297
Total long-term liabilities
250,064
63,544
Total liabilities
537,211
359,727
Stockholders’ equity
196,487
475,716
Total liabilities and stockholders’ equity
$ 733,698
$ 835,443
iRobot Corporation
Consolidated Statements of Cash Flows
(unaudited, in thousands)
For the twelve months ended
December 30, 2023
December 31, 2022
Cash flows from operating activities:
Net loss
$ (304,710)
$ (286,295)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
32,791
47,869
Loss on equity investment
3,910
19,718
Stock-based compensation
36,056
31,905
Change in fair value of term loan
5,904
–
Debt issuance costs expensed under fair value option
11,837
–
Deferred income taxes, net
6,563
18,799
Other
(17,694)
(1,003)
Changes in operating assets and liabilities — (use) source
Accounts receivable
(11,748)
94,750
Inventory
125,710
49,399
Other assets
13,941
52,029
Accounts payable
(4,604)
(73,598)
Accrued expenses and other liabilities
(12,749)
(43,594)
Net cash used in operating activities
(114,793)
(90,021)
Cash flows from investing activities:
Additions of property and equipment
(2,862)
(12,325)
Purchase of investments
(233)
(3,150)
Sales and maturities of investments
–
17,723
Net cash (used in) provided by investing activities
(3,095)
2,248
Cash flows from financing activities:
Proceeds from employee stock plans
9
4,719
Income tax withholding payment associated with restricted stock vesting
(2,802)
(1,775)
Proceeds from term loan
200,000
–
Payment of debt issuance costs
(11,837)
–
Net cash provided by financing activities
185,370
2,944
Effect of exchange rate changes on cash, cash equivalents and restricted cash
2,456
1,321
Net increase (decrease) in cash, cash equivalents and restricted cash
69,938
(83,508)
Cash, cash equivalents and restricted cash, at beginning of period
117,949
201,457
Cash, cash equivalents and restricted cash, at end of period
$ 187,887
$ 117,949
Cash, cash equivalents and restricted cash, at end of period:
Cash and cash equivalents
$ 185,121
$ 117,949
Restricted cash, current (included in other current assets)
1,000
–
Restricted cash, non-current (included in other assets)
1,766
–
Cash, cash equivalents and restricted cash, at end of period
$ 187,887
$ 117,949
iRobot Corporation
Supplemental Information
(unaudited)
For the three months ended
For the twelve months ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Revenue by Geography: *
Domestic
$ 139,806
$ 175,481
$ 428,531
$ 615,107
International
167,738
182,391
462,049
568,276
Total
$ 307,544
$ 357,872
$ 890,580
$ 1,183,383
Robot Units Shipped *
Vacuum
1,075
1,213
2,834
3,772
Mopping
64
122
200
410
Total
1,139
1,335
3,034
4,182
Revenue by Product Category **
Vacuum***
$ 291
$ 331
$ 831
$ 1,066
Mopping and other****
17
27
60
117
Total
$ 308
$ 358
$ 891
$ 1,183
Average gross selling prices for robot units
$ 370
$ 362
$ 360
$ 337
Headcount
1,113
1,254
* in thousands
** in millions
*** Includes Roomba robot vacuum-related accessory revenue
**** Includes Braava robot mop-related accessory revenue and air purifier, handheld vacuum and Root
Certain numbers may not total due to rounding
iRobot Corporation
Explanation of Non-GAAP Measures
In addition to disclosing financial results in accordance with U.S. GAAP, this earnings release contains references to the non-GAAP financial measures described below. We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures.
Our non-GAAP financial measures reflect adjustments based on the following items. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated.
Amortization of acquired intangible assets: Amortization of acquired intangible assets consists of amortization of intangible assets including completed technology, customer relationships, and reacquired distribution rights acquired in connection with business combinations as well as any non-cash impairment charges associated with intangible assets in connection with our past acquisitions. Amortization charges for our acquisition-related intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We exclude these charges from our non-GAAP measures to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.
Net Merger, Acquisition and Divestiture (Income) Expense: Net merger, acquisition and divestiture (income) expense primarily consists of transaction fees, professional fees, and transition and integration costs directly associated with mergers, acquisitions and divestitures, including with respect to the iRobot-Amazon Merger which was terminated on January 28, 2024. It also includes business combination adjustments including adjustments after the measurement period has ended. The occurrence and amount of these costs will vary depending on the timing and size of these transactions. We exclude these charges from our non-GAAP measures to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.
