iRobot Net Falls 48.7 Percent in Q3

iRobot

BEDFORD, Mass.—Stagnant revenues and rising costs brought a 48.7 percent drop in net income for iRobot in its third quarter, to $7.8 million.

Total revenues in the quarter, which ended on Sept. 28, were $124.5 million, down 1.4 percent from last year’s third quarter. In spite of a 16 percent gain in revenue from home robots, product revenue edged up by just 1.2 percent, offset by a 63.8 percent falloff in contract revenue.

Gross margin finished the quarter at 43.4 percent, down 288 basis points. Selling, general and administrative expenses were up 22.5 percent in dollars and 437 basis points as a percentage of sales, to 22.3 percent.