iRobot Net Falls 8.1 Percent in Second Quarter
BEDFORD, Mass.-A jump in operating expenses dampened the bottom line for iRobot in its second quarter, ending on June 30.
Net income in the quarter dropped 8.1 percent to $7.4 million. Operating expenses were up a hefty 25.2 percent in dollars and 614 basis points as a percentage of sales, to 34.8 percent. Most of this increase came from a 50 percent jump in selling and marketing expenses.
The expense hikes offset what was generally a positive quarter for iRobot. A pickup of 50 percent in home robot sales helped the company to an overall net sales increase of 3.1 percent, to $111.4 million. Gross margin was up 501 basis points to 44.4 percent.
Colin Angle, iRobot's chairman and CEO, said home robot sales gained in both the U.S. and international markets, offsetting a decline in the company's revenues from defense and security customers. Thanks to the home segment, iRobot is "on track to meet our revenue and increase our profit expectations for fiscal year 2012," Angle said.