Stock-Based Compensation: Stock-based compensation is a non-cash charge relating to stock-based awards. We exclude this expense as it is a non-cash expense, and we assess our internal operations excluding this expense and believe it facilitates comparisons to the performance of other companies.
Tariff Refunds: Our exclusion from Section 301 List 3 tariffs was reinstated in March 2022, which temporarily eliminates tariffs on our Roomba products imported from China beginning on October 12, 2021 until December 31, 2022. This temporary exclusion, which was subsequently extended until December 31, 2023, and then further extended until May 31, 2024, entitles us to a refund of all related tariffs previously paid since October 12, 2021. We exclude the refunds for tariff costs expensed during fiscal 2021 from our 2022 non-GAAP measures because those tariff refunds associated with tariff costs incurred in the past have no impact to our current period earnings.
Restructuring and Other: Restructuring charges are related to one-time actions associated with realigning resources, enhancing operational productivity and efficiency, or improving our cost structure in support of our strategy. Such actions are not reflective of ongoing operations and include costs primarily associated with severance costs, certain professional fees, costs associated with consolidation of facilities, warehouses and any other leased properties, and other non-recurring costs directly associated with resource realignments tied to strategic initiatives or changes in business conditions. We exclude this item from our non-GAAP measures when evaluating our recent and prospective business performance as such items vary significantly based on the magnitude of the action and do not reflect anticipated future operating costs. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of our business.
Gain/Loss on Strategic Investments: Gain/loss on strategic investments includes fair value adjustments, realized gains and losses on the sales of these investments and losses on the impairment of these investments. We exclude these items from our non-GAAP measures because we do not believe they correlate to the performance of our core business and may vary in size based on market conditions and events. We believe that the exclusion of these gains or losses provides investors with a supplemental view of our operational performance.
Debt issuance costs: Debt issuance costs include various incremental fees and commissions paid to third parties in connection with the issuance of debt.
Income tax adjustments: Income tax adjustments include the tax effect of the non-GAAP adjustments, calculated using the appropriate statutory tax rate for each adjustment. We regularly assess the need to record valuation allowances based on non-GAAP profitability and other factors. We also exclude certain tax items, including the impact from stock-based compensation windfalls/shortfalls, that are not reflective of income tax expense incurred as a result of current period earnings. During fiscal 2023, we concluded that, based on the introduction of negative evidence associated with increased expenses expected from the Term Loan issued during 2023, it is no longer more likely than not that the net deferred tax assets are recoverable on a non-GAAP basis. Accordingly, we recorded a valuation allowance as a non-GAAP adjustment during fiscal 2023. We believe disclosure of the income tax provision before the effect of such tax items is important to permit investors’ consistent earnings comparison between periods.
iRobot Corporation
Supplemental Reconciliation of GAAP Actuals to Non-GAAP Actuals
(in thousands, except per share amounts)
(unaudited)
For the three months ended
