All of a sudden it seems like everybody wants to build a Terminator.
I'm not all that worried by the competition. Remember that when we finally deploy robotic brigades, the Army will want to have an established, responsible company in charge.
Er, what the heck am I thinking? They gave a $280 million contract to go a guy working out of his dad's basement! So who knows?
(Thx, Tom)
Sunday, May 18, 2008
Tomy I-Sobot $199 Shipped!
Hot new robot toy I-Sobot is just $199.99 at premier online retailer Hammacher Schlemmer, which offers a FREE LIFETIME GUARANTEE!
Search for "isobot" after clicking through the link. Use coupon code HOLAFS2 to get FREE SHIPPING, and enjoy no tax to most states! That's $100 off and WILL NOT LAST!
Tomy I-Sobot is just $210 Shipped at Amazon! I have not seen this brand new robot discounted anywhere.
Check out the cool 3-minute promo video at Hammacher or Amazon. The Tomy ISobot Features 200 commands, 200 words and phrases, 17 servo motors and a gyroscope for balancing. It just looks like a whole lot of fun, and a hot gift for the robot lover in the family!
The Tomy iSobot is averaging 5 Stars at Amazon, the highest of any robot toy by far!
Tomy I-Sobot is just $210 Shipped at Amazon! I have not seen this brand new robot discounted anywhere.Check out the cool 3-minute promo video at Hammacher or Amazon. The Tomy ISobot Features 200 commands, 200 words and phrases, 17 servo motors and a gyroscope for balancing. It just looks like a whole lot of fun, and a hot gift for the robot lover in the family!
The Tomy iSobot is averaging 5 Stars at Amazon, the highest of any robot toy by far!
Robots on the March
Electronics Design Strategy News has an extensive article detailing the emerging robotics platforms, and highlights iRobot's AWARE software, etc.
Nothing earth-shaking, though.
Nothing earth-shaking, though.
Future Combat Systems Profiled in Washington Post
There is a brief mention of the iRobot SUGV in this Post story that looks at the pluses and problems of the Future Combat Systems program.
Can a Roomba Save Your Marriage?
This guy says yes. (Good article at San Francisco Chronicle that uses the Roomba as a jumping off point to talk about robotics in general.)
iRobot added to "Naked Short" list
More than 4 million of iRobot's 24 million shares are sold short. BUYINS.NET put iRobot on its failure to deliver list yesterday. That's a whole lot of kindling if iRobot gets in the next few months:
1) The $286 million xBot contract. (Army is so S-L-O-W!)
2) The $200 million PackBot service contract.
3) SUGV contract.
4) Significant customer growth because of Roomba, Scooba, maybe even Looj adoption.
5) Warrior contract.
6) Announcement of significant new home robots next year.
Downside I see is manufacturing risk -- product has sold out at several stores -- Iraq funding issues -- and the possibility of new competitors emerging. I currently discount all three and like $17 as a buy. iRobot is about to have its most profitable quarter ever as a public company.
1) The $286 million xBot contract. (Army is so S-L-O-W!)
2) The $200 million PackBot service contract.
3) SUGV contract.
4) Significant customer growth because of Roomba, Scooba, maybe even Looj adoption.
5) Warrior contract.
6) Announcement of significant new home robots next year.
Downside I see is manufacturing risk -- product has sold out at several stores -- Iraq funding issues -- and the possibility of new competitors emerging. I currently discount all three and like $17 as a buy. iRobot is about to have its most profitable quarter ever as a public company.
iRobot Offers PackBot Mapping Kit with Semi-Autonomous Operations
iRobot has introduced a new version of its PackBot military robot, with a new Mapping Kit aimed at reconnaissance missions, the fruit of years and millions of dollars of research into its PackBot Wayfarer project.
Who says R&D doesn't matter? I for one am happy iRobot is plowing profits back into R&D for days like today, where something really new comes on the scene -- a robot that can go into a dangerous environment, tell soldiers far away what the layout is before they go in, and avoid obstacles on its own. iRobot also announced that they are designing an upgrade to the system that will use a 3-D Flash Laser Radar in conjunction with Santa Barbara, Calif.-based Advanced Scientific Concepts.
Here is the press release:
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (NASDAQ:IRBT) today announced iRobot® PackBot® with Mapping Kit, a proven platform with a new payload designed to help warfighters deftly manage the dangerous tasks of search, surveillance and reconnaissance missions. PackBot with Mapping Kit is the first field tested and deployed robot to integrate real-time mapping and semi-autonomous remote operational capabilities, delivering soldiers advanced situational awareness while they remain a safe distance from danger.
“PackBot with Mapping Kit utilizes new technology that directly addresses the needs of modern warfighter and other first responders to safely gather crucial environmental intelligence without having to enter hazardous situations,” said Vice Admiral Joe Dyer (U.S. Navy, Ret.), president of iRobot Government & Industrial Robots division. “We foresee it becoming an invaluable addition to small unmanned ground vehicle operations that require fast and reliable navigation capabilities in rugged environments.”
The Mapping Kit payload technology is the result of years of advanced research and development at iRobot. Through a state-of-the-art combination of sensors and artificial intelligence, PackBot with Mapping Kit can relay a real-time two-dimensional structural map of the environment it is moving through back to its operator, while simultaneously detecting and avoiding obstacles in its path. The soldier still maintains control of the robot, but if an obstacle is encountered, PackBot is capable of autonomously changing course to avoid imminent collisions. This advanced autonomy enables the operator to navigate faster and smarter through unknown environments, increasing the safety and tempo of operations in time-critical situations.
The iRobot PackBot with Mapping Kit is available for purchase by governmental, industrial, and academic research and development labs for operational experimentation and evaluation. As part of the development project, iRobot is designing a highly-capable 3-D Flash Laser Radar sensor for unmanned ground vehicles with Santa Barbara, Calif.-based Advanced Scientific Concepts. This sensor technology will enable future advancements of the Mapping Kit to provide the warfighter with an increasingly robust and ruggedized mapping and obstacle avoidance capability.
To date, iRobot has delivered more than 1,200 PackBot robots to a broad range of military and civilian customers worldwide. The robots have performed tens of thousands of missions in Iraq and Afghanistan and are credited with saving soldiers’ lives. ...
Army Cancels $280 Million Robotic FX Order, Will It Award to iRobot?
The Boston Globe broke the story yesterday that the Army has canceled its $280 million contract with Robotic FX for 3,000 robots and 1,000 spares (4,000 robots total at roughly $70,000 each.) The Globe story is very short on information, other than citing the Army procurement official as citing "peripheral complications" as the reason for canceling the contract. (Perhaps something to do with Jameel Ahed's Dumpster diving?)
Note that the same Army official said previously in a communication with the court that she would award the contract to the next highest bidder, iRobot and its PackBot, if Robotic FX's contract was canceled. It's unclear when, or if, that will happen, but presumably it would be quickly, unless the Army decides to go in a different direction.
But it certainly appears that Jameel Ahed will now have a very hard time profiting on his attempted sale of his company to a major military contractor. Maybe he will have to go into dentistry with his father? Or DeLorean mechanic.
Xconomy comments here.
Note that the same Army official said previously in a communication with the court that she would award the contract to the next highest bidder, iRobot and its PackBot, if Robotic FX's contract was canceled. It's unclear when, or if, that will happen, but presumably it would be quickly, unless the Army decides to go in a different direction.
But it certainly appears that Jameel Ahed will now have a very hard time profiting on his attempted sale of his company to a major military contractor. Maybe he will have to go into dentistry with his father? Or DeLorean mechanic.
Xconomy comments here.
iRobot Awarded $286 million XBot Contract!
I've been waiting to write this post for 6 months, but it's finally happened!
iRobot has WON the $286 million xBot Contract for up to 3,000 robots!
The long, sad saga of how 29-year-old former iRobot employee (and DeLorean driver) Jameel Ahed created a company called Robotic FX, built a PackBot-imitating robot in the basement of his father's dentist's office, underbid iRobot and was awarded the massive xBot contract, was inexplicably deemed capable of producing 3,000 robots by the Army despite having eight employees, was caught on camera by a private investigator dumping evidence in a Dumpster after iRobot filed suit, admitted to shredding 100 CDs and wiping all of his computer hard drives, was inexplicably STILL backed up by the Army and an assistant U.S. Attorney, and finally ws SMACKED down by federal Judge Nancy Gertner who issued the injunction against Robotic FX's Negotiator for using iRobot trade secrets, is finally over.
This has been expected for more than a month, but it's starting to feel like Christmas.
BTW, remember that the contract is for UP TO $286 million. iRobot will have to win orders, not just the contract. But as iRobot successfully argued to the judge, there is HUGE first mover advantage that will benefit the company for years to come for subsequent and follow-on contracts. This is a MASSIVE win for the company that will still be paying dividends 10 years from now.
UPDATE: The Boston Globe has coverage here. "It's a story of theft and betrayal and coverup, and coverup of the coverup," said Joseph Dyer, president of iRobot's government and industrial robot business unit.
Here is the company press release:
iRobot has WON the $286 million xBot Contract for up to 3,000 robots!
The long, sad saga of how 29-year-old former iRobot employee (and DeLorean driver) Jameel Ahed created a company called Robotic FX, built a PackBot-imitating robot in the basement of his father's dentist's office, underbid iRobot and was awarded the massive xBot contract, was inexplicably deemed capable of producing 3,000 robots by the Army despite having eight employees, was caught on camera by a private investigator dumping evidence in a Dumpster after iRobot filed suit, admitted to shredding 100 CDs and wiping all of his computer hard drives, was inexplicably STILL backed up by the Army and an assistant U.S. Attorney, and finally ws SMACKED down by federal Judge Nancy Gertner who issued the injunction against Robotic FX's Negotiator for using iRobot trade secrets, is finally over.
This has been expected for more than a month, but it's starting to feel like Christmas.
BTW, remember that the contract is for UP TO $286 million. iRobot will have to win orders, not just the contract. But as iRobot successfully argued to the judge, there is HUGE first mover advantage that will benefit the company for years to come for subsequent and follow-on contracts. This is a MASSIVE win for the company that will still be paying dividends 10 years from now.
UPDATE: The Boston Globe has coverage here. "It's a story of theft and betrayal and coverup, and coverup of the coverup," said Joseph Dyer, president of iRobot's government and industrial robot business unit.
Here is the company press release:
iRobot Wins $286 Million U.S. Army Contract
Company Selected to Deliver up to 3,000 Military Robots in Expanded, Broad-Scale Robot Deployment to U.S. Infantry Forces
BURLINGTON, Mass., Dec. 18, 2007 – iRobot Corp. (Nasdaq: IRBT) today announced it has been awarded the xBot contract, a $286 million Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract from the U.S. Army Program Executive Office for Simulation, Training, and Instrumentation (PEO STRI), on behalf of the Robotic Systems Joint Project Office at Redstone Arsenal, Ala. Under the terms of the contract, the Army could order up to 3,000 military robots, spare parts, training and repair services over the next five years.
The award marks a turning point in the way the Army uses robots in combat, which until now have been deployed in limited numbers only to explosive ordnance device (EOD) specialists. With this award, the Army broadens the deployment of robots in larger scale to general infantry forces for a variety of critical missions in addition to EOD. iRobot immediately will begin to deliver the first 101 robots for urgent deployment.
"This new generation of robots is set to arrive in theater and change the way the Army fights," said Joe Dyer, president of iRobot Government and Industrial Robots. "Robots give our troops the distinct advantage of completing critical missions at a safe distance; more robots create a greater strategic advantage. We are honored to serve our troops by delivering these robots for urgent deployment."
iRobot was selected to fulfill the contract as the lowest priced, technically qualified bidder deemed able to deliver as a responsible contractor. iRobot's winning xBot prototype robot is based closely on the combat-proven iRobot® PackBot® military robot platform. xBot is a generic name, and the robots delivered to forces under the contract will be named iRobot PackBot 510 with FasTac Kit. These robots are smaller and lighter than the iRobot PackBot 510, with a robust gripper and an observation mast equipped with a low-light-capable zoom camera.
iRobot has delivered more than 1,200 PackBot robots, which are at work conducting dangerous missions while warfighters remain out of harm's way.
Roomba 510 Discontinued by iRobot?
UPDATED 3/26/08:
BREAKING: It appears that iRobot has decided to discontinue the Roomba 510, a bottom-of-the-line model of its new, next generation Roomba 500 series Roombas. The Roomba 510 no longer appears on the iRobot home page, and is now on sale at Woot.com for $154.99 shipped.
HSN has a better deal for a Roomba 535 for $212.49 Shipped in our Roomba Buyers Guide. (You can also get the Roomba 560 TODAY in the guide for $279.)
Of note, the Roomba 510 lacks an internal radio receiver so it CANNOT be upgraded for remote scheduling via the wireless command center and CANNOT be upgraded to use the new "Lighthouse" virtual walls, which contain Roomba in one room for a period of time and then release Roomba into the next room once the first room is clean. The Lighthouses result in more efficient cleaning overall because Roomba wastes less time going over already-cleaned areas. The Roomba 535 has the radio and comes with a Lighthouse virtual wall.
There also is a Woot-like deal for Scooba just $199 New in the Scooba Buyers Guide.
-Thorn
BREAKING: It appears that iRobot has decided to discontinue the Roomba 510, a bottom-of-the-line model of its new, next generation Roomba 500 series Roombas. The Roomba 510 no longer appears on the iRobot home page, and is now on sale at Woot.com for $154.99 shipped.
HSN has a better deal for a Roomba 535 for $212.49 Shipped in our Roomba Buyers Guide. (You can also get the Roomba 560 TODAY in the guide for $279.)
Of note, the Roomba 510 lacks an internal radio receiver so it CANNOT be upgraded for remote scheduling via the wireless command center and CANNOT be upgraded to use the new "Lighthouse" virtual walls, which contain Roomba in one room for a period of time and then release Roomba into the next room once the first room is clean. The Lighthouses result in more efficient cleaning overall because Roomba wastes less time going over already-cleaned areas. The Roomba 535 has the radio and comes with a Lighthouse virtual wall.
There also is a Woot-like deal for Scooba just $199 New in the Scooba Buyers Guide.
-Thorn
iRobot Ad getting not-so-good attention
iRobot's donkey ad has gotten some unwanted attention. Apparently, not everybody likes the Catherine the Great allusion. Another hit at Adwizards with the title: "iRobot Vac Gives Sick Lady More Time For Bestiality With Donkey Husband."
But one guy says "I dig that donkey petting chick," so maybe it works both ways?
You can watch the YouTube video of the ad here in our original post.
But one guy says "I dig that donkey petting chick," so maybe it works both ways?
You can watch the YouTube video of the ad here in our original post.
iRobot CiCi Could Take Care of Grandma
iRobot is developing an elder care robot named CiCi who could help monitor grandma (or grandpa, I suppose) and alert doctors, etc., if there is something wrong.
The idea, of course, is to help keep elderly people at home on their own longer before having to go to expensive and impersonal assisted living or hyper-expensive and depressing nursing homes, an area sure to be highly competitive and highly lucrative as the Baby Boom generation ages. I could also see this being used somewhat in assisted living facilities to cut down on the number of human nurses needed to make the rounds. Colin Angle has spoken about developing elder care robots many times in the past, so it is not a new idea, but it is news that iRobot actually has developed a prototype and has displayed it at least once.
Mass High Tech's Ryan McBride broke the story last week. (Thanks, azimganj and jsrn)
The company so far has refused to comment about it (beyond confirming that there is such a robot named CiCi), and regardless, it would probably be another couple of years before iRobot actually unveils a product that is ready for prime time. Angle said last year that he thought it would be 2009 before the robotics industry puts out products in the magical $1,000 price range. (You can find much more expensive robotic companions right now, although Korean robotics makers and others are working to pump out cheaper versions as we speak.) Whether grandma really WANTS a robot helper is another question entirely, although Angle has argued that products like its breakthrough Roomba robotic vacuum already qualify as elder care assistance, given that some buyers are elderly, disabled or both and don't want to or are no longer able to vacuum as often or as thoroughly as they would like (under the beds, etc.).
iRobot for now is publicly focusing on the upcoming but presumably more limited ConnectR product, which could allow folks to check up on grandma via its built-in camera at a presumably much cheaper $499 price point. (I, frankly, would be worried about grandma tripping on said ConnectR, shattering her hip and dying!) Memo to iRobot: Maybe make ConnectR about 4 feet tall, but still lightweight, to avoid this? I frankly love the $1,800 Giraffe concept.
The idea, of course, is to help keep elderly people at home on their own longer before having to go to expensive and impersonal assisted living or hyper-expensive and depressing nursing homes, an area sure to be highly competitive and highly lucrative as the Baby Boom generation ages. I could also see this being used somewhat in assisted living facilities to cut down on the number of human nurses needed to make the rounds. Colin Angle has spoken about developing elder care robots many times in the past, so it is not a new idea, but it is news that iRobot actually has developed a prototype and has displayed it at least once.
Mass High Tech's Ryan McBride broke the story last week. (Thanks, azimganj and jsrn)
The company so far has refused to comment about it (beyond confirming that there is such a robot named CiCi), and regardless, it would probably be another couple of years before iRobot actually unveils a product that is ready for prime time. Angle said last year that he thought it would be 2009 before the robotics industry puts out products in the magical $1,000 price range. (You can find much more expensive robotic companions right now, although Korean robotics makers and others are working to pump out cheaper versions as we speak.) Whether grandma really WANTS a robot helper is another question entirely, although Angle has argued that products like its breakthrough Roomba robotic vacuum already qualify as elder care assistance, given that some buyers are elderly, disabled or both and don't want to or are no longer able to vacuum as often or as thoroughly as they would like (under the beds, etc.).
iRobot for now is publicly focusing on the upcoming but presumably more limited ConnectR product, which could allow folks to check up on grandma via its built-in camera at a presumably much cheaper $499 price point. (I, frankly, would be worried about grandma tripping on said ConnectR, shattering her hip and dying!) Memo to iRobot: Maybe make ConnectR about 4 feet tall, but still lightweight, to avoid this? I frankly love the $1,800 Giraffe concept.
iRobot Prevails in Robotic FX Lawsuits, Jameel Ahed is Robo-Toast, But the Whole Mess Costs $2.9 Million
Robotic FX is history.
iRobot has finally prevailed in its lawsuits against Robotic FX, with federal judges in both Alabama and Massachusetts finding that Robotic FX violated iRobot patents and misappropriated trade secrets, respectively. Robotic FX is shutting down, iRobot is acquiring its remaining assets, and Jameel Ahed has to take a 5-year timeout from competing against iRobot. Of course, the whole mess cost iRobot some $2.9 million in legal costs (Robotic FX CEO Jameel Ahed, we presume, is fairly well off given his taste for DeLoreans but we doubt he has tens of millions lying around.) Although it just might be possible that some of the technology developed by Ahed could improve iRobot's products. Ahed is an engineering genius, after all, just a sneaky one. iRobot did not say whether the $2.9 million would impact fourth quarter earnings guidance, but regardless, I see this as a significant net positive because it relatively permanently ends a competitive threat, and we can all now move on to trying to gauge Roomba and Scooba sales!
Here is the press release:
iRobot Prevails in Lawsuits Against Robotic FX
Friday December 21, 6:19 pm ET
Company Settles All Disputes with Former Employee
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (Nasdaq:IRBT - News) today announced that federal courts in Massachusetts and Alabama have entered judgments in favor of iRobot and all disputes with former employee Jameel Ahed and his company, Robotic FX, Inc., have been settled. In August, iRobot filed two lawsuits against Ahed and Robotic FX: the Alabama action was for patent infringement, and the Massachusetts action was for trade secret misappropriation.
In the patent infringement suit against Robotic FX for its Negotiator robot, the U.S. District Court for the District of Northern Alabama entered a judgment that Robotic FX knowingly infringed on both asserted patents. Similarly, the U.S. District Court for the District of Massachusetts ruled that Ahed and Robotic FX misappropriated iRobot’s proprietary and confidential information, violated fair trade practices and destroyed evidence. The Massachusetts court also made permanent an injunction that had been preliminarily ordered last month against the sale of products using certain iRobot trade secrets, including the Robotic FX Negotiator product.
“The judgments validate our strong intellectual property position and the value of our IP,” said Helen Greiner, chairman of iRobot. “We are proud to deliver our reliable field-proven robots to aid our warfighters in their dangerous missions.”
In a related settlement, Robotic FX will be dissolved and certain residual assets retained by iRobot at iRobot’s election. Ahed is prohibited from participating in competitive activities in the robotics industry for five years.
iRobot’s cumulative litigation and settlement-related expenditures associated with this dispute are expected to total approximately $2.9 million.
iRobot has finally prevailed in its lawsuits against Robotic FX, with federal judges in both Alabama and Massachusetts finding that Robotic FX violated iRobot patents and misappropriated trade secrets, respectively. Robotic FX is shutting down, iRobot is acquiring its remaining assets, and Jameel Ahed has to take a 5-year timeout from competing against iRobot. Of course, the whole mess cost iRobot some $2.9 million in legal costs (Robotic FX CEO Jameel Ahed, we presume, is fairly well off given his taste for DeLoreans but we doubt he has tens of millions lying around.) Although it just might be possible that some of the technology developed by Ahed could improve iRobot's products. Ahed is an engineering genius, after all, just a sneaky one. iRobot did not say whether the $2.9 million would impact fourth quarter earnings guidance, but regardless, I see this as a significant net positive because it relatively permanently ends a competitive threat, and we can all now move on to trying to gauge Roomba and Scooba sales!
Here is the press release:
iRobot Prevails in Lawsuits Against Robotic FX
Friday December 21, 6:19 pm ET
Company Settles All Disputes with Former Employee
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (Nasdaq:IRBT - News) today announced that federal courts in Massachusetts and Alabama have entered judgments in favor of iRobot and all disputes with former employee Jameel Ahed and his company, Robotic FX, Inc., have been settled. In August, iRobot filed two lawsuits against Ahed and Robotic FX: the Alabama action was for patent infringement, and the Massachusetts action was for trade secret misappropriation.
In the patent infringement suit against Robotic FX for its Negotiator robot, the U.S. District Court for the District of Northern Alabama entered a judgment that Robotic FX knowingly infringed on both asserted patents. Similarly, the U.S. District Court for the District of Massachusetts ruled that Ahed and Robotic FX misappropriated iRobot’s proprietary and confidential information, violated fair trade practices and destroyed evidence. The Massachusetts court also made permanent an injunction that had been preliminarily ordered last month against the sale of products using certain iRobot trade secrets, including the Robotic FX Negotiator product.
“The judgments validate our strong intellectual property position and the value of our IP,” said Helen Greiner, chairman of iRobot. “We are proud to deliver our reliable field-proven robots to aid our warfighters in their dangerous missions.”
In a related settlement, Robotic FX will be dissolved and certain residual assets retained by iRobot at iRobot’s election. Ahed is prohibited from participating in competitive activities in the robotics industry for five years.
iRobot’s cumulative litigation and settlement-related expenditures associated with this dispute are expected to total approximately $2.9 million.
Washington Post Gives "Big Thumbs Up" Scooba Review
The Scooba got major play in today's Washington Post, which issued a "Big Thumbs Up" review and a nice big picture to go along with it under the headline "Roomba's Scrubbing Cousin."
Highlights:
I am not a big mopper myself, and so I was ridiculously excited to try Scooba, a sleek, round disk somewhere between the size of a Frisbee and a trash can lid. My kids were excited, too, although once they saw it had no arms and didn't talk or carry a weapon, they drifted back to their coloring/tower building/house destruction activities (but not before my daughter declared Scooba a boy, which I found refreshing, given his line of work). ...I'm always amazed that reviewers expect the Scooba to vacuum up mounds of ketchup or baked on stuff -- especially stuff that they could easily give Scooba a little help with. Scooba remains my favorite iRobot product, because I hate mopping and scrubbing floors even more than vacuuming.
Overall, I'd give Scooba a big thumbs up, even if it didn't scrub away everything. It's perfect for people who aren't inclined to break out the mop and bucket, who don't have a lot of extra time or who have small children (especially crawlers, who are known to dine off the floor whenever possible).
As always, you can check out our Scooba Buyers Guide for the latest deals, updated daily.
Scooba 5800 Discontinued?
iRobot now lists the Scooba 5800 as Out of Stock on its web site. It appears that iRobot is getting ready to roll out an upgraded low-end Scooba with the newer technology found in the 300 series Scoobas, like the new Scooba 335 from HSN. Also of note, iRobot is still showing a 3-4 week backlog for the popular Roomba 560 Next Generation model. Other Roombas are in stock. Hard to know if this is because of lots of demand or production issues at this point. The level of Roomba demand in this quarter will drive this stock one way or the other. If the company can match its revenue guidance, that's the key, because it will show very strong growth year over year. Profits for the year could be wiped out almost entirely because of the $2.9 million Robotic FX lawsuit. Also, will iRobot be bold and predict its first ever $300 million year in 2008? It's almost within reach...
iRobot Prospects for 2008 Profits
The most important date for iRobot stock owners in the coming year will be the all-important 1st Quarter Earnings Conference Call, if the company announces full-year earnings and revenue guidance.
I'd like to get a little bit of a jump on things, assuming that the company can deliver on its revenue guidance for 2007 - $240-$250 Million. The company has listed profit guidance at $3-5 million, but that could be almost entirely wiped out by the $2.9 million legal costs in the Robotic FX case, depending on how much iRobot expected to spend on legal costs when they issued their guidance and also on the accounting for the legal costs. Some of the costs almost certainly went to pay Jameel Ahed for Robotic FX's residual assets, which could conceivably by amortized to lessen the impact on current year earnings. Plus there is the pre-tax/after-tax impact. Regardless, the 2007 profit number isn't particularly relevant, as long as it IS a profit. Wall Street doesn't like to see losses, period, and iRobot has been cutting it pretty thinly because of their emphasis on growth, R&D and advertising (all stuff I as a long-term shareholder am very happy with). Regardless, the 4th Quarter to 4th Quarter comparisons will look great because shipments were delayed from the 3rd Quarter to the 4th Quarter and because of significant Roomba 500 Series channel fill and channel expansion (even Best Buy is selling them.)
So that brings us to 2008. Let's go with conservative, given that iRobot has been conservative in all of its past full-year guidance. Take the $240 million low-estimate revenue number and add 19 percent (the low end of their initial growth expectations issued for their initial 2007 earnings estimate issued a year ago). That yields a 2008 revenue estimate of $285 million. The top of the revenue expectation range should exceed $300 million -- a very significant milestone that would be a big deal with traders.
How does iRobot get there? There are many factors that continue to go iRobot's way and could bolster 2008 growth:
* The military continues to emphasize and expand the use of robotics. The $286 million xBot contract expands iRobot's role from IED/bomb sniffing teams to regular infantry units, which are far more numerous. The initial order of 101 PackBots with FasTac kit is likely to be followed by hundreds more, and comes on top of the existing contracts for IED robots, which should continue. iRobot has already said it would be producing about 30 FasTac robots a month starting in March. If the contract does not scale, that should be a minimum of 300 robots for the year, or about $20 million in accretive sales. If it scales to 1,000 robots for the year, look out above! That would be about $70 million in accretive sales. Let's assume $20 million for now. Also note that the military has already signaled its intention to award a separate follow-on $200 million no-bid contract to iRobot for more IED Packbot sales and service, which is even more important from a profit perspective given that the xBot contract has lower margins. So enough with the meat and potatoes, iRobot also has some military gravy coming online to top things off: The first sales of its next-generation PackBot SUGV Early product will start shipping in volume by mid-2008, and the company will begin selling the 200-pound class iRobot Warrior product, which the company will offer for the first time with the potential for armed variants. Who knows, maybe they will even sell a few R-Gators? The company also has announced a new mapping kit for PackBots which could find a home in advanced recon teams. You send in the PackBot to map a building or an area so you can plan your assault. Seems like genius to me! And, I even forgot to mention iRobot's increasing foray into the vast homeland security/police market with Taser-equipped PackBots!
*The company's home robotics division has significant avenues for growth. The Roomba 500 Series will have its first full year in the channel, and its significantly improved feature set and performance and expected better reliability combined with a higher price point should result in significant improvements in revenue and profitability. The new Scooba 380 and Scooba 350 products also are doing better than I've expected. They will never be Roomba, but they are a significant next leg up and generate significant cross-selling opportunities, not to mention lots of free press. The Looj gutter cleaner also will have a full year of availability, and, if the company can get them into Home Depot, Sears and Lowe's next fall during leaf season, could generate significant sales ($5-$10 million?). The company will also sell a few thousand ConnectRs, etc., which will be accretive to revenue.
* The foreign market also is largely untapped by iRobot. They have ramped up their European distribution but should continue to explore global opportunities for significant Roomba growth in particular. There is no reason why foreign sales should not account for 40 percent of home robot sales versus under 20 percent today.
Finally, there is the big question: Will iRobot announce any significant new products in 2008? There are lots of possibilities, but iRobot has noted in the past that it can take two or three years of R&D to get a new robot out the door -- longer than iRobot has been a public company. So that's a big if. You know the list of chores iRobot has mentioned in the past that it could tackle -- lawn mowing (tops on my wish list, despite the competition), bathroom/shower/toilet cleaning (tops on my wife's wish list), laundry folding (probably too difficult for a while yet) and remote presence/elder care assistance robots (ConnectR and iRobot Cici). Colin Angle said last year that a robotic lawnmower is more feasible than laundry folding, although he wants laundry folding 'bot more. The company also has said it is looking into creating a light commercial version of its Roomba 500 product. I don't think however that you need any of these to see significant growth. Remember that iRobot's market penetration for Roomba alone is still just about 2 percent in the U.S. alone.
* Home robot profitability should expand significantly due to reduced warranty costs and higher prices from the Roomba 500 generation and the Scooba 300 generation and, significantly, from far lower nickel prices. The drop in nickel prices alone should mean a $5 million bonus to iRobot's bottom line in 2008! (That was the estimate iRobot's CFO gave of the hit from higher nickel prices in 2007). iRobot's profitability as a whole could top $10 million after taxes for the first time, chopping the P/E ratio from north of 100 to south of 50 with a vast, untapped market for robotics still to come.
Indeed, I think ever since the company botched the initial rollout and initial quality of the Scooba in early 2006, they have been performing exceptionally well. iRobot has mastered the art of coming out with new products at low cost to the company which generate lots of free, valuable buzz even if sales are not explosive (iRobot Create, Looj, ConnectR etc.) and have delivered a knockout, I believe, with their next generation Roomba 500 series and a solid hit with their next generation Scooba 300 Series product.
The one big caveat I hold out there is the broader economy and the downturn in the housing market spilling over into consumer appliances. I think this is the main drag on the stock right now, and if Roomba sales are weaker than expected this tepid holiday season, that could drag on the stock. A Roomba is not yet something that people consider a staple like a Gillette razor that they will buy in good times and bad. That being said, I remain bullish with the stock at $18, as iRobot appears to be firing on all engines.
I'd like to get a little bit of a jump on things, assuming that the company can deliver on its revenue guidance for 2007 - $240-$250 Million. The company has listed profit guidance at $3-5 million, but that could be almost entirely wiped out by the $2.9 million legal costs in the Robotic FX case, depending on how much iRobot expected to spend on legal costs when they issued their guidance and also on the accounting for the legal costs. Some of the costs almost certainly went to pay Jameel Ahed for Robotic FX's residual assets, which could conceivably by amortized to lessen the impact on current year earnings. Plus there is the pre-tax/after-tax impact. Regardless, the 2007 profit number isn't particularly relevant, as long as it IS a profit. Wall Street doesn't like to see losses, period, and iRobot has been cutting it pretty thinly because of their emphasis on growth, R&D and advertising (all stuff I as a long-term shareholder am very happy with). Regardless, the 4th Quarter to 4th Quarter comparisons will look great because shipments were delayed from the 3rd Quarter to the 4th Quarter and because of significant Roomba 500 Series channel fill and channel expansion (even Best Buy is selling them.)
So that brings us to 2008. Let's go with conservative, given that iRobot has been conservative in all of its past full-year guidance. Take the $240 million low-estimate revenue number and add 19 percent (the low end of their initial growth expectations issued for their initial 2007 earnings estimate issued a year ago). That yields a 2008 revenue estimate of $285 million. The top of the revenue expectation range should exceed $300 million -- a very significant milestone that would be a big deal with traders.
How does iRobot get there? There are many factors that continue to go iRobot's way and could bolster 2008 growth:
* The military continues to emphasize and expand the use of robotics. The $286 million xBot contract expands iRobot's role from IED/bomb sniffing teams to regular infantry units, which are far more numerous. The initial order of 101 PackBots with FasTac kit is likely to be followed by hundreds more, and comes on top of the existing contracts for IED robots, which should continue. iRobot has already said it would be producing about 30 FasTac robots a month starting in March. If the contract does not scale, that should be a minimum of 300 robots for the year, or about $20 million in accretive sales. If it scales to 1,000 robots for the year, look out above! That would be about $70 million in accretive sales. Let's assume $20 million for now. Also note that the military has already signaled its intention to award a separate follow-on $200 million no-bid contract to iRobot for more IED Packbot sales and service, which is even more important from a profit perspective given that the xBot contract has lower margins. So enough with the meat and potatoes, iRobot also has some military gravy coming online to top things off: The first sales of its next-generation PackBot SUGV Early product will start shipping in volume by mid-2008, and the company will begin selling the 200-pound class iRobot Warrior product, which the company will offer for the first time with the potential for armed variants. Who knows, maybe they will even sell a few R-Gators? The company also has announced a new mapping kit for PackBots which could find a home in advanced recon teams. You send in the PackBot to map a building or an area so you can plan your assault. Seems like genius to me! And, I even forgot to mention iRobot's increasing foray into the vast homeland security/police market with Taser-equipped PackBots!
*The company's home robotics division has significant avenues for growth. The Roomba 500 Series will have its first full year in the channel, and its significantly improved feature set and performance and expected better reliability combined with a higher price point should result in significant improvements in revenue and profitability. The new Scooba 380 and Scooba 350 products also are doing better than I've expected. They will never be Roomba, but they are a significant next leg up and generate significant cross-selling opportunities, not to mention lots of free press. The Looj gutter cleaner also will have a full year of availability, and, if the company can get them into Home Depot, Sears and Lowe's next fall during leaf season, could generate significant sales ($5-$10 million?). The company will also sell a few thousand ConnectRs, etc., which will be accretive to revenue.
* The foreign market also is largely untapped by iRobot. They have ramped up their European distribution but should continue to explore global opportunities for significant Roomba growth in particular. There is no reason why foreign sales should not account for 40 percent of home robot sales versus under 20 percent today.
Finally, there is the big question: Will iRobot announce any significant new products in 2008? There are lots of possibilities, but iRobot has noted in the past that it can take two or three years of R&D to get a new robot out the door -- longer than iRobot has been a public company. So that's a big if. You know the list of chores iRobot has mentioned in the past that it could tackle -- lawn mowing (tops on my wish list, despite the competition), bathroom/shower/toilet cleaning (tops on my wife's wish list), laundry folding (probably too difficult for a while yet) and remote presence/elder care assistance robots (ConnectR and iRobot Cici). Colin Angle said last year that a robotic lawnmower is more feasible than laundry folding, although he wants laundry folding 'bot more. The company also has said it is looking into creating a light commercial version of its Roomba 500 product. I don't think however that you need any of these to see significant growth. Remember that iRobot's market penetration for Roomba alone is still just about 2 percent in the U.S. alone.
* Home robot profitability should expand significantly due to reduced warranty costs and higher prices from the Roomba 500 generation and the Scooba 300 generation and, significantly, from far lower nickel prices. The drop in nickel prices alone should mean a $5 million bonus to iRobot's bottom line in 2008! (That was the estimate iRobot's CFO gave of the hit from higher nickel prices in 2007). iRobot's profitability as a whole could top $10 million after taxes for the first time, chopping the P/E ratio from north of 100 to south of 50 with a vast, untapped market for robotics still to come.
Indeed, I think ever since the company botched the initial rollout and initial quality of the Scooba in early 2006, they have been performing exceptionally well. iRobot has mastered the art of coming out with new products at low cost to the company which generate lots of free, valuable buzz even if sales are not explosive (iRobot Create, Looj, ConnectR etc.) and have delivered a knockout, I believe, with their next generation Roomba 500 series and a solid hit with their next generation Scooba 300 Series product.
The one big caveat I hold out there is the broader economy and the downturn in the housing market spilling over into consumer appliances. I think this is the main drag on the stock right now, and if Roomba sales are weaker than expected this tepid holiday season, that could drag on the stock. A Roomba is not yet something that people consider a staple like a Gillette razor that they will buy in good times and bad. That being said, I remain bullish with the stock at $18, as iRobot appears to be firing on all engines.
Scooba $139, Roomba $99
The Scooba 5800 is now available for $199 NEW + a $25 gift card (pick up today!)/$139 Refurbished in the Scooba Buyers Guide. You won't find a better deal on Scooba (my favorite iRobot robot).
Roomba is still as low as $99 in the Roomba Buyers Guide, with a new deal on a Discovery SE for $164.
Other deals are available today in Kitchen Daily Deal.
Roomba is still as low as $99 in the Roomba Buyers Guide, with a new deal on a Discovery SE for $164.
Other deals are available today in Kitchen Daily Deal.
iRobot dominant player in growing robotics industry: ABI Research
An outfit called ABI Research spotlighted iRobot Corp. as the dominant player in the emerging "task" robot industry, and sees a $15 billion market for home robotics in 2015.
From the press release: Several types of personal robot are available, says ABI Research principal analyst Philip Solis. Many are single-function “task” robots such as those made by iRobot, whose self-contained Roomba vacuum cleaner is already familiar. “iRobot currently dominates this market and is increasingly targeting areas outside the US and expanding its product line,” says Solis. “Its disciplined approach to keeping products relatively simple and practical has enabled the company to lead the market for task robots.”
From the press release: Several types of personal robot are available, says ABI Research principal analyst Philip Solis. Many are single-function “task” robots such as those made by iRobot, whose self-contained Roomba vacuum cleaner is already familiar. “iRobot currently dominates this market and is increasingly targeting areas outside the US and expanding its product line,” says Solis. “Its disciplined approach to keeping products relatively simple and practical has enabled the company to lead the market for task robots.”
Colin Angle talks to Business Week; No new robots anytime soon, doesn't reaffirm guidance
iRobot CEO Colin Angle was interviewed by Business Week and made clear that the company won't be announcing new products anytime soon, so don't expect that iRobot lawnmower, laundry folder or shower cleaner in 2008. Angle also refused to comment on the company's 2007 guidance. (It's unclear when exactly he was interviewed as well; if it was sufficiently before Dec. 31, he may truly not have known where the numbers would end up, as last-minute reorders from retailers doing after-Christmas inventory could shift delivery of thousands of units. The interview is dated Dec. 28 at 12:01 a.m. EST, so it obviously occured prior to that.)
Here are the key quotes:
Re: The Third Quarter loss: "What happened there is very simple. We were bringing out a new product with an entirely new factory and a new manufacturing partner, Kin Yat in Southern China. The risks were higher than we'd modeled, and it set us back a number of weeks. That shifted a huge amount of revenue from the third quarter into the fourth. I'm not reaffirming guidance—that would be a material disclosure. But at that time we signaled that this was more than a shift. We left bottom-line guidance constant." [Ed comment: I think "more than a shift" is probably a misquote or misstatement. Shouldn't it be "more of a shift"? Also, Colin Angle did not say whether those production problems continued into the fourth quarter or not, but if he did indeed say "more than a shift," that is troubling because it would indicate that the production issues may have persisted because of adding a second manufacturer. This is a big point given that several of us iRobot watchers have noted sell-outs of some Roomba products including the workhorse Roomba 560 model but have no way of knowing if that was due to superior sales (IRBT back to $25 and beyond) or insufficient production (IRBT stalls again). One can imagine iRobot saying at the 4th Quarter presser, "Yeah, 4th Quarter was disappointing but we made a long-term decision to diversify our manufacturing base, blah blah blah, which would NOT be well received. There also was significantly less discounting of iRobot products in my checks this year versus last year, but again, we don't know if that was because of better sales or insufficient production or simply a decision on the part of management to protect the brand.)]I read that last sentence as Colin Angle saying, "Sure, we could churn out an iRobot MowBa today, but it's got to be cheaper than $500 or nobody will buy it. There are already plenty of $1,000 Robomowers that nobody buys. We'll get there, but it's going to take a few years of R&D to build a cheaper grasstrap."
...
"While we haven't announced any new products and won't be announcing anything for quite some time, for everything from raking leaves to shoveling snow to mowing lawns or washing windows, robots would be doing us all a service if they could take on some of that burden. In the game of robots you're always fighting against the cost of hiring someone to do that task for you. There are upper bounds on what these devices can cost."
The Business Week link is here under the headline "iRobot: Ready to Clean Up." (thx, azimgamj).
FasTac PackBot on Display, Does Yoga!
Noah Schachtman at Wired's Danger Room has the first pics I've seen of the new iRobot PackBot with FasTac kit on display doing some pretty acrobatic stunts that you won't see a Talon robot do any time soon.
(thx, micro)
(thx, micro)
Jane's: Army wants to accelerate iRobot SUGV
Jane's Defence reports that the Army wants to acclerate the FCS SUGV (Small Unmanned Ground Vehicle) made by iRobot and the FCS UAV (Unmanned Aerial Vehicle) made by other companies, citing Boeing, the lead contractor on the Future Combat Systems program, as the source of the information. Key clip:
"Boeing FCS programme manager Dennis Muilenburg confirmed that the army leadership has directed the FCS programme office to accelerate the Class I unmanned aerial vehicle (UAV) and the Small Unmanned Ground Vehicle (SUGV), both of which are being developed as part of the FCS family of unmanned systems.I'll note that this isn't exactly "news" per se; we've been noting for months reports from various sources including directly from iRobot conference calls that the Army has been seeking to accelerate the SUGV, and that delivery of an early version will be ready to ship in volume by mid-2008 and drive revenue growth for the company.
"There's clearly high interest in fielding some of the robotic capabilities as soon as possible," he said.
Early versions of the SUGV are in theatre today in the form of the Packbot: a lightweight, portable ground robot made by iRobot. ...
Muilenburg said soldier feedback "has been very positive" on both systems. "They take on some of the dirty, dangerous missions - and also improve situational awareness for soldiers," he said.
Here is the link. (Thx, byronangel)
Wowwee Unveils Rovio, Mr. Personality, Bladestar in Ambitious 2008 Release Schedule
While iRobot appears set for a year without significant new consumer robots with the exception of the ConnectR trial-ware, Wowwee is not resting on its laurels. The maker of the Robosapien, Robopanda and the Flytech Dragonfly has plans for 15 new releases this year, and a few appear to cross for the first time into iRobot's territory of USEFUL home robots. The new $299 Rovio could give ConnectR a run for its money at a cheaper price point. A $249 Mr. Personality robot is more in the line of a fun toy, but one that seems a lot more interactive than Robosapien. And the Flytech Bladestar features an auto-piloting helicopter that won't crash on its own due to its on-board sensors. COOL! And just $49. That's the kind of product that could sell millions and get tons of brand recognition.
Maybe I was wrong about Wowwee? And maybe iRobot should have bought them out, and Evolution Robotics as well. Perhaps it's not too late for a merger?
PC Mag's Lance Ulanoff has the story from CES.
Maybe I was wrong about Wowwee? And maybe iRobot should have bought them out, and Evolution Robotics as well. Perhaps it's not too late for a merger?
PC Mag's Lance Ulanoff has the story from CES.
Another iRobot alum scores big, honestly
Turns out lots of alums of iRobot are doing just fine without having to rip off their former employer. Check out former Roomba team member Eliot Mack, whose company Cinital aims to make it big in the movie biz. The Boston Globe has the story.
More on SUGV acceleration
Kris Osborn at Defense News details the latest on the acceleration of iRobot's SUGV with the Army Future Combat Systems. Looks like there is a major power struggle over getting funding for fiscal 2009 and beyond. The Army apparently is shifting $78 million for procurement of SUGV's and micro air vehicles out of fiscal 2008 funds, but it's unclear how much is SUGV's and how much for MAV's.
Some 24 SUGVs are expected to be delivered by mid-year and the question mark is whether the SUGV gets funding for a major ramp-up after that or not.
Some 24 SUGVs are expected to be delivered by mid-year and the question mark is whether the SUGV gets funding for a major ramp-up after that or not.
iRobot CES Roundup
iRobot got lots of great press this week at the Consumer Electronics Show for its Looj and ConnectR robots and just in general as tech reporters sought out iRobot as a pioneer of the coming robotic revolution.
The Looj Gutter cleaning robot came in second in Yahoo!'s Last Gadget Standing contest.
Popular Mechanics has an extensive state-of-the-home-robotics-industry overview that features extensive quotes from iRobot CEO Colin Angle, who disses robot toys as "minute of fun" as opposed to the Roomba, which Popular Mechanics dubs the "iPod of consumer robots." There also is talk of some competitors on display, which are promptly dissed by Popular Mechanics: Here's a brief clip:
Robot Maids: 'We Need Them'
It's easy to walk through the Robotics Tech Zone at CES without ever realizing it. There are card tables strewn with a handful of gaudy brochures, booths that are completely empty, a handful of extroverted toys, and what appear, at first, to be many Roombas. Some of these roving disks zoom across smaller pens, one across a stage—all idly bouncing off their surroundings and mercifully unaware of how boring they are. That's because they're basically clones of the iPod of consumer robots: the Roomba.
In fact, these competitors don't really function any differently either; Yujin Robot's Plus A robotic vacuum, for instance, boasts a list of features that are identical to the latest Roombas, including pre-set cleaning times and the ability to automatically recharge its lithium-ion battery. With 2.5 million Roombas sold, and no one currently coming close to out-innovating its flagship model, iRobot has effectively zero competition. But that's not necessarily a good thing.
"One company doesn't make an industry," the company's CEO, Angle, has said for years. ...As investors warm up to the concept of consumer robots, Angle claims it's becoming easier for newcomers to get access to capital. Still, he said, creating household bots is a nightmarish business proposition.
"Unlike with software, the margins are terrible," he said, citing 56 percent drop-off from software to robotics profits. "And you're building physical stuff. You have moving parts, gears operating in nasty environments. The robots are going to break."
TechCrunch has an interview with iRobot CEO Colin Angle, who describes the "cave-mouth epiphany" soldiers in Afghanistan had in 2002, when they realized that the company's PackBot was not a toy but a life-saving tool. (Thanks, William Cox).
iRobot CEO Colin Angle also talked to Gizmodo.
The New York Times profiled the coming battle between Wowwee and iRobot in "CES Robot Deathmatch: iRobot Vs. Wowwee." Quote: “We’re not just a toy company,” said Amy Weltman, vice president for marketing at WowWee. “We’re an adult toy company and our products are real robots. The plan for the company was always to be the best in entertainment and to slowly add functionality over time.”
CNET has an article on the plays by Ugobe, Hanson Robotics and Wowwee for the growing personal companion robot market.\
Hanulkid debuted a steam cleaning robotic vacuum, although the price is unknown.
The Looj Gutter cleaning robot came in second in Yahoo!'s Last Gadget Standing contest.
Popular Mechanics has an extensive state-of-the-home-robotics-industry overview that features extensive quotes from iRobot CEO Colin Angle, who disses robot toys as "minute of fun" as opposed to the Roomba, which Popular Mechanics dubs the "iPod of consumer robots." There also is talk of some competitors on display, which are promptly dissed by Popular Mechanics: Here's a brief clip:
Robot Maids: 'We Need Them'
It's easy to walk through the Robotics Tech Zone at CES without ever realizing it. There are card tables strewn with a handful of gaudy brochures, booths that are completely empty, a handful of extroverted toys, and what appear, at first, to be many Roombas. Some of these roving disks zoom across smaller pens, one across a stage—all idly bouncing off their surroundings and mercifully unaware of how boring they are. That's because they're basically clones of the iPod of consumer robots: the Roomba.
In fact, these competitors don't really function any differently either; Yujin Robot's Plus A robotic vacuum, for instance, boasts a list of features that are identical to the latest Roombas, including pre-set cleaning times and the ability to automatically recharge its lithium-ion battery. With 2.5 million Roombas sold, and no one currently coming close to out-innovating its flagship model, iRobot has effectively zero competition. But that's not necessarily a good thing.
"One company doesn't make an industry," the company's CEO, Angle, has said for years. ...As investors warm up to the concept of consumer robots, Angle claims it's becoming easier for newcomers to get access to capital. Still, he said, creating household bots is a nightmarish business proposition.
"Unlike with software, the margins are terrible," he said, citing 56 percent drop-off from software to robotics profits. "And you're building physical stuff. You have moving parts, gears operating in nasty environments. The robots are going to break."
TechCrunch has an interview with iRobot CEO Colin Angle, who describes the "cave-mouth epiphany" soldiers in Afghanistan had in 2002, when they realized that the company's PackBot was not a toy but a life-saving tool. (Thanks, William Cox).
iRobot CEO Colin Angle also talked to Gizmodo.
The New York Times profiled the coming battle between Wowwee and iRobot in "CES Robot Deathmatch: iRobot Vs. Wowwee." Quote: “We’re not just a toy company,” said Amy Weltman, vice president for marketing at WowWee. “We’re an adult toy company and our products are real robots. The plan for the company was always to be the best in entertainment and to slowly add functionality over time.”
CNET has an article on the plays by Ugobe, Hanson Robotics and Wowwee for the growing personal companion robot market.\
Hanulkid debuted a steam cleaning robotic vacuum, although the price is unknown.
iRobot still owns the "really useful robot category"
Report from India: iRobot is trying to sell the PackBot 510 to the Indian armed forces. This would seem to make sense as India does have an issue with terrorism.
iRobot SUGV accelerated by Army; 25 robots to be delivered for testing by April
iRobot has issued a press release officially announcing the acceleration of the Small Unmanned Ground Vehicle (SUGV) program, which is critical to iRobot's future growth prospects. Some 25 SUGV units will be delivered by April for testing (I'd guess roughly $2.5-4 million worth?) with a "production decision" expected by September 2008. The initial SUGV units will be "transitioned" to the fully Future Combat Systems-network-capable SUGV at some point in the future. This would effectively move up the SUGV by several years from the Army's initial plans, which is the opposite of how things normally work in defense procurement, where delays are common. iRobot has previously noted that the Army has seen a potential for 80 SUGVs per combat brigade, or thousands of units in total. Also of note, the SUGV will NOT replace sales of the PackBot bomb-defusing robots, which are built primarily for explosive ordnance disposal (EOD) teams. Instead, it will supplement EOD sales. There is an open question, however, of whether moving to the SUGV will supplant the $286 million contract iRobot recently won for infantry robots, which would be filled with the PackBot with FasTac kit. It's quite possible that the Army could allow much of that contract to go unfilled and replace it with a new SUGV contract with iRobot.
Note that iRobot is the exclusive maker of the SUGV at this stage, having been selected as the Future Combat Systems supplier and as part of the FCS team years ago.
Also of note, as we posted previously, Defense News posted details of the acceleration last week.
Here is the press release:
Press Release Source: iRobot Corp.
U.S Army Accelerates Testing of iRobot's Future Combat Systems Small Unmanned Ground Vehicle
Thursday January 17, 12:00 pm ET
Soldiers to Begin Robot Field Exercises in May 2008
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (NASDAQ:IRBT - News) today announced that the U.S. Army has accelerated its testing schedules for iRobot’s Future Combat Systems (FCS) Small Unmanned Ground Vehicle (SUGV) robot development program. The updated plan calls for iRobot to deliver a total of 25 FCS SUGV robots by April 2008. The Army Evaluation Task Force (AETF) will begin evaluation and testing of the robots in May 2008. This effort is intended to provide an early capability of SUGV to soldiers in the field. The SUGV Systems Development and Demonstration program will continue to mature the SUGV with its full network capability.
The initial soldier evaluations will determine the capabilities and limitations of the SUGV platform. These evaluations will support the Army’s production decision, which is expected in September 2008. FCS will procure a select number of these early SUGV units and then transition to the full network-capable SUGV as scheduled by the FCS program.
“We continue to receive a tremendous amount of positive feedback from soldiers in theater that iRobot PackBot is an essential tool for ensuring mission readiness and improving situational awareness to keep soldiers out of harm’s way,” said Vice Admiral Joseph Dyer (U.S. Navy, Ret.), president of iRobot’s Government & Industrial Robots division. “We see this acceleration as clear evidence of the U.S. Army’s recognition of the critical role robots play in arming soldiers with the best intelligence and combat options to provide clear advantage on the battlefield.”
FCS SUGV is a tactical reconnaissance robot designed to assist soldiers in obtaining intelligence in dangerous or otherwise inaccessible areas. Modeled after the combat-proven iRobot PackBot, the SUGV offers multiple video sensors for real-time day/night tactical situational awareness. At just 30 pounds, SUGV’s portability, modularity and agility make it an essential component of the individual soldier’s gear in the integrated FCS program.
iRobot is currently under contract agreement to develop the next-generation SUGV for the FCS program with Science Applications International Corp. (SAIC), which serves as the FCS Lead Systems Integrator with Boeing. This decision marks the first significant delivery of SUGVs to military customers.
To date, iRobot has delivered more than 1,200 PackBot robots to a broad range of military and civilian customers worldwide.
LawnBott Markets New Robotic Lawn Mower That Doesn't Need Perimeter Wire
iRobot won't be the first company to release a consumer robotic lawnmower without the need for a perimeter wire, because LawnBott has beaten them to the punch with the new LawnBott LB1200 consumer model, dubbed the "Spyder," which automatically senses grass via special humidity sensors, and will stop and turn around when it reaches anything other than live grass.The thing looks like a green Batmobile, features lithium ion batteries, mean looking tires, whisper-quiet operation, and simple on/off controls. Finally, a robotic lawnmower meant to be used by lazy Americans!
Looks to me like LawnBott only missed one key ingredient: Americans are cheapskates! The LawnBott is listed at $1,299, about the price of a Robomower on sale. That's a price point that still seems destined for niche-ville, although one can imagine sale prices below the $1,000 barrier.Robotic mower retailer bamabots has an excellent and thorough review here with more pictures.
Keep in mind that robotic lawn mowers are extremely environmentally friendly, as they use only a few dollars worth of electricity a year and replace inefficient and pollution-wracked regular mowers.
iRobot, which is believed to be developing its own robotic lawn mower, had better take note, however. It risks being left way behind the competition here in an important market for future growth. iRobot won't be releasing a new robot anytime soon, according to the company, so the earliest one could imagine an iRobot lawnmower debuting would be CES 2009. Fingers crossed. (thx, Potts!)
(Way) Off Topic: Apple screws up
Occasionally I post a tidbit or two about my *other* favorite company, Apple, which stepped in a little bit of poo this week by offering little at its latest MacWorld but puffery and the $1,800 envelope-thin MacBook Air (pictured above) that is two pounds lighter than the $1,100 MacBook, but with lower performance specs (and no CD drive); and a still-lobotomized Apple TV that STILL doesn't record TV! Reminds me of the $1,800 Mac Cube announcement. I'm sure Apple will sell a few, but we've come to expect more from the world's most innovative company. Where is the 3G iPhone? Cut-and-paste on the iPhone? Where is the sub-$1,000 headless Mac that isn't mini-neutered?
On the other hand, I love the new virtual GPS on my iPhone, with the major upgrade to Google Maps. And anybody who doesn't own an iPhone yet, get with the program already!
On the other hand, I love the new virtual GPS on my iPhone, with the major upgrade to Google Maps. And anybody who doesn't own an iPhone yet, get with the program already!
iRobot Pre-Announces Earnings; Revenue At High End of Expectations Despite Economy
UPDATED: iRobot pre-announced earnings and revenue today, announcing that the company will have $98 million to $100 million in 4th Quarter revenue and $248 million to $250 million for the year, at the high end of its revised guidance. Earnings will be significantly better than expected due entirely to an $8 million one-time income tax adjustment (MORE below on the adjustment and what that means for 2008 profits!). Without the adjustment, earnings will be a bit worse than expected due to litigation costs and slimmer than expected gross margins. More importantly, the company talked optimistically about a more profitable 2008, although no details were released and are not anticipated until the fourth quarter earnings conference call in February. (That seems awfully late, so I wonder if their accountants have to rework all the books because of this income tax adjustment)...
At first blush, I'm very happy with these results. Surging revenue despite a downturn in retailing overall is a very good sign for the long-term; we'll have to see what caused the weakness in gross margins (perhaps the issue with breaking Roomba 500 side brushes?) and what they forecast for the all-important 2008 guidance. Note that 2007 earnings will now be in the range of $.35 due to the income tax adjustment, and Colin spoke of "improved" earnings in 2008, so I hope he was taking that into consideration. The bar just got raised. I'd like to see them post at least $10 million in expected earnings for 2008 when they issue guidance.
UPDATE: It looks like in order for them to book the income tax gain, they have to anticipate earnings of at least $8 million in 2008 (thanks, Acklyn), so we should expect $8 million as the MINIMUM iRobot will project for its 2008 full-year guidance.
Here is the press release:
iRobot Announces Preliminary Unaudited Fourth Quarter and Full Year 2007 Results
Revenue in line with expectations; Significant income tax benefits partially offset by costs associated with lawsuit settlement result in increased EPS compared to prior year
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (Nasdaq: IRBT) today announced that it anticipates revenue for the fourth quarter of 2007 in the range of $98 million to $100 million and revenue for the full year 2007 in the range of $248 million to $250 million.
“I am extremely pleased to report that we anticipate fourth quarter and full year revenue to be in line with our expectations following a successful holiday season for our new iRobot® Roomba® 500 Series robot, despite widely reported weakness in general retail. The company’s Government & Industrial Robots business also made a strong contribution to the quarter,” said Colin Angle, chief executive officer of iRobot. “There also were two one-time events in the fourth quarter that impact fourth quarter and full year profitability: an anticipated income tax valuation reversal of at least $8 million and estimated litigation and settlement costs of approximately $1.6 million associated with the resolution of a lawsuit against Robotics FX that we announced last month,” he added.
“On a GAAP basis, we are expecting pre-tax profit between $12.1 million and $12.6 million for the fourth quarter and a pre-tax profit for the full year between $500,000 and $1 million. These results reflect the litigation settlement costs and lower than expected gross margins. Excluding the full year litigation and settlement costs of approximately $2.3 million, 2007 pro forma pre-tax profit is expected to be approximately $3 million. GAAP earnings per share are expected to be between $0.79 and $0.81 in the fourth quarter and between $0.33 and $0.35 for the full year, including the anticipated income tax valuation reversal,” Angle said.
“Based upon the company's profits since December 31, 2004, and its expected annual profitability in 2008 and future years, at least $8 million of the deferred tax asset valuation allowance will be reversed effective December 29, 2007,” said Geoff Clear, chief financial officer of iRobot. “Reversal of the valuation allowance will be a discrete event and will result in a significant non-cash income tax benefit in the fourth quarter of 2007,” Clear added.
Angle continued, “Our results demonstrate the strength of our business, and we exited the year with excellent momentum and visibility. We are optimistic about strong revenue growth and improved profitability across the company in 2008. The details of our expectations will be provided during our fourth quarter earnings call in February,” he said.
Fourth Quarter Earnings Release and Conference Call
iRobot will announce its fourth quarter and full year 2007 financial results after close of market on Feb. 19, at which time additional details will be provided. Management will host a conference call, open to all interested investors, to discuss fourth quarter and full year 2007 financial results and expectations for 2008 financial performance on Wednesday, Feb. 20. Pertinent details include:
Date: Wednesday, Feb. 20, 2008
Time: 8:30 a.m. EST
Call-In Number: 719-325-4855
BREAKING: iRobot Buys Laser Technology to Push Autonomous Military Robots
UPDATED: iRobot has signed an exclusive deal with Advanced Scientific Concepts, including an ownership stake in ASC, for use of its advanced 3-D laser mapping LADAR technology.
Xconomy has the story with quotes from iRobot Chairwoman Helen Greiner, who says they hope to demo the technology for the military later this year.
Folks, iRobot is poised for a breakout 2008, and this is just one more very exciting development.
UPDATE: According to Mass High Tech, iRobot invested $2.5 million in Advanced Scientific Concepts.
Here is a video of Advanced Scientific Concepts' 3D technology in action from the ASC website.
Here is a 60-minute presentation on the technology: YouTube Video.
thx, ibnjoyn and byronangel and jsrn
Xconomy has the story with quotes from iRobot Chairwoman Helen Greiner, who says they hope to demo the technology for the military later this year.
Folks, iRobot is poised for a breakout 2008, and this is just one more very exciting development.
UPDATE: According to Mass High Tech, iRobot invested $2.5 million in Advanced Scientific Concepts.
Here is a video of Advanced Scientific Concepts' 3D technology in action from the ASC website.
Here is a 60-minute presentation on the technology: YouTube Video.
thx, ibnjoyn and byronangel and jsrn
Christian Science Monitor Profiles iRobot LADAR
Check out this extensive new article on iRobot's use of LADAR 3-D laser technology to radically improve robotic vision: Christian Science Monitor link.
Key quotes:
"Even though we have great capabilities for them to be mobile and ... to control their actions and motion, their perception is still something that's technically behind," says Edison Hudson, deputy director of research at iRobot. The Burlington, Mass., company is building the LADAR-enabled robots for the military and other interested organizations.Products are estimated to be 12-18 months away.
"We've seen robot demos for years in the military where you've got this big robot – not our robots – and it's going along doing a demo and there's this little bitty bush or little bitty clump of grass in its way and it stops and everybody's like, 'Why did the robot stop?' " says Helen Greiner, chairman and cofounder of iRobot. "It doesn't sense what we sense with our visual processing that this is an object we can easily just roll through."
"As the technology evolves, it could encompass a range of applications, they say, such as pedestrian-avoidance systems for cars or 3-D mapping for Hollywood filmmakers, who could determine the geometry of a scene so they could later insert computer-generated effects."
More iRobot LADAR details
iRobot's new hometown paper, the Bedford Minuteman, profiles the company's new laser alliance with Advanced Scientific Concepts at this link.
New details:
Lasting only 20 nanoseconds, the lasers cannot be seen by standard cameras or by night vision, making them “very stealthy,” Stettner said. The LADAR takes only one shot, but when the light comes back to the camera, it is sampled 20 times to render a 3-D video image.Slashdot also noted the technology, and the message thread is definitely worth reading here. (Thx, jsrn, wealjays).
“These robots can use this kind of vision system to negotiate the world,” Stettner said.
The Flash LADAR system is capable of seeing two kilometers, with a resolution of about 3 centimeters throughout the whole 128x128 array. Preliminary plans are to equip PackBots and Humvees with the cameras, while Greiner mentioned potential commercial uses in agriculture.
Part of one post:
This is a big step forward. I know this technology. Back in 2004, when we were putting our DARPA Grand Challenge vehicle together, I went down to Advanced Scientific Concepts in Santa Barbara to see the thing. Back then, they had a prototype that worked, but it was on an optical bench (one of those big plates with screw holes to which you attach optical components), nowhere near ready to go on a vehicle. It was just too early. ...
ASC kept working, and by 2006 they had working portable prototypes. By 2007, you could buy a LIDAR about the size of a large-format camera for about $100,000. Now they've downsized it further.
Unlike the laser scanners with spinning mirrors or sensors, which is what everyone else uses, this technology has no moving parts. The system has two main components - a pulse laser with diffusing optics, and a detection and timing IC with one LIDAR receiver per pixel. Neither of these is inherently expensive in quantity. It may take a while to get this down to webcam prices, but $1000 is a reasonable near-term target.
...
This is the sensor that will make automatic driving commercially feasible.
Army Confirms Interest in iRobot LADAR
Defense News reports that the Army is interested in the LADAR 3-D laser technology recently acquired by iRobot. The LADAR technology, which would be used on the company's military robots for vision, has the potential to greatly improve autonomy and provide a major competitive advantage.
The U.S. Army Materiel Command “plans to explore the potential applications of this technology to known Army requirements. If applications are identified, the technology will be proven by the Army Test and Evaluation Command,” said Army spokesman Sheldon Smith.thx, byronangel
Remote Presence Robots at Work (You won't see ConnectR doing this!)
Old folks are a perfect target segment for Remote Presence robots -- they need to visit doctors a lot, and mobility and access to doctors is often an issue. With Remote Presence, there may be no need to make the trek to a germ-laden doctor's office.
But you won't see iRobot's ConnectR used for this, I'm convinced. I'd be too worried grandma would break a hip.
Here is a link to a good example of this.
(Thx, Micro)
But you won't see iRobot's ConnectR used for this, I'm convinced. I'd be too worried grandma would break a hip.
Here is a link to a good example of this.
(Thx, Micro)
My Big Worry: Discretionary Spending
Let's face it, the Roomba is NOT a necessity of life. It is a luxury item, like a maid. When push comes to shove, will people be buying $300 robot vacuums and mops when they see headlines every day about recession around the corner (or already here?)?
On the other hand, can iRobot capitalize on the tax rebate checks going out to 120 million households? (Perhaps offering a discount if you use your rebate check on a robot?) Maybe iRobot should package a Roomba 560 and Scooba 350 in a $600 "Tax Rebate Special." If they did it soon enough, they might even get some press as the first ones out of the box to do it, before the carmakers jump on the bandwagon with "Double Your Rebate" Days. That won't have any appreciable effect however until the second half of the year.
We'll hear soon from iRobot on their view of this year's sales. So far, none of the analysts are expecting much growth this year on the consumer side.
On the other hand, can iRobot capitalize on the tax rebate checks going out to 120 million households? (Perhaps offering a discount if you use your rebate check on a robot?) Maybe iRobot should package a Roomba 560 and Scooba 350 in a $600 "Tax Rebate Special." If they did it soon enough, they might even get some press as the first ones out of the box to do it, before the carmakers jump on the bandwagon with "Double Your Rebate" Days. That won't have any appreciable effect however until the second half of the year.
We'll hear soon from iRobot on their view of this year's sales. So far, none of the analysts are expecting much growth this year on the consumer side.
iRobot May Go Drilling For Oil
iRobot may relaunch its long-shuttered efforts to build robots for oil drilling. (CNET has the stories). Robots are already employed by the oil industry, primarily for cleaning the insides of pipelines. But to actually aid in the drilling -- well, if successful, the profits could be enormous given the price of oil. I wonder if iRobot could get seed R&D money from one of the big oil companies given that they are currently swimming in profits?
iRobot had tried its hand at oil drilling way back in the 1990s, when oil was a lot cheaper.
iRobot had tried its hand at oil drilling way back in the 1990s, when oil was a lot cheaper.
iRobot Still Hiring At Rapid Clip
iRobot continues to add to its fast-growing head count, albeit at a slightly slower pace than a year or so ago, judging by the latest job listings. At last count, there were 29 openings. That's a bit higher than the average I've seen, and there are more home robots listings than I've seen in a while, including 3 retail sales positions -- presumably the continuing influence of Home Robots Prez Sandra Lawrence.
Growth still seems focused on the government sector, which makes sense given the deep pockets of the Pentagon and the urgent need for soldier-saving technologies.
Growth still seems focused on the government sector, which makes sense given the deep pockets of the Pentagon and the urgent need for soldier-saving technologies.
iRobot to Hold 3rd PackBot Developer's Conference
Per iRobot's website, the company will have its third PackBot payload developer's conference May 13-14 in Washington, D.C.
Quote: "The event will begin with a technical workshop on iRobot's advanced software architecture Aware, led by iRobot's chief software architect. The following day will include technical discussions and presentations by current developers, iRobot engineers and military end-users. This event is intended to bring together third party developers, iRobot engineers and government representatives to explore the development of potential capabilities in an informal, collaborative environment. iRobot will host a networking reception on the evening of May 13."
More details are expected to be announced shortly.
Quote: "The event will begin with a technical workshop on iRobot's advanced software architecture Aware, led by iRobot's chief software architect. The following day will include technical discussions and presentations by current developers, iRobot engineers and military end-users. This event is intended to bring together third party developers, iRobot engineers and government representatives to explore the development of potential capabilities in an informal, collaborative environment. iRobot will host a networking reception on the evening of May 13."
More details are expected to be announced shortly.
Tick-Killing Robot Coming to a Lawn Near You
The market for yard robots is expanding, and not just with new lawnmowing robots!
The Detroit News profiles a tick-killing robot, a lawn-watering robot ($170 Hydrobo), a leaf-collecting robot ($500 Quadrobo), a solar-powered trash compactor robot ($3,600), and iRobot's Looj.
Thanks, Micro!
Unfortunately, the web site for Frontier Robotics appears to be down. I'd post it if it worked. (You can still check out the Google Cache).
The Detroit News profiles a tick-killing robot, a lawn-watering robot ($170 Hydrobo), a leaf-collecting robot ($500 Quadrobo), a solar-powered trash compactor robot ($3,600), and iRobot's Looj.
Thanks, Micro!
Unfortunately, the web site for Frontier Robotics appears to be down. I'd post it if it worked. (You can still check out the Google Cache).
iRobot Reports 4th Quarter Earnings, projects $8-10 million 2008 pre-tax profit
iRobot has reported fourth quarter earnings at the level they pre-announced, with full-year earnings of just $500,000 not counting a one-time $8.6 million income tax benefit. But the company announced much-improved 2008 expectations of $8-10 million pre-tax profit, despite a stock compensation expense of up to $7 million.
The growth of 32 percent for the year significantly exceeded the guidance from a year ago, although profits suffered as nickel prices rose and the company fought a costly legal battle with Robotic FX (about $8 million combined for those two items).
The company anticipates 2008 revenue to top $300 million (range up to $310), up 20-25% from 2007's $249 million. That's healthy growth and will put the stock at a very conservative price-to-sales multiple. Earnings are still a bit on the light side, and I'd like to hear more on the conference call about why there won't be $10 million in AFTER-tax profits, which is the target I personally had for the company.
Also of note, the quarter's results showed that home robot sales were robust with the launch of the new Roomba 500 Series (full year home robot units up 24% to 899,000), but PackBot deliveries oddly slowed in the fourth quarter from 120 to 108.
The conference call is tomorrow morning. I'll have detailed notes by tomorrow night.
All in all, there is nothing particularly exciting or disappointing about the earnings call. I'd say they did what they had to do, but there is no real "wow" factor. Particularly when you are bragging about a mere 10% increase in Roomba sales at the retail level in the 4th Quarter and using the gloomy retail environment to look good in comparison. Tomorrow may be a good time to take a profit if you have one, unless the CC includes some really great info on SUGV sales possibilities, LADAR or plans for new products in the pipeline.
-Thorn
Press Release Source: iRobot Corp.
iRobot Reports Record Fourth-Quarter and Full-Year 2007 Results
Tuesday February 19, 4:30 pm ET
Revenue Up 62 Percent for the Quarter, 32 Percent for the Year
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (NASDAQ:IRBT - News) today announced its financial results for the fourth fiscal quarter and fiscal year ended Dec. 29, 2007.
“I am pleased to report another record quarter of top and bottom line growth for the company,” said Colin Angle, chief executive officer of iRobot. “We delivered our fourteenth consecutive quarter of year-over-year revenue growth and the highest quarterly and annual revenue in the company’s history. The top line results were driven by a very successful holiday season for our new iRobot® Roomba® 500 Series robot and a very strong contribution from our Government & Industrial Robots division.
“In 2007, we demonstrated our ability to sustain growth in both divisions and laid the foundation for continued growth in 2008 and beyond. We exited the year with excellent momentum and good visibility, and we are better positioned than any other year in our history. We have an achievable plan for another year of top line growth, gross margin expansion, operating scalability and improved profitability.”
Financial Highlights:
* Revenues for the fourth quarter of 2007 grew to $98.7 million, compared with $61.1 million for the same quarter one year ago. Revenues for the fiscal year ended Dec. 29, 2007, increased to $249.1 million, compared with $189.0 million for fiscal 2006.
* Gross profit for the fourth quarter was $36.1 million (36.6 percent of sales), compared with $22.8 million (37.3 percent of sales) in the fourth quarter of 2006. Gross profit for the fiscal year ended Dec. 29, 2007, was $82.6 million (33.2 percent of sales), compared with $69.7 million (36.9 percent of sales) for the same period a year ago.
* Net profit in the fourth quarter of 2007 was $20.7 million compared with net loss in the fourth quarter of 2006 of $1.8 million. Net income for the fiscal year ended Dec. 29, 2007, increased to $9.1 million, compared with $3.6 million for fiscal 2006. The 2007 quarterly and annual results include an $8.6 million tax benefit, largely associated with the release of federal deferred tax allowances.
Business Highlights & Developments:
* iRobot was awarded the xBot contract, a $286 million Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract from the U.S. Army Program Executive Office for Simulation, Training, and Instrumentation (PEO STRI), on behalf of the Robotic Systems Joint Project Office at Redstone Arsenal, Ala. Under the terms of the contract, the Army could order up to 3,000 military robots, spare parts, training and repair services over the next five years.
* iRobot announced that federal courts in Massachusetts and Alabama entered judgments in favor of iRobot and all disputes with former employee Jameel Ahed and his company, Robotic FX, Inc., have been settled. In August, iRobot filed two lawsuits against Ahed and Robotic FX: the Alabama action was for patent infringement, and the Massachusetts action was for trade secret misappropriation.
* iRobot announced that the U.S. Army accelerated its testing schedules for iRobot’s Future Combat Systems (FCS) Small Unmanned Ground Vehicle (SUGV) robot development program. The updated plan calls for iRobot to deliver a total of 25 FCS SUGV robots by April 2008. The Army Evaluation Task Force (AETF) will begin evaluation and testing of the robots in May 2008. This effort is intended to provide an early capability of SUGV to soldiers in the field. The SUGV Systems Development and Demonstration program will continue to mature the SUGV with its full network capability.
* In addition to generating record revenue for the quarter, sell through of Roomba vacuuming robots was up more than 10 percent over the same period a year ago despite widely reported weakness in general retail. Inventory in retail stores is at a good post-holiday level, and momentum is continuing in 2008.
Financial Expectations
“For 2008 we are expecting revenue growth of 20 percent to 25 percent over our record 2007 and pre-tax net income in the range of $8 million to $10 million,” Angle said. “We will review the guidance in more detail and provide additional metrics on our earnings conference call.”
(In Millions)
Revenue $300 - $310
Gross Margin 36%-37%
Stock Comp Expense $6.5 - $7
Pre-tax net income $8 - $10
This outlook represents management’s view as of Feb. 19, 2008. Investors are reminded that actual results may differ from these estimates for the reasons described below and in our filings with the Securities and Exchange Commission.
Fourth-Quarter and Full Year Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. EST to discuss its financial results for the fourth fiscal quarter and full year 2007, business outlook, and outlook for future financial performance. Pertinent details include:
Date: Wednesday, Feb. 20, 2008
Time: 8:30 a.m. EST
Call-In Number: 719-325-4855
A live, audio broadcast of the conference call also will be available at http://investors.irobot.com/events.cfm. An archived version of the broadcast will be available on the same Web site shortly after the conclusion of the live event. A replay of the telephone conference call will be available and can be accessed by dialing 719-457-0820, access code 8088134.
About iRobot Corp.
iRobot is a provider of robots that perform dull, dirty or dangerous missions in a better way. The company's proprietary technology, iRobot AWARE™ Robot Intelligence Systems, incorporates advanced concepts in navigation, mobility, manipulation and artificial intelligence. This proprietary system enables iRobot to build behavior-based robots, including its family of consumer and military robots. For additional information about iRobot, please visit www.irobot.com.
iRobot Corporation
Consolidated Statement of Operations
(in thousands, except per share amounts)
For the three months ended For the twelve months ended
December 29, December 30, December 29,
December 30,
2007 2006 2007 2006
(unaudited) (audited)
Revenue
Product revenue $ 93,308 $ 56,378 $ 227,457 $ 167,687
Contract revenue 5,432 4,760 21,624 21,268
Total 98,740 61,138 249,081 188,955
Cost of Revenue
Product revenue 57,779 33,953 147,689 103,651
Contract revenue 4,827 4,403 18,805 15,569
Total 62,606 38,356 166,494 119,220
Gross Profit 36,134 22,782 82,587 69,735
Operating Expense
Research & development 4,008 6,079 17,082 17,025
Selling & marketing 14,786 14,772 44,894 33,969
General & administrative 4,045 4,629 20,919 18,703
Litigation & related expenses 1,677 - 2,341 -
Total 24,516 25,480 85,236 69,697
Operating income (loss) 11,618 (2,698 ) (2,649 ) 38
Other income, net 488 984 3,151 3,831
Pre-tax income (loss) 12,106 (1,714 ) 502 3,869
Income tax expense (benefit) (8,609 ) 69 (8,558 ) 304
Net income (loss) $ 20,715 $ (1,783 ) $ 9,060 $ 3,565
Net income (loss) per common share:
Basic $ 0.85 $ (0.08 ) $ 0.37 $ 0.15
Diluted $ 0.81 $ (0.08 ) $ 0.36 $ 0.14
Shares used in Per Common Share Calculations:
Basic 24,448 23,697 24,229 23,516
Diluted 25,519 23,697 25,501 25,601
Stock-based compensation included in above figures:
Cost of product revenue $ 171 $ 111 $ 692 $ 326
Cost of contract revenue 94 84 386 267
Research & development 125 105 377 376
Selling & marketing 241 150 1,074 389
General & administrative 665 357 2,182 1,211
Total $ 1,296 $ 807 $ 4,711 $ 2,569
iRobot Corporation
Condensed Consolidated Balance Sheet
(audited, in thousands)
December 29, December 30,
2007 2006
Assets
Cash and equivalents $ 26,735 $ 5,583
Short term investments 16,550 64,800
Accounts receivable, net 47,681 28,510
Unbilled revenues 2,244 1,961
Inventory, net 45,222 20,890
Deferred tax assets 5,905 -
Other current assets 2,268 2,863
Total current assets 146,605 124,607
Property, plant and equipment, net 15,694 10,701
Deferred tax assets 4,293 -
Other assets 2,500 -
Total assets $ 169,092 $ 135,308
Liabilities and stockholders' equity
Accounts payable $ 44,697 $ 27,685
Accrued expenses 7,987 7,020
Accrued compensation 4,603 5,227
Deferred revenue 1,578 457
Total current liabilities 58,865 40,389
Stockholders' equity 110,227 94,919
Total liabilities and stockholders' equity $ 169,092 $ 135,308
iRobot Corporation
Supplemental Information
(unaudited)
For the three months ended For the twelve months ended
December 29, December 30, December 29,
December 30,
2007 2006 2007 2006
Revenues by business unit (in thousands):
Home Robots $ 73,526 $ 41,887 $ 144,483 $ 112,430
Government & Industrial 25,214 19,251 104,598 76,525
$ 98,740 $ 61,138 $ 249,081 $ 188,955
Units shipped by business unit:
Home Robots (in thousands) 442 267 899 725
Government & Industrial 108 120 471 385
The growth of 32 percent for the year significantly exceeded the guidance from a year ago, although profits suffered as nickel prices rose and the company fought a costly legal battle with Robotic FX (about $8 million combined for those two items).
The company anticipates 2008 revenue to top $300 million (range up to $310), up 20-25% from 2007's $249 million. That's healthy growth and will put the stock at a very conservative price-to-sales multiple. Earnings are still a bit on the light side, and I'd like to hear more on the conference call about why there won't be $10 million in AFTER-tax profits, which is the target I personally had for the company.
Also of note, the quarter's results showed that home robot sales were robust with the launch of the new Roomba 500 Series (full year home robot units up 24% to 899,000), but PackBot deliveries oddly slowed in the fourth quarter from 120 to 108.
The conference call is tomorrow morning. I'll have detailed notes by tomorrow night.
All in all, there is nothing particularly exciting or disappointing about the earnings call. I'd say they did what they had to do, but there is no real "wow" factor. Particularly when you are bragging about a mere 10% increase in Roomba sales at the retail level in the 4th Quarter and using the gloomy retail environment to look good in comparison. Tomorrow may be a good time to take a profit if you have one, unless the CC includes some really great info on SUGV sales possibilities, LADAR or plans for new products in the pipeline.
-Thorn
Press Release Source: iRobot Corp.
iRobot Reports Record Fourth-Quarter and Full-Year 2007 Results
Tuesday February 19, 4:30 pm ET
Revenue Up 62 Percent for the Quarter, 32 Percent for the Year
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (NASDAQ:IRBT - News) today announced its financial results for the fourth fiscal quarter and fiscal year ended Dec. 29, 2007.
“I am pleased to report another record quarter of top and bottom line growth for the company,” said Colin Angle, chief executive officer of iRobot. “We delivered our fourteenth consecutive quarter of year-over-year revenue growth and the highest quarterly and annual revenue in the company’s history. The top line results were driven by a very successful holiday season for our new iRobot® Roomba® 500 Series robot and a very strong contribution from our Government & Industrial Robots division.
“In 2007, we demonstrated our ability to sustain growth in both divisions and laid the foundation for continued growth in 2008 and beyond. We exited the year with excellent momentum and good visibility, and we are better positioned than any other year in our history. We have an achievable plan for another year of top line growth, gross margin expansion, operating scalability and improved profitability.”
Financial Highlights:
* Revenues for the fourth quarter of 2007 grew to $98.7 million, compared with $61.1 million for the same quarter one year ago. Revenues for the fiscal year ended Dec. 29, 2007, increased to $249.1 million, compared with $189.0 million for fiscal 2006.
* Gross profit for the fourth quarter was $36.1 million (36.6 percent of sales), compared with $22.8 million (37.3 percent of sales) in the fourth quarter of 2006. Gross profit for the fiscal year ended Dec. 29, 2007, was $82.6 million (33.2 percent of sales), compared with $69.7 million (36.9 percent of sales) for the same period a year ago.
* Net profit in the fourth quarter of 2007 was $20.7 million compared with net loss in the fourth quarter of 2006 of $1.8 million. Net income for the fiscal year ended Dec. 29, 2007, increased to $9.1 million, compared with $3.6 million for fiscal 2006. The 2007 quarterly and annual results include an $8.6 million tax benefit, largely associated with the release of federal deferred tax allowances.
Business Highlights & Developments:
* iRobot was awarded the xBot contract, a $286 million Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract from the U.S. Army Program Executive Office for Simulation, Training, and Instrumentation (PEO STRI), on behalf of the Robotic Systems Joint Project Office at Redstone Arsenal, Ala. Under the terms of the contract, the Army could order up to 3,000 military robots, spare parts, training and repair services over the next five years.
* iRobot announced that federal courts in Massachusetts and Alabama entered judgments in favor of iRobot and all disputes with former employee Jameel Ahed and his company, Robotic FX, Inc., have been settled. In August, iRobot filed two lawsuits against Ahed and Robotic FX: the Alabama action was for patent infringement, and the Massachusetts action was for trade secret misappropriation.
* iRobot announced that the U.S. Army accelerated its testing schedules for iRobot’s Future Combat Systems (FCS) Small Unmanned Ground Vehicle (SUGV) robot development program. The updated plan calls for iRobot to deliver a total of 25 FCS SUGV robots by April 2008. The Army Evaluation Task Force (AETF) will begin evaluation and testing of the robots in May 2008. This effort is intended to provide an early capability of SUGV to soldiers in the field. The SUGV Systems Development and Demonstration program will continue to mature the SUGV with its full network capability.
* In addition to generating record revenue for the quarter, sell through of Roomba vacuuming robots was up more than 10 percent over the same period a year ago despite widely reported weakness in general retail. Inventory in retail stores is at a good post-holiday level, and momentum is continuing in 2008.
Financial Expectations
“For 2008 we are expecting revenue growth of 20 percent to 25 percent over our record 2007 and pre-tax net income in the range of $8 million to $10 million,” Angle said. “We will review the guidance in more detail and provide additional metrics on our earnings conference call.”
(In Millions)
Revenue $300 - $310
Gross Margin 36%-37%
Stock Comp Expense $6.5 - $7
Pre-tax net income $8 - $10
This outlook represents management’s view as of Feb. 19, 2008. Investors are reminded that actual results may differ from these estimates for the reasons described below and in our filings with the Securities and Exchange Commission.
Fourth-Quarter and Full Year Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. EST to discuss its financial results for the fourth fiscal quarter and full year 2007, business outlook, and outlook for future financial performance. Pertinent details include:
Date: Wednesday, Feb. 20, 2008
Time: 8:30 a.m. EST
Call-In Number: 719-325-4855
A live, audio broadcast of the conference call also will be available at http://investors.irobot.com/events.cfm. An archived version of the broadcast will be available on the same Web site shortly after the conclusion of the live event. A replay of the telephone conference call will be available and can be accessed by dialing 719-457-0820, access code 8088134.
About iRobot Corp.
iRobot is a provider of robots that perform dull, dirty or dangerous missions in a better way. The company's proprietary technology, iRobot AWARE™ Robot Intelligence Systems, incorporates advanced concepts in navigation, mobility, manipulation and artificial intelligence. This proprietary system enables iRobot to build behavior-based robots, including its family of consumer and military robots. For additional information about iRobot, please visit www.irobot.com.
iRobot Corporation
Consolidated Statement of Operations
(in thousands, except per share amounts)
For the three months ended For the twelve months ended
December 29, December 30, December 29,
December 30,
2007 2006 2007 2006
(unaudited) (audited)
Revenue
Product revenue $ 93,308 $ 56,378 $ 227,457 $ 167,687
Contract revenue 5,432 4,760 21,624 21,268
Total 98,740 61,138 249,081 188,955
Cost of Revenue
Product revenue 57,779 33,953 147,689 103,651
Contract revenue 4,827 4,403 18,805 15,569
Total 62,606 38,356 166,494 119,220
Gross Profit 36,134 22,782 82,587 69,735
Operating Expense
Research & development 4,008 6,079 17,082 17,025
Selling & marketing 14,786 14,772 44,894 33,969
General & administrative 4,045 4,629 20,919 18,703
Litigation & related expenses 1,677 - 2,341 -
Total 24,516 25,480 85,236 69,697
Operating income (loss) 11,618 (2,698 ) (2,649 ) 38
Other income, net 488 984 3,151 3,831
Pre-tax income (loss) 12,106 (1,714 ) 502 3,869
Income tax expense (benefit) (8,609 ) 69 (8,558 ) 304
Net income (loss) $ 20,715 $ (1,783 ) $ 9,060 $ 3,565
Net income (loss) per common share:
Basic $ 0.85 $ (0.08 ) $ 0.37 $ 0.15
Diluted $ 0.81 $ (0.08 ) $ 0.36 $ 0.14
Shares used in Per Common Share Calculations:
Basic 24,448 23,697 24,229 23,516
Diluted 25,519 23,697 25,501 25,601
Stock-based compensation included in above figures:
Cost of product revenue $ 171 $ 111 $ 692 $ 326
Cost of contract revenue 94 84 386 267
Research & development 125 105 377 376
Selling & marketing 241 150 1,074 389
General & administrative 665 357 2,182 1,211
Total $ 1,296 $ 807 $ 4,711 $ 2,569
iRobot Corporation
Condensed Consolidated Balance Sheet
(audited, in thousands)
December 29, December 30,
2007 2006
Assets
Cash and equivalents $ 26,735 $ 5,583
Short term investments 16,550 64,800
Accounts receivable, net 47,681 28,510
Unbilled revenues 2,244 1,961
Inventory, net 45,222 20,890
Deferred tax assets 5,905 -
Other current assets 2,268 2,863
Total current assets 146,605 124,607
Property, plant and equipment, net 15,694 10,701
Deferred tax assets 4,293 -
Other assets 2,500 -
Total assets $ 169,092 $ 135,308
Liabilities and stockholders' equity
Accounts payable $ 44,697 $ 27,685
Accrued expenses 7,987 7,020
Accrued compensation 4,603 5,227
Deferred revenue 1,578 457
Total current liabilities 58,865 40,389
Stockholders' equity 110,227 94,919
Total liabilities and stockholders' equity $ 169,092 $ 135,308
iRobot Corporation
Supplemental Information
(unaudited)
For the three months ended For the twelve months ended
December 29, December 30, December 29,
December 30,
2007 2006 2007 2006
Revenues by business unit (in thousands):
Home Robots $ 73,526 $ 41,887 $ 144,483 $ 112,430
Government & Industrial 25,214 19,251 104,598 76,525
$ 98,740 $ 61,138 $ 249,081 $ 188,955
Units shipped by business unit:
Home Robots (in thousands) 442 267 899 725
Government & Industrial 108 120 471 385
iRobot 4th Quarter 2007 Conference Call Notes; No major new home robots likely
iRobot’s 4th Quarter conference call was largely a ho-hum affair, but as usual there are lots of little tidbits worth mulling over. Management appeared to confirm my low expectations of no major new home robots this year, but a lot of positive signs and potential upside surprises are out there, particularly if military contracts come through. But it looks like it will be a pretty ugly first half of the year. Here are my notes:
CEO Colin Angle: Goes over 4th Quarter financial details. Driven by strong home and military revenue. “Excellent momentum and visibility” heading into 2008. Ended year with $26.1 million military order backlog, best visibility ever heading into 2008. Sold over 1300 PackBots so far. [Backlog a year ago was $7.5 million]. Expect sales of PackBots and SUGV to drive military growth.
Roomba customers are happy. Delivered new Roomba 500 product, despite initial production issues and delivering reliability improvements and breakthrough performance. Sell through up more than 10%. Inventory at retail partners at good post-holiday levels and expect Roomba to drive home robot revenue growth this year. Production and retail mix caused impact on gross margins. Operating margin expansion to $8-10 million pre-tax profit in 2008. Full year 29% home robot revenue growth (24% unit growth). *Litigation expenses $2.5 million due to Robotic FX.
Higher than expected costs and lower margins associated with new Roomba 500 ramp, and higher than expected lower-margin retail sales rather than direct sales. (Editor: I surmise anecdotally that this is because much better deals were offered via retailers than via iRobot’s web site, especially relative to the previous year, but Colin described it as “stronger than expected retail support”). Will continue to invest in direct sales, especially internationally.
Military inflection point: Now sending to regular Army infantry units, not just EOD. Expect 60% increase in second half versus first half. $614 million in IDIQ contracts, 75% still available. Margins up in past two years on military robots. Will see some pressure on selling prices as volume ramps up. Will increase government robot division headcount if growth warrants, but "covered the bases" in 2007.
Nickel prices coming down.
Roomba 500 return rates so far are favorable relative to Roomba 400, but won’t have definitive data until the 3rd quarter. Important for margins.
Expect gross margins of 36-37 percent and $300M-$310M revenue (20-25 percent growth) in 2008.
Expect favorable growth in home robots early in 2008. Expect significant home robot margin expansion this year.
Fewer risks this year due to lack of major new product transition. (Editor’s note: This means no major new robots this year).
Chairman Helen Greiner:
Goes over details of military business, including Boeing SUGV partnership, acceleration of SUGV testing by three years, 25? to be delivered by April. First three already delivered. Also notes $286 million xBot/PackBot with FasTac contract. First contract for general infantry. Notes SUGV is general purpose indoor/outdoor. FasTac primarily outdoor. SUGV potentially much greater market than FasTac. Reserves, National Guard, etc.
CFO Geoff Clear:
Goes over gross margins. 36.6% fourth quarter, 5% lower than expected internally. Entirely attributable to home robots. Lower direct sale mix (3% of 5%); higher than expected transition from Roomba 400 (1%); battery and other costs (1%).
Programs to lower home robot costs. Locked in all of 2008 nickel in Chinese currency. Expectations that higher quality Roomba 500 will substantially reduce warranty returns. Expect 3.5% margin improvement for full year to 36-37%.
Profitable for past 4 years. Expect tax rate of 40% going forward. [Ed: Appears to cut after-tax earnings guidance to $4-6 million].
G&I growth aided substantially by soaring spare parts, service sales.
Cash $43 million, down from $49 million at end of third quarter. Still no debt.
Again expects more than 60% of home robot revenue in second half, and now expects the same on military side. Will have high R&D costs in second quarter. Expects net losses in first and second quarters, and in the second quarter in particular. $1 million second quarter charge associated with move to new HQ.
$100-109 Million revenue in first half of the year. Low 30% gross margins in first half. Near 40% second half. Loss pretax $17-19 million first half. Expect 18-23 cents full year earnings expectation. [NOTE: This is below market expectations of 31 cents]
$4.7 million stock compensation in 2007 [this will rise in 2008 to $7 million]. Expect to continue to increase for next couple of years, notes higher than analysts have modeled.
Q&A:
Q: G&I backlog and comfort?
Geoff: Backlog $26.1 million vs. $7.5 million in 2007.
Colin: Major programs give us a good degree of visibility. More sophisticated sales and marketing operation. We have a lot better confidence in what is going to roll out this year.
Q: International sales? Both G&I/home?
Colin: Tracking a number of different opportunities on G&I side. Identified list of potentials that we are pursuing and we believe they will mature in that second half time frame. Consumer: upgrading how we do business in Europe in particular. Will be rolling out a direct-sales European web site.
Geoff: 16% international home robots in 2007 (up 4 percentage points), G&I 10%.
Q: Sharper Image impact?
Colin: Decreased over time. A good retailer. Not among our top retailers at this point.
Geoff: Not a surprise to us. Cash shipping basis over past several months.
Q: Looj? Other products?
Colin: Looj did very well for us in the 4th Quarter. Will remain limited distribution. Expect to expand in the back half of the year. Valuable feedback. Verro pool line will be broadened in 2008. A success. ConnectR delayed but very healthy and very excited about it.
Geoff: Hedges in 2008 placed by supplier, not directly by iRobot. Both on nickel and Chinese currency.
Q: Expecting higher tax rate and lower gross margin?
Geoff: Pre-tax income is up significantly. Better than 300% on percentage of sales.
Q: Risks on G&I?
Colin: Delivering sales that are anticipated by our sales force.
Q: SUGV?
Helen: We’re ready to build and deliver this year. Not specifically modelling SUGV in back half of the year because now in testing. Decision in September.
Q: If SUGV favorable?
Helen: Expect either favorable or adjust robots before final rollout. Well positioned heading into 2009-2010.
Colin: Conservative expectations relative to any production decision on SUGV. Were there to be immediate, strong demand, that would be a plus.
Q: Cash, inventory? What makes up all this inventory?
Geoff: Large portion of Roomba shipments came towards end of the quarter. Higher accounts receivable (up to $48 million from $28 million). Cash increased in January and February. Now back up. Inventory is up substantially, mostly driven by consumer. More SKUs, parts, still stocking Roomba 400, more geographic diversity, etc. Was anticipated, conscious, required to support growing business.
Q: Difficult to model difference between sell-through and sell-in data?
Colin: Our intention to keep giving sell-through data. Hard to get good numbers. Saw some channel fill in 4th Quarter. Better in-store inventory position than in the past 3 years.
Q: 2008 Sell through expections?
Colin: Not prepared to do that.
Q: Cici?
Colin: Advanced version of ConnectR-type program. A ways off from being an iRobot product.
Q: Retailers? Economy.
Colin: We are a good news story for our retailers. Affected by economy. Hope it improves. But good track record of expanding market share independent of economy.
Q: Increase in market penetration?
Colin: Expect modest increase in units with increase in selling price and decrease in warranty returns. Very achievable. If it happens, I’ll certainly tell you. Do not model that.
Q: Higher prices?
Colin: New Roomba carries higher prices, expect that to continue.
Colin: Thanks, etc.
CEO Colin Angle: Goes over 4th Quarter financial details. Driven by strong home and military revenue. “Excellent momentum and visibility” heading into 2008. Ended year with $26.1 million military order backlog, best visibility ever heading into 2008. Sold over 1300 PackBots so far. [Backlog a year ago was $7.5 million]. Expect sales of PackBots and SUGV to drive military growth.
Roomba customers are happy. Delivered new Roomba 500 product, despite initial production issues and delivering reliability improvements and breakthrough performance. Sell through up more than 10%. Inventory at retail partners at good post-holiday levels and expect Roomba to drive home robot revenue growth this year. Production and retail mix caused impact on gross margins. Operating margin expansion to $8-10 million pre-tax profit in 2008. Full year 29% home robot revenue growth (24% unit growth). *Litigation expenses $2.5 million due to Robotic FX.
Higher than expected costs and lower margins associated with new Roomba 500 ramp, and higher than expected lower-margin retail sales rather than direct sales. (Editor: I surmise anecdotally that this is because much better deals were offered via retailers than via iRobot’s web site, especially relative to the previous year, but Colin described it as “stronger than expected retail support”). Will continue to invest in direct sales, especially internationally.
Military inflection point: Now sending to regular Army infantry units, not just EOD. Expect 60% increase in second half versus first half. $614 million in IDIQ contracts, 75% still available. Margins up in past two years on military robots. Will see some pressure on selling prices as volume ramps up. Will increase government robot division headcount if growth warrants, but "covered the bases" in 2007.
Nickel prices coming down.
Roomba 500 return rates so far are favorable relative to Roomba 400, but won’t have definitive data until the 3rd quarter. Important for margins.
Expect gross margins of 36-37 percent and $300M-$310M revenue (20-25 percent growth) in 2008.
Expect favorable growth in home robots early in 2008. Expect significant home robot margin expansion this year.
Fewer risks this year due to lack of major new product transition. (Editor’s note: This means no major new robots this year).
Chairman Helen Greiner:
Goes over details of military business, including Boeing SUGV partnership, acceleration of SUGV testing by three years, 25? to be delivered by April. First three already delivered. Also notes $286 million xBot/PackBot with FasTac contract. First contract for general infantry. Notes SUGV is general purpose indoor/outdoor. FasTac primarily outdoor. SUGV potentially much greater market than FasTac. Reserves, National Guard, etc.
CFO Geoff Clear:
Goes over gross margins. 36.6% fourth quarter, 5% lower than expected internally. Entirely attributable to home robots. Lower direct sale mix (3% of 5%); higher than expected transition from Roomba 400 (1%); battery and other costs (1%).
Programs to lower home robot costs. Locked in all of 2008 nickel in Chinese currency. Expectations that higher quality Roomba 500 will substantially reduce warranty returns. Expect 3.5% margin improvement for full year to 36-37%.
Profitable for past 4 years. Expect tax rate of 40% going forward. [Ed: Appears to cut after-tax earnings guidance to $4-6 million].
G&I growth aided substantially by soaring spare parts, service sales.
Cash $43 million, down from $49 million at end of third quarter. Still no debt.
Again expects more than 60% of home robot revenue in second half, and now expects the same on military side. Will have high R&D costs in second quarter. Expects net losses in first and second quarters, and in the second quarter in particular. $1 million second quarter charge associated with move to new HQ.
$100-109 Million revenue in first half of the year. Low 30% gross margins in first half. Near 40% second half. Loss pretax $17-19 million first half. Expect 18-23 cents full year earnings expectation. [NOTE: This is below market expectations of 31 cents]
$4.7 million stock compensation in 2007 [this will rise in 2008 to $7 million]. Expect to continue to increase for next couple of years, notes higher than analysts have modeled.
Q&A:
Q: G&I backlog and comfort?
Geoff: Backlog $26.1 million vs. $7.5 million in 2007.
Colin: Major programs give us a good degree of visibility. More sophisticated sales and marketing operation. We have a lot better confidence in what is going to roll out this year.
Q: International sales? Both G&I/home?
Colin: Tracking a number of different opportunities on G&I side. Identified list of potentials that we are pursuing and we believe they will mature in that second half time frame. Consumer: upgrading how we do business in Europe in particular. Will be rolling out a direct-sales European web site.
Geoff: 16% international home robots in 2007 (up 4 percentage points), G&I 10%.
Q: Sharper Image impact?
Colin: Decreased over time. A good retailer. Not among our top retailers at this point.
Geoff: Not a surprise to us. Cash shipping basis over past several months.
Q: Looj? Other products?
Colin: Looj did very well for us in the 4th Quarter. Will remain limited distribution. Expect to expand in the back half of the year. Valuable feedback. Verro pool line will be broadened in 2008. A success. ConnectR delayed but very healthy and very excited about it.
Geoff: Hedges in 2008 placed by supplier, not directly by iRobot. Both on nickel and Chinese currency.
Q: Expecting higher tax rate and lower gross margin?
Geoff: Pre-tax income is up significantly. Better than 300% on percentage of sales.
Q: Risks on G&I?
Colin: Delivering sales that are anticipated by our sales force.
Q: SUGV?
Helen: We’re ready to build and deliver this year. Not specifically modelling SUGV in back half of the year because now in testing. Decision in September.
Q: If SUGV favorable?
Helen: Expect either favorable or adjust robots before final rollout. Well positioned heading into 2009-2010.
Colin: Conservative expectations relative to any production decision on SUGV. Were there to be immediate, strong demand, that would be a plus.
Q: Cash, inventory? What makes up all this inventory?
Geoff: Large portion of Roomba shipments came towards end of the quarter. Higher accounts receivable (up to $48 million from $28 million). Cash increased in January and February. Now back up. Inventory is up substantially, mostly driven by consumer. More SKUs, parts, still stocking Roomba 400, more geographic diversity, etc. Was anticipated, conscious, required to support growing business.
Q: Difficult to model difference between sell-through and sell-in data?
Colin: Our intention to keep giving sell-through data. Hard to get good numbers. Saw some channel fill in 4th Quarter. Better in-store inventory position than in the past 3 years.
Q: 2008 Sell through expections?
Colin: Not prepared to do that.
Q: Cici?
Colin: Advanced version of ConnectR-type program. A ways off from being an iRobot product.
Q: Retailers? Economy.
Colin: We are a good news story for our retailers. Affected by economy. Hope it improves. But good track record of expanding market share independent of economy.
Q: Increase in market penetration?
Colin: Expect modest increase in units with increase in selling price and decrease in warranty returns. Very achievable. If it happens, I’ll certainly tell you. Do not model that.
Q: Higher prices?
Colin: New Roomba carries higher prices, expect that to continue.
Colin: Thanks, etc.
Colin Angle to reveal new robot roadmap?
iRobot CEO Colin Angle will be speaking at the Raymond James investor conference on Monday, with the presentation and accompanying slides to be available at iRobot's web site. We'll have full coverage as always. In the past, such presentations and slides have given clues to such future products as the ConnectR and the Verro.
iRobot's Principal Accounting Officer cashes in 2015 options for meager profit!
Alison Dean, an iRobot vice president and "principal accounting officer", exercised options for 25,000 shares at about $18 a share, with a strike price of $14.54 and an exercise date of 2015! Details at this link. (Thx, Microcapfun)
Alison Dean comes with a solid pedigree (Brown University, etc.), but this would seem to be one of the dumbest financial moves I've seen since the Knicks signed an aging Allan Houston to a 7-year guaranteed contract. She cashed in $3.50 a share in profits when she could have waited at any point for the next 7 years to make more. Even a jump back to $20 would have meant an extra 60% gain! I wonder what the market would have priced a 2015 option at? Surely far more than $3.50 a share! [In fact, Alison, if there is any way you can buy back those options and sell them to me, I'll give you $5 a share right now!] I wonder if there is a good reason for this, like she has an upside down jumbo mortgage on a yacht and needs cash fast, or has a job offer as an analyst at Goldman and is jumping ship and needs to rid herself of conflicts of interest?
At any rate, it's not exactly a vote of confidence when your chief accountant makes moves like this.
Alison Dean comes with a solid pedigree (Brown University, etc.), but this would seem to be one of the dumbest financial moves I've seen since the Knicks signed an aging Allan Houston to a 7-year guaranteed contract. She cashed in $3.50 a share in profits when she could have waited at any point for the next 7 years to make more. Even a jump back to $20 would have meant an extra 60% gain! I wonder what the market would have priced a 2015 option at? Surely far more than $3.50 a share! [In fact, Alison, if there is any way you can buy back those options and sell them to me, I'll give you $5 a share right now!] I wonder if there is a good reason for this, like she has an upside down jumbo mortgage on a yacht and needs cash fast, or has a job offer as an analyst at Goldman and is jumping ship and needs to rid herself of conflicts of interest?
At any rate, it's not exactly a vote of confidence when your chief accountant makes moves like this.
DARPA Gives iRobot Award for LANdroids
From iRobot Central this morning, the mother ship announced that it had received an award from the Defense Advanced Research Projects Agency under the LANdroids program, and will develop a small mobile communications relay robot over several years. This could be another HUGE deal for iRobot -- imagine an array of small, cheap, ultra ruggedized, disposable Roombas (or Rovers) fanning out over a battlefield and setting up shop and within minutes enabling first-class communications. I see this as a BIG positive that could yield very significant sales in the future. Anybody remember the Imperial Probe Droid that landed on Hoth? (thx, ibn) UPDATE: The award is for $2.5 million. thx, byronangel.
Here is the award specs for LANdroids: Awardees are expected to get up to $1 million per year for up to three years for software development, and the robots are expected to cost about $100 each. So doesn't seem like necessarily the most lucrative thing ever, but I'm still thinking this could have LOTS of uses down the road and lead to bigger and better things. NOTE: Multiple awards are expected, so expect iRobot to have competition.
Here is the press release:
iRobot Receives Award to Develop Small Mobile Communications Relay Robot – Empowering Warfighters with Ad-Hoc Communications In Theater
BURLINGTON, Mass., March 3, 2008 – iRobot Corp. (NASDAQ: IRBT) today announced it has received an award under the Defense Advanced Research Projects Agency's (DARPA) LANdroids program. Through this multi-year robotics research and development program, iRobot will develop a new portable communications relay robot that is small, inexpensive, intelligent and robust. The new effort takes advantage of the company's extensive experience in mobile robot design and production.
"More than 1,300 of iRobot’s field-tested and combat-proven PackBot robots have been deployed in theater delivering mission-critical support to warfighters around the globe,” said Helen Greiner, co-founder and chairman of iRobot. “Research and development awards such as the DARPA LANdroids program enable us to continue driving innovation towards the next-generation of revolutionary mobile, tactical combat robots that deliver advanced situational awareness and help keep warfighters out of harm’s way.”
The goal of the DARPA LANdroids program is to develop technologies to enable the warfighter operating in dense urban environments to rapidly deploy and maintain a vital communications infrastructure. This infrastructure is composed of a system of multiple LANdroids mobile communications relay robots that form a reconfigurable communications backbone in support of operations.
During this program, iRobot will design and develop the LANdroids robot. This robot will be small enough that a single dismounted warfighter can carry multiple robots, inexpensive to the point of being disposable, robust enough to allow the warfighter to drop and throw them into position, and smart enough to autonomously detect and avoid obstacles while navigating in the urban environment.
DARPA is the central R&D organization for the Department of Defense (DoD) dedicated to sponsoring revolutionary, high-payoff research and development that maintains the technological superiority of the U.S. military.
Here are some pics of what a LANDROID might look like, and a grid showing how the nodes will interact, from the DARPA document (Click to enlarge):
Here is the award specs for LANdroids: Awardees are expected to get up to $1 million per year for up to three years for software development, and the robots are expected to cost about $100 each. So doesn't seem like necessarily the most lucrative thing ever, but I'm still thinking this could have LOTS of uses down the road and lead to bigger and better things. NOTE: Multiple awards are expected, so expect iRobot to have competition.
Here is the press release:
iRobot Receives Award to Develop Small Mobile Communications Relay Robot – Empowering Warfighters with Ad-Hoc Communications In Theater
BURLINGTON, Mass., March 3, 2008 – iRobot Corp. (NASDAQ: IRBT) today announced it has received an award under the Defense Advanced Research Projects Agency's (DARPA) LANdroids program. Through this multi-year robotics research and development program, iRobot will develop a new portable communications relay robot that is small, inexpensive, intelligent and robust. The new effort takes advantage of the company's extensive experience in mobile robot design and production.
"More than 1,300 of iRobot’s field-tested and combat-proven PackBot robots have been deployed in theater delivering mission-critical support to warfighters around the globe,” said Helen Greiner, co-founder and chairman of iRobot. “Research and development awards such as the DARPA LANdroids program enable us to continue driving innovation towards the next-generation of revolutionary mobile, tactical combat robots that deliver advanced situational awareness and help keep warfighters out of harm’s way.”
The goal of the DARPA LANdroids program is to develop technologies to enable the warfighter operating in dense urban environments to rapidly deploy and maintain a vital communications infrastructure. This infrastructure is composed of a system of multiple LANdroids mobile communications relay robots that form a reconfigurable communications backbone in support of operations.
During this program, iRobot will design and develop the LANdroids robot. This robot will be small enough that a single dismounted warfighter can carry multiple robots, inexpensive to the point of being disposable, robust enough to allow the warfighter to drop and throw them into position, and smart enough to autonomously detect and avoid obstacles while navigating in the urban environment.
DARPA is the central R&D organization for the Department of Defense (DoD) dedicated to sponsoring revolutionary, high-payoff research and development that maintains the technological superiority of the U.S. military.
Here are some pics of what a LANDROID might look like, and a grid showing how the nodes will interact, from the DARPA document (Click to enlarge):
New Hammacher Schlemmer Free Shipping Coupon Code
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iRobot announces New Verro Pool Robots Starting at $399!
iRobot has announced NEW iRobot Verro Pool Cleaning Robots!
They must be selling in order for iRobot to be expanding the line, now at a much-lower $399 price point! (Note that the lowest price model is not yet available.)
Here is the Press Release:
Splish, Splash! Sparkling Clean Water With New iRobot Verro Pool Cleaning Robots
Tuesday March 4, 6:00 am ET
Verro Lets Pool Owners Spend More Time Enjoying the Water, Less Time Cleaning It; Internal Filtration System Helps Prevent Wear and Tear on Existing Pool Filters
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (Nasdaq:IRBT - News) today announced an expansion of the iRobot Verro™ Pool Cleaning Robot line. Verro robots come equipped with an internal filtration system that removes debris and particles from pool surfaces and water as small as two microns, providing a cleaner and healthier pool.
Three robots are offered in time for the 2008 pool season, including two new models, the Verro 100 Pool Cleaning Robot and the Verro 500 Pool Cleaning Robot. The Verro 100 is designed specifically to clean above ground pools, while the Verro 500 is designed to clean in-ground pools with gentle, but heavy-duty, scrubbing power. Additionally, this year’s Verro lineup includes the previously announced Verro 300 Pool Cleaning Robot, which cleans thoroughly – and affordably - most in-ground pools. The Verro 100, Verro 300 and Verro 500 Pool Cleaning Robots are priced at $399, $699 and $999, respectively.
“A desire to build on iRobot’s heritage of practical and easy-to-use indoor/outdoor home helper robots was the impetus for expanding the popular Verro line,” said Sandra Lawrence, president and general manager of iRobot Home Robots. “As the swimming pool season kicks off in much of the country, we wanted to provide the best solutions for pool maintenance that enable pool owners to spend their leisure time enjoying their pool, rather than cleaning it.”
The new Verro 100 will navigate and clean a flat-bottomed above ground pool of any shape, while vacuuming debris along the way. The new Verro 500 features sturdy rubber rollers that brush and power-scrub all pool surfaces, as well as a powerful vacuum to remove debris. The Verro 500 cleans pool floors and climbs walls all the way up to the water line. Sitting atop sturdy treads that drive the robot, the Verro 500 works on all pool surfaces, including vinyl, tile, fiberglass, and gunite. The iRobot Verro 300 also features a powerful vacuum to remove debris and includes HydroJet power washers that blast grime from pool surfaces, including the hard to clean pores, cracks and crevices of cement and gunite pools.
All Verro robots operate independently, thereby putting less wear and tear on expensive-to-repair filtration systems within the pool; and are quick and easy to use with no hoses to connect to pool pumps or filter systems. Their functional design also improves the circulation of both the chemicals and the water which results in a more even temperature.
iRobot’s line of hardworking Verro Pool Cleaning Robots makes maintaining a pool a pleasure, rather than a dreaded chore. Most models clean the entire pool, floor-to-water line, in one to three hours—so Verro does the dirty work as pool owners and their families enjoy the swim season.
Colin Angle Presentation Projects $1.50-$1.70 earnings goal in 2011
iRobot CEO Colin Angle and CFO Geoff Clear gave a presentation to the Raymond James investors conference yesterday with some breakout news.
Charts accompanying his presentation projected $1.50-$1.70 a share earnings goal and $500 million in revenue in 3 years. Put a 25 multiple on that and you get some nice big numbers, folks! That would be a nice double from here. It is only a goal, of course. Angle projected those earnings based on assumptions of more reliable products with lower warranty costs, growth in the business, cheaper, modular designs, and growing high-margin product life cycle revenue.
The new DARPA award to develop LANDroids is $2.5 million.
Tidbits: 3.2 million home robots have been sold to date, 1300+ PackBots.
About 450 employees.
40 patents and more than 50 pending.
Roomba has 5% share of $2.4 billion U.S. Vacuum market.
Some 18.5% of consumers say they are considering a robotic vacuum as their next vacuum in a January IDC survey, first time that has shown up.
Very confident in 10% Roomba growth this year because of lost sales last year due to product transition, plus have full year of new Roomba 500 Series. Plus cheaper materials by a “significant margin.”
Lots of great charts in the presentation, and I’ve posted a few below:
The future is looking brighter. The full presentation is available at the Raymond James web site.
Wednesday, May 14, 2008
Modesto Bee profiles Japan's Robotics Industry
Cramer Disses iRobot Again
That screaming genius Cramer says iRobot is still too risky and doesn't have staying power in this market. Although he did praise the company's products, but asked where's the dividend, where's the years of solid earnings growth, etc. (Hello, Cramer, it's an early-middle stage growth stock that is piling all of its earnings into growth -- Think Apple circa 1999.) Compared to a banks with megamortgage writedowns, iRobot has been a pretty good place to park your money for the past year, and seems to be one of the few companies still forecasting robust growth this year DESPITE a recession or near-recession. Let's hope that gets noticed. I'll note that Cramer loved iRobot near the IPO but quickly soured and has been dissing it ever since.
The Jay Group: iRobot's Customer Service Reps
Could Sex Robots Have Saved Eliot Spitzer?
Those long-rumored sex robots (remember the movies A.I. or Blade Runner?) could have spared Eliot Spitzer a lifetime of shame and a shattered career. Perhaps iRobot should start up an "iRobot After Dark" division, and pitch it as a way to keep politicians out of legal trouble? Given that Eliot Spitzer, or "Client 9," is said to have paid $4,300 for two hours, iRobot could certainly find some lucre at the other end of the sleaze rainbow.
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