Coronavirus Forces iRobot to Suspend Robotic Lawnmower Launch
IRobot expects to save $30 million this year by reducing its employee headcount 5% and shelving the planned 2021 launch of its Terra robotic lawnmower, among other spending cuts, said CEO Colin Angle on a Q1 investor call. Coronavirus supply…
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chain disruptions in March necessitated the belt-tightening measures, he said. “Inability” to “completely” meet Q1 demand was the “largest factor associated with the shortfall,” said Angle Wednesday. Supply chain challenges “were unexpectedly complicated by the impact of COVID-19 on our organization, our contract manufacturers and some suppliers,” he said. Chinese factories “did not ramp back up to full capacity until late March” after shutting down completely for much of February, he said. As much of the U.S. went into lockdown in March, retailers canceled, reduced or deferred some product orders, he said. Revenue in Q2 “will be heavily influenced by the steps that our retailers continue to take to manage their businesses during this pandemic,” said Chief Financial Officer Alison Dean. “We currently expect a Q2 operating loss that would reflect the combination of relatively soft anticipated revenue.”