For the twelve months ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
GAAP Revenue
$ 307,544
$ 357,872
$ 890,580
$ 1,183,383
GAAP Gross Profit
$ 58,131
$ 85,225
$ 196,197
$ 350,093
Amortization of acquired intangible assets
301
280
1,166
2,812
Stock-based compensation
935
620
3,160
2,194
Tariff refunds
–
–
–
(11,727)
Net merger, acquisition and divestiture expense
(1,159)
462
(262)
462
Restructuring and other
–
–
174
4,551
Non-GAAP Gross Profit
$ 58,208
$ 86,587
$ 200,435
$ 348,385
GAAP Gross Margin
18.9 %
23.8 %
22.0 %
29.6 %
Non-GAAP Gross Margin
18.9 %
24.2 %
22.5 %
29.4 %
GAAP Operating Expenses
$ 110,364
$ 170,040
$ 460,277
$ 590,476
Amortization of acquired intangible assets
(4,837)
54
(5,366)
(12,549)
Stock-based compensation
(9,241)
(7,776)
(32,896)
(29,711)
Net merger, acquisition and divestiture expense
7,167
(10,079)
(14,824)
(18,195)
Restructuring and other
81
(3,628)
(7,981)
(9,042)
Non-GAAP Operating Expenses*
$ 103,534
$ 148,611
$ 399,210
$ 520,979
GAAP Operating Expenses as a % of GAAP Revenue
35.9 %
47.5 %
51.7 %
49.9 %
Non-GAAP Operating Expenses as a % of Non-GAAP Revenue*
33.7 %
41.5 %
44.8 %
44.0 %
GAAP Operating Loss
$ (52,233)
$ (84,815)
$ (264,080)
$ (240,383)
Amortization of acquired intangible assets
5,138
226
6,532
15,361
Stock-based compensation
10,176
8,396
36,056
31,905
Tariff refunds
–
–
–
(11,727)
Net merger, acquisition and divestiture expense
(8,326)
10,541
14,562
18,657
Restructuring and other
(81)
3,628
8,155
13,593
Non-GAAP Operating Loss*
$ (45,326)
$ (62,024)
$ (198,775)
$ (172,594)
GAAP Operating Margin
(17.0) %
(23.7) %
(29.7) %
(20.3) %
Non-GAAP Operating Margin*
(14.7) %
(17.3) %
(22.3) %
(14.6) %
iRobot Corporation
Supplemental Reconciliation of GAAP Actuals to Non-GAAP Actuals continued
(in thousands, except per share amounts)
(unaudited)
For the three months ended
For the twelve months ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
GAAP Income Tax Expense (Benefit)
$ 6,603
$ (2,107)
$ 11,655
$ 24,612
Tax effect of non-GAAP adjustments
155
(22,986)
720
(50,635)
Other tax adjustments
(6,182)
4,690
(10,331)
(25,789)
Non-GAAP Income Tax Expense (Benefit)
$ 576
$ (20,403)
$ 2,044
$ (51,812)
GAAP Net Loss
$ (63,594)
$ (84,101)
$ (304,710)
$ (286,295)
Amortization of acquired intangible assets
5,138
226
6,532
15,361
Stock-based compensation
10,176
8,396
36,056
31,905
Tariff refunds
–
–
–
(11,727)
Net merger, acquisition and divestiture expense
(8,326)
10,541
14,562
18,657
Restructuring and other
(81)
3,628
8,155
13,593
Loss on strategic investments
–
890
3,910
19,718
Debt issuance costs
–
–
11,837
–
Income tax effect
6,027
18,296
9,611
76,424
Non-GAAP Net Loss*
$ (50,660)
$ (42,124)
$ (214,047)
$ (122,364)
GAAP Net Loss Per Diluted Share
$ (2.28)
$ (3.07)
$ (11.01)
$ (10.52)
Amortization of acquired intangible assets
0.18
0.01
0.24
0.56
Stock-based compensation
0.36
0.31
1.30
1.17
Tariff refunds
–
–
–
(0.43)
Net merger, acquisition and divestiture expense
(0.30)
0.38
0.53
0.69
Restructuring and other
–
0.13
0.29
0.50
Loss on strategic investments
–
0.03
0.14
0.72
Debt issuance costs
–
–
0.43
–
Income tax effect
0.22
0.67
0.35
2.81
Non-GAAP Net Loss Per Diluted Share*
$ (1.82)
$ (1.54)
$ (7.73)
$ (4.50)
Number of shares used in diluted per share calculation
27,880
27,379
27,676
27,214
Supplemental Information
Days sales outstanding
24
17
GAAP Days in inventory
56
95
Non-GAAP Days in inventory(1)
56
96
* Beginning in the fourth quarter of 2023, we updated our calculation of non-GAAP financial measures to no longer exclude “IP litigation expense, net.” The metrics for each period are presented in accordance with this updated methodology; as a result, the 2022 fiscal year measures differ from those previously presented by the amount of IP litigation expense, net recorded in such period.
