the robotics

iRobot Releases First Quarter Earnings

2008-07-11T06:48:00.002-07:00

iRobot released better-than-expected first quarter earnings after the close Thursday and reaffirmed its somewhat lukewarm expectations for the year. (2008 is the potential blockbuster year, with key military products including the PackBot SUGV Early and the iRobot Warrior driving sales).
"In Q1, we delivered our 11th consecutive quarter of year-over-year revenue growth," said iRobot CEO Colin Angle. "Our financial performance in the quarter was on plan and consistent with our expectations. These results coupled with our excellent visibility for the rest of the year, particularly in our government business, give us a high level of confidence in meeting our first-half and full-year financial guidance. We are therefore reaffirming the guidance we provided on Feb. 12, 2007."
The company highlighted its Roomba product, saying that sales of the product were up both to stores and to consumers. But there was no mention of Scooba, which has been withdrawn from some storefronts (which the company said would happen at last quarter's conference call).
Revenue rose to $39.5 million, up from $38.2 million, which comes despite a tough comparison to last year's distribution of approximately 50,000 Scoobas (my rough estimate) of high-margin Scoobas in last year's first quarter channel fill.
Gross profit declined to $11.1 million from $12.2 million, which I imagine was due to the Scooba rollout.
Net loss rose to $5.5 million vs. $2.9 million -- but remember that the company is significantly larger than it was a year ago with a bigger cost structure as it ramps up spending to support future growth.
The company also mentioned its $2.8 million order for 22 PackBots from Germany, $14 million for 101 Fido PackBots, the introduction of the iRobot Verro pool cleaning robots, its new alliance with Boeing on the SUGV Early (which will be available for delivery in "mid-2008") and the naming of Sandra Lawrence president and GM of the Home Robots Division.
iRobot will host a conference call Thursday at 8:30 a.m.
Robot Stock News will post notes after the conference call concludes.

Tags: iRobot, IRBT

iRobot Releases First Quarter Earnings

2008-07-11T06:48:00.001-07:00

iRobot Releases First Quarter Earnings

2008-07-11T06:48:00.000-07:00

iRobot 1st Quarter 2007 Conference Call Notes -- New Scooba, 2 New Home Robots, iRobot Verro and more

2008-07-11T06:45:00.000-07:00

iRobot just completed it's 1st Quarter conference call, where they said the company would still be announcing 2 new home robots in the second half of the year (apparently in addition to the iRobot Verro line of pool robots), that military robot sales have risen to 51 percent of overall sales with potential further growth due to the SUGV Early in 2008, the PackBot 501 in the second half of 2007, the iRobot Warrior in 2008 and the R-Gator starting in the second half of 2007.
Roomba sales and direct sales were robust, and although the Scooba suffered in comparisons to last year's rollout and has faced higher warranty costs than Roomba, the company announced the new iRobot Scooba 380 and said it would be featured in a new television informercial. Home robot sales were flat due to last year's Scooba rollout, but Roomba sell through was reportedly up 75 percent year over year and Roombas are now in more storefronts than they were a year ago. So much for it being a fad. And direct sales are now a large 27 percent for home robots. The company also confirmed its guidance for a small overall profit this year but continued to note accelerating profit momentum heading in the second half of 2007 and heading into 2008. I'm personally chipper.

Here are my notes from the CC:

Colin Angle:
11th consecurtive quarter of Y/Y revenue growth
Noted difficult comparison to Scooba launch
On plan
Visibility in government business for full year
Sustained growth in sales and demand for PackBots and Roomba...
Total Home Robot sell-through up
Strides toward increased annual profitability
Momentum into 2008
Substantial growth in military -- now 51 percent of revenue. 97 PackBots delivered. More than 900 delivered to date. Backlog grew to $30 million, up from $7.5 million
Ramping up production to meet demand
Captured 70 percent of military revenue for full-year in contracts already
Total home robots
Roomba sell through up 75 percent
Scooba sales significantly fewer leading to 16 percent decline in home robot revenue
Direct sales grew 57 percent Y/Y; 27 percent of home robot sales
Noted $2.8 million Germany contract for 22 PackBots won competitively. Follows on to last year's order and shows success in training.
U.S. Military sees value. Notes $16.6 million order for 101 Fido PackBots and the $14 million order for 101 iRobot PackBots. Military increasing demand.
iRobot PackBot 510 vastly improves competitive position and provides an opportunity for fleet upgrade. Faster, easier to use controls. Will be one of our key revenue drivers in the back half of the year.
iRobot Warrior on track for 2008. Fairfax County, Va., Capitol Hill, Army interested.
R-Gator Low rate production later this year.
SUGV development accelerated after successful tests. Soldiers very excited and eager. Announced strategic alliance with Boeing called SUGV Early available mid-2008. Approximately $3.6 million.
iRobot Roomba franchise is robust -- in more stores and sales up over last year...
Notes iRobot Verro 300 and Verro 600 pool cleaning robots. Level home robot seasonality in future years... Aqua Products long history of high quality. iRobot name only associated with highest quality products.
New home robot category to be offered on Amazon, Home Shopping Network and iRobot.
Introducing next generation iRobot Scooba 380. Faster, covers more area. April 30 informercial will start. Initially available on website, and stocked in retailers for the holidays.
Website launch new products.
Internationally, Europe channel -- U.K. office and expanding distribution. Strong in Korea and improving in Japan.
Added Sandra Lawrence to lead Home Robots. Gillette, Polaroid, Johnson & Johnson. An exciting time. Expanding portfolio of home robots.
Investment in R&D critical. Accelerating development of products. Increased revenue and profitable growth starting in second half of 2007.
Innovation engine.
Will continue to be more profitable.
Committed to maximizing shareholder value by improving profitability. (!)
Helen Greiner:
Notes Raytheon, Boeing, John Deere, etc.
Talks importance of Boeing alliance. Rapidly deliver SUGV. The potential market for this type of product is large -- initial FCS said to be 3,600 units (!).
Boeing will contribute systems integration and global marketing.
Partner where appropriate to bid on sizable programs.
"Although not under contract yet," Boeing and SAIC -- Lockheed Martin centralized controller for FCS -- iRobot is a key partner. Control MULE, SUGV and UAVs.
DARPA project -- Urban Challenge. Tactically significant unmanned ground vehicles, and rapid advancements being made. Our primary objective in participating is to move toward large unmanned systems.
Hope to accelerate the adoption of unmanned vehicles by the military.
Aqua Products Group gives them an incremental channel and gives iRobot a low-risk opportunity for growth.
Geoff Clear:
Revenues grew 3 percent to $39.5 million in spite of a tough comparable.
Gross margin down, overhead up, warranty costs, product mix worse and nickel costs up.
5.5 million loss vs. 2.9 million
Still expects 36-37 percent gross margin for the year.
Home Robots
129,000 units, about the same as the prior year. $19.4 million, down 16 percent due to last year's Scooba channel fill. $137/unit vs. $169/unit.
57 percent increase in home robot life cycle revenue.
Full year sales price per unit will be same as last year or slightly up.
$14.7 million Military sales -- 44 percent increase.
$30 million PackBot backlog, up significantly.
4 Factors hurting gross margins. Overhead costs increased to support growth and globalization. Higher warranty costs, especially international. Home Robots transition in Europe to direct distribution.
61 percent home robot to 49 percent.
Nickel costs rose -- batteries are the most expensive part of the home robots. Taken steps to mitigate.
R&D Spending as a percent of sales was 10.5 percent
Marketing was 20 percent, less spending on TV compared to Scooba rollout, more spending online, more spending on military marketing
Higher legal expenses for intellectual property, IT hirings, and strategic partnerships.
Operating loss up to 6.4 million vs. 3.8 million. $931,000 in other income from cash hoard.
Negligible tax rate. Assume 30 percent tax rate for full year.
Strong balance sheet with no debt.
Significant PackBot shipments in second quarter.
A strong quarter consistent with expectations and on plan. Confidence to confirm financial guidance: Revenues $225-235 million; 79-83M 1st Half; 146-153M in 2nd half. Taken steps to hedge against higher nickel prices; 11-12 million loss in first half; 14-15 million profit in second half.
Paul Coster of JPMorgan: % of home robots international. About 10 percent.
Margin giveup to Boeing? The primary purpose is timing oriented to bring our products to market earlier. Not significantly different gross margin target than we've discussed in the past.
New Home robots in back half? Colin Angle: Yes to 2 new home robots in back half.
Industrial robot? Angle: Haven't said that.
Threat? Greiner: Haven't seen anything that we consider a threat. Think other entrants (MSFT) will drive the industry forward. Angle: working very closely with universities and looking at emerging companies as potential companies for partnering...very exciting but can't say which tech. will be revolutionary at this point.
Acquisition? Greiner: Did not feel the need to rush into any acquisitions. Nothing to report on this call.
Jed (?): Dirt Dog? Angle: Good seller on our web site. Opportunity to bundle that robot with other robots. An active part of our overall strategy. That product's not going away. Clear: Don't break out individual volumes. Particular productive when we bundle with Roombas or Scoobas.
Warranty costs? Scooba? Clear: Scooba is a part of the warranty costs. The Scooba warranty costs are higher than the Roomba line. Probably pretty much in line with early Roomba warranty rates (eek!).
Selling a lot more of the PackBot EODs with added features? Greiner: Yes, but selling more FIDOs with higher prices.
Any updates on urban warfare, municipalities? Angle: Talking more about it. Last year did not have the sales force in place to address the first responder market. Now doubled sales force and partnering with Boeing (SUGV can meet needs of first responders).
Alex Hamilton of Benchmark: Impact of Supplemental Veto and early troop withdrawal on Packbot? Greiner: Robots have proven effective and no going back.
Next guy: Price of Scooba 380? Colin Angle: Roomba and Scooba 380 for approximately $450 (!). Roomba Model 410.
SUGV Early? Angle: Major difference from the PackBot is weight. Complete redesign of the PackBot.
New military contract for controlling (Lockheed): Clear: Small, not planning on disclosing at this time.
Next guy: 70% product for the year? Includes contract revenues that are under agreement?
Size of initial order for FCS in neighborhood of 3600? Greiner -- U.S. Army's stated requirement. Angle -- Not necessarily expectation of order for SUGV Early. Greiner -- looking at first responder, international market as well.
John Lynch: Nothing to report on industrial Roomba. Anecdotally? Angle: It's something that is often talked about and it's something that we get anecdotal comentary. You should not be surprised if at some point in the future we move into this area...it's a very large busines opportunity but not one we have made any announcements about at this point.

iRobot Scooba 380 and Scooba 350 Released!

2008-07-11T06:44:00.000-07:00

BREAKING: iRobot has released the next-generation iRobot Scooba 380 for $499. (NEW PRICE CUT 4/10/08! Now $449!) It cleans 850 square feet, unlike the 250 square feet for the Scooba 5800, and does so by cleaning faster and more efficiently. (The Scooba 380 is also known as model 6050). Save 10% on all accessories with our exclusive coupon code RSN10 at Checkout!

The Scooba 380 has been selling well (having starred in some well-received TV infomercials) and had briefly sold out. But the Scooba 380 is now in stock and ready for immediate shipment.

The new iRobot Scooba 350 also has the faster cleaning technology and is $399, but cleans 500 square feet. (Also known as model 6000).

