iRobot(IRBT)2025-03-12 11:09Financial Performance - Total revenue for fiscal 2024 was $681.8 million, a decline of 23.4% from $890.6 million in fiscal 2023[205]. - Domestic revenue decreased by $95.8 million, or 22.4%, while international revenue declined by $112.9 million, or 24.4%[205]. - Gross profit for fiscal 2024 was $142.4 million, with a gross margin of 20.9%, compared to $196.4 million and 22.0% in fiscal 2023[215]. - Operating loss for fiscal 2024 was $103.0 million, with an operating margin of (15.1)%, compared to a loss of $264.1 million and (29.7)% in fiscal 2023[215]. - GAAP Net Loss for fiscal 2024 was $(145,518,000), down from $(304,710,000) in fiscal 2023, reflecting a decrease of 52.3%[225]. - Non-GAAP Net Loss for fiscal 2024 was $(162,519,000), compared to $(214,047,000) in fiscal 2023, indicating a reduction of 24.1%[225]. - Total operating loss for fiscal 2023 was $264.1 million, while the operating loss for fiscal 2024 was reduced to $103.0 million, despite a revenue decline of 23%[355][356]. Cost Management - The operational restructuring plan resulted in a total reduction of $126.4 million in operating expenses for fiscal 2024 compared to the prior fiscal year[208]. - Research and development expenses for fiscal 2024 were $93.3 million, a decrease from $143.5 million in fiscal 2023, reflecting the company's operational restructuring plan[257]. - Selling and marketing expenses for fiscal 2024 were $138.8 million, down from $199.3 million in fiscal 2023, indicating cost-cutting measures in response to declining revenue[255]. - General and administrative expenses decreased by $121.2 million, or 116.4%, to ($17.1) million in fiscal 2024, which is (2.5)% of revenue, down from 11.7% in fiscal 2023[267]. - Restructuring and other expenses increased by $25.8 million, or 315.8%, to $33.9 million in fiscal 2024, representing 5.0% of revenue, compared to 0.9% in fiscal 2023[270]. Workforce and Restructuring - The company initiated a workforce reduction of approximately 440 employees, representing 40% of its global workforce as of December 30, 2023[208]. - A restructuring plan was implemented, resulting in a workforce reduction of approximately 440 employees, or 40% of the global workforce[356]. - The operational restructuring plan initiated in January 2024 aims to drive profitability through workforce reduction and targeted marketing expenditures[261]. Product Development and Market Strategy - The company launched new products including the Roomba Combo Essential and Roomba Combo 10 Max, enhancing cleaning capabilities and accessibility[204]. - The company expects to participate more fully in the robotic floorcare market segment with new product launches planned for 2025[205]. - The company plans to continue investing in software intelligence and robotics to enhance product offerings and address emerging market trends[257]. - The company announced the largest product launch in its history on March 11, 2025, with expectations of margin-accretive new products supporting year-over-year revenue growth[302]. Cash Flow and Liquidity - Cash and cash equivalents as of December 28, 2024, totaled $134.3 million, down from $185.1 million a year ago[300]. - Net cash used in operating activities for fiscal 2024 was $33.2 million, driven by a net loss of $145.5 million, partially offset by non-cash charges of $78.6 million[286]. - The company has an outstanding term loan of $200.6 million as of December 28, 2024, with a maturity date of July 24, 2026[301]. - The company anticipates improved cash flow from operations driven by the new product launch and restructuring actions[360]. Going Concern and Strategic Review - There is substantial doubt about the company's ability to continue as a going concern due to potential reduced demand and challenging macroeconomic conditions[304]. - The auditor's report expresses substantial doubt about the company's ability to continue as a going concern, resulting in a breach of the Going Concern Covenant[305]. - The iRobot Board of Directors has initiated a formal strategic review to explore potential sales or refinancing options for the Company's debt[366]. Inventory and Allowances - Inventory was reduced to $76.0 million as of December 28, 2024, compared to $152.5 million a year ago, reflecting careful management to align with near-term revenue expectations[300]. - The allowance for product returns as of December 28, 2024, was recorded at $14.6 million, reflecting management's expectations based on historical data[332]. - The allowance for product returns decreased to $14.6 million as of December 28, 2024, from $24.7 million as of December 30, 2023[374].