(1) Non-GAAP Days in inventory is calculated as inventory divided by (Revenue minus Non-GAAP Gross Profit), multiplied by 91 days.
iRobot Corporation
Supplemental Data – Impact of Section 301 Tariffs
(in thousands, except per share amounts)
(unaudited)
For the three months ended
For the twelve months ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Section 301 Tariff Costs
$ 467
$ 497
$ 1,560
$ 2,968
Impact of Section 301 tariff costs to gross and operating margin (GAAP & non-GAAP)
(0.2) %
(0.1) %
(0.2) %
(0.3) %
Tax effected impact of Section 301 tariff costs to net income per diluted share (GAAP)
$ (0.02)
$ (0.02)
$ (0.06)
$ (0.11)
Tax effected impact of Section 301 tariff costs to net income per diluted share (non-GAAP)
$ (0.02)
$ (0.01)
$ (0.06)
$ (0.08)
Certain numbers may not total due to rounding
iRobot Corporation
Supplemental Reconciliation of Fiscal Year 2024 GAAP to Non-GAAP Guidance
(unaudited)
FY-24
GAAP Gross Profit
$258 – $288 million
Stock-based compensation
~$4 million
Restructuring and other
~$2 million
Total adjustments
~$6 million
Non-GAAP Gross Profit
$264 – $294 million
FY-24
GAAP Gross Margin
31% – 33%
Stock-based compensation
~1%
Restructuring and other
~0%
Total adjustments
~1%
Non-GAAP Gross Margin
32% – 34%
FY-24
GAAP Operating Loss
($41) – ($29) million
Amortization of acquired intangible assets
~$1 million
Stock-based compensation
~$41 million
Net merger, acquisition and divestiture expense (income)
~($74) million
Restructuring and other
~$15 million
Total adjustments
~($17) million
Non-GAAP Operating Loss
($58) – ($46) million
FY-24
GAAP Net Loss Per Diluted Share
($3.13) – ($2.70)
Amortization of acquired intangible assets
~$0.03
Stock-based compensation
~$1.45
Net merger, acquisition and divestiture expense (income)
~($2.61)
Restructuring and other
~$0.53
Income tax effect
~$0
Total adjustments
~($0.60)
Non-GAAP Net Loss Per Diluted Share
($3.73) – ($3.30)
Number of shares used in diluted per share calculations
~28.3 million
View original content to download multimedia:https://www.prnewswire.com/news-releases/irobot-reports-fourth-quarter-and-full-year-2023-financial-results-302071604.html
SOURCE iRobot Corporation
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Technology
Electra to Usher in the Next Era of Aviation with Advanced Production Facility in Springfield, Ohio
Published
41 minutes agoon
July 21, 2026By
$850 million investment in Springfield and Clark County will move Direct Aviation from concept to reality, creating nearly 2,000 jobs and supporting production of up to 800 EL9 Ultra Short aircraft per year
SPRINGFIELD, Ohio, July 21, 2026 /PRNewswire/ — Electra today announced plans to establish its first production facility for the EL9 Ultra Short in the City of Springfield, within Clark County, a major milestone that will bring its nine-passenger hybrid-electric aircraft from development into scaled commercial production.
The $850 million investment will create 1,975 new jobs, anchor production of the EL9 Ultra Short, and help meet demand for Direct Aviation, a new category of accessible, point-to-point air mobility. The EL9 Ultra Short is a nine-passenger fixed-wing aircraft that uses hybrid-electric propulsion and blown-lift technology to take off and land in as little as 150 feet. The new facility will be located at AirPark Ohio, adjacent to Springfield-Beckley Municipal Airport.
“Electra is opening a new era of aviation, one where flight is direct, accessible, and closer to the communities it serves,” said Marc Allen, CEO of Electra. “This agreement is the moment that our vision moves from demonstration into reality. In Springfield and Clark County, we found the rare combination this next era requires: a ready site, a skilled workforce, a deep aerospace and defense ecosystem, and state and local leaders with the commitment and vision to build it with us. We are grateful to the City of Springfield, Clark County, and the State of Ohio for welcoming Electra into this community as we prepare to bring the EL9 Ultra Short into production, through certification, and ultimately into service.”
The production facility will ensure Electra remains at the forefront of American global leadership in hybrid-electric aviation, with the EL9 Ultra Short unlocking new markets for commercial advanced air mobility, military logistics, and humanitarian applications. The decision to build in Springfield is a bet on reindustrializing America’s capacity to manufacture next-generation aircraft at scale in the Birthplace of Aviation.
