Robot Stock News -- All about iRobot, Roomba, Scooba and PackBot

iRobot Creates Health Care Business Unit, Names New President

2009-10-29T09:20:00.003-04:00

Big news today, folks. iRobot is now a health care company! And we all know that's where the big money is in this economy. Maybe, just maybe, Wall Street will start to wake up to IRBT? iRobot CEO Colin Angle is going to make the big announcement at the TEDMED conference, including the hiring of a new president of its newly created health care business unit.

Angle says the company's goal is to "add a million years of independent living" to customers. Pretty ambitious, and if successful, pretty darn lucrative. Nursing homes are tens of thousands a year. Multiply that times a million, and you end up with tens of billions saved.

Here's the press release:

BEDFORD, Mass.--(BUSINESS WIRE)--iRobot Corp. (Nasdaq: IRBT - News) today announced that Colin Angle, iRobot’s chairman and chief executive officer, will discuss the role of robots in the future of healthcare during a presentation at the TEDMED conference in San Diego, Calif.
At the event, Angle will also introduce Tod Loofbourrow, president of iRobot’s newly-created healthcare business unit. The new business unit is committed to exploring the potential of robotics as an assistive technology to promote wellness and enhance quality of life for seniors. In this role, Loofbourrow will be responsible for all aspects of the group’s strategy, research and operations. He will report directly to Angle.
“Hiring Tod to lead our new healthcare business unit underscores the significance of this market opportunity, as well as the commitment the company is making in this space,” said Angle. “Our healthcare mission is to add a million years of independent living to our customers. As the leader in practical robots, we believe that we will have something unique and significant to offer in the field of healthcare.”
iRobot believes that next-generation practical robots have the potential to help caregivers perform critical work and extend the time that people can live independently. Robots may be capable of assisting in senior care in a variety of real-life situations, including household chores and the on-time administration of medication. This could ultimately lower the cost for care.
Loofbourrow joins iRobot with more than 25 years of senior leadership experience in the high-technology sector. Most recently, he served as chairman, chief executive officer and founder of Authoria, Inc., a leader in the benefits and talent management market.
“I joined iRobot because I believe that the business has the potential to make a significant difference in the field of healthcare,” said Loofbourrow. “People want to stay in their homes and live independently for as long as they can. This is a company with millions of robots currently assisting people in their homes. With $2.2 trillion spent every year on healthcare in the United States, I believe that the long-term potential of robotics to extend independent living is profound.”
Prior to Authoria, Loofbourrow was chief executive officer and founder of Foundation Technologies, Inc., which developed the first-ever “Managed Second Surgical Opinion” system for managed care. He holds a bachelor’s degree from Harvard University and a graduate certificate from Oxford University. He has taught business courses at Harvard University and lectured at Stanford, MIT Sloan School of Management, Harvard Business School, Yale and Babson College.

Tags: iRobot, robot, health care

New XM1216 SUGV videos, photos show off versatility

2009-10-28T08:24:00.005-04:00

iRobot's SUGV mini-robot appears to be moving ever closer to dead-lock blockbuster. The Small Unmanned Ground Vehicle, a decendent of the PackBot labeled the XM1216 by the Amry, recently saw a secret order from the U.S. government (we still don't know who bought them or why) and the first brigade combat teams will soon have their hands on them. What's more, the Army's own SUGV page says that all brigade combat teams will have them by 2025. That's a recipe for 10,000 to 20,000 robots, folks, and billions in revenue. This morning I dug up some new videos featuring the SUGV.
Below is an HD YouTube video taken by soldiers working with the SUGV. Towards the end you can see just how versatile it is as the soldiers have a little fun:

The Army's Brigade Combat Team modernization web site also has new videos from September lauding iRobot's SUGV and showing them in action. You can also peruse a gallery of pictures.

Tags: iRobot, SUGV, robot

Memo to iRobot: Ditch the 400 Series Roomba!

