iRobot(US:IRBT)2024-02-26 16:00Revenue Performance - iRobot's total revenue for fiscal 2023 was $890.6 million, a decline of 24.7% from $1,183.4 million in fiscal 2022[91]. - Domestic revenue decreased by $186.6 million, or 30.3%, while international revenue declined by $106.2 million, or 18.7%[91]. - Revenue for fiscal 2023 decreased 24.7% to $890.6 million from $1,183.4 million in fiscal 2022, with domestic revenue down 30.3% and international revenue down 18.7%[119]. - Total revenue for the fiscal year ended December 30, 2023, was $890,580, a decrease of 24.8% from $1,183,383 in the previous year[178]. - Revenue from the United States was $428.53 million, down 30.3% from $615.11 million in the previous year[237]. Profitability and Losses - iRobot reported an operating loss of $264.1 million in fiscal 2023, with an operating margin of (29.7)%[98]. - GAAP Net Loss for Q4 2023 was $(304,710) thousand, worsening from $(286,295) thousand in Q4 2022, representing an increase in losses of approximately 6.5%[102]. - Net loss for fiscal 2023 was $(304.7) million, compared to $(286.3) million in fiscal 2022, highlighting ongoing financial difficulties[124]. - Operating loss for fiscal 2023 was $(264.1) million, compared to $(240.4) million in fiscal 2022, indicating continued challenges in profitability[124]. - Basic loss per share for the fiscal year ended December 30, 2023, was $(11.01), compared to $(10.52) in 2022[229]. Expenses and Cost Management - The company reduced operating expenses by $130.2 million in fiscal 2023 compared to the previous year[91]. - Total operating expenses for fiscal 2023 were $460.3 million, down from $590.5 million in fiscal 2022, reflecting a reduction in research and development and marketing expenses[124]. - Research and development expenses for fiscal 2023 were $144.1 million, down from $166.5 million in fiscal 2022, indicating a strategic focus on cost management[124]. - Selling and marketing expenses decreased by $91.6 million, or 31.2%, to $201.7 million, representing 22.6% of revenue in fiscal 2023[132]. - General and administrative expenses decreased by $9.0 million, or 7.6%, to $109.1 million, representing 12.3% of revenue in fiscal 2023[134]. Inventory and Cash Management - As of December 30, 2023, iRobot's inventory balance was $152.5 million, a reduction of $132.8 million from the end of fiscal 2022[91]. - Inventory balance as of December 30, 2023, was $152.5 million, a reduction of $132.8 million from fiscal 2022, equating to 56 days of inventory[192]. - Cash and cash equivalents as of December 30, 2023, were $185.1 million, a significant increase from $117.9 million as of December 31, 2022[142]. - The company experienced a net cash used in operating activities of $114.79 million, an increase from $90.02 million in the prior year[185]. Restructuring and Future Plans - The company plans to implement an operational restructuring plan aimed at improving gross margins and profitability following the termination of a merger agreement[124]. - The operational restructuring plan announced on January 29, 2024, includes workforce reduction and a shift to contract manufacturers[127]. - The company plans to reduce headcount by approximately 350 employees, representing about 31% of its global workforce, with total reductions since fiscal 2021 expected to reach approximately 550 employees[192]. - The Company expects to incur restructuring charges of approximately $12 million to $13 million in the first two quarters of 2024 related to the workforce reduction[192]. Product Development and Market Competition - iRobot introduced new products including the Roomba Combo i5+ and j9+, along with new features in iRobot OS to enhance user experience[91]. - The decrease in revenue was attributed to a 27.5% decline in total robots shipped and increased pricing competition in the market[119]. - The gross margin decline was driven by increased promotional activities and higher rework costs, despite some cost reductions in product and freight expenses[124]. Debt and Financing - iRobot entered into a $200 million Term Loan in July 2023 to fund ongoing operations[93]. - The company entered into a $200.0 million senior secured term loan credit facility, receiving total proceeds of $188.2 million net of debt issuance costs[148]. - The Company incurred $10.6 million of interest expense related to the Term Loan during fiscal 2023, with $4.5 million unpaid and included in accrued expenses[266]. Impairments and Reserves - The Company recorded an impairment charge of $4.9 million related to acquired intangible assets during the fourth quarter of 2023[208]. - The Company recorded impairment charges of $3.9 million for non-marketable equity securities in both fiscal 2023 and 2022[211]. - The Company had reserves for product returns of $24.6 million and other credits and incentives of $95.3 million as of December 30, 2023, compared to $49.2 million and $106.5 million, respectively, in 2022[233].