IRobot names new CEO, posts Q1 profit amid steep layoffs

By Ben Glickman

IRobot swung to a profit in the first quarter and trimmed its outlook for full-year losses after the company completed most of its planned cost cuts.

IRobot (IRBT) also named Gary Cohen as its next chief executive as the company looks to move forward following a restructuring and its scrapped acquisition by Amazon (AMZN). Interim CEO Glen Weinstein will stay with the company for two months to assist in the transition.

IRobot's previous chief, Colin Angle, stepped down in January after the company's acquisition by Amazon was abandoned. The company at the time announced it would cut about 350 jobs, or 31% of its workforce.

On Tuesday, the Bedford, Mass.-based Roomba-maker reported a profit of $8.6 million, or 30 cents a share, in the quarter ended March 30, compared with a loss of $81.1 million, or $2.95 a share, a year earlier.

Stripping out certain one-time items, the company posted an adjusted loss of $1.53, narrower than the $2.01 loss expected by analysts surveyed by FactSet.

Revenue fell to $150 million from $160.3 million a year ago, beating the $145 million expected by analysts polled by FactSet.

Weinstein said the company had taken aggressive action to simplify its cost structure, with an eye on stabilizing the business without threatening long-term growth.

IRobot said that revenue fell 3% in Europe, the Middle East and Africa, 16% in Japan and 4% in the U.S. compared to a year ago.

The company said it now expects a per-share loss of $2.23 to $2.65 in 2024, compared with prior outlook of a $2.70 to $3.13 loss. On an adjusted basis, the company now expects a per-share loss of $2.71 to $3.13 a share.

IRobot slightly reduced its full-year revenue guidance to $815 million to $860 million. The company had previously forecast revenue of $825 million to $865 million.

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05-07-24 1645ET

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