“Ohio is where flight began, and the Dayton-Springfield area has become the national epicenter for advanced air mobility – the place where the next generation of aircraft is being designed, tested, and now built at scale,” said Ohio Governor Mike DeWine. “Electra’s decision to bring nearly 2,000 new jobs to Springfield will be transformative for Clark County, demonstrating Ohio’s unique ability to lead America into aviation’s next era.”
Electra selected the site following a year-long competitive national site-selection process that evaluated more than 140 potential locations. Criteria included workforce availability, infrastructure readiness, long-term expansion capacity, state and local partnership, incentives, and proximity to the aerospace, defense, and advanced manufacturing talent needed to support EL9 Ultra Short production.
The new 96-acre facility will house production of the EL9 Ultra Short. The initial phase of development will start immediately with design, while construction of the facility will begin next year. The initial phase will support capacity for up to 400 aircraft per year. A second phase of development will expand capacity to up to 800 aircraft per year.
The company chose the Dayton-Springfield region because it offers advanced air mobility (AAM) companies a combination of assets found nowhere else in the country. Springfield-Beckley Municipal Airport is home to the National Advanced Air Mobility Center of Excellence (NAAMCE) and SkyVision, the FAA-approved ground-based detect-and-avoid system that enables beyond visual line of sight (BVLOS) flight testing in unrestricted airspace, which allows companies to move from concept to flight test faster than anywhere else in the nation. That infrastructure is complemented by growing AAM production near Dayton International Airport and the region’s proximity to Wright-Patterson Air Force Base and the Air Force Research Laboratory (AFRL), which together form one of the deepest concentrations of aerospace R&D talent in the world.
“JobsOhio and our partners at the Dayton Development Coalition are proud to welcome Electra’s first point-to-point hybrid-electric aircraft production facility to Ohio,” said JobsOhio President and CEO J.P. Nauseef. “This investment builds on years of collaboration to establish Springfield-Beckley Municipal Airport as a national hub for advanced air mobility. Here, Electra will have direct access to the nation’s premier AAM testing infrastructure, a proven aerospace workforce, a deep manufacturing supply chain and the unmatched research capabilities of Wright-Patterson Air Force Base—an ideal environment to innovate, scale and grow for decades to come.”
Electra’s investment will be supported by state and local incentives tied to job creation, workforce development, infrastructure readiness, and long-term manufacturing growth. An incentive package is being designed to support hundreds of new Ohio jobs over the coming years as Electra scales production in the region. The project will pursue a Job Creation Tax Credit from the Ohio Department of Development at a future Tax Credit Authority meeting. JobsOhio also plans to provide assistance with the project, which will be made public after a final agreement is executed.
The EL9 Ultra Short is designed to unlock Direct Aviation, a new category of air travel that connects people and places directly through point-to-point mobility using novel access points such as parking lots, barges, and sports fields. The aircraft is designed around Electra’s Rule of Six: access, quiet operations, payload, range, safety, and affordability. In 2025, the company secured $115 million in Series B funding to support pre-production and certification of the EL9 Ultra Short, led by Prysm Capital.
“This is a landmark moment for Electra and for aviation,” said Jay Park, Co-Founder and Managing Partner at Prysm Capital. “Building a new category of aircraft takes conviction at every step, and the Electra team has delivered on each one. We’re proud to be their partner as the EL9 goes from proving what’s possible to producing it.”
In May, Electra released the Direct Aviation Market Outlook, a nationwide analysis of U.S.-based travel. At the heart of this market are trips between 50 and 250 flying miles, where demand is both concentrated and largely unserved by existing aviation. Electra’s analysis found that meeting this demand will require between 12,000 and 16,000 aircraft between 2030 and 2040.
This announcement follows Electra and Safran Helicopter Engines’ life-of-program agreement to develop and produce the TG600 turbogenerator that will power the EL9 Ultra Short. The agreement includes an initial order for 250 units and establishes Safran’s TG600 as the core of the EL9’s hybrid-electric propulsion system.
Earlier this year, Electra and Bristow Group Inc. announced a Pre-Delivery Payment agreement with non-refundable deposits and binding terms and conditions aligned to commercial aviation industry standards, subject to aircraft certification, securing the first delivery slot for the EL9 Ultra Short hybrid-electric aircraft with the TG600.