2009-10-26T09:06:00.003-04:00

iRobot doesn't seem to get it: their 400 Series Roomba is obsolete and needs to be torched, now. For some reason, iRobot is still manufacturing these clearly inferior robots featuring 2005 technology and selling them, presumably so they can still have one low-priced entry-level Roomba. I saw on HSN they are selling Roomba Schedulers (Model 4230). I have one myself. It originally retailed for $329, and is now selling for $199. But, folks, this model is obsolete. Don't buy it.

Here's all the stuff that makes the 400 Series completely inferior:
* They get tangled on cords and tassles. That doesn't happen on the 500 Series.
* No proximity sensor so they crash into obstacles. 500 Series slows down first and gives a nice tap.
* 50% Weaker Vacuum.
* Smaller dustbin.
* Reliability. The 400 Series was designed for 300-500 uses, versus 1,500+ for the 500 Series!
* Smaller battery.
* Weaker side brush.
* No sealed housing, so electronics and sensors get stuffed with dust, and cleaning it can be a chore. The 500 Series is much easier to clean, with a sealed housing for the electronics (DUH!).
* Parts aren't as modular. I haven't had to replace wheels, etc. on my Roomba 560, but if I did, the new Roomba Series has modular parts that are easy to replace. Simply not possible on older Roombas.
* No easy on-board scheduling. You must use the remote.

At any rate, I will also make the pitch that iRobot should ditch the 400 Series as a solid business decision for the following reasons:
* Customers will have a much better experience with the 500 Series, which will lead to better word-of-mouth, more repeat shoppers, etc.
* Imitate Apple (excellence + high prices = profits and happy customers), not GM (planned obsolence=bankruptcy). Do you think Apple still sells the iPhone 2G? NO. Cheaper prices may attract the ultra bargain shopper, but they hurt your brand. I think the only iRobot vacuum that should sell for less than $199 except for the occasional blowout special is the $129 Dirt Dog, which should be the only 400-Series product (along with the iRobot Create) to survive my recommended purge. I'd actually like to see the Dirt Dog priced at $149 except for specials, too.
* Consolidate your SKUs! Inventory management costs money. iRobot will soon have three different types of Roomba filters alone (Roomba 400, Roomba 500, Roomba 536 curved). That's confusing for customers and a nightmare at the warehouse.

Tags: iRobot, Roomba

Roomba Aero Vac, iRobot's latest upgrade, includes new filter and vacuum design

2009-10-24T16:19:00.003-04:00

iRobot has quietly debuted new "Aero Vac" cleaning technology that features a redesigned vacuum, filter and debris bin via the Home Shopping Network under the name Roomba 536. The new Aero Vac bin puts the vacuum directly above the Roomba's counter-rotating brushes, and puts the filter in the back of the debris bin, creating a single, larger chamber for dust and debris, versus the older design, which featured separate chambers for dust and large debris. The new vacuum is also believed to be more powerful.
This is the most significant upgrade of the Roomba since the debut of the Roomba 500 Series two years ago. According to the video at HSN (link available via our Roomba buyer's guide) this upgrade will be rolled out to other Roomba models starting in January.

iRobot has made a number of other changes in the latest design, some of which are actually downgrades. The new model lacks a carrying handle, and is not compatible with the Lighthouse virtual wall technology (it uses the older IR technology), both of which appear to be cost-cutting moves.

There also is a new, smaller self-charging home base, which presumably also is cheaper to produce but conveniently takes up less space.

None of these features or accessories are yet available direct from iRobot's web site, which does not mention the new technology anywhere I could find.

-Thorn

Tags: iRobot, robot

iRobot Soars on SUGV sales, Earnings

2009-10-22T20:41:00.003-04:00

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

iRobot Unveils ChemBot, DARPA-funded project

2009-10-14T08:26:00.002-04:00

"Jamming Skin Enabled Locomotion" or JSEL for short is the name iRobot is giving to its all-new technology, which for the first time allows a small robot to act like both a liquid and a solid, with tons of potential military and consumer applications down the road. This could be HUGE, folks. Especially if they can patent it and don't have to share all of the proceeds with DARPA, which is funding the ChemBot project.

