Here’s is Why Q3 was Hard On Robots
Massachusetts-based iRobot (NASDAQ:IRBT) announced Wednesday that it will cut 13 percent of its workforce, or approximately 80 jobs, in an attempt to restructure the company.
The company, which manufactures robots for both military and household uses, warned in February that cuts in defense spending were expected to reduce demand for military robots. The warning was reaffirmed in the company’s third-quarter earnings press release on Tuesday, saying that the outlook for its military robots had “deteriorated, and we expect further declines in 2013.”
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Workforce layoffs followed almost immediately. In a statement issued Wednesday, iRobot said, “Due to the current defense spending environment and expectations for decreased spending in 2013, iRobot is implementing a broad restructuring of the business.”
For the three months ending in September, iRobot reported revenue of $126.3 million, an increase from the same quarter a year ago. Net income also rose from the year-ago-quarter, increasing from $14.1 million to $15.2 million. While the company did face challenges in its military robotics sector, third quarter results were aided by growth in iRobot’s home robot unit.