Electra has also submitted the EL9 Ultra Short aircraft to the Federal Aviation Administration (FAA) for Part 23 type certification and anticipates a first flight scheduled for late 2027 or early 2028. The FAA recently closed the G-1 Issue Paper, formally establishing the certification basis for Electra’s EL9 Ultra Short aircraft and advancing the company toward the next phase of type certification.
“The first era of aviation began right here in the greater Dayton region,” Allen said. “It is fitting that aviation’s next era will be built here too — in Springfield and Clark County — where Electra will produce groundbreaking aircraft designed to transform the way people travel.”
Electra will also continue to operate parts of its business from its Manassas, Virginia facilities. Together, the two campuses will give Electra the structure, talent, and operating model needed to fuel its next chapter of growth. To learn more, visit electra.aero/ohiojobs.
About Electra
Electra.aero, Inc. (Electra) is an advanced air mobility (AAM) company building hybrid-electric Ultra Short airplanes that deliver unprecedented performance advantages to fly people and cargo seamlessly without airports, emissions, or noise. With the EL9 Ultra Short, Electra is pioneering Direct Aviation, the next level of connectivity that brings air travel closer to where we live, work, and play. Electra’s Ultra Short technology delivers 2.5x the payload and 10x longer range with 70% lower operating costs than helicopters and eVTOLs with significantly greater safety and far less certification risk.
Electra’s team includes some of the most respected and successful entrepreneurs and engineers in novel aircraft design, with over 40 prior aircraft successfully developed and/or certified. Lockheed Martin Ventures, Honeywell, and Safran are among Electra’s strategic investors along with Prysm Capital, the Virginia Innovation Partnership Corporation (VIPC), and other private investors. Electra’s contracted customers include the U.S. Air Force, the U.S. Army, the U.S. Navy, and NASA along with over 2,200 letters of intent from 60+ commercial customers, including both airlines and helicopter operators.
About JobsOhio
JobsOhio, Ohio’s private nonprofit economic development corporation, enhances company growth and personnel development through business attraction, retention, and expansion across 10 competitive industry sectors. With a team of seasoned professionals, JobsOhio utilizes a comprehensive network to foster talent production in targeted industries and attract talent through Find Your Ohio. Collaborating with seven regional partners, including Dayton Development Coalition, Lake to River Economic Development, Ohio Southeast Economic Development, One Columbus, REDI Cincinnati, Regional Growth Partnership, and Team NEO. JobsOhio delivers world-class customer service to provide companies with a competitive advantage. In 2026 Ohio was named CNBC’s Top State for Business. Learn more at www.jobsohio.com. Follow us on LinkedIn, X , Instagram, and Facebook.
Media Contacts:
Matthew Bowen
Vrge Strategies
matthew@vrge.us
Matt Englehart
Englehart@jobsOhio.com
614-300-1152
View original content to download multimedia:https://www.prnewswire.com/news-releases/electra-to-usher-in-the-next-era-of-aviation-with-advanced-production-facility-in-springfield-ohio-302830956.html
SOURCE Electra.aero
Technology
Introducing Harness Agent DLC: New Capabilities for the AI Agent Development Lifecycle
Published
41 minutes agoon
July 21, 2026By
Enterprises can now ship AI agents with the same governance, testing, and security they already trust for application code
SAN FRANCISCO, July 21, 2026 /PRNewswire/ — Harness, the AI Software Delivery Platform™ company, today announced it is extending its platform to cover the full AI Agent Development Lifecycle (DLC), giving enterprises a single set of pipelines and controls to build, test, deploy, and run agents the same way they already ship everything else.
Every enterprise is building AI agents, but most can’t get them past internal pilots or proofs of concept. According to Gartner®, “Only 8% of organizations have agentic AI in production.” The software delivery lifecycle enterprises trust for shipping application code hasn’t extended to agents yet, trapping the ROI of internal AI investments. Real innovation arrives once a company can run an agent live with the same trust and confidence it has in the rest of its software.
“When we started Harness, the vision was a safety harness for code,” said Jyoti Bansal, co-founder and CEO of Harness. “Until recently, that meant application code. Today it also means agentic code, written across engineering, product, sales, and support teams alike, each building agents for their own workflows. Everything you’ve done for software delivery over the last decade — governance, orchestration, security, testing — you can now do for agents in the same platform.”