Here is the MUST SEE YouTube video:

via Engadget

Tags: iRobot, robot

"PackBot Touch" iRobot-Novint Partnership Announced

2009-10-13T07:33:00.002-04:00

Seems like Touch is all the rage. IPhone with multitouch, iPod Touch, now the PackBot Touch. At least, that's the name I'm giving it. iRobot has a contract to partner with startup Novint Technologies of New Mexico to develop a "Remote Touch Kit" for the PackBot so that soldiers can feel what the PackBot feels. The new controls will let the soldier feel how hard the PackBot is squeezing, feel when the arm touches a wire, and feel bumps and jerks when traveling. I know I'd want the touch feature for the sensitive job of picking up IED's and unexploded bombs.

The result will be greatly reduced task times and operator burden, increased dexterity and situational awareness, and reduced training, according to Novint.

"As demand for unmanned military robots continues to grow, Novint's touch technology will play a crucial role in enhancing operator control during mission-tasks such as bomb disposal or surveillance," said Tom Anderson, CEO of Novint Technologies. "iRobot is the leader in developing next-generation robotics capabilities and has delivered more than 2,500 PackBot robots to the military. Novint is pleased to be working alongside iRobot to deliver new capabilities that will help keep soldiers out of harm's way."

By the way, Novint only has 4 employees and isn't anywhere close to being profitable.

Tags: iRobot, Novint

iRobot to Announce Earnings Oct. 21; What I Expect

2009-10-12T09:05:00.007-04:00

iRobot announced that it will hold its 3rd Quarter Conference Call tat 8:30 a.m. Oct. 22. The earnings release will go out after markets close on Oct. 21.

What I'm expecting: Lots of questions from analysts about just how dismal the Christmas retail season is looking, and any "color" on potential SUGV orders. My guess is we won't hear a whole lot on either front, and we'll get middling-to-poor retail results from the quarter, partially offset by slightly better-than-expected military orders. Everything I've seen points to consumer retail weakness except for must-have items like the iPhone. And a Roomba is not a must-have item (or if it is, most people don't see it that way yet). There also will almost certainly be a question about the importance of President Obama's decision on Afghanistan to the company, given that the demand for iRobot's products in that mountainous zone appears high (and iRobot's products are more maneuverable than competitors). My guess is the company will say that Afghanistan obviously has some implications for the company, but argue that even if the war in Afghanistan ended tomorrow, the military is committed to eventually upgrading ALL of its combat teams with robots, and with the SUGV in particular!
Someone also might ask about CEO Colin Angle's recent comment where he mused about leaving the company, and his focus on creating robots for older people in an effort, apparently, not to get bored. Given that Angle is the last true ideas guy at the company with Helen Greiner and Rodney Brooks off creating new companies, I'm a bit worried that iRobot doesn't appear to have much of a pipeline beyond continuously upgrading Roomba, Scooba and PackBot lines. Looj is a flop, although perhaps generation three, four or five of that product could hit the mark. The Verro pool robot isn't even an iRobot product but is a rebadged Aquabot. The long-awaited iRobot lawnmower is nowhere to be seen or even buzzed about, the ConnectR was killed in the crib, etc. Cool stuff that people want -- a robot lawnmower for $500, or a shower/tub/toilet cleaner, don't seem in the cards anytime soon. Some of this makes sense -- you just don't bring revolutionary new gadgets to market during a recession when people are scraping money together for groceries. But still, it would be nice to think the company was preparing products for next year or the year after that might have some mass appeal.
One potential positive of course if Angle really is getting bored, is that bored owners tend to think about selling their company and enjoying a multimillion retirement (or a new challenge entirely). I get the sense that Angle wouldn't mind being back in the lab, creating a new Mars rover. And I'm sure the other day he'd rather have watched NASA bomb the moon than to be reading over staff reports on the latest widget orders for PackBot parts, or whether they should stock up on nickel before the economy rebounds.

I do expect the company to reaffirm once again that it expects to scrape up a profit for the full year with essentially flat revenue just shy of $300 million. My sense is the company's footholds in Europe are continuing to do well but are no longer expanding at the blockbuster pace set earlier this year. One bright spot for the company appears to be its relationship with the Home Shopping Network, which I presume must be their top-selling partner. HSN consistently has access to iRobot's newest products and special package deals that are priced well below iRobot's own direct sales operation. iRobot's direct sales -- which drove higher margins two years ago -- appear to be flat IMHO because the company no longer appears willing to have discounts large enough to undercut its network of retailers.