The company has discontinued the Scooba 5900.

More Scooba deals (as low as $199) are available in our Scooba buyer's guide.

iRobot's Rodney Brooks in extensive new interview

2008-07-11T06:43:00.000-07:00

Talking Robots in Switzerland has posted an extensive Podcast interview with iRobot co-founder Rodney Brooks.
Brooks talks extensively about what he sees in the future of robotics, about the early origins and growing pains of iRobot, the growth of Korean robotics companies, and a lot more. As we've noted before, he is stepping down as head of MIT's legendary robotics lab in June to take a sabbatical.

Tags: iRobot, Rodney+Brooks

Battlefield Extraction Robots Profiled

2008-07-11T06:42:00.000-07:00

iRobot is noted as developing them as well (using the iRobot Warrior).

Here is the link.

Tags: iRobot, robot

Robots making robots

2008-07-11T06:41:00.001-07:00

Popular Science profiles a roboticist working on what appears to be a crude approximation of Star Trek Replicator technology -- well, not quite that sophisticated of course -- but basically a home-fab machine that automatically synthesizes materials into objects, including robots, based on computer instructions. The idea is that space-faring folks could simply take one of these "fabbers" to Mars and simply "print" new robots, complete with batteries et al, from raw source materials.

Genius.

Tags: robots, robot

Robots making robots

2008-07-11T06:41:00.000-07:00

The iRobot PackBot: So easy to use, an 8-year-old can do it (really)

2008-07-11T06:40:00.000-07:00

The PackBot recently was successfully field-tested by 8-year-olds on the National Mall, according to this report.

Tags: iRobot, PackBot

iRobot robots, competitors featured in Boston Globe

2008-07-11T06:39:00.000-07:00

Boston Globe reporter Hiawatha Bray has a story on the surging robotics industry in Massachusetts, including iRobot.

She also profiles the LandShark robot, a 250-pound competitor to the PackBot that costs $25,000.

The LandShark will be unveiled at this week's Robobusiness Conference. Wondering if iRobot will debut anything?

Tags: iRobot, PackBot, robots

New Roomba For Pets Released

2008-07-11T06:37:00.000-07:00

iRobot has gone upscale with two new Roomba pet hair models, the base Roomba for Pets (Maroon) for $299 (just $239 SHIPPED through the link with MSPORT coupon code at checkout) and the new top-of-the-line Roomba for Pets with Intelli-Bin for $369. (Or $295 SHIPPED after 20% off MSPORT coupon code).
As with previous generation Roomba for Pets models, these are available exclusively direct from iRobot, and appear to be another attempt at extending the brand toward more expensive models. This is the most expensive Roomba to date.

The Roomba for Pets models feature an Easy Clean Brush that helps prevent hair bunching and tangling and is, as its name implies, easier to clean. The cheaper Roomba Sage for Pets, which had retailed for $219 but lacked a self-charging home base, has been discontinued. (iRobot also sells a $40 upgrade kit through the links above that turn any model Roomba into a "Roomba for Pets.")

Tags: iRobot, Roomba

$5,000 prize offered for iRobot Create creation

2008-07-11T06:34:00.000-07:00

Details of the contest are at Tom's Hardware Guide. Second place is one of each of iRobot's top-of-the-line floor robots.

Robosapien V2 now $99

2008-07-11T06:32:00.000-07:00

After another price cut, the Robosapien V2 is now half price.

iRobot Co-Founder Rodney Brooks featured on CNET

2008-07-11T06:31:00.000-07:00

CNET posts an extensive interview with Rodney Brooks on the future of robotics (seems like everybody is doing that these days, doesn't it?) Even if you've read all the others, I found this insightful. He talks about his role at iRobot a bit and how he separates that from his academic work.

Tags: iRobot, Rodney Brooks

Will Microsoft Buy iRobot?

2008-07-11T06:29:00.000-07:00

I don't think so, but TheStreet.com lists iRobot as the No. 1 company that Microsoft should gobble up. While always a possibility, I think Mister Softee would have a very hard time persuading the founders and insiders who control the stock to give up their own dream of turning iRobot into a powerhouse unto itself. The pressure of having to perform as a startup without the warm embrace of Redmond can yield strokes of genius, like the Roomba. Anybody try a Zune lately?

Sure, Microsoft has invested in robotics and created the Microsoft Robotics Studio, and Bill Gates has even penned a cover story for Scientific American in which he pronounces robotics as the Next Big Thing. But...

I still don't see it, not for a few years at least. If it does, I'd expect Microsoft to only be interested in the consumer side of the business, and sell off the military side to a major defense contractor.

(Sorry I'm a little late getting to this).

Tags: iRobot

Roomba battery $39.99 shipped

2008-07-11T06:28:00.000-07:00

Amazon has the best deal I've seen for the Roomba Advanced Power System Battery, just $39.99 with Free Shipping.

Tags: iRobot, Roomba

iRobot featured at Robobusiness Conference in Boston

2008-07-11T06:27:00.000-07:00

Hiawatha Bray at the Boston Globe reports on iRobot and other robot companies at the Robobusiness Conference in Boston.

Lance Ulanoff blogs about Robobusiness at PCMag.

Ulanoff notes the naming of the four new members of the Robot Hall of Fame, including Commander Data from Star Trek.

Tags: iRobot, robot

iRobot to participate in JPMorgan Conference

2008-07-11T06:26:00.000-07:00

A 35-minute Q&A with iRobot Chairwoman Helen Greiner and CFO Geoff Clear at a JPMorgan conference will be webcast live May 21 at 10 a.m.

Tags: iRobot

Zacks Puts iRobot atop its Buy List!

2008-07-11T06:25:00.000-07:00

Zacks put iRobot atop its Buy List this morning! Here's the blurb:

"Aggressive Growth – iRobot Corporation (Nasdaq: IRBT)

iRobot Corporation bested first-quarter estimates by almost 21%, prompting analysts to raise this year's and next year's numbers. Over the past month, this year's estimates have increased 28% to nine cents per share, while next year's numbers have risen 8% to 27 cents per share. The company has no debt which is impressive for such a young and growing firm."

Looks like Wall Street is starting to notice that iRobot is one cool company on sale. No debt, growing sales, a new fleet of military robots, new home robots on the way.

Tags: iRobot

Helen Greiner reiterates new robots a comin'

2008-07-11T06:24:00.000-07:00

The JPMorgan webcast is available here, and engadget reports on it here. The new robots will have "mechanical features." Er, we knew that. Greiner said they want to have real launches for the new products instead of just dribble out details. (That seems to bode well for significant products). There also is a chance of moving in to Wal-Mart (Roomba 400 anyone?) Nothing else really new here I heard. The new iRobot Warrior is a key driver in 2008, new marketing chief also is exciting given the need to transform Roomba from niche to maintream. Greiner noted the tweak in guidance that they have more of a bias towards booking profits instead of reinvesting all proceeds into the business. CFO Geoff Clear said target is 40 percent gross profit margin. Around 37 percent now. Hope to leverage operating expenses in future to boost pretax operating margin to mid-teens, etc.

Also of note, iRobot has a analyst day May 30 and another conference June 12, so management is clearly focused on boosting investor confidence and, hopefully, the stock price. So far it seems to be working, as the stock has bounced about 30 percent off of its lows.

Tags: iRobot, robot

Pleo Robot coming soon

2008-07-11T06:23:00.001-07:00

Ugobe sent me an email talking up the forthcoming release of the long-delayed Pleo robot, also announcing that it will include a rechargeable and replaceable battery (smart!). People who sign up at Ugobe's web page will have first crack at the toy, expected to cost $249 or so.

Tags: Ugobe, Pleo

Pleo Robot coming soon

2008-07-11T06:23:00.000-07:00

Seeking Alpha post on iRobot

2008-07-11T06:21:00.000-07:00

An article over at Seeking Alpha found more to like from the JPMorgan presentation by iRobot Chairwoman Helen Greiner than I did, but the writer is new to the company so it was all news to him.

Tags: iRobot, robot

iRobot offering REDOWL sniper-detecting robot for sale -- Will the Army buy it?

2008-07-11T06:20:00.000-07:00

iRobot's REDOWL sniper-detecting PackBot is available in "Low Rate Initial Production (LRIP) quantities of 20 to 40 units, with the first deliveries available six months from receipt of the order," according to iRobot. The question is, will anybody buy it? The specialized prototype would seem perfect if you are facing a likely sniper situation, but will a soldier have time to go get the robot, then bring it in, then send in the robot, then figure out from the robot where the sniper is, etc.?

I'd imagine that when they add the capability of firing back with precision -- which has been talked about previously -- these PackBots will be much more desirable...

Tags: iRobot, PackBot

iRobot offers PackBot 510 for Engineers

2008-07-11T06:19:00.000-07:00

iRobot is now selling a new configuration of its next-generation PackBot 510 robot with an engineer kit that features a new thermal imaging camera and ordnance lifting gear (it can lift a 155mm shell). Not sure how much extra iRobot will charge for the extra features, but presumably the new configuration came from feedback from the military.

Tags: iRobot, PackBot

San Jose Mercury News reviews Roomba, Scooba and Dirt Dog

2008-07-11T06:18:00.000-07:00

The San Jose reviewer loves the Roomba lifestyle, although the wife would prefer it to be a little quieter.
That's the advantage of Roomba and Scooba -- once you have it set up, you can turn it on and go do something else.

Tags: iRobot, Roomba

Meet iRobot's team

2008-07-11T06:16:00.000-07:00

iRobot's web page has a series of quotes and pics of some of its talented engineers and workers, including one working on a future domestic robot.

In other tidbits I saw, there are now 24 job listings -- about average -- and more than 1,000 posts on the iRobot Create forums. Maybe they will actually sell 1,000 of the little guys?

iRobot investor day reminder

2008-07-11T06:15:00.000-07:00

Don't forget, iRobot will be holding a 3-hour "analyst day" webcast May 30 from 9 a.m. to noon EST at this link. Should be interesting -- why else devote 3 hours of everybody's time? (And likely lots of prep work by the staff.) The company obviously feels that Wall Street simply does not understand this stock, and I agree. It will be interesting to see if the company changes any of its guidance and/or gives hints of upcoming products (similar to the chart they posted earlier that showed a robotic lawnmower and a pool cleaning robot). I will post a summary at some point after the event, but likely not until the evening. Feel free to respond to this post in the comments during the event with your thoughts.

Tags: iRobot

New iRobot Roomba 510, Roomba 530, Roomba 560 Models on the Way!

2008-07-11T06:13:00.000-07:00

UPDATED: New iRobot Roomba 510, Roomba 530 and Roomba 560 Models will be released in September and feature upgraded navigation, an optional Lighthouse feature to remember which rooms it has cleaned, vastly improved reliability, easier cleaning, and, possibly, an automatic emptying option, according to a mystery poster at Roomba Review. (The original post was later deleted at the poster's request.)

NEW UPDATE 8/21/07!: The new Roombas HAVE BEEN RELEASED.

Earlier: He shows pics of a Red model, and lists prices: $299 Canadian for Roomba 510, $349-$399 for the Roomba 530 and $399-$449 for the top of the line Roomba 560. The poster, named "Arsenic" had earlier called the model numbers Roomba 520, Roomba 530 and Roomba 540.

