On today's call, iRobot Chairman and CEO, Colin Angle, will provide a review of the company's operations and achievements for the first quarter of 2012, as well as our business outlook for the rest of 2012. And John Leahy, Chief Financial Officer, will review our financial results for the first quarter and provide our financial expectations for the full year 2012 and the second quarter ending June 30, 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. We kicked off the 2012 with a better than anticipated quarter. The results and outlook for our Home Robot business are excellent, while the near-term visibility in our Defense and Security business continues to be limited. Total Q1 revenue of $98 million was at the high-end of our expectations for the quarter, while adjusted EBITDA of $6 million and EPS of $0.02 for the quarter, both exceeded our expectations. Strong growth in both our international and U.S. markets fueled a 20% year-over-year increase in Home Robot revenue. We are successfully expanding our distribution of new products and increasing our penetration in existing markets, while establishing a presence in new markets. Our steadily increasing Home Robot global reach is enabling us to weather continuing U.S. budget issues impacting are Defense and Security business. Based on our view of the rest of the year, we are reaffirming our financial expectations shared this past February, to deliver full year 2012 revenue of $465 million to $485 million, EPS between $0.75 and $0.95 and adjusted EBITDA of $56 million to $63 million. Our outlook by business unit has changed and due to significant growth in Home Robots, we now expect that business to comprise approximately 75% of total company revenue for the year.
In the second quarter, we expect expanded product distribution and international demand to drive significant revenue growth in Home Robots. We expect to receive U.S. government contracts for the purchase of FirstLook and SUGV robots that will generate higher second half revenue in our Defense and Security business, as we discussed earlier this year. For the second quarter, we anticipate revenue of $102 million to $112 million, EPS between $0.05 and $0.13 and adjusted EBITDA of $7 million of $10 million.Now, I'd like to take you through some of the details of the first quarter and our expectations for the rest of 2012. In Home Robots, a very strong demand overseas, particularly in Japan continue to feel revenue growth. In the first quarter, international Home Robot revenue increased 20% year-over-year and we expect overseas demand to contribute significantly to revenue for the remainder of 2012. As said in the past that one in four vacuum cleaners sold in Spain is a robot. Based on current data that statistic is even more striking. Quarterly data through February showed that one in three vacuum cleaners sold in Spain was a robot. Beyond Spain, we see the same fast developing adoption in such diverse markets of Italy, Taiwan, Denmark, Israel and Russia. The robot vacuum cleaner category is going mainstream and growing far faster than the overall vacuum cleaning market. The good news is that not only is the adoption rate accelerating, but our Roomba remains the market leader. Last year we began selling into Latin America and that region is on track to grow considerably this year of a small base. We've also begun selling limited product in China and expect material revenue contribution from that market next year 2013. In our domestic business, Q1 results grew at impressive 21% over the same quarter last year, largely due increased sales to retail stores. Our U.S. retailers are reporting stronger sell through and we expect strong double-digit full year growth over 2011. During the quarter, we expanded our distribution of Roomba 700 into retailers domestically and further throughout western European markets. Read the rest of this transcript for free on seekingalpha.com