Hear is what I wrote about the third quarter conference call last year, which seems prescient:

They refused to talk really about 2009 guidance really at all, with caveats about a new administration, economy, et al. Paul Coster didn't like that. Asked about future products, Colin says of course they are developing them but he has nothing to announce and made a cryptic comment about making sure they are right-sized and can deliver profitability. I read that as retrenching for now rather than coming out with a lot of new products next year, which may be one reason why Helen and Rodney are gone -- if the focus is on execution on existing widgets instead of creating lots of new widgets, the brainiacs are likely to get bored.

Tags: iRobot, robot

Scooba Battery Problem and Tips

2009-10-07T08:26:00.006-04:00

My biggest problem with the iRobot Scooba robotic mop is keeping the battery charged without killing the battery. I'm going to have to buy another battery for $69 -- not because of overusing Scooba, but because I haven't been using Scooba enough. iRobot has told Scooba owners that you should use Scooba at least every 2 weeks to keep the battery fresh. Apparently Nickel batteries like the one used in the Scooba benefit from frequent use. If you aren't going to use it that often, you should charge the Scooba battery, then remove it and store it in a cool dry place until you are ready to use the Scooba. When you want to use it, you should charge it up again right before using it.

Bottom line: Leaving the Scooba plugged in for weeks and months at a time without using it is a recipe for battery failure. There are ways to try and recondition the battery with a special 72-hour or 16-hour cycle, but at some point the battery just isn't fixable and you've got to get a new one. The easiest solution is simply to run Scooba every week like clockwork. That also prevents the rubber components and pump from drying out. (You may have to prime the pump to get Scooba to work properly if you leave it unused for too long - this is easily accomplished with the priming ball included with the Scooba).

Scoobas manufactured before 2006 had a bigger problem, where they overcharged the battery to death even if you used Scooba pretty frequently. That is now less of a problem, provided, like I said, you actually use your Scooba every couple of weeks. The battery is supposed to last for hundreds of cycles, so if yours is crapping out before then, my guess is you've left it charging too long.

Also, the battery should last longer if you recharge Scooba after each use, instead of running it until the battery is completely dead every time. That taxes the battery, although occasionally running the battery down is not a bad thing.

Anyway, for anybody angry at iRobot for the battery issues really shouldn't be -- batteries are finicky creatures. My old cell phone lithium battery would fry up like a fat sausage if it was left charging overnight repeatedly. It's just one of the perils of modern technology. Now, maybe iRobot should make a robot that takes care of Scooba's battery storage, etc., for you (and empties it, fills it, schedules it, etc.), but, first things first. My guess is these things are just a little more common with the Scooba than the Roomba robotic vacuum, which people are more apt to run daily since you can easily schedule Roomba to run every day.

The fact that you can buy a Scooba for a little over $200 and never have to mop again remains a modern miracle, and I'm continually surprised at how few people have actually bought them! They aren't perfect, but the value proposition is still shockingly good. You plug in the robot, add fluid, turn it on, let it clean your floors without complaint, empty fluid, clean robot, done! No more mopping, no more swishing around dirty water, and the proof is in the black water that empties out of the robot! Scooba is still my favorite iRobot product, and my favorite home appliance.

Good luck!

Tags: iRobot, Scooba, Scooba battery

iRobot CEO Colin Angle Discusses Possibility of Leaving, Says Focus is on Robots for Aging Population

2009-10-05T22:31:00.005-04:00

iRobot CEO Colin Angle talked about the possibility of doing “something completely different” if he steps down as CEO at the DEMO conference. He said that he's only ever had two jobs -- "wilderness guy" and CEO of iRobot. Angle also said that he is reenergizing himself by focusing on robotics for the aging population.