The posts, which are accompanied by photos but still only qualify as rumor, states that the new Roomba models will work an average of 1500 hours of use, versus 350 hours for the current generation. The poster also talks of upgraded virtual walls that will turn themselves on and a snazzy, reworked user interface.

The information is allegedly from an insider but has not been confirmed by the company. Will it be discussed at tomorrow's analyst day? Will iRobot try and find/punish the leaker? Will it dampen sales of existing Roombas? Will it be accompanied by an increase in the price, a la the new Scooba 380? Will a lower-end Discovery series Roomba still remain, such as the Roomba 400, for the Wal-Mart crowd?

All very exciting, if it's true.

Tags: iRobot, robot, Roomba

iRobot to Demo military robots at National Press Club

2008-07-11T06:12:00.000-07:00

iRobot will show off its growing array of military hardware at the National Press Club on June 6, featuring test drives and marking the delivery of the 1,000th iRobot PackBot.

Here's the press release:
Press Release Source: iRobot Corp.

iRobot to Demonstrate Life-Saving Military Robots at National Press Club
Wednesday May 30, 3:48 pm ET
Robot Test Drive and Demo Event Marks 1,000th PackBot Delivered

--(BUSINESS WIRE)--iRobot Corp.:

WHAT: iRobot Corp. (NASDAQ:IRBT - News) will demonstrate its full line of
life-saving military robots for media and VIP guests at a
robot "test drive and demo day" marking the delivery of the
1,000th iRobot PackBot(R) robot. See demonstrations up close,
speak with soldiers who have used robots in combat, test drive
and manipulate the following robots through challenging
situations and obstacle courses:

-- The life-saving iRobot PackBot 510 robot, featuring
iRobot's newest hand controller innovation: a
videogame-style controller for today's generation of
soldiers
-- The iRobot PackBot EOD for discovering and disarming
improvised explosive devices (IEDs), the biggest threat to
our troops in Iraq
-- The iRobot PackBot with ICx Fido payload (by ICx Nomadics),
a bomb-sniffing robot that can detect unseen explosives by
their vapors
-- The iRobot PackBot with RedOwl Advanced Sniper Detection
System, which can detect and locate snipers and mortars on
the very first shot fired at personnel or vehicles
-- The iRobot Warrior(TM), a powerful and rugged 250-pound
robot ideal for the toughest field missions, including
explosive ordnance disposal, battlefield casualty
extraction and firefighting
-- The iRobot John Deere R-Gator(TM) autonomous unmanned
ground vehicle, designed for use as a scout, perimeter
guard or supply carrier.

WHO: iRobot is a leader in behavior-based robots that deliver new
and better ways of tackling dull, dirty or dangerous tasks.
iRobot PackBot robots have performed tens of thousands of
missions in Iraq and Afghanistan and are credited with saving
soldiers' lives. Visit iRobot at www.irobot.com.

WHEN: Wednesday, June 6, 2007, agenda as follows

0830 Call to Order
0835 Welcome, Vice Admiral Joe Dyer (U.S. Navy, Ret.),
president, iRobot
0840 Opening Remarks, Helen Greiner, co-founder and
chairman, iRobot
0845 Special Guest
0850 A Soldier's Tale, Sgt. Tommy Rieman, America's Army
Real Hero
0900-1100 Robot demonstrations and test drives

WHERE: National Press Club Ballroom, 529 14th Street NW, Washington,
D.C.

Tags: iRobot

iRobot Investor Day update

2008-07-11T06:08:00.000-07:00

iRobot's leadership is currently webcasting a 3-hour analyst day. Everybody should probably listen to this at some point.

iRobot Chairwoman Helen Greiner: Have about 400 Employees. Global company. Home and military. Over 2.5 million home units. A better way to get the job done. Under couches, under beds, and oh by the way, you don't have to push them around. Over 900 PackBot robots. Saving dozens and dozens of soldiers' lives. Taking on dull, dirty and dangerous jobs. "This is really just the beginning of a whole new industry in robotics."
Vacuums alone are a $3.4 billion market segment, half over $150. Congress: Half of all ground vehicles should be unmanned. $4 billion market.
A whole line of home and military robots that will come out in the 2008 time frame.
Homeland security, law enforcement, light industrial applications. Future industrial applications. (I wonder what?)

Colin Angle talked initially about the company being cutting edge and "designed as an innovation engine," with 40 patents and 50 more pending, with a "team of roboticists second to none." And 15-18 percent of revenue going to R&D.
On the military side, he noted having consistent controls, etc., across platforms ranging from the 30 pound SUGV to the 1500 pound R-Gator.
The plan is to broaden uses from bomb disposal and checkpoints to core Army.
Excited about Boeing SUGV Early partnership.
Work with many of the leading military contractors.
Global company. Substantial investments all around the globe.
On the consumer side, Angle bragged on Roomba. Deeper penetration.
"For your routine maintenance of your home, you are a neanderthal if you clean your home with an upright."
Will not discuss mysterious 2 new products due in second half, but said they will discuss later outdoor products and "even light commercial applications."
"Our challenge is picking and choosing among our opportunities.
"Committed not just on top line growth but growing bottom line profit."
Solid with Roomba and PackBot leading the way. Just the beginning.
"I like where we are today, I love where we are going to be in a very short amount of time."

Military panel:

Vice Admiral (Ret.) Joe Dyer, Capt. Robert "Knob" Moses (former director of contracts at Naval Air Systems Command), Jim Rymarcsuk (former Lockheed and Rolls Royce) Exec.

Dyer talked about the Unmanned Aerial Vehicles coming on quicker now, and Unmanned Ground Vehicles are coming on faster, growing quicker and following in time with unmanned underwater systems and unmanned service system.
Embracing of aerial and underwater systems and "be a player in the integration of all of those systems going forward."
Talks about "Crossing the Chasm." First adopters buying iPhone. Government labs, thinktanks, etc. are in the first adopter category. But to cross the chasm, need reliability, supply chain, et al boring stuff but required. "We are building bridges across the chasm."
Eventually annuity develops. The vast majority of the money -- up to 60 percent -- in sustaining lifetime support.
Army experimentation well to influence procurement systems.
Fort Benning experiments. In 2005, 30 technologies at play. UAVs, UGVs, et al. In 2006, over 40 technologies used in mock battlefield.
Great question posed in 2005 to the young captain in command of the experimental force:
"Of all these technologies and all of these systems, if you could pick just one, what would you take directly into service? His answer without a moment's hesitation, was 'Sir, the iRobot PackBot.'"
In 2006, which three systems would you take into service?: The answer this time was the Raven, the xx buster?, and the PackBot.
"I wanted situational awareness, I wanted it from the air, I wanted it from the ground and I wanted it reliable."

Knob Moses: Customer focus. The bomb disposal mission is really scratching the surface. We see the potential to go well beyond bomb disposal to many new markets. Next closest -- combat engineers, chem/bio and others. Very similar to EOD and order of magnitude larger than EOD. Another order of magnitude growth in overall infantry. See robot in every infantry squad and every SWAT team. Growing additional payloads onto the PackBot platform. First 100 FIDO bomb sniffing PackBots for Iraqi police this quarter. New Engineer robot. Can do many roles that combat engineers do. RedOwl sniper detection. New platforms -- SUGV and iRobot Warrior that open up larger applications. Expanding foothold in international marketplace. Europe. Asia.

Company slide sees potential for 5-year sales of 10,000-20,000 SUGVs (!!!), 2,000-3,000 PackBots, 500-1,000 Warriors, and 200-400 Intelligent Vehicles including R-Gator and "unmanned small boats." (!)

Dyer: Points out "hand-held bomb sniffer" as an oxymoron. Made for robots.
By the end of 2008, the company will go from 4 military products to 10 military products (!) "Much, much more robust" product line with iRobot Warrior (capable of running a 3 minute mile for over 25 miles) and SUGV: "This is the robot that takes military robots from hundreds to thousands." Stresses modularity, upgradeability, future upgrades to controllers, etc.
Stresses iRobot Aware robotic development software architecture, willing to license to competitors. Others have to waste time building systems from scratch.
There is a sea chance in Future Combat Systems. From transformation to modernization. Take the things that really work.
Army Chief of Staff testified to the House Armed Services Committee, the iRobot SUGV was in the room between the Members and the Chief of Staff.
SUGV accelerated from 2012 to potentially 2008.
Several video testimonials from soldiers. "Next time we need to bring some of this equipment with us, especially the SUGVs." "I don't know what this robot costs, but I know how much a soldier costs, and you can't put an amount of money on that."

Home Robots:

Parts of Scooba 380 infomercial shown. Launched at end of April. 28 minutes. 30 second spots don't fully explain Scooba. Enhanced consumer awareness and benefit, drive direct sales and help secure 2nd Half Placement. "Very Strong Results."

More international direct sales. Expand with retail partners overseas. Europe, Middle East and Africa. London iRobot office opened. Direct in Europe. Launch eCommerce for international. New Hong Kong office. Considering direct in Far East. Canada, expanding retail storefronts and warehousing. Costco Canada. Zeller's and The Bay in 2nd Half. 91% increase in Canada sales.

Verro pool cleaning robot. Asked by customers "Where is your pool cleaning robot?" Very strong positive initial results. Initial HSN 113 percent exceeding dollars per minute target. Exceeded Amazon's expectations. 8 Million pools in the U.S.

Focused on improving quality and life cycle, doubled investment. Roomba product life has doubled since 2004 (according to chart). 2nd Manufacturing facility in Far East in 3rd Quarter '07 with capacity of 35,000 per week(!) with Kin Yat Holdings Limited. Talking with other manufacturers as well. Chart shows improved cleaning shortly (ED: NEW ROOMBAS, I presume), and on Whole House Navigation. "We are working on it." Also improving interaction with people.

Sandy Lawrence, the new Home Robots director, talked of crossing the chasm on digital cameras and said she sees that happening with iRobot.

FINANCIAL:

CFO Geoff Clear noted focus of unexpected revenue will go to the bottom line instead of more R&D. Fairly high level of confidence "top range" of revenue number for first half. Leave in place 2nd half guidance. $225-235 Million overall. Anticipate direct sales could become 1/3rd or so given today's products. Quality improvements will cut return and warranty costs.

