iRobot Stock Drops After 2nd Quarter Earnings; Has SUGV Rollout Been Shrunk?

iRobot's stock took a big hit yesterday after it reported decent, but not great earnings and reaffirmed its revenue and profit guidance for the full year despite truly dismal domestic home robot sales.

But what appears to be hitting the stock is a concern that Congress may not fund the SUGV at levels that the Pentagon has requested. The Pentagon's budget request is for $125 million for unmanned ground vehicles leftover from the defunct Future Combat Systems, which, as I understand it, would be split between the SUGV and the Lockheed Martin MULE.

According to iRobot CEO Colin Angle during the conference call (transcript), the Pentagon's plan is to initially roll out the SUGV to seven combat brigades and eventually to all combat brigades, but a formal production decision isn't expected until later this year, although the company is starting to deliver small numbers of SUGV 310s to the military, including 10 in the most recent quarter.

But I think this exchange in the conference call is what hit the stock:

Josephine Millward - Dougherty & Company

Colin, you talked about the spinouts seven infantry brigade combat teams. Do you expect, when you get your low rate initial production order, do you expect to receive an order to supply seven brigades because so far I think the defense budget markup has only provided funding for one brigade next year?

Colin Angle

Well, things are currently influx and information on exactly how many brigades seem to change, so I'm uncomfortable giving you a strong answer on that one.

Colin's weak answer doesn't inspire confidence. And Millward immediately after the conference call downgraded the stock to Sell. I've been trying to confirm her contention that the markup cut funding to one brigade. I combed the House Defense bill and summaries on the House Appropriations web site and couldn't find any mention of the program, either on the funded list or the cut list.

As I've said frequently, this year is all about the SUGV as far as the stock price is concerned, given the potential for $500 million - $1 billion+ in contract orders over the next five years on that one product alone. The most the company can hope to do otherwise is tread water amid a terrible economy, and that's what they've done (and admirably boosted its cash position and trimmed some fat).

If Millward's info is accurate, that would be a serious blow to our hopes of seeing $20 for IRBT this year. Of course, there's always next year, and there's always the chance they can do better in the Senate, or in conference...

Tags: iRobot, SUGV, Army, robot

iRobot Woos Mom Bloggers

iRobot invited 9 female bloggers to iRobot headquarters last week and gave them a tour and plans to work with them on some sort of project, according to the bloggers.

Chipchick.com has a rundown, complete with an extensive series of photos and a video featuring iRobot's SUGV military robot and a list of the participating bloggers. Apparently a contest is in the works...

GoodGollyMissBlondie goes goo-goo for iRobot.

Tags: iRobot, blogging

iRobot CEO Colin Angle on NPR's On Point Show Discussing Roomba, PackBot, Future of Robotics

iRobot CEO Colin Angle was the featured guest yesterday on National Public Radio's "On Point" program. This is a MUST-listen interview, available at this link.
Also check out the comments at the link from NPR listeners. There still seems to be a lot of paranoia out there about robots.

Tags: iRobot, robot, NPR

*Real* Transformers: iRobot Develops "Autonomous Vehicle Kit" That Transforms Any Vehicle Into A Robot

iRobot has developed an "Autonomous Vehicle Kit" that can transform any existing vehicle into a robotic vehicle at a much lower cost than developing a robotic vehicle from scratch, according to the company's president of military robotics, Joe Dyer.

The new technology isn't exactly at the level of "Bumblebee," the Transformer (pictured above) who turns from a hot Chevy Camaro into a fighting warrior, but it does fire the imagination about a whole host of possibilities. You can certainly imagine them -- like truck driving along a dedicated supply route, one of the most dangerous activities in Iraq and Afghanistan. Or driving a robotic truck into a Taliban stronghold town, Trojan Horse-style, and waiting for the bad guys to come and inspect it, at which point they'll be sitting ducks for an ambush. If nothing else, this would be a kick-ass marketing tool for the Army, given the potential tie-in to the most popular movie franchise in America right now.

The only problem? The Pentagon doesn't yet have a clear-cut program to buy this new technology.

