iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the second quarter ended July 2, 2016.

"Our second quarter revenue was at the high end of our expectations, while Q2 earnings exceeded expectations. Based on our Q2 results, and our outlook for the rest of 2016, fueled by the U.S. momentum, we are increasing our full-year financial expectations. We now expect 2016 revenue of $640 to $645 million, Net Income of between $36 and $40 million, EPS of between $1.26 and $1.40 and Adjusted EBITDA of $85 to $90 million," said Colin Angle, chairman and chief executive officer of iRobot.

"These expectations reflect our confidence that consumer revenue will grow roughly 14% for the full year, driven by strong demand in the U.S. The success of the marketing programs we ran during Q2 for Mother's Day and Father's Day resulted in sell through that was up roughly 20% in the quarter versus last year. We anticipate this momentum to continue throughout 2016.

"The revenue split between Q3 and Q4 is always difficult to predict due to the timing and shipment of consumer products for the holiday season. At this point, we expect revenue to increase sequentially Q2 to Q3 and be much higher in Q4, consistent with last year."

Financial Results

• Note: Financial results for the second quarter and first half of 2015 include the Defense & Security business which was sold on April 4, 2016. The results for the Defense & Security business included in our financial results for the second quarter of 2016 include $0.8 million for the gain on the sale and support services provided by iRobot, which are recorded as non-operating income, offset by $0.3 million of divestiture costs included in general and administrative expense. First-half 2016 results include first-quarter 2016 results for the Defense & Security business previously reported, and the net $0.6 millionnoted above.
• Revenue for the second quarter of 2016 was $148.7 million, compared with $148.8 million for the second quarter of 2015. Revenue for the first half of 2016 was $279.5 million, compared with $266.7 million last year.
• Net income in the second quarter of 2016 was $4.8 million, compared with $7.3 million in the second quarter of 2015. For the first half of 2016, net income was $8.7 million, compared with $12.0 million a year ago.
• Quarterly earnings per share were $0.17 for the second quarter of 2016, compared with $0.24 in the second quarter of 2015. First-half earnings per share were $0.30, compared with $0.40 in the first half of 2015.
• Adjusted EBITDA for the second quarter of 2016 was $15.9 million, compared with $17.8 million in the second quarter of 2015. For the first half of 2016, Adjusted EBITDA was $30.1 million, compared with$30.9 million a year ago.

Business Highlights

• In the U.S., consumer revenue grew more than 25% year over year driven by demand for our high end Roomba 980, as well as for our 600 series Roomba and the Braava family of wet floor care robots.
• Our new office and team in Shanghai are operating, and we have begun executing our more direct ecommerce strategy for China.
• Japan sell through continued to accelerate in Q2 due to the successful implementation of iRobot marketing programs in that region, and we are on track to deliver modest year-over-year growth as originally anticipated.

About iRobot Corp.

iRobot designs and builds robots that empower people to do more. The company's home robots help people find smarter ways to clean and accomplish more in their daily lives. iRobot's portfolio of solutions features proprietary technologies for the connected home and advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, please visit www.irobot.com.