Q&A:
Q: Cleaning bottom of hulls of ships?
Joe: An area of interest, not been involved in so far.
Q: Licensing and royalties?
Colin: Guidance does not assume a major licensing of software revenue. Not modeled. Exciting.
Q: Sale of Aware?
Colin: Strategy -- Want third parties to work with us on our platform. Our partners can use it. It's an enabler for higher functioning robots. No announcements at this time of it being a standalone product.
Q: Cash guidance?
Geoff: Burned $5 million cash last year because of change in inventory to just-in-time. This year expect $70 million cash hoard to go down as second half inventory builds, then go back up for sales. Notes possibility of investment activity.
Q: SUGV and Iraq?
Joe: SUGV not tied to Iraq. EOD certainly is war related, though see international, domestic and reserves markets.
Q: Price sensitivity of military to cost of SUGV and PackBots. Selling price for SUGV?
Joe: Expect $100,000 price point for SUGV possible. Watching Army budget. Expect next spring, early summer before we see an identifiable budget line dealing with SUGV.
Q: Network warfare?
Joe: Working on robots having a better knowledge of the world around them.
Q:
Colin: Batteries, WiFi, User Interface changes -- PS2 game controllers in the soldiers' hands.
Q: Terms between IRBT and Boeing?
Geoff: Can't tell a lot. They will fund $3.6 million on SUGV Early over the next several quarters.
Q: Gross margin impact of nickel costs, Chinese currency strengthening?
Geoff: Quite focused on nickel. Meetings with battery suppliers. Trying to reduce nickel usage. Reflected in guidance. Clearly a risk point. Very fortunate in that all of our business is denominated in dollars.
Q: Dirt Dog? Father's Day?
Matt: Dirt Dog is going to be a focus for Father's Day. Some promotions with Dirt Dog, extending to Father's Day. Exploring different opportunities with retailers. "Forthcoming."
Q: Who trains soldiers on PackBots?
Knob: Do provide training and train the trainer program.
Q: Home robots higher Average selling prices expected? Increase in direct sales or newer products at higher price points?
Geoff: A number of offsetting factors. ASPs down $30 in first quarter substantially due to Scooba launch in 2006. Return rates could be favorable for ASPs. Verro will have some impact. Can't talk about new products ASPs. Longer term -- Bath Bots - probably lower ASPs. Core Roomba prices are pretty much holding.
Q: Roomba?
A: More sales of the higher priced Roombas, particularly direct.
Q: 50:50 military/home?
Geoff: Probably in 2nd Q, don't talk about 2nd Half breakdown...
Q: Low end of 2nd half vs. high end of 2nd half? What factors?
Geoff: Always shifts in shipping products. FIDO shiftments uncertain on timing. If in 2nd Qtr., could reduce 3rd Qtr.
Q: Long term PLR? Part of contract or add-on?
Jim: Add-on. Hand controller noted. Getting the robots to be used even more to boost aftermarket $$$.
Q: Synergies with home/military? Reasonable penetration for floor cleaning in next five years?
Helen: Synergies increasing. Military first to use technologies, consumer second. Susan: We have an insignificant share of vacuum. Some of leaders have 35-40 percent of the market. Certainly a lot more than we currently have.
Q: If you could really cut prices, could you really substantially increase penetration?
Susan: 1) How low can I go to interest more people. 2) Portfolio of products with different price points.
Colin: Dyson did not take the dominant position in the vacuum cleaning industry by cutting price. Death spiral of cheaper and cheaper and cheaper. Focused on what customers want and raising confidence that robots can do the job effectively. Over time have seen the ability to raise prices. "The vast majority of our robots are being sold at increasingly higher prices." We are clearly focused on making better robots and getting our customers to appreciate we have better robots.
Q: Weapons? Anti-suicide bomber? Sniper?
Joe: Military divided. Like putting a gun on a passenger airplane or not. Half think you should and half think you shouldn't. Think we will see armed robots. Robots give the infantry the potential to shoot second. Go into an area where they have to make a split second decision of whether to fire or not, can be wrong. Can take a better look before acting.
Q: Current year Roomba growth? Penetration or international?
Susan: Roomba penetration. We are at the tipping point.

More to come...

Tags: iRobot, robot

Lawn mower robot kills man

2008-07-11T06:07:00.000-07:00

An industrial lawn mower robot killed a Danish man, Engadget notes, apparently falling on top of him off of a slope. Not exactly good pub for the industry. So far, none of the 50,000 Robomowers sold by Friendly Robotics have resulted in a single injury, from what I've seen, and are thus far safer than typical lawnmowers, which slice numerous limbs from bodies every year. Consumer lawnbots like the Robomower include auto-shutoff mechanisms to guard against rollovers (or curious/stupid children lifting it off the grass). But you can be sure that events like this will be mentioned in lots of news articles about robots from now on, sadly.

If/when iRobot releases its own lawn mower robot, they will have to "cross the chasm" and convince people that these devices are safe, first and foremost. It's a different arena than vacuuming, where all you have to do is convince somebody that it works and is reliable. The better analogy is to trying to convince Army brass to weaponize robots, something iRobot's management understands well.

(Thx, Dimorphcis)

Do people still have a "Frankenstein Complex" when it comes to Home Robots?

2008-07-11T06:06:00.000-07:00

I don't know if I completely buy the premise of this Christian Science Monitor article, but it is true that most folks still do not yet trust robots. Roomba gets a mention and an outdated photo. I for one have no doubt that as future generations of home robots come out and become more capable, more reliable and more widespread, that we'll see a positive cycle of upgrades and mass adoption. There is really no reason why every home shouldn't have at least a Roomba, if not a Scooba. And there is no reason why people should be paying lawn services $30 a week to mow their yard when a robotic lawnmower can do it far cheaper and better with a whole lot less pollution to boot. This is the future.

Tags: robots

Memo to iRobot: Roomba product placement please!

2008-07-11T06:04:00.000-07:00

Sarah Lawrence, new president of iRobot Home Robots, I know you are still getting acquainted with the job, but here are some suggestions/observations:
1. Get iRobot's products into more storefronts.
1a. In the past I've recommended that iRobot open some of its own stores, a la Apple. I still think this is a great idea. Like the Mac, People need to see, touch and use these robots, still foreign to most people, to get a sense of trust. A unit in a box in the back of Sharper Image doesn't quite do the trick. (Just as a Mac in the back of a CompUSA didn't either). A storefront with knowledgable employees keeping the robots stocked with charged batteries and answering customers' questions (and servicing dead 'bots) would draw a crowd and sell lots of robots. Think about it, wouldn't you and your kids want to check out the shiny new robot store? Or would you go for the umpteenth time into The Gap or Wilson Leather? Like Apple Stores, they would be a hub of activity.
1b. In the meantime, iRobot has left whole markets untouched by Roomba. Home Depot, Lowe's and Costco should stock Dirt Dogs in the weeks before Father's Day, but it looks like this won't happen. A pity. Wal-Marts should have $99 Roomba 400s this Christmas. (They would sell tens of thousands if you debuted them on Black Friday.) And isn't Wal-Mart trying to become more chic?
1c. Japan, Japan, Japan. They love robots, they're rich, they should love Roomba.
1d. I'm glad iRobot has started to realize that Europe could be a cash cow and is moving to cut out middlemen so you can lower prices and improve service. It's insane that iRobot is at 10 percent overseas sales. It should be 40 percent -- like Apple.
2. Product placement. Movies, sitcoms, famous folks, Academy Awards goodie bags, whatever it takes. The most obvious show should be ABC's hit, Extreme Makeover: Home Edition. They are always showing handicapped folks for whom Roomba would be perfect. Sears already sponsors the show and sells Roombas. Wouldn't it be great to see a scene where Ty snaps his fingers and a fleet of Roombas snap to work?
3. I like the infomercial for Scooba -- great idea. Consider one for your robotic lawnmower when it comes out. Most people still have no idea that there is such a thing as a robotic lawnmower. They need to see it working. (And get that bad boy on Extreme Makeover too!)

Cheers,
Thorn

Tags: iRobot

Meet CHAD: Robot delivers hospital supplies

2008-07-11T06:03:00.000-07:00

And he only costs $95,000. Developed by a company called Aethon, which believes that there is a potential billion-dollar market for delivery robots. I'd have to agree. And he doesn't get sick, doesn't spread germs, doesn't need to use the bathroom, doesn't take up a parking space, and doesn't complain. Why wouldn't you get CHAD? Sure, he's a little pricey now, but think a few years down the road...

Tags: Aethon, robot

Bullish on IRBT

2008-07-11T06:01:00.000-07:00

Ww Roomba models just around the corner, the new-and-improved Scooba models selling well (there is a 3-4 week wait for the $450 version!), Roombas selling as well as ever, two new unannounced products coming out, iRobot Verro selling, a robotic lawnmower likely coming next year, and the prospect of major military contracts coming in the next several months, let alone next year when several new military robots hit the market, iRobot's stock (NASDAQ:IRBT) IMHO should be going in one direction: Up.

Last year, the stock was weighed down by overhang from an overly optimistic '05 Christmas stocking season, the initial resistance to Scooba's $399 pricepoint and lingering quality control issues. Company executives also didn't understand how to talk to the market -- they are engineers, not Wall Street gurus -- and took too long to realize the damage coming from insider selling. The company has adapted, knows a lot more, and has been steadily fixing the problems. And the fruits of years of R&D are about to hit the market. This is not last year's iRobot.

I'm more bullish today than I've ever been.

Cheers.

Tags: iRobotith ne

LandShark seeks to bite into PackBot's market

2008-07-11T06:00:00.000-07:00

The LandShark costs just $25,000 and can tow an 11,000-pound truck out of the way, The Boston Globe's Hiawatha Bray reports.

Tags: PackBot, Landshark

iTouchless Robot Vacuum on Sale at Amazon

2008-07-11T05:59:00.000-07:00

I hadn't heard of this new Roomba knockoff until I was trolling Amazon recently. It appears to be a new competitor at the low end, and I wonder if iRobot will try and take action against it?

The "iTouchless Robotic Intelligent Vacuum Cleaner" is $119.99 at Amazon after $20 coupon code ITOUJUNE through the link, and was first listed April 15, 2007. The iTouchless looks like it has a lot in common with the original circa 2002 Roomba (very similar filters) with a stylish new exterior. The vacuum features a 1-hour battery, vs. the 2-hour batteries on most Roomba models. It charges in 4-hours versus 3 hours for Roombas, and I couldn't find any accessories like a self-charging home base or scheduler. It also appears to have a much smaller dustbin relative to the Discovery series Roombas, also in common with the 2002 Roomba, although I can't tell for sure from the photos.

The new vacuum also apparently is being distributed by Target, which also stocks Roombas starting at $199. iTouchless, known mostly for its line of trash cans, rebadges a number of products, so it is unclear who is the manufacturer. I don't see this as a serious competitor at this point. It seems to be less interesting than the Cleanmate QQ-1, which is $139 and has sold poorly.

An earlier knockoff that was the subject of a lawsuit by iRobot, the Koolvac KV-1, no longer appears to be available.

Tags: iRobot, Roomba

iRobot Press Club Appearance - Was There Any Press?

2008-07-11T05:58:00.000-07:00

This lame clip at a New York TV station is all I could find from the iRobot press conference featuring its military robots at the National Press Club. If you find anything better, leave a link in the comments.

Roomba Study Shows it Improves Family Life

2008-07-11T05:53:00.001-07:00

Want your husband or children to get more involved in cleaning the house? A new study funded by the National Science Foundation by Carnegie Mellon University found that Roomba does just that!

The 13-year-old daughter in one family almost literally adopted the Roomba, gradually “taking over” the vacuum and eventually moving it permanently to her bedroom. “For the first time ever,” her mother reported, “she is responsible for cleaning her own room every week without being nagged.”

I've certainly observed that in my own house. I'm much more likely to pick up clutter to give Roomba a workout!

Tags: iRobot, Roomba

Roomba Study Shows it Improves Family Life

2008-07-11T05:53:00.000-07:00

Want your husband or children to get more involved in cleaning the house? A new study funded by the National Science Foundation by Carnegie Mellon University found that Roomba does just that!

