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iRobot Crashes Worse To Come

Weeks after Amazon walked away from the Company US robotic vacuum cleaning Company iRobot the business has reported a major slump in revenues, and the bed news is that there is worse to come.

Revenue for the year declined to US$890.6 million from $1,183.4 million in 2022

Revenue in the last quarter saw revenues fall to US $307.5million from $357.9 million in 2022 with serious questions now being raised about the Companies future with some observers tipping a potential takeover by a Chinese Company looking to trade off the

Geographically, fourth quarter 2023 revenue declined in Australia and Asia Pacific, while the US market was down 20%, 19% in Japan and 5% in EMEA over the prior period last year.

Full year 2023 revenue declined 30% in the U.S., 21% in Japan and 11% in EMEA.

Management have admitted that since Amazon decided to walk away from aquiring the Company management had moved quicky to restructure the business which is facing tough competition in markets such as Australia from the likes of Ecovacs.

Glen Weinstein, Interim CEO of iRobot. said “We actively implementing an operational restructuring plan designed to both stabilize the business in the current environment and advance our growth initiatives,”.

“The plan will simplify our cost structure, and reate a more sustainable business model”.

He added “We are managing through a challenging period and making critical strategic progress that we believe will help expand and better position our business for the future,”.

iRobot anticipates full year 2024 revenue between $825 and $865 million which is significantly down on both 2022 and 2023 revenues.

Currently the business is puntong on getting better margins from manufacturing partners.

Currently margins are between 31% and 33% with the business hoping to achieve ngross margin of between 32% and 34% in 2024.

The business is cutting back on research in the hope of saving US$25 million.

In Australia the iRobot product is distributed by Melbourne based iXL Home with marketing set to be3 cut as part of the rationalisation of iRobot.

The business said that the plan to slash USW$40 million from marketing activities.

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