A reconciliation of GAAP and non-GAAP metrics can be found in the financial tables at the end of the Q3 2011 earnings press release issued last evening which is available on our website. On today’s call iRobot Chairman and CEO Colin Angle will provide a review of the company’s operations and achievements for the third quarter 2011 as well as our outlook for the business for the rest of 2011, and John Leahy, Chief Financial Officer will review our financial results for the third quarter and provide our outlook for financial expectations for the fourth quarter ending December 31, 2011 and fiscal 2011. Then, we’ll open the call for questions. At this point, I’ll turn the call over to Colin Angle.Colin M. Angle Thank you for joining us. Our third quarter results were excellent across all measures. Revenue was up 28% from Q3 last year and EBITDA for the quarter increased 76% to $20 million, far exceeding our expectations. EPS grew 85% to $0.50 from $0.27. Excluding one-time tax benefits, EPS more than doubled in Q3 over last year. John will discuss the details of the tax benefit later in the call. Due to strong performance by both divisions in the third quarter and our expectations for the fourth quarter, we are increasing our full year 2011 expectations for the second time this year. Our home robot business is exceeding our expectations while the government business is on track to deliver on the 2011 expectations we shared in February. We expect full year 2011 revenue [Technical Difficulty] million, an increase of roughly 17% over 2010, full year EPS in the range of $1.32 to $1.36, and full year 2011 EBITDA of $67 to $69 million, an improvement of about 40% year-over-year. EPS includes onetime tax benefit of $0.12 in Q3.
We are increasing our expectations while also increasing our investment in research and development and marketing programs, critical to maintaining our industry leading position. Based on our current view of future defense spending, we have made a difficult decision to implement a reduction in force in the government division during the first quarter. A decrease in our 2011 externally funded research and development efforts underlies this action.The reduction is limited to our government and industrial robots division which currently comprises approximately 40% of our annual revenue and will not impact our home robot division. This action is expected to result in a non-recurring fourth quarter restructuring charge of approximately $1 million. Our fourth quarter and full year 2011 financial expectations include this charge which is expected to impact EPS by approximately $0.02 to $0.03. Now, I’d like to take you through some of the highlights of the third quarter. On the home robots front, revenue increased 32% in Q3 year-over-year and are up 27% year-to-date. Strong demand for our Roomba 500 robots fueled home robot growth in Q3. Sales of both our new Roomba 700 and Scooba 230 robots, which were only available on our website through the third quarter, continued to exceed expectations. Near the end of the quarter we began shipping our Roomba 700 series to select retailers in the United States and to several international customers for limited distribution in overseas markets. I was in Japan several weeks ago to introduce the new Roomba 700. Our launch attracted more than 150 reporters and response from the Japanese retailers with whom I met was overwhelmingly positive. International home robot revenue increased 56% in Q3 year-over-year as demand in overseas markets continued to be strong. In meetings with our European partners, they commented that market growth for Roomba is outpacing the impact of a weakening economy. We are benefiting from the fact that our target customers, who we call the modern professional, is not being as severely impacted by economic conditions. However, we are closely monitoring indicators for signs of weakness in this market. We expect to see continued growth in the fourth quarter as the Roomba 700 robot hits select retail stores. Read the rest of this transcript for free on seekingalpha.com