The 13-year-old daughter in one family almost literally adopted the Roomba, gradually “taking over” the vacuum and eventually moving it permanently to her bedroom. “For the first time ever,” her mother reported, “she is responsible for cleaning her own room every week without being nagged.”

I've certainly observed that in my own house. I'm much more likely to pick up clutter to give Roomba a workout!

Tags: iRobot, Roomba

iRobot Update from Defense News

2008-07-11T05:52:00.000-07:00

Defense News has a report on the state of iRobot's military robotics business.
I don't remember hearing that the company had sold its new PackBot 510 EOD to Australia. I think a major PackBot order could be forthcoming to mirror the recent massive order for its competitor, the Talon from Foster-Miller. The two companies have often had similar contracts in the past.

iRobot News Roundup

2008-07-11T05:51:00.000-07:00

Microcapfun speculates that iRobot might be gearing up for an acquisition. He questions why the company recently increased its revolving credit line from $20 million to $35 million. (The company has repeatedly said that it is actively looking at acquisitions but has nothing to report.) The company has about $70 million in cash from the IPO sitting in short-term investments that could also be used. There are any number of possibilities -- whether it be buying a startup for a piece of technology that could be applied quickly to PackBot or Roomba, or buying a company with military robotics contracts in hand (there is a Mass.-based company developing undersea robots that would be an interesting combo). Then there are the players with decent products but a lack of marketing muscle -- Aquabot and Friendly Robotics (Robomower) come to mind.

Perhaps CFO Geoff Clear will be asked about it this morning at the JPMorgan conference?

The Register spotlights iRobot's Xbox-like controllers for its military hardware.

The Army has an ER for injured robots in Iraq.

Wealjays posted links to iRobot YouTube videos here and here and of iRobot Create projects here.

Wealjays also found this great iRobot slideshow at eWeek.

Microcapfun also finds this great article profiling the Pleo at CNN.

Tags: iRobot, robot

iRobot teams up with Lockheed Martin on FCS Controller

2008-07-11T05:49:00.000-07:00

iRobot put out a press release today saying that it was selected by Lockheed Martin to work on a contract for a central controller for the FCS system. This was not news; the company disclosed this information during the 1st Quarter iRobot conference call in April and it was also mentioned in a May press release by another company. For some reason, the stock popped on the news, which I would attribute far more to the upward momentum of the stock right now than this contract, which will be negligible as far as profits and revenue are concerned. Bulls are eager to run. If the stock is up $.66 on fake news, imagine what it would do with a real contract?

In other iRobot stories of interest, Microcapfun found an Army of iRobot Create robots at the Microsoft Robotics Studio Blog and an audio interview with iRobot Chairwoman Helen Greiner.

Dimorphcis also found this ScienCentral article featuring iRobot and the iRobot Create.

Tags: iRobot, robot

iRobot raises prices on Scooba 380

2008-07-11T05:48:00.000-07:00

UPDATED! iRobot has just raised the list price of the next-generation iRobot Scooba 380 to $499.
This new model has been a hot seller since it came out and iRobot started running television infomercials, with its faster operation, greater floor coverage and better expected reliability. This is a very good sign for iRobot. The stock's weakness last year can be traced almost entirely to Scooba weakness, and that weakness may now slowly be turning into a strength.

Tags: iRobot, Scooba

iRobot raises prices on Roomba Battery

2008-07-11T05:47:00.000-07:00

iRobot has raised prices on the Roomba Battery, now $69.99 before auto 10% discount on accessories. Don't know when they increased prices (if you know please reply to this message) but I recall that they used to be $59. Not surprising given soaring nickel prices this year and that the company has noted that the battery is the most expensive component of the Roomba (and Scooba). The batteries are much cheaper at Amazon. On a positive note, nickel prices appear to have dropped about 20 percent from their peak, although the metal is still several times more expensive than it was in 2005. Spot prices are about $18 a pound last time I checked, down from about $24.

Tags: iRobot

iRobot Planning for Acquisitions

2008-07-11T05:46:00.000-07:00

iRobot announced yesterday that they have secured $50 million in credit facilities that can be used for "strategic acquisitions," equipment leases and the like.
“This facility gives iRobot additional flexibility to execute on our growth strategy including pursuing acquisitions that will expand penetration of our current markets or give us access to new markets and customers where there is high demand for our products,” said Colin Angle, chief executive officer of iRobot. “The establishment of this credit facility is an endorsement of our strategy and demonstrates Bank of America’s confidence in the overall financial strength of iRobot and the potential growth of the emerging robotics industry.”
It looks like iRobot is nearing the purchase of a smaller robotics company or two -- there are certainly many available, either in the military space like Bluefin for aquatic robotics or commercial cleaning robots such as the Intellibot or lawnmowing in Friendly Robotics. I'm guessing military.

Tags: iRobot, robot

DARPA wants $100 LANdroids

2008-07-11T05:45:00.000-07:00

Imagine hundreds of cheap robots called LANdroids dropped around a city or town to instantly create a communications network? That's what DARPA wants, RobotGossip reports. As Wealjays reported on the IRBT message board on Yahoo, several iRobot engineers are working on the problem, and the iRobot Create is one potential platform.
Sounds pretty cool, although at $100 a pop, it'd be hard to make any money!

Tags: iRobot, DARPA

PackBot Fido named No. 2 Army invention for 2006!

2008-07-11T05:40:00.000-07:00

The Army has named the Fido bomb-sniffing attachment for the iRobot PackBot the No. 2 invention of 2006! Check it out at this link.

Thx, infinityaero

Tags: iRobot, PackBot

Vision Robotics Makes Fruit Picking Robot, Wants to Build Roomba Killer

2008-07-11T05:35:00.001-07:00

Vision Robotics of San Diego is working on prototype fruit-picking robots that could displace thousands of migrant farm workers.
Pictured is an artist's rendering from their web page of a two-robot floor cleaning system that would mop and vacuum floors. (Don't get too excited, it appears to be dated 1999). The company also says on its web page that it received a 2007 grant to develop a vision-based navigation attachment module for small bomb defusing robots (iRobot's PackBot?) that will allow them to navigate on their own.

Tags: iRobot, PackBot

Vision Robotics Makes Fruit Picking Robot, Wants to Build Roomba Killer

2008-07-11T05:35:00.000-07:00

TASER, iRobot announce partnership!

2008-06-21T00:02:00.000-07:00

iRobot Corporation (NASDAQ:IRBT) has announced that it has formed a strategic alliance with TASER International, Inc. to develop new robots that can "remotely engage, incapacitate and control dangerous suspects with integrated TASER electronic control devices."
The new TASER-equipped PackBot robots will allow the remote zapping of dangerous suspects "while keeping personnel, the suspect and bystanders out of harm's way."
A proof-of-concept model, the iRobot® PackBot Explorer™ with TASER X26 device, has been created and will be demonstrated at the annual TASER Tactical Conference, July 9-10, at the Westin O'Hare in Chicago.
"iRobot continually looks for new or proven technologies from best-of-industry companies to integrate on our battle-tested robots," said Vice Admiral Joe Dyer (U.S. Navy, Ret.), president of iRobot Government & Industrial Robots. "The addition of TASER technologies onto iRobot platforms will provide a critical tool for SWAT, law enforcement and military to handle a variety of dangerous scenarios."
“TASER International is very excited to be entering into this alliance with a forward thinking and proactive company such as iRobot,” said Tom Smith, chairman of TASER International. “We have been working on expanding the delivery platforms of our proven TASER Neuromuscular Incapacitation (NMI) technology. Integrating our technology with the increasingly necessary capability of remotely controlled or autonomous systems is a natural fit. Further, working on this integration with a company that matches our customer commitment, technical capability, and innovative spirit is very exciting for us and will allow both companies to significantly expand in this market. Stay tuned for what I know will be exciting new product and capability offerings resulting from this collaborative effort.”
What is particularly of note here is that this opens the door to semi-autonomous military robots employing nonlethal technologies. There has been concern, of course, about adding guns to robots and sending them off as terminators, but the TASER seems to be a reasonable interim step. This could also easily be deployed in jail riots, in law enforcement situations, etc.

The iRobot press release is here.

The TASER press release is here.

iRobot Verro Pool Cleaning Robots on Sale

2008-06-20T23:59:00.000-07:00

iRobot has cut the price of the iRobot Verro 300 and the Verro 600 pool robots by $100. Save an extra $50 with the coupon code through the link.

iRobot Shareholder Meeting Details

2008-06-20T23:56:00.000-07:00

An anonymous poster added this to the comments (I did not attend the June 28 Annual Shareholder meeting):

The meeting was interesting. The company was vague about most things (as would be expected) but there were a few interesting bits of info thrown out. These are some of the things that I thought were interesting (but certainly there was much more presented.):
- On the G&I side, they see growth from 4 to 10 major products next year, and many more in the future.
- They posted a slide on potential sales of G&I products in a 3-5 yr outlook that was extremely optimistic: 10,000 - 20,000 SUGV, 2,000 - 3,000 PackBot, 500 - 1,000 Warrior, 200 - 400 intelligent vehicles (R-Gator & unmanned sm boats).
- Still maintaining that there will be 2 new non-floor-cleaning home robots this year with no clues as to what they will be.
- Increasing direct and international sales (doing at least as well per capita in Canada as they are in the US.)
- In the long-term (4 years), they are looking to increase gross profit to 40-42% of revenue. (Up from 36-37% projected for this year.) They expect to do this by increasing direct business, selling with higher margins and higher quality, and increasing product lifecyle revenue (accessories, etc., which has higher margins) among other things.

iRobot zapped by Olbermann, who gets it wrong

2008-06-20T23:43:00.002-07:00

MSNBC host Keith Olbermann tagged iRobot as the third worst in his "worst person in the world" series June 28 for its hookup with the Taser Corporation. Olbermann, however, didn't realize that the Taser was not for the Roomba but for the military robot PackBot, and this transcript misspells iRobot as i-Robot. Oh well. You know they say there's no such thing as bad publicity. However, I bet it doesn't take long before somebody attaches a Taser to an iRobot Create.
Here's the clip:

The bronze to the I-Robot corporation. It makes those little automatic vacuum cleaners that scoot around your floor, not really cleaning your floor, but giving you the sense that you‘re not utterly lazy about vacuuming. I-Robot has now teamed with a stun-gun manufacturer to make a weapon for the Pentagon and the police. They stuck a Taser on their robotic automaton. That‘s right, your Roomba can now shock you into submission.

iRobot zapped by Olbermann, who gets it wrong

2008-06-20T23:43:00.001-07:00

iRobot zapped by Olbermann, who gets it wrong

2008-06-20T23:43:00.000-07:00

iPhone Sold Out Everywhere (almost)

2008-06-20T23:40:00.000-07:00

UPDATE 4/6/07: iPhones are now back in stock at many Apple stores. (Read comments for relevance to iRobot. Also, can there be any doubt that having exclusive iRobot retail stores now could be worth their weight in free publicity if you can get people to line up for the latest and greatest? Not to mention check out the 'bots in person!!)

Apple's iPhone availability page shows that they are sold out EVERYWHERE, with two exceptions: One store in Pittsburgh, PA, and one in Tigard, ORE. Both towns are blessed with two Apple Stores each, which may explain the anomalies. But still, you'd have to feel pretty lame to be the ONLY 2 STORES IN THE ENTIRE COUNTRY *NOT* TO sell out.

