Latest news with #ColinAngle
CNN
31-03-2025
- Business
- CNN
The maker of Roomba has ‘substantial doubt' about surviving
Roomba's parent company is warning that its future is on shaky ground, more than a year after a planned $1.7 billion acquisition by Amazon fell through. iRobot (IRBT), a maker of robotic vacuum cleaners, has 'substantial doubt about the company's ability to continue,' it revealed in its quarterly earnings report Wednesday. The stark warning torpedoed the company's stock 30% lower in premarket trading. The Massachusetts-based company also said its board is exploring a 'strategic review of alternatives for the business' that could portend a sale and refinancing of its mounting debt. The news comes about 14 months after Amazon abandoned plans to buy the company because of concerns from European Union's regulators, who threatened to block the deal. Soon afterward, iRobot founder Colin Angle departed the company, its stock cratered and the company laid off about half of its employees. iRobot has been working to turn things around. This week the company released eight new Roombas, marking the largest product launch in the company's 30-year history. iRobot hopes the new products will help boost its revenue, which plunged 44% in the fourth quarter compared to a year earlier. However, the company warned Wednesday that there's 'no assurance' the new products 'will be successful due to potential factors, including, but not limited to, consumer demand, competition, macroeconomic conditions, and tariff policies.' CEO Gary Cohen, however, remains optimistic. In the earnings release he said 'this strong pipeline of breakthrough new products' should improve profit margins compared to earlier product lines and 'should begin to support year-over-year revenue growth in 2025.'
Yahoo
14-03-2025
- Business
- Yahoo
Roomba maker iRobot, once Amazon's takeover target, flags going concern risk
(Reuters) - Roomba vacuum cleaner maker iRobot, a former $1.4 billion buyout target of raised concerns on Wednesday about its ability to stay in business. Shares of the company fell more than 30% in afternoon trading, extending a multi-year decline from its pandemic-era peak. "Given macroeconomic and tariff-related uncertainties, there is substantial doubt about iRobot's ability to continue as a going concern," iRobot said in a statement. The loss-making company was once valued at $3.56 billion in 2021, driven by pandemic-fueled demand. It is now worth less than $200 million. The company's net loss for the fourth quarter ended December 28, 2024, widened to $77.1 million from $63.6 million a year earlier. Its revenue declined by 44% in the fourth quarter. The company's cash reserves dwindled to $134.3 million in 2024, compared to $185.1 million in 2023. The debt stood at $200.6 million as of December 28, 2024, its annual filing showed. The vacuum cleaner maker is having a hard time keeping up with Chinese rivals such as Ecovacs Robotics, which offer advanced features at lower prices. The company said it was exploring options, including a potential sale or debt refinancing, just a day after it launched eight new Roomba models in its biggest product rollout. In August 2022, iRobot had agreed to a $61-per-share takeover by Amazon, a deal some analysts viewed as a lifeline for the company and a potential enhancement for Amazon's smart home division. However, strong antitrust objections to the merger and privacy concerns over the spatial data collected by the devices led to the deal's collapse in January last year. With the takeover scrapped, founder Colin Angle stepped down as CEO in January last year, suggesting that a leader with turnaround expertise might better serve the company. In May last year, the company appointed Gary Cohen as CEO to head its recovery efforts. Sign in to access your portfolio
Reuters
12-03-2025
- Business
- Reuters
Roomba maker iRobot, once Amazon's takeover target, flags going concern risk
March 12 (Reuters) - Roomba vacuum cleaner maker iRobot (IRBT.O), opens new tab, a former $1.4 billion buyout target of (AMZN.O), opens new tab, raised concerns on Wednesday about its ability to stay in business. Shares of the company fell more than 30% in afternoon trading, extending a multi-year decline from its pandemic-era peak. "Given macroeconomic and tariff-related uncertainties, there is substantial doubt about iRobot's ability to continue as a going concern," iRobot said in a statement. The loss-making company was once valued at $3.56 billion in 2021, driven by pandemic-fueled demand. It is now worth less than $200 million. The company's net loss for the fourth quarter ended December 28, 2024, widened to $77.1 million from $63.6 million a year earlier. Its revenue declined by 44% in the fourth quarter. The company's cash reserves dwindled to $134.3 million in 2024, compared to $185.1 million in 2023. The debt stood at $200.6 million as of December 28, 2024, its annual filing showed. The vacuum cleaner maker is having a hard time keeping up with Chinese rivals such as Ecovacs Robotics, which offer advanced features at lower prices. The company said it was exploring options, including a potential sale or debt refinancing, just a day after it launched eight new Roomba models in its biggest product rollout. In August 2022, iRobot had agreed to a $61-per-share takeover by Amazon, a deal some analysts viewed as a lifeline for the company and a potential enhancement for Amazon's smart home division. However, strong antitrust objections to the merger and privacy concerns over the spatial data collected by the devices led to the deal's collapse in January last year. With the takeover scrapped, founder Colin Angle stepped down as CEO in January last year, suggesting that a leader with turnaround expertise might better serve the company. In May last year, the company appointed Gary Cohen as CEO to head its recovery efforts.
CNN
12-03-2025
- Business
- CNN
The maker of Roomba has ‘substantial doubt' about surviving
Roomba's parent company is warning that its future is on shaky ground, more than a year after a planned $1.7 billion acquisition by Amazon fell through. iRobot (IRBT), a maker of robotic vacuum cleaners, has 'substantial doubt about the company's ability to continue,' it revealed in its quarterly earnings report Wednesday. The stark warning torpedoed the company's stock 30% lower in premarket trading. The Massachusetts-based company also said its board is exploring a 'strategic review of alternatives for the business' that could portend a sale and refinancing of its mounting debt. The news comes about 14 months after Amazon abandoned plans to buy the company because of concerns from European Union's regulators, who threatened to block the deal. Soon afterward, iRobot founder Colin Angle departed the company, its stock cratered and the company laid off about half of its employees. iRobot has been working to turn things around. This week the company released eight new Roombas, marking the largest product launch in the company's 30-year history. iRobot hopes the new products will help boost its revenue, which plunged 44% in the fourth quarter compared to a year earlier. However, the company warned Wednesday that there's 'no assurance' the new products 'will be successful due to potential factors, including, but not limited to, consumer demand, competition, macroeconomic conditions, and tariff policies.' CEO Gary Cohen, however, remains optimistic. In the earnings release he said 'this strong pipeline of breakthrough new products' should improve profit margins compared to earlier product lines and 'should begin to support year-over-year revenue growth in 2025.'
