Robotic technology-based solutions provider iRobot Corp. (IRBT) Tuesday predicted a loss for the fourth quarter and cut its full year forecast amid weakness in the defense and security business, after reporting third-quarter profit that grew modestly from last year. The stock plunged nearly 15 percent in the extended trade.
Net income rose to $15.21 million or $0.54 per share from $14.05 million or $0.50 per share in the prior-year quarter.
The positive net impact of items was $0.10 in earnings per share in the just concluded quarter, while last year's results included a one-time tax benefit of $0.12 per share. Adjusted earnings were $0.38 per share last year.
On average, five analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues were $126.30 million, up from $120.37 million last year. Analysts estimated revenues of $128.21 million for the quarter.
Home Robot revenue increased 33 percent owing to strong growth in U.S. and international markets. Defense and security, or D&S, revenue fell to $30 million in the quarter from $48.03 million last year.
The company said the 2012 outlook for D&S has deteriorated and further declines are expected in 2013.
''To right-size the business we have restructured D&S and taken costs out. These moves will result in a fourth quarter 2012 restructuring charge of $4-5 million,'' Colin Angle, CEO, said.
Operating expenses fell to $32.17 million from $34.46 million, as a result of lower expenses for Research & development as well as Selling & marketing.
Looking ahead to the fourth quarter, the company expects a loss per share of $0.33 to $0.39 and revenue of $98 - $102 million. Wall Street looks for earnings of $0.19 per share on revenues of $148.41 million.
According to the company, the quarterly results will be impacted by $0.28 to $0.32 per share due to the acquisition of Evolution Robotics and restructuring of D&S.
Further, the company slashed its full year outlook. Earnings per share are now expected to be $0.44 to $0.50, compared to the previous forecast of $0.90 to $1.00 per share.
Annual revenues are estimated in the range of $434 to $438 million while the previous forecast ranged from $465 million to $485 million.
Analysts expect full year earnings of $0.81 per share and revenues of $485.77 million.
The stock closed lower by 0.3 percent on Tuesday at $22.64, but declined 14.6 percent in the extended trade and was trading at $19.33.
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