So much for people saying that there is plenty of supply out there! There can be no doubt now that iPhone is a HUGE hit. Hope you got your iPhone already, or else you may be waiting a while. The wait for online sales is still 2-4 weeks.

Team Scorpion featuring iRobot profiled

2008-06-20T23:39:00.000-07:00

This Arizona Republic article profiles Team Scorpion, the group including iRobot competing to develop a self-driving vehicle for the DAPRA Urban Challenge. It's well worth a read, although it's mostly about the Tucson-based blood and sweat going into the thing. There is talk of winning big government contracts if they win.

New Taser PackBot Video

2008-06-20T23:34:00.000-07:00

Taser has released a 1-minute promotional video of the new Taser PackBot, showing a beefy guy getting taken down by the diminutive PackBot (which has reared up like an animal trying to make itself look menacing before attacking).
The iRobot alliance was overshadowed a bit by Taser's launch of its new "Shockwave" device which can drop six people at once, and the new XREP shotgun-fired Taser. (I'd like to see one or both of these new devices on board an iRobot Warrior, especially given that the Shockwave Taser seems ideally suited for robots in hostile environments, like clearing suspected terrorist locations in Baghdad).
The iRobot-Taser linkup did receive some criticism here over fears it could be abused:

"The victim would have to receive shocks for longer, or repeatedly, to give police time to reach the scene and restrain them, which carries greater risk to their health," warns non-lethal weapons researcher Neil Davison, of the University of Bradford, UK.
"If someone is severely punished by an autonomous robot, who are you going to take to a tribunal?" asks Steve Wright, a security expert at Leeds Metropolitan University, UK.

Wright (and presumably the reporter) don't seem to realize that PackBot is not autonomous, and isn't likely to become so anytime soon, especially for civilian applications.
iRobot explicitly made that point in this AP article about the original Taser announcement.

iRobot awarded $17.5 million PackBot Order

2008-06-20T23:31:00.000-07:00

It's raining PackBots. iRobot announced another $17.5 million order for PackBots. The order should be fulfilled by the end of January 2008, so this would seem to make it easier for the company to affirm their financial guidance for the year. While the stock jumped about $1 after hours, and I think iRobot is still way undervalued, it appears that Foster-Miller continues to do a bit better this year than iRobot:

Here is Foster-Miller's $18.5 million Talon EOD Robot order from June.

iRobot's European Opportunity

2008-06-20T23:28:00.000-07:00

As we've noted before, iRobot has a substantial opportunity to dramatically increase overseas sales, particularly in Europe. iRobot currently sells about 90 percent of its home robots in North America, which is way too high a percentage. A company like Apple, for example, sells close to half of its wares overseas. And with the surging Euro, the time has never been better to set up a European beachhead. iRobot announced earlier this year that they would be investing in direct sales in Europe, instead of a multilayered distribution approach that resulted in high prices, low margins, few sales and complaints about the difficulty of getting service. iRobot recently announced the next step in its European venture, signing GSI Commerce to run its European web operations. The sooner, the better. (I'd hope iRobot would also start marketing its Roomba and Scooba products as environmentally and global warming friendly because they don't suck 12 amps like a traditional vacuum.)
Of course, I also think iRobot should start opening up a few retail outlets in key shopping malls to show off its wares. (Preferably as close as possible to Apple stores

Robot Stores arrive

2008-06-20T23:25:00.000-07:00

U.K. retailer PC World is going to create robot stores within its larger computer store areas and will feature a dozen robots due to come on line shortly, including a $4,000 R2D2 toy.

I still think iRobot needs to get into the retailing game before somebody else takes this idea and runs with it.

PackBot detonates carbomb (Video)

2008-06-20T23:23:00.000-07:00

If you were in Baghdad, wouldn't you want a PackBot? Check out this video at MinstrelBoy. (Thx, Wealjays)

Undersea Robots spotlighted

2008-06-20T23:22:00.000-07:00

The Boston Globe's Hiawatha Bray profiled the growing field of undersea robots by two Massachusetts companies NOT named iRobot

Taser PackBot combo featured in Motley Fool video

2008-06-20T23:21:00.000-07:00

Check it out here: Taser PackBot Video.

iRobot Create geeky review

2008-06-20T23:18:00.000-07:00

Electronics Design has a geeky (but positive) review of the iRobot CreatElectronics Design has a geeky (but positive) review of the iRobot Create at this link.

Thailand talks bomb disposal robots

2008-06-20T23:17:00.000-07:00

Thailand is still trying to develop its own bomb disposal robots. Maybe they should just buy a few PackBots?

iRobot profiled in hometown paper

2008-06-20T23:16:00.000-07:00

The Burlington Union paper has a profile on iRobot's bots, with quotes from the local police chief talking favorably of using PackBots. Pretty standard stuff otherwise.

iRobot will report its Second Quarter Earnings this Wednesday, July 25, after the market close. The conference call will be Thursday morning at 8:30 a

2008-06-20T23:14:00.000-07:00

iRobot will report its Second Quarter Earnings this Wednesday, July 25, after the market close. The conference call will be Thursday morning at 8:30 a.m. Historically the stock has been very volatile going into and out of earnings, and any changes to financial guidance in particular would likely have a far bigger impact than the second-quarter earnings themselves, which are expected to be weak due primarily to seasonal factors. The company still has lots of shares sold short, so a run up to $25 is not out of the question if earnings are accelerating. That being said, any problems in the consumer line could hurt the stock given the recent runup. All ears on Colin and Helen. (Extra Coffee!) Also still waiting to hear about the two new consumer robots the company is planning to launch shortly, as well as the rumored third Roomba generation. I suspect the bright spots will be the strong sales of the new premium Scooba 380, the premium-priced Roomba for Pets and the success of the Free Dirt Dog promotion (since ended). Anything from the iRobot Verro pool robots would be a bonus. The company may also say that it has already locked up all of the military contracts that it needs to meet its plan for the remainder of 2007, with the recent $17 million PackBot order. I hope somebody asks why it appears that Foster-Miller is beating them in orders this year, however. I also want to hear more about the company's international expansion plans, particularly Europe, where they recently announced the building of a direct-sales online store with GCI Communications, which also built their U.S. online store. The other shoe that *could* drop any day is an acquisition. The company has talked repeatedly about making purchases and lined up debt facilities to do so, and has a $70 million cash hoard plus a rebounding stock price that could be employed.

Adweek Profiles iRobot Customer Service

2008-06-20T23:08:00.000-07:00

Adweek takes a look at the RightNow technology used by iRobot to provide customer service info.

Key quote: "To prospective iRobot consumers, it can seem that the company is reading their minds."

Motley Fool previews Earnings

2008-06-18T01:30:00.000-07:00

The usual from Motley Fool. They mention the reason why iRobot hasn't churned out profits is high R&D spending. Er, Duh. (Of course, there are many other reasons)

Pleo Sold Out But Amazon Still Selling

2008-06-18T01:28:00.000-07:00

Ugobe sent us an email reporting that they have unexpectedly already sold out of the $349 Pleo home robot for 2007 at its web site, although Amazon is still taking pre-orders. The much-delayed emotion-chip-enabled droid is expected to ship by Nov. 1.

Talon Robot bought by rural fire department

2008-06-18T01:26:00.002-07:00

Foster-Miller has succeeded in starting to place its Talon robot, the chief PackBot competitor, into rural fire departments.

If the Iraq war starts winding down, the robot companies are going to need to focus more and more on sales to police and fire departments.

LG Electronics advertises its vacuum robot -- in Iran!

2008-06-18T01:26:00.001-07:00

Well, they must be selling some of these bad boys to the Iranians. Who knew there was a market for vacuum robots in Iran?

Iran is beside the point. There is a worldwide market for these doodads and iRobot better ramp up its international distribution pronto before a big multinational company beats them to the punch and eats their lunch. I'd also like to see an effort at some advertising differentiation -- edgy Roomba commercials aimed at the younger set and mom-focused aimed at, well, moms, and even ads targeted to the disabled and pet owners.

Photo Gallery of iRobot's competitors

2008-06-18T01:24:00.000-07:00

Seems like everybody wants to build a bomb-disposal robot these days. Photo gallery from June at this CNET link.

New Roomba Generation Confirmed by iRobot (!!!)

2008-06-18T01:21:00.000-07:00

UPDATE 8/22: The new Roomba 560, Roomba 530 and Roomba 570 have been released!

The rumors of new Roombas coming soon were true, iRobot Corp. (NASDAQ:IRBT) confirmed in the company's press release announcing that it's second quarter earnings were in line with expectations for a 20 cent loss. (The company said they are very confident that they will exceed their earlier guidance for full-year profits and revenue due to recent military orders.)

Here's the relevant tidbit: "iRobot has been working with retailers to prepare for the introduction of the next generation to its Roomba portfolio. Store inventories have been reduced as part of the plan and the company anticipates benefiting from channel fill in the second half of the year."

We reported on the rumored Roomba 560, Roomba 530 and Roomba 510 earlier this year (pics at the link). If they are anything like they were rumored to be (with dramatically improved reliability, etc.) they will be super-hot.

We'll report tomorrow on the company's earnings conference call, and it'll be interesting to see what other tidbits they are willing to divulge.

-Thorn

iRobot 2nd Quarter 2007 Conference Call Live Blogged

2008-06-18T01:20:00.000-07:00

A transcript of the 2nd Quarter Conference Call has been posted at this link. (Thanks Micro)

My notes from the conference call:
Colin Angle:
Upgrade to $233-243M Revenue guidance, $3-5M full year profit.

New Roomba details to be announced in 3rd Quarter.

G&I 63 percent of revenue. 67 percent growth. 152 Packbots, new record. (249 6 months up 60 percent)

Y/Y Home Robot revenue up 3 percent, sell through flat, despite inventory transition to next generation Roombas. No details on new Roombas, but "this next generation Roomba is in production."

2 new products Sept. 27 Digital Life Conference in New York.

Not substantial 2007 revenue.

Scooba sales up due to infomercial, new Scooba 380 sparking growth.

Verro distribution expanded to HSN and Amazon ("very strong results" "exceeded pre-sale forecasts" "validates strategy")

Notes $17.5 million for 79 PackBots in two orders. New game-style hand controllers.
FIDO 101 unit order fulfilled. Chosen as one of greatest inventions of 2006, now have new 14 Fido order and "expect more to come."

Notes PackBot orders lumpy. Already captured 85 percent of expected G&I (military) revenue with contracts.

1,000th PackBot delivered.

Military mantra now is "do it remotely."

Multiple countries ordering. First international order to Australian Army via Boeing.

Excitement about SUGV growing. Boeing ordered 2 demo units. $4 million in funding for SUGV Early. Successfully completed major milestones on schedule, including prelim. design review.

External interest continues to grow in iRobot Warrior: detection, medical and state & local law enforcement interest.

"I remain committed to improved profitability."

Helen Greiner: Notes new Home Robot president Sandy.
Many opportunities to maintain homes.
Showers, countertops, etc.
New products for light commercial applications. Note some small businesses cleaning offices with Roombas. Can ruggedize. 1 to 2 year development effort would be needed. Not industrial cleaning. Light commercial.

