Interesting article