iRobot, the maker of the Roomba cleaning robots, is warning investors that it may not be able to continue operational in the coming year.
iRobot is one of the leading makers of automated cleaning robots, with its Roomba line one of the most popular products in its category. CEO Gary Cohen emphasized the company’s recent product announcement during the company’s fourth-quarter results.
“2024 was a transformational year for iRobot, marked by the continued and successful execution of our five-point iRobot Elevate turnaround strategy as we’ve meaningfully reduced operating losses, improved gross margins and optimized cash flow,” said Cohen. “iRobot has defined the robotic floorcare category for more than 30 years, and we remain committed to growing and evolving our business across smart home categories amidst a dynamic operating landscape. As we move ahead, we will continue to take decisive action to reclaim our position as the industry leader and build on iRobot’s strong foundation centered around our globally recognized, iconic brand, Roomba.”
Mr. Cohen continued, “Yesterday, we announced the largest product launch in iRobot’s history, better positioning iRobot as the leader in the category that we created. Importantly, this strong pipeline of breakthrough new products is expected to be margin-accretive compared to our legacy products and should begin to support year-over-year revenue growth in 2025. We plan to leverage that top-line growth with our lower cost structure to drive improved profitability, and we remain on track to achieve gross-margin expansion and improved cash flow from operations this year.”
Despite the product launch, iRobot is warning that it may not be able “to continue as a going concern.”
As will be noted in iRobot’s Annual Report on Form 10-K for the year ended December 28, 2024 (10-K), there can be no assurance that the new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies. Given these uncertainties and the implication they may have on the Company’s financials, there is substantial doubt about the Company’s ability to continue as a going concern for a period of at least 12 months from the date of the issuance of its consolidated 2024 financial statements. Additional information will be included in the 10-K that is filed with the SEC.
Amazon announced in mid-2022 that it intended to purchase iRobot for $1.7 billion. Despite UK regulators signing off on the deal, Amazon and iRobot faced substantial pushback from U.S. and EU regulators. The deal was ultimately abandoned in early 2024.
iRobot clearly has a difficult road ahead of it, one it had hoped to avoid when a deal with Amazon was on the table.
from WebProNews https://ift.tt/5zMhZjO
No comments:
Post a Comment