Expanding military platform to police, engineers, chem-bio teams, first-responders, SWAT teams, HAZMat, etc.

New Product iRobot PackBot 510 with First Responder Kit. Less than $90K to fit local budgets. LA Sheriff's and St. Paul Police. Hostage barricades and bomb threats in subways dealt with.

Taser PackBot offers police chance to remotely engage and control dangerous suspects. Officer always in control of the firing mechanism. Leverage Taser contacts with 7500 police departments. SWAT, corrections, private security.

Will take a while to develop fragmented law enforcement market.

Modular PackBot useful in broad variety of apps.

CFO Geoff Clear: Revs up 36 percent to $47 M. Up 19 percent 1st Half.
32 vs 34 percent gross margins.
30.5 vs 32.9 last year first half. Less than guidance of 31 percent. Negatively impacted by Nickel prices. Largest cost in Roomba. Could be $5 million in reduced margin and earnings for the year, but have accounted for this impact.
To achieve 40-42 percent gross margin -- need better material management and increased customer satisfaction and reduced returns.

$4.8 m loss vs. $1.8 million last year.

10.3 m loss vs. 11-12 million guidance and 4.7 million last year

More than $1 million favorable profit versus guidance.

Home robots. 17.2 M vs. 16.7 million last year

107,000 to 99,000 units (drop) due to retailers preparing for new Roombas.

Direct sales now more than a third of home robot revenue!!!

88 percent increase in PackBot sales revenue in quarter.

$7 million of $17 million PackBot order was spare parts alone.

Operating expenses up 40 percent.

Internal R&D $4.2 million up from $3.8 million

Sales and marketing of $10.9 million on plan. Increase is result of two factors: Direct sales growth, and infomercial program costs.

Will increase especially in 4th Quarter. Expect full year sales and marketing to be 19 percent of revenue as expected.

"We affirm our commitment to improving profit margins."

$5.7 million loss vs. $2.7 million. $1.5 million stock compensation expense. Changed accounting for some options granted before IPO. $528,000 adjustment. $100K increase in stock compensation over next few quarters. Not cash.

Expect effective tax rate for the year of 30 percent.

No debt. Cash $70 million. Unchanged. 3-year unsecured $35M line of credit. 1-year $15 million Secured equipment lease line of credit.

37 days of inventory, down from 41. Inventory $22 million. 8 Turns.

Revenues likely to grow in second half 26-30 percent over 2006. 23-29 percent Revenue growth for full year.
Revenue back-end loaded to 4th Quarter. 35-36 percent margins. (again notes nickel)
$3-$5 million profit, $1 million higher than previously.

Q: Military? When phenomenal growth? '08? '09?
A: Helen: Largest military opportunity is FCS for infantry. Need of 3,600 units. Could be expected. Current forces need of 4,000-7,000 robots. Plus international. Colin Angle: SUGV Early mid-2008 on track. We should see that ramp from 08 to 09 and beyond.
Q: Warrior?
A: Helen: We expect the need to be 500-1,000 units over the next few years. Higher price tag. Colin: Sales next year growing in '09. A: Helen: R-Gator being evaluated. Continue to develop the technology and continue to see buyer interest.
Q: So mid-2008 for G&I growth?
A: Colin: Consistent with our understanding.
Q: ASPs up on G&I?
A: Geoff: Yes, Fido, up 30 percent. Sell for more than $160K per unit vs. $110-$120K for regular PackBot. Colin: Payload strategy, increased functionality and higher prices. That's a trend that's not an aberration. But SUGV Early and infantry robots at a lower price point. Offsetting factors at work. Geoff: 3 percent Higher Home Robot ASP impacted by new Scoobas and Verro pool robots.
Q: Could have had a blowout if it weren't for nickel, what about next 18 months?
A: Geoff: Nickel a major component of batteries. Started to increase a year ago. Did not anticipate would escalate as rapidly as it has. More than double. Colin: Use many different commodities. Will be trying to identify trends earlier. We wish it wouldn't have happened.
Q: Gus Richard, First Albany: International?
A: Geoff 20 percent international home robots, Highest ever. G&I 15 percent, highest ever. Colin: International sales force hitting their stride, Boeing aided in sales to Australia.
Q: Taser benefits?
A: Helen: Taser PackBots different from new PackBot 510 with First Responder Kit. Sold to 8500 police departments already.
Q: Material in 08?
A: Helen: Will take a while. It is a fragmented market. Over 450 local bomb squads. 2/3rds have robots, rest must have by 2009. 2,500 SWAT teams and less than 10 percent have robots. 400 Local Hazmat teams. There is a potential for a robot in the squad car of first responders. There is a significant longer term opportunity but I wouldn't see it as significant in 2008.
Q: Decline in OpEx in third quarter?
A: Yes as a percentage of sales. Up in dollars.
Q: Still targeting 19 percent marketing for year, what about 2 new consumer robots? Early 08 or some in Q4.
A: Colin: Largely in 2008. Announcing these products and being sold online. We have no plans to do a major national advertising program around these products. In 2008 you may see our national advertising programs incorporate these products to some degree.
Q: New Roomba ads?
A: Major focus of our national advertising. National TV, infomercials, coops and circulars. New generation Roomba will be the focus.
Q: Fido %?
A: Colin: Regular up, Fido down in 2nd Half: Helen: Lumpy.
Q: Product Life Revenue (PLR) with home robots? Verro?
A: Geoff: PLR higher as a percentage than it's been. About 15 percent up from 10 percent. Colin: Verro: Modest expectations, met and exceeded. Would like to do more of that in the future.
Q: Channel sales dropoff worry?
A: Colin: We are doing a major SKU transition. Still largely driven by Roomba. It's going to impact sell-through because you have to work down the inventory in the channel and orphan as few of the older SKUs as possible.
Q: Color on inventory in channel a year ago versus today.
A: Colin: No specific numbers. In middle of transition. Have not had to reduce pricing at this time. Effectively continuing to move product. Inventories are substantially down, and we are going to be shipping these new SKUs to retailers similar to Scooba launch.
Q: New storefronts?
A: Some, not major driver of growth.
Q: Q3 profitable standalone but not profitable enough to offset Q1?
A: Yep.
Q: Nickel increasing as much as they have? Lithium?
A: Colin: about a 30 percent premium for lithium. Nickel has come down. Lithium may be considered as a special premium high capacity accessory.
Q: Military growth capacity with Ohio supplier? Extra suppliers?
A: Colin: Our supplier has grown with us. Can meet both current and future and surge capacity. Continue to evaluate other options.
Q: Acquisitions? Profit plan?
A: Geoff: Difficult to predict. More than five years from IPO. Colin: Bit of an inflection point harvesting investments, increasing pretax income.

Thoughts on Retail, Cont'd

2008-06-18T01:18:00.000-07:00

I've made this point before, but posted this in response to someone on the Yahoo Message boards who thinks iRobot shouldn't emphasize direct sales because it would hurt channel partners:

The point that you need retail to sell product and show the product, which remains a foreign oddity to most, is absolutely true. The problem is that iRobot's retail partners almost never show the product working. I remember Scooba demonstrations that lasted maybe two weeks at Brookstone, and that was it. (Even when Demos were set up, the batteries were often dead). Otherwise they just sit in a box and look like an expensive toy instead of the "real" vacuums that come in bigger boxes and suck 12 amps.

Apple faced this problem with the Mac. They could get retailers to stock them, but not to sell them properly. They didn't know how. Clerks were ignorant, selection spotty. CompUSA came the closest to a decent experience, but they still relegated Macs to a tiny far corner of the store that was only likely to appeal to the narrow slice already looking to buy one.

That's why iRobot needs its own stores. They wouldn't just have to sell iRobot products (robot toys come to mind), but there are a lot of iRobot products already available. Roomba, Scooba, Verro, Dirt Dog, Create, 2 New Mystery Products this year, Mowba next year. You could easily fill a store, and it would be one cool store. Kids would want to check it out. They'd drag their parents inside. Adults would check it out. They'd see the Demos, they'd see that the darn things work. They'd learn how to care for them. They'd buy. (Or go home and search where to find it cheaper).

Will this hurt relations with existing retailers? Sure, to an extent. But it will also force those that remain with you to upgrade their experience, and there will be spinoff benefits to the expansion of the brand to people who would never have considered buying a robot vac, etc., until they walked into the store. Apple reports 50 percent of the Mac buyers at its stores are new to the platform. (And it's easier to upsell in person than online.) I bet iRobot store customers would have a much higher percentage of converts.

Ultimately, if your product becomes a mass market hit, it is irrelevant that you are competing with your retail channel partners. Does Target refuse to stock iPods because Apple has stores? Of course not. (And you couldn't get much worse placement of iRobot products than the tiny shelf slot Target gives to Roomba.)

iRobot has found some success with the infomercial format, which I applaud them for, but even an infomercial isn't as useful as a physical store in a high-traffic mall for convincing the casual buyer to drop some dough. There is also a danger in infomercials in that the products invariably get tagged by some viewers as a gimmicky infomercial product. But there really is no other quick option for iRobot -- it's the only way to guarantee quality exposure of its product to new customers beyond the free media coverage that they have earned in the past.

Moral of the story: Open up some stores. Preferably in the same malls with Apple stores. (Apple has already done the market research for you). Start cautiously but do it right and there will be big rewards.

Talon SWORDS update -- Lack of funding cited for Armed Robots

2008-06-18T01:17:00.000-07:00

Foster-Miller's Armed Talon SWORDS models are being deployed to Iraq, but only 3 of 80 robots available under a military contract have been built because of a lack of funding over the past two years, National Defense Magazine reports.

The Talon features a mounted machine-gun that can be fired remotely, keeping soldiers out of the line of fire.

The same concept is behind the iRobot Warrior robot (shown here with two guns mounted).

See this earlier post from 2006 about iRobot's armed robot plans. My favorite is adding Javelin missiles.

But it remains to be seen if the money will be forthcoming to build this terminator robots in large numbers.

From Microsoft to iRobot: Robotics Poised for a Revolution

2008-06-18T01:16:00.002-07:00

An obscure publication called IEEE Spectrum features a fabulous profile on the creation of the Microsoft Robotics Group, Microsoft Robotics Studio and the interesting position held by iRobot with its Roomba and Create robots. Check it out at this link. Here's a key passage:

In Mundie's picture of computing's future, processing and information aren't just distributed among the components of a system; they're strewn throughout its environment. Consider the Roomba, iRobot's lowly $119 vacuum-cleaning robot. Today, it employs several strategies to navigate a room in ever-widening circles as it cleans. But most things in the room haven't moved since it vacuumed yesterday, and some things—such as the walls—don't move at all. In the distributed, services-oriented model, some other computer in the household could be a repository of information about the location of walls and furniture and electrical outlets. Any robot moving about the room could draw from that data and update it when, say, a chair gets shifted from one place to another. Access to information about the layout of a house is a service that would be available to every robot. Access to electricity is another.
A small army of Roombas, communicating with one another directly or through a household server, could quickly vacuum an entire house. Eventually, the tables and chairs themselves would be smart enough to report their new locations when they get moved. And new robots coming into the household would quickly acquire whatever information they need, just as servants do when one royal family visits another.

iRobot Create Contest ideas

2008-06-18T01:16:00.001-07:00

Tom's Hardware posts some ideas people have for using the iRobot Create. Everything from Security Robots to a pooper-scooper robot have been proposed.

