iRobot Soars on SUGV sales, Earnings

iRobot shares soared today -- nearly touching $14 a share -- on previously unannounced sales of SUGV military robots and better-than-expected earnings last quarter, with expectations of SUGV sales to outfit three combat brigades starting next year, and the remaining brigades in future years. As I've mentioned all year, the SUGV is the key for this stock right now with home robots essentially holding even given the consumer recession.

The company also announced plans to expand into South American markets next year, building on rapid growth in Europe and Asia, and will open kiosks in Atlanta and Indianapolis this year, in a further test of direct retail strategy (one that I've LONG advocated!).

The company also expects to enter next year with a backlog of $20 million to $25 million from the military, up from $8 million at the start of this year. VERY bullish!

Cash on hand has also increased to $63 million from $27 million in the last year, in large part due to lower inventory levels.

CEO Colin Angle also said the company continues to look at robots to extend independent living but does not have plans to introduce a product in the short term.

Seeking Alpha has the transcript.


Tags: iRobot, robot