In the Q&A, he also talks about kids having elective surgery to replace their eyeballs with robotic ones sold at Brookstone (yuck). And he also is clearly interested in inventing NEW stuff. May be one reason why we haven’t seen the darn iRobot lawnmower yet -- cuz somebody else invented one first? He also, humorous to us iRobot blog junkies, said he doesn’t read blogs because if he did he’d be manic depressive. (Fun for us: iRobot Co-Founder (and Droid Works CEO) Helen Greiner has subscribed to our Twitter feed. Hey there!)

Here is the video:

And here's a recent interview with Colin Angle in Europe talking up the Roomba (no actual news):

Tags: iRobot, robot

iRobot Gets Another Grant, Plans Sniper Upgrades

2009-10-05T10:09:00.002-04:00

The Boston Globe reported last week that iRobot has received another grant for upgrading its PackBot technology, and the company's sniper detection technology got a mention as one area for improvement. Link here.

Tags: iRobot, robot

iRobot Clamps Down on Hiring

2009-10-03T22:36:00.001-04:00

iRobot has just 12 job listings on its web site, far below the 30-50 it usually has. Either this is a bad sign (economy sucks so they have to keep a tighter lid on expenses), or management has finally decided making more profits than they promised would be a good thing.

Check it out.

Tags: iRobot, robot

New iRobot Warrior Promo Video

2009-10-03T22:33:00.001-04:00

iRobot has a new promo vide of the iRobot Warrior at its web site. Take a look.

Tags: iRobot, robot

iRobot CEO Colin Angle, Co-Founder Rodney Brooks talk about surviving a recession

2009-09-26T16:34:00.003-04:00

Colin Angle and Rodney Brooks recently sat down with Mass High Tech. Article notes the company originally wanted to send robots to the moon and sell the movie rights.

Tags: iRobot, robot

Consumer Reports doesn't like the Looj

2009-09-21T09:03:00.003-04:00

Consumer Reports reviewed the Looj 155 gutter cleaning robot in the October 2009 magazine issue. The review complained about various features of the Looj, saying that the remote sometimes didn't work beyond 15 feet, that the Looj took a while to clean the gutter, sometimes needed rescuing, and sometimes sprayed stuff back onto the roof instead of in the yard. Then you have to clean up the stuff after it sprays it into the yard. But they did not dismiss the product entirely, saying that it would be most useful for hard-to-reach gutters. I'd say it's best for someone who doesn't want to pay somebody else to clean their gutters at a price that tops the Looj's (about $129+), pay the fortune that gutter covers cost, or already have their own system for cleaning. I do think that this product can continue to evolve and get better over time. Hoping iRobot sticks it out.

Tags: iRobot, Looj

Is Boston Dynamics' Precision Urban Hopper competition for iRobot?

2009-09-17T08:23:00.003-04:00

A small, nimble robot called the Precision Urban Hopper, which can leap two stories in a single bound despite being smaller than a PackBot, is making a splash on TV via a BBC video. Check it out at Gizmodo.

Seems like Boston Dynamics, which also has developed the freaky Big Dog robotic pack mule, is thinking of muscling in on the small robot scene currently dominated by iRobot.

Tags: iRobot, robot, Boston Dynamics

LEGO Mindstorms NXT 2.0 Robotic Set Now on Sale

2009-09-15T21:57:00.013-04:00

The top-selling LEGO Mindstorms NXT 2.0 set, a robotics kit that includes a 32-bit processor and more than 600 pieces for endless invention and learning, has started shipping and should be a best-selling gift for kids and adults interested in tinkering with robotics this fall.

Amazon sells the Mindstorms NXT 2.0 for $278.50 with free shipping and no tax to most states.

The best part is that Lego Mindstorms is a real robot! It includes three servo motors and four sensors, including a brand new color sensor. That's right, robots are starting to get actual vision! There are also two touch sensors and an ultrasonic sensor.

Would be interesting to see iRobot team up with LEGO for its new foray into robotics education. At any rate, this kit has great reviews already!

Tags: Lego, Mindstorms

Robotics Rodeo features iRobot SUGV

2009-09-08T08:47:00.003-04:00

iRobot's SUGV and PackBot 510 with FasTac kit were featured at a robotics rodeo last week held by the U.S. Army.

