2010 Outlook: Continued Profitable Growth

iRobot Corp., a leader in delivering robotic technology-based solutions, recently announced its financial results for the fourth quarter and fiscal year ended January 2, 2010.

We delivered record quarterly revenue of more than $100 million in the fourth quarter and full-year revenue of nearly $300 million. Earnings per share and Adjusted EBITDA significantly exceeded expectations for the fourth quarter and full year, said Colin Angle, chairman and chief executive officer of iRobot. Adjusted EBITDA was $21 million, up 61 percent from 2008. We generated $41 million of operating cash flow in 2009, compared with $19 million in 2008, and improved our cash and investments position year-over-year by $36 million to nearly $77 million at year end.

We began 2010 with $42 million in backlog in our GI business, the highest level in our companys history. This positions us well to deliver another year of solid financial performance, with significant top- and bottom-line growth, while continuing to invest in the future of our business.

Revenue for the fourth quarter of 2009 increased 12.1 percent to $101.7 million, compared with $90.7 million for the same quarter one year ago. Revenue for the full year 2009 decreased 2.9 percent to $298.6 million from $307.6 million for the full year 2008.

Gross margin for the fourth quarter decreased to 33.8 percent of revenue, compared with 36.1 percent of revenue in the fourth quarter of 2008. For the full year, 2009 gross margin totaled 30.5 percent of revenue, up from 30.4 percent of revenue for the full year 2008.

Net income in the fourth quarter of 2009 was $5.1 million, compared with $5.4 million in the fourth quarter of 2008. Net income for the full year 2009 was $3.3 million, compared with $0.8 million for the same period in 2008.

Business Highlights

• International home robot revenue in 2009 increased 35.2 percent from 2008 and comprised more than half of total home robot revenue for the year.
• Government Industrial Robots revenue increased 10.7 percent in the fourth quarter over last year and ended the year with a record $42 million in product backlog.
• In 2009, operating cash flow was $40.6 million, compared with $19.1 million in 2008, as a result of improved Adjusted EBITDA and aggressive working capital management.
• Financial Expectations
• Management provides the following expectations with respect to the year ending January 1, 2011 and the first quarter ending April 3, 2010.

Fiscal Year 2010:

Revenue $345 - $360 million

Adjusted EBITDA $24 - $28 million

Earnings Per Share $0.20 - $0.25

Q1 2010:

Revenue $82 - $87 million

Adjusted EBITDA $4 - $6 million

Earnings Per Share $0.01 - $0.04

About iRobot Corp.

iRobot designs and builds robots that make a difference. The companys home robots help people find smarter ways to clean, and its government and industrial robots protect those in harms way. iRobots consumer and military robots feature iRobot Aware(R) robot intelligence systems, proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence.