iRobot gets another $19 million order for PackBots, says nothing about Robotic FX contract

iRobot announced today that it had received another $19 million order for 128 additional PackBot robots bound for Iraq. The company has avoided public comment as far as I can tell about losing the $279 million Army contract to Robotic FX beyond confirming that they did indeed not win. Unfortunately, the release came even as news organizations like Forbes were belatedly writing about Monday's plunge on the Robotic FX news (and inaccurately, I might add), so they just stuck this tidbit at the bottom of the stories, and this had almost no impact on the stock. I think the order is very significant, however, as it affirms that the new contract will not replace PackBot orders wholesale, and it also is probably enough on its own to provide all of iRobot's guidance for military robots for the year. (They were at 85 percent before this order). After reading through all of the lawsuit material, I also think there is a decent chance of iRobot winning in a reasonably short time frame (a hearing is this Thursday, Sept. 20 - thanks stockwatcher) or in Robotic FX being unable to perform and iRobot getting awarded a portion of the contract.

Here's the press release:

iRobot Awarded NAVSEA Orders Totaling $19 Million for Bomb-Disposal Robots
BURLINGTON, Mass.--(BUSINESS WIRE)--iRobot Corp. (Nasdaq:IRBT) today announced two Naval Sea Systems Command (NAVSEA) delivery orders totaling $19 million for 128 additional bomb-disposal robots to be shipped to U.S. forces overseas. These latest awards bring the total value of NAVSEA orders placed to date to $94 million. iRobot expects to deliver the additional iRobot® PackBot® Man Transportable Robotic System (MTRS) robots by mid-2008.
Under the terms of the previously existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract, the military could order up to the full $264 million value in robots, spare parts, training and repair services. The U.S. military’s MTRS program has requirements for up to 1,800 robots through 2012.
“Robots are evolving to become one of the most important innovations to come out of the current military conflict,” said Vice Admiral Joe Dyer (U.S. Navy, Ret.), president of iRobot Government & Industrial Robots. “NAVSEA continues to be a leader in quickly providing the most advanced, life-saving tools to our troops when and where they need it.”
PackBot MTRS robots are customized for NAVSEA and are based on iRobot’s combat-proven PackBot EOD (explosive ordnance disposal) robots. PackBot MTRS robots are equipped with advanced tools and sensors that enable EOD technicians to detect, identify and disable explosive devices from safe distances.
To date, iRobot has delivered more than 1,000 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.