Key quote: “We've all fought and we've lost friends on places where unmanned ground vehicles could have done the task equally well, and I regret that like you'll never know,” Lynch, who lost 153 GIs while leading the 3rd Infantry Division in Iraq, told the men. “If I had done a better job fielding unmanned ground vehicles, those young people would still be alive.”

An iRobot exec also is quoted talking about the problem with small robots being that the enemy could pick it up and carry it away as a war trophy in an urban environment. (Sounds like a great idea -- send in a fleet of 'em as Trojan Horses with radio tracking so you find the enemy lair! Easy.)

The Houston Chronicle has the story.

Also of note, the R-Gator also made an appearance. That model, a John Deere/iRobot collaboration, has been in the prototype stage for years now but hasn't been able to generate real-world orders of consequence.

Tags: iRobot, robot, SUGV

iRobot Launching "SPARK" Program to Ramp Up Robotics Education

2009-09-07T21:26:00.002-04:00

Here's some real exciting news -- iRobot is getting ready to debut a major new effort to kickstart robotics education. It's called SPARK, and iRobot is testing a new website to go along with the effort, with what looks like a dozen major partner. The website is at this link. Let me know what you think in this post's comments. I like it.

Tags: iRobot, robot, robotics, education

iRobot CEO Colin Angle Says Robot Nurses will Cut Health Care Costs

2009-09-06T10:18:00.004-04:00

Health care is a $2.2 trillion a year business. iRobot CEO Colin Angle tells CNET's Erica Ogg that robotic nurses can help cut those costs. She includes a photo of a prototype that looks like an iRobot LE (a telepresence robot first developed in 2000).

We know that iRobot has been developing such a robot, called the iRobot CiCi, and have reported that on the blog in the past, but unknown is when iRobot will actually bring such a device to market. A couple years back, Angle predicted that this year would be the year devices in the $1,000 range would make their debut.

Given that health care is perhaps the only really healthy sector of the economy, it would be great for the stock, if nothing else, if iRobot announced a serious competitor here. Even better if they could get Medicare to approve the device for reimbursement.

Tags: iRobot, robot, Medicare, nursing, health

Blog on Vacation

2009-09-02T09:04:00.003-04:00

Sorry about the lack of updates. I've been enjoying August, but expect more updates shortly.

iRobot has won several important government contract orders recently, but the big kahuna for this stock remains the forthcoming SUGV contract, which is make or break for the stock. That -- and any sign that retail is making a recovery for Christmas, that is...Too bad there is no cash for clunker vacuums!

-Thorn

Tags: iRobot

Creepy iRobot Baby Photo Shows Why Robot Babies Didn't Sell

2009-08-03T16:07:00.002-04:00

If you were creeped out by Steven Spielberg's epic "A.I." you'll feel even creepier after viewing this icky photo of a blogger at iRobot's headquarters pulling the plastic back from the head of "My Real Baby" -- the company's long-since aborted robotic baby toy project.

It looks like it should be in a horror film. Great photo comes courtesy of the Mommy Bloggers who iRobot invited to Boston in an effort to juice positive buzz among women.

Tags: iRobot, robot, baby

Youtube Video: Cat, Baby Chick Coexist on Roomba Robot Vacuum

2009-08-02T14:25:00.002-04:00

Remember the "Roomba Driver" Cat? Well, turns out Roomba may be the key to Roomba-bird peace! Check it out:

Tags: iRobot, robot, cat, bird, Roomba

iRobot Poll shows robot lawnmower, shower bathroom cleaning robot top desires

2009-08-02T14:16:00.002-04:00

Robot Stock News' latest reader poll showed about 1/3rd of readers want iRobot to come out with a robotic lawnmower next, and another third want a shower/bathroom cleaning robot. The shower cleaner would certainly be more innovative, as I'm not aware of a true robot that does that yet, but I thought the lawnmower would have had more support. I also thought we'd see more interest in a home sentry robot, but less than 10 percent suggested that was their top pick. RSN polls are along the right side of the blog. Past polls are at the bottom right. Suggestions for the next poll? Leave them in the comments. Thanks!

Tags: iRobot, robot

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

2009-07-24T08:49:00.005-04:00

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