AUVSI Conference Features iRobot, New Ground Robots

2008-06-18T01:14:00.000-07:00

The Association for Unmanned Vehicle Systems International annual trade show is underway with a significant presence from iRobot. One can only hope that the company can score some new contracts out of this deal. Of interest is a new security guard robot that General Dynamics Robotic Systems aims to sell to the military at $2 million to $3 million a pop as part of a $70 million contract. Looks like the big guys may be wanting to horn in on the robotic action.

Meanwhile, Army Times reports that the name "Future Combat Systems" is going to soon be replaced by a new name to better represent the fact that FCS systems (like the SUGV) could be available as soon as next year.
Thx, nmlc2000!

Voice-Controlled PackBot

2008-06-18T01:05:00.000-07:00

Think-A-Move has posted a video of their voice-controlled PackBot that can tell the difference between operators' voices and operate in noisy environments.

Intriguing.

Colin Angle Makes Presentation at Canaccord Adams

2008-06-18T01:02:00.002-07:00

Colin Angle spoke at the Canaccord Adams conference today.

He emphasized:
* Opportunity for international sales from the current 10 percent (a point I've often made)
* Opportunity for outdoor home robots (Robomower, anyone?)
* Opportunity for light commercial (Roomba Ultra, we presume!)

The third generation Roomba will be announced in a few weeks, after 3 1/2 years with second-generation Roomba. Have been running down inventory since Mother's Day. Will see new Roomba in retail shortly.

Second-generation Scooba 380 on infomercial. Looking for efficient
ways to tell its story. Infomercial works for us. Millions of dollars on TV.

New applications. Verro Pool robot. iRobot Create. Next generation Scooba. Two new products Sept. 27. Increasing the pace of new product introductions. Will end the year with 6 home products. Will continue to introduce new products in 2008. Added a second factory.
PackBot: More than 100 incidents per day of bombs in Baghdad. Car bombs -- Fido Bomb Sniffer. Sniper Detection (RedOwl). Partnership with Taser for police departments. Accelerating SUGV. Very exciting and will be a driver of our G&I revenues next year. R-Gator. Warrior. 4 major G&I products this year, 10 by end of next year. Common controllers and development for third party sensors.

Roomba has 3.4 percent of home vacuum market share. Four years from 14-16 percent profit margins under plan.

There also were accompanying charts that are worth a look. One includes an undersea robot.

Direct link to the webcast is here.

iRobot announced new Corporate HQ

2008-06-18T01:02:00.001-07:00

Robot formally announced its new Corporate HQ in Bedford, Mass., with plans to move into the new digs in mid-2008. The details of this move are not new; the move was first revealed in February.

IRBT soars $3/Share!

2008-06-18T00:58:00.000-07:00

iRobot stock soared today on nothing apparently but the fumes of yesterday's Canaccord Adams conference presentation by iRobot CEO Colin Angle. There wasn't a whole lot new to us robotheads, but most Wall Streeters still are clueless when it comes to the company. My guess is that someone with fairly deep pockets decided to get in. Keep in mind that it doesn't take that much moolah to move this stock. It averages a measly 200,000 shares a day, or about $4 million. A lot of fund managers and investors buy and sell a ton more than that every day.

With several near-term catalysts, YESTERDAY was one of the best opportunities to buy IRBT that I think we'll see for a while. We've got THREE headline-grabbing home robot launches coming in the next six weeks -- 3rd Generation Roomba in a few weeks and two mystery robots Sept. 27 at Digital Life in NYC, plus the potential for military contracts to drop at any moment.

iRobot stock extends gains even as market sours

2008-06-18T00:57:00.000-07:00

r a second straight day, iRobot (NASDAQ:IRBT) powered higher, this time despite a strong market headwind, closing above $20. The stock has now retraced its steps of the past several weeks and is poised for a breakout of its trading range on coming news including the new Roomba, three new home robots, expected military contracts and improved investor sentiment.

As I've been searching for reasons for this turnaround trend, I checked out some recent analyst reports that are all in the right direction. An Aug. 1 Argus report (Free to Fidelity customers) features an extensive and topical discussion of iRobot, reiterates a Buy rating, lifts earnings estimates for this year and next and sets a $27 price target. Thompson Gradient Aug. 3 raised its rating from sell to hold, and Price Target Research raised its rating July 27 from Strong Negative to Negative (at least in the right direction!)

I also note yesterday's massive $51 million order for Foster-Miller Talon Robots, even though I have no knowledge of whether iRobot might receive a similar order. It's unclear. Note that Foster-Miller announced it's contract potential had increased from $63.9 million to $150 million in May, but iRobot's Indefinite Delivery Indefinite Quantity contract with the same NAVAIR office has been stuck at $64 million. The two company's contracts have frequently mirrored each other but I've made a point of noting that Foster-Miller appears to have been pulling ahead for much of this past year. That could change dramatically, or course, once the SUGV (also known as the X300) and the iRobot Warrior (also known as the X700) are ready for volume orders in 2008.

iRobot updates their military robotics page (w/new video)

2008-06-18T00:55:00.000-07:00

iRobot has totally redesigned their web page for Government and Industrial Robots, including snazzy new pages for the PackBot 510, PackBot, FCS SUGV, R-Gator, and X700 Warrior and featuring a rocking new video intro of the robots in action on the battlefield. Check it out.

Robotic military symposium coverage

2008-06-18T00:53:00.000-07:00

CNET features pic of a damaged iRobot PackBot in this robotic vehicle photo gallery alongside a story on the Association Unmanned Vehicle Systems International (AUVSI) conference. The gist? Robots are here to stay, and expect more buying.

Also check out this article on robotic drones that could fly for five years straight and veggie-eating ground military robots.

iRobot, Raytheon Spurned by DARPA!?

2008-06-18T00:52:00.000-07:00

Hard to believe, but Raytheon-managed Team Scorpion has been left off of the list of 36 semifinalists in the DARPA Urban Challenge, despite getting $1 million in development funding. Shocking.

Four of iRobot's top engineers were working on the project. Here is the Team web site. No official announcement from the team, Raytheon or iRobot that I've seen.

Read all the blog posts featuring Team Scorpion at this link.

Colin Angle to Keynote DigitalLife

2008-06-18T00:10:00.000-07:00

iRobot CEO Colin Angle is listed as one of three Keynote speakers at the DigitalLife conference in New York City Sept. 27-30. Angle has already spilled the beans that he will announce the two new home robot products at the conference on Sept. 27. By then, the Third Generation Roomba will also be shipping. It should be a good crowd; 60,000 attendees are expected for the conference at the Javits Center.

Minor R-Gator, FIDO contracts post

2008-06-18T00:09:00.000-07:00

New contracts posted today for the R-Gator ($900,000) and to Nomadics Inc. ($1.7 million) to upgrade its FIDO product, currently used on iRobot PackBots.

3,000 Robots Wanted for Battle! (And iRobot may have the inside track)

2008-06-18T00:07:00.000-07:00

The Pentagon has issued an URGENT Request for 3,000 counter-IED robots, including 1,000 more by the end of this year, AP reports. iRobot Corporation (NASDAQ:IRBT) is one of the leading contenders to get a piece of this contract.
(The military already has about 5,000 robots, including 1,000 iRobot PackBot robots, mostly of the bomb-killing variety).

Here is excellent coverage from Wired (Via Defense News), which calls iRobot "the favorite" to win the competition for the contracts to be announced Sept. 14. Here's one comment added to the post:

I work for a small robotics company that received this bid request on July 17. We worked on it for a day or so before realizing that it is totally rigged. I've heard hearsay that iRobot even knew about this competition about a year before this announcement came out. The good-ole-boy network is alive and well in defense contracting, and since we don't have a general in our pocket, we have no chance of winning it.

Hint of a big contract could be one reason behind last week's sudden runup, but an actual contract would be much bigger news, particularly if it came with a "surge" bonus.

The robot surge also made it to Time Magazine, which notes speculation that Foster-Miller may build a scaled-down version of its Talon robot (a must read) and Wonkette.

thx, aj_penny_packer and ibnjoyn_2007!

iRobot continues surge on HUGE volume

2008-06-18T00:06:00.000-07:00

iRobot powered higher again today on massive volume -- 831,000 shares! -- nearly 4 percent of the total shares outstanding on continued speculation that iRobot will win the competition for a contract worth up to 3,000 robots on Sept. 14. (Of course, iRobot could win only a portion and still see major upside.) I think there is substantial evidence that iRobot will win the contract and has indeed been preparing for this moment for a while.
1) The company has doubled PackBot production capacity and has a significant "surge" capacity should they get an urgent order.
2) Several of the PackBot variants, including the PackBot w/Fido bomb sniffing technology, the PackBot 510 EOD and the PackBot 510 w/Engineer Kit are perfect for the job. Check out the new videos at the links for each showing them peering into vehicles with their long arms, sniffing for bombs!
3) iRobot has already announced that they have 85 percent of the contracts they need for the year to meet their guidance, and they are expecting additional contracts, and mentioned the 510 in particular. No promises of course, and orders are "lumpy," but this has the potential for some serious boosts to iRobot over the long run. (Remember that the most profitable part of any contract is not the initial sale but the back-end servicing which goes on for years and years...)

Note that 3,000 robots is roughly $450 million if they were all Fido PackBots. Of course, iRobot could somehow get shut out, or get only a portion, but that's not where the buzz is. And it's a LOUD buzz.

iRobot hires new advertising firm

2008-06-18T00:00:00.000-07:00

iRobot has hired The Gate ad firm in New York to do a "complete repositioning of the iRobot consumer unit," Adweek reports:

"The Gate's marketing insight and ability to communicate iRobot's Home Robots 'reason for being' uncovered product benefits and new market segments that we can own," said Matt Palma, the client's vp, sales and marketing. "This insight set The Gate apart from its competitors in the review for our business."
TV will launch this fall and the campaign will extend to print and online elements.

I'd say The Gate is the luckiest ad agency in the world right now. If they do a good job, they can talk about how they helped take iRobot Roombas and Scoobas from 2 million units to 10 million. With the new Roombas coming out soon and two new consumer products, the time has never been better for a branding campaign that also sells the product.

(Thx, Microcapfun)

Latest Motley Fool iRobot hit

2008-06-03T23:06:00.001-07:00

I don't normally post the exceedingly frequent (and often shallow) hits on iRobot from The Motley Fool, but I found this one better than most, which isn't saying much. The gist: things are headed in the right direction.

Barron's reporter talks IRBT at Seeking Alpha

2008-06-03T23:05:00.001-07:00

Barron's Eric Savitz tries to make sense of IRBT's recent surge.
Here's this very interesting nugget:

Wednesday morning, Needham analyst James Ricchiuti repeated his Buy rating on the stock, citing strong demand for both military and consumer robots, and taking note of the rise in the stock price on the DOD’s search for new robots. He also notes that the company next week will launch a new version of its Roomba vaccuum cleaner line next week...

So, strap in folks. The new Roomba launch and military contracts and the two new consumer products all coming together at the same time should make for a very interesting (and profitable I hope) six weeks...
(Thx, byronangel)