Shares of Irobot Tank 30% After Roomba Maker Raise Doubt About Its Survival

Shares of Irobot Plunged more than 30% on Wednsday after it said There is “Substantiial Doubt” About Its Ability to Stay in Business.

The Roomba Maker’s Financial Outlook has Darkened Since Amazon Abandoned Its Planned $ 1.7 billion acquisition of the company in January 2024Citing regulatory scrutiny. Since then, Irobot has struggled to generate cash and pay off debts.

Massachusetts-based Irobot has been restructuring since the amazon deal plunged into uncertain. The company has laid off 51% of its workforce since the end of 2023, and Irobot has looked to reignite revenue growth by overhauling its product lineup. The company on tuesday launched Eight New Roombas in the Hopes of “Better position Irobot as the Leader in the Category that we Created,” CEO Gary Cohen Said in A Statement.

“There can be no assuance that the new product launches will be successful,” Irobot said in its wedding wedding statement, citing limited consumer demand, Tariff EncertiyTy and Heighted Competition.

“Given these uncertainteies and the implication they may have on the company’s finance, there is Substanti -about the company’s ability to control to control Months, “Irobot said in its earings report.

The company’s fourth -Quarter Revenue Sagged 44% Year Over Year to $ 172 Million, Missing Estimates of $ 180.8 Million, According to FactSet. The Roomba Maker Posted a Net Loss of $ 77.1 Million, or $ 2.52 per share. Excluding a one-time “manufacturing transition charge,” Irobot had a loss of $ 2.06 a share, exceding the $ 1.73 per share projectioned by analysts surweeyed by factset.

In July 2023, Irobot Took A $ 200 Million Loan from the Carlyle Group To fund the company’s operations as a stopgap until the amazon deal close. The company agreed the loan for a temporary waiver on certain financial obligations, which requires orobot to pay a fee of $ 3.6 million.

As part of Wednsday’s Report, Irobot Said Its Board Has Initiated A Strategic Review of the business and is considering alternatives that group inc Lude refinance its debt and expert The board hasn’t set a deadline for when its review will conclude, the company said.

Shortly after the Amazon Deal Fell Apart, Amazon Ceo andy Jassy Criticized regulators’ Approach to its Irobot Acquisition. European union regulators Threated to block the dealAnd the federal trade commission in the US was reportedly expected To challenge the acquisition in court.

The proposed merger, which was announced in late 2022, would have allowed irobot to scale and better compe with its rivals, jassy said. Several of the Fastest-Growing Robotic Vacuum Businesses are based in China, Such as anker, ecovacs and roborock, all of which have eaten into Irobot’s share of the market.

“We Abdicate the Acquisition, Irobot Lays Off a Third of Its Staff, The Stock Price Completely Tanks, and Now, There’s a Real Question of Whaiter Thei’re Going to Be a going CONBCS Andrew ross sorkin in an interview last April.