iRobot ( NASDAQ: IRBT ) shares popped around 20% pre-market on Friday in response to takeover announcement by Amazon ( AMZN ) that overshadowed the consumer robot firm's Q2 results .
The Bedford, Massachusetts-based firm reported revenue of $255.4M for the quarter that slumped 30.2% Y/Y and missed Wall Street's estimates. The top line performance was impacted by unanticipated order reductions, delays and cancellations from retailers in North America and EMEA.
GAAP operating loss widened from $3M in the prior year quarter to $63.9M. On an adjusted basis, the firm slipped to an operating loss of $53.3M from an income of $9M in the year-ago period. The company's operating loss reflects the impact of lower-than-expected revenue, partially offset by the benefits of certain cost management activities.
At quarter-end, iRobot ( IRBT ) held $63.4M in cash, cash equivalents and short-term investments.
The firm is restructuring operations to achieve net savings of ~$5M to $10M in 2022 and ~$30M to $40M in 2023. The program is expected to better align its cost structure with near-term revenue and will result in reduction of its global facilities footprint. Additionally, the firm announced it was laying off 10% of its workforce.
Separately, iRobot ( IRBT ) is suspending its practice of providing financial guidance in light of the ongoing disruptions and uncertainty that could impact its outlook.
On the M&A front, Amazon agreed to acquire the firm for $61/share in an all-cash transaction valued at ~$1.7B, including iRobot's net debt.
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Order reductions, delay hurt iRobot's top-line results in Q2