IRobot Issues Q3 Warning

Shares of iRobot Corp. were down Wednesday after the company warned it expects a third-quarter pre-tax loss because of production issues and litigation expenses. The company said when it announces earnings on October 26th, it estimates reporting a pre-tax loss of $1 million to $1.5 million for the quarter on revenues between $63 million and $64 million. Analysts had predicted earnings of $0.19/share on revenues of $67.48 million, according to Reuters. The robotics company said the production delays would push some revenue into the fourth quarter, but that they would not impact its 2007 outlook. For the year, the company still expects a pre-tax income of $3 million to $5 million on $233 million to $243 million in revenue. The company's shares dropped 7.3% to $18.30 in late morning trading on Wednesday.

Sources: Press Release, Reuters
Commentary: iRobot Jumps As Pentagon Stocks Up On Robots • iRobot's R&D Investments Could Go A Long Way
Stocks/ETFs to watch: IRBT. Competitors: LMT, GD. ETFs: PPA

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