From Aviation Week:

“It’s a much cheaper way into autonomy,” (Dyer) says, “and it also reserves the capability of the vehicle to be man-operated.” The company is in discussions with the Army about the kit, but Dyer points out that across the Dept. of Defense “you don’t see any programs of record or any procurement efforts underway,” for such capabilities. “Right now we’re in one of those times where technologies are being developed and there’s a technology push that’s really waiting for a requirements pull.”

iRobot had earlier developed a robotic vehicle called the R-Gator with John Deere for such missions as perimeter patrol and pack mule duty, but has had only limited success selling it. It's listed on the company's web site as a research project. (You can see the R-Gator videos and brochure at this link.)

The article also goes on to note that both iRobot and Qinetiq, the company's chief competition in military robots, are developing technologies to direct swarms of semi-autonomous robots on the battlefield.

That of course, brings a whole 'nother movie franchise to mind. Skynet and Terminator, anyone?

thx, b_radford for the tip!

Tags: iRobot, robot, robots, robotics, Terminator, Transformers, military, defense, John+Deere, Camaro, skynet, cars

Robotic CareBots for Elderly Touted by Gecko Systems

Gecko Systems, which appears to be a nearly worthless Pinksheet stock (Symbol: GCKO) trading for a fraction of a penny a share, is talking up the potential for eldercare CareBots. I note this because iRobot has said strongly hinted in the past that they are considering developing eldercare robots, given the enormous potential cost savings relative to nursing homes, etc.
Clip:

This new type of modern eldercare will postpone, if not eliminate, many elderly persons from having to endure the loneliness and loss of independence when living in nursing homes, and other assisted living facilities. Their families can now better manage the difficult decisions regarding independence they allow their now dependent aged parent while minimizing the concern and risk the adult caregiving child is willing to assume to enable an acceptable level of independence for their now dependent parent.

The press release includes wildly optimistic market penetration rates in the billions, so take it with a bag of salt.

Here's a goofy YouTube video of the CareBot in action:

Tags: iRobot, robot

"The time has come for military ground robots"

Military and Aerospace Electronics has a look at the rollout of military robots and talks extensively to Joe Dyer, head of iRobot's military robotics division. Among the tidbits is the potential use of fuel cells to power robots. (A fuel cell recently powered a PackBot for 40 miles!)

“Robots have high peak power demands, in addition to their power loads of just staying awake and looking about,” says iRobot’s Dyer. “Steep and rough terrain has very high power demands.” For now, UGVs will take advantage of the cutting edge of battery technologies, and investigate future advances in fuel cells and hybrid electric power, he says.

Dyer also speculated about armed robots, suggesting that Taser-equipped robots and other nonlethal technologies may be equipped first. (Awesome Taser PackBot video).

Thx, SamBouchard!

Tags: iRobot, robot, robotics, military

New Poll: What should iRobot's Next Home Robot Be?

The poll is at the top right of this blog. Any choices I missed? Leave a comment here.

Tags: iRobot, robot

Robot Flick Transformers 2 Tops $500 MILLION worldwide

Not bad for about 10 days work. The big-budget, apparently small-brained Transformers 2 is at $591 million worldwide and counting. The only other movie to come close to this explosive a start is last year's boffo Batman picture The Dark Knight featuring the late Heath Ledger.

What does this suggest? During a recession, a LOT of folks want to watch robots bashing each other, and a cute girl (Megan Fox) in danger.

Maybe iRobot could sex up its marketing with a little mayhem and some leg? Or perhaps a Transformers tie-in? A Dirt Dog that doubles as a remote controlled basher car? Or something?

Tags: Transformers, Megan Fox

Roomba 535 $169 SHIPPED!

HOT DEAL!
The iRobot Roomba 535 Vacuum Cleaner with Home Base is just $169.99 SHIPPED at Buy.com!

This is a new, NOT refurb item, while supplies last! The 535 is a step up from the 530, which retails for $299. It includes a "lighthouse" virtual wall and is capable of being upgraded with the Wireless Command Center from iRobot.

-Thorn

Tags: iRobot, Roomba