Why AI agents break the traditional software delivery lifecycle
Traditional software works because it’s predictable. Application code is deterministic. Run the same test against the same code twice, and it produces the same result both times.
Agents don’t work that way: an agent’s underlying language model decides how to complete a task, and the same agent, given the same input, can choose a different tool or take a different action from one run to the next. A test that passes once offers no guarantee it will pass the next time. Incidents stop being reproducible on demand, which means the standard playbook for catching and fixing bugs doesn’t transfer either.
The stakes rise with the size of the business. A rogue agent can expose customer data, violate a compliance policy, or take an action nobody approved. Enterprises need a way to answer for what their agents are doing, and the traditional software delivery lifecycle was never built to give them one.
New Harness Agent DLC products and capabilities
Agent DLC closes the gap between building an agent and delivering it safely to production. Today’s launch includes five new products and capabilities spanning testing, deployment, operations, and governance:
Harness AI Evals make agent quality measurable, letting teams define eval datasets, wire up scoring functions, and set quality gates that automatically catch regressions whenever an agent or model changes.Agent Deployments extend the canary releases, approvals, and OPA guardrails that Harness already applies to Kubernetes deployments to managed agent runtimes like Amazon Bedrock AgentCore and Google’s Agent Runtime. Agents now ship through existing pipelines instead of a separate cloud-specific workflow.AI Configs support the release and management of prompts and model changes at runtime, backed by the same feature flagging infrastructure that already manages code releases. Teams can test what performs best and roll back instantly, without redeploying.AI Asset Catalog automatically discovers every agent, skill, and plugin built across an organization’s repositories and links each to an owner, so nothing ships or runs unaccounted for.Harness AgentTrace records what happens during a single agent run and across a full multi-step session, showing which path an agent took, where it slowed down, and how different models or prompts affect the outcome. Harness is also open-sourcing the foundational components behind AgentTrace, including harness-sdk and harness-evals, so developers can bring the same tracing primitives into their own AI applications.
In addition, existing Harness products already extend to agents without requiring any changes: Continuous Integration builds them like any other service, Artifact Registry tracks their versions and dependencies, AI Test Automation validates their responses in plain English criteria, and AI Cost Management extends spend visibility to every agent and model.
Securing the Agent DLC
Agents choose their own approach and path to get there, so their behavior is hard to predict and just as hard to secure. They expand their own attack surface by connecting to tools and APIs, spawning sub-agents, and inheriting trust from every model they touch. Static scans were never designed for this kind of risk. Harness is launching new security capabilities to close that gap.
Shift-left: constrain what agents can do before they ship.
Primitive Scanning flags misconfigurations in agent skills, prompts, and models.AIBOM captures every model, tool, and dependency an agent was built with.AI Testing runs agents against adversarial inputs and the OWASP Top 10 for LLMs.
Shield-right: enforce policy and maintain visibility once they’re live.
Agent Discovery and Posture Management continuously surfaces agents as they’re invoked, maps how they connect and orchestrate work, and assesses their posture across the organization.AI Firewall enforces policy in real time against prompt injection, tool misuse, and data exfiltration.
Together, these capabilities give Agent DLC a single audit trail from development to production.
Built on the Harness platform
Harness built context and intelligence directly into the platform with the Software Delivery Knowledge Graph, which captures and connects data from every stage of the delivery lifecycle, now spanning both applications and agents. Organizations relying on siloed tools don’t have that same connected view.
In June 2026, Harness introduced Autonomous Worker Agents, a platform for building and safely running AI agents inside software delivery pipelines. Worker Agents run as governed steps within those pipelines, covered by the same controls Harness already applies to every deployment.
Agent DLC extends that same context and governance across the full agent lifecycle. The pipelines, policies, approvals, and evidence that already apply to an organization’s code now apply to its agents too, so eval gates, deployment approvals, and security checks run as stages within a single pipeline, from the moment an agent is created through everything it does afterward.
Availability
Harness Agent DLC capabilities are rolling out now to Harness customers. For a full breakdown of what’s included at each stage of the lifecycle, visit https://www.harness.io/blog/introducing-harness-agent-dlc.
