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IRobot CEO Discusses Q2 2012 Results - Earnings Call Transcript

On today's call iRobot Chairman and CEO, Colin Angle, will provide a review of the Company's operations and achievements for the second quarter of 2012, as well as our business outlook for rest of 2012 and John Leahy, Chief Financial Officer, will review our financial results for the second quarter and provide our financial expectations for the full year 2012 and the third quarter ending September 29, 2012. Then we’ll open the call for questions.

At this point, I’ll turn the call over to Colin Angle.

Colin Angle

Good morning and thank you for joining us. I am pleased to report that the company’s second-quarter performance was very good given the challenging environment. Total Q2 revenue of $111 million was at the high end of our expectations for the quarter while Adjusted EBITDA of $16 million and EPS of $0.26 for the quarter, both far exceeded our expectations.

Our continuing investment to improve Home Robot product quality resulted in an adjustment to our product returns accrual which positively impacted revenue and profit by approximately $3 million. Yesterday we announced, with InTouch Health, the unveiling of the RP-VITA telemedicine robot. The robot combines InTouch Health’s state-of the-art telemedicine solutions with iRobot’s autonomous navigation capabilities, mobility, interactive communication and situational awareness from the Ava program. It’s the first commercial robot based on our Ava technology and our most significant technological system since SUGV.

Our Home Robot business unit had an outstanding quarter and the outlook for that business is excellent. Strong growth in both our international and U.S. markets fueled a 50% year-over-year increase in Home Robot revenue. We are successfully expanding our distribution of new products and increasing our market penetration. In both the third and fourth quarters, expanded product distribution and strong demand both domestically and overseas will drive year-over-year revenue growth of more than 20%.

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