iRobot Corporation IRBT reported better-than-expected results for first-quarter 2016, with earnings of 13 cents per share comfortably surpassing the Zacks Consensus Estimate of 2 cents. According to management, improving Home Robotics business drove the stellar performance.However, the bottom-line missed the year-ago level by 18.8%.Inside the HeadlinesRevenues improved 10.9% year over year to $130.8 million but were marginally below the Zacks Consensus Estimate of $131 million.iRobot’s gross margin for the quarter was 47.4%, up 190 basis points (bps) year over year.The company’s first-quarter operating expenses increased 23.2% year over year to $56.4 million.Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the quarter came in at $14.1 million compared with $13.1 million in the prior-year quarter.Quarter in DetailThe Home Robots segment generated revenues of $127.7 million, up 14.9% year over year. The year-over-year improvement was driven by significant growth in the U.S. market.Gross margin increased 140 bps year over year to 52.5%. Units shipped totaled 550,000, up from 491,000 in the year-ago quarter.Defense & Security revenues totaled $3.1 million as against $6.5 million in the year-ago quarter. The segment’s gross margin increased 1660 bps year over year to 16.6%. Units shipped in the quarter plunged 60.7% year over year to 11,000.Balance Sheet and Cash FlowiRobot exited the first quarter with cash and cash equivalents of $216 million, up 20.1% year over year. Long-term liabilities were $7.2 million, down from $7.7 million at the end of 2015.At the end of the quarter, iRobot generated net cash of $48.6 million from operating activities as against $7.7 million of cash generated in the year-ago comparable period. Capital expenditure was $2.4 million as against $4.4 million in the year-ago period.OutlookiRobot believes that the spin-off of its Defense & Security segment would support its revenue growth in 2016. The company expects improved Home Robotics business, greater product diversification and tactical market strategies to support its top-line and bottom-line growth in the upcoming quarters. Based on these factors, the company anticipates earnings in the range of 6–14 cents and revenues in $145–$150 million band for second-quarter 2016. For full-year 2016, earnings are projected between $1.20 per share and $1.40 per share and revenues in a band of $630–$642 million.Other Stocks to ConsideriRobot presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Black Diamond, Inc. BDE, Culp, Inc. CFI and Central Garden & Pet Company CENT. All the three companies currently hold a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IROBOT CORP (IRBT): Free Stock Analysis Report BLACK DIAMOND (BDE): Free Stock Analysis Report CENTRAL GARDEN (CENT): Free Stock Analysis Report CULP INC (CFI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research