Gartner, Emerging Market Quadrant for AI Agent Development Platforms — Established Vendors, 8 June 2026. GARTNER is a trademark of Gartner, Inc. and/or its affiliates
About Harness
Harness is the AI Software Delivery Platform™ company, enabling engineering teams to build, test, and deliver software faster and more securely. Powered by Harness AI and the Software Delivery Knowledge Graph, the platform brings intelligent automation to every stage of the software delivery lifecycle after code — removing toil and freeing developers from manual, repetitive work. Companies like United Airlines, Morningstar, and Choice Hotels use Harness to accelerate releases by up to 75%, cut cloud costs by 60%, and achieve 10x efficiency across DevOps. Based in San Francisco, Harness is backed by Goldman Sachs, Menlo Ventures, IVP, Unusual Ventures, and Citi Ventures.
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SOURCE Harness
Technology
VIVIFY Technology Hosts Governor Candidate Byron Donalds at South Florida Headquarters
Published
41 minutes agoon
July 21, 2026By
Delray Beach company demonstrates hydrogen energy platforms built to address Florida’s hurricane recovery, infrastructure growth, and data center demand
DELRAY BEACH, Fla., July 21, 2026 /PRNewswire/ — VIVIFY Technology today welcomed Florida Governor Candidate Byron Donalds to the company’s South Florida headquarters for a firsthand demonstration of its deployed hydrogen energy platforms: the HOG™ (Hydrogen Oxygen Generator), the CAT™ (Clean Air Technology) emissions control system, and the Flying Pig™, VIVIFY’s 1MW containerized hydrogen power unit.
The visit focused on the direct applications of VIVIFY’s technology to Florida’s most pressing infrastructure challenges: disaster recovery and hurricane resilience, power capacity for the state’s rapidly growing communities, and dedicated behind-the-meter energy for the data center build-out accelerating across the state.
The Flying Pig™ — a self-contained, 1MW hydrogen power system engineered for rapid deployment — is designed to be transported and operational within hours of arriving on site. In a post-storm environment, that means restoring critical power to Florida communities without waiting on grid repair timelines that can stretch for days or weeks.
“We didn’t build VIVIFY in Florida by accident,” said Jason Herring, Founder and CEO of VIVIFY Technology. “Hurricane season, the data center boom, communities being built faster than the grid can reach them: these are Florida realities. We built the answer here because the problem is here.”
Florida’s population growth has created compounding pressure on transmission infrastructure. New master-planned communities, industrial corridors, and data center campuses across the state are running into the same constraint: available grid capacity cannot keep pace with announced development. VIVIFY’s on-site hydrogen energy systems are engineered to close that gap, delivering dedicated power on the developer’s schedule rather than the utility’s.
“Every new community, every new data center, every growth corridor in this state runs into the same wall,” Herring said. “The grid can’t keep up. We built the technology that lets Florida build without waiting.”
Candidate Donalds toured the facility and engaged directly with VIVIFY’s engineering team and deployed systems.
“Hurricane recovery, new community development, the data center wave: these are the issues that define Florida’s future,” Candidate Donalds said. “The technology I saw today addresses every one of them.”
About VIVIFY Technology
VIVIFY Technology is a hydrogen energy company headquartered in South Florida. The company designs and develops hydrogen-based energy platforms — including its flagship Hydrogen Oxygen Generator™ (HOG™), the Clean Air Technology™ (CAT™) emissions control system, and the Flying Pig™ containerized power unit — engineered to deliver dependable, dedicated power for the most demanding infrastructure environments in operation today. Learn more at vivify-technology.com.
Forward-Looking Statements: This release contains forward-looking statements regarding VIVIFY Technology’s products, platforms, and intended performance. Forward-looking statements are subject to inherent uncertainty and reflect the company’s current expectations. Actual results may differ materially. The company undertakes no obligation to update any forward-looking statement except as required by law.
Media Contact
Ashley Stevenson, Chief Marketing Officer
ashley@vivify-technology.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/vivify-technology-hosts-governor-candidate-byron-donalds-at-south-florida-headquarters-302830872.html
SOURCE VIVIFY
Electra to Usher in the Next Era of Aviation with Advanced Production Facility in Springfield, Ohio
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VIVIFY Technology Hosts Governor Candidate Byron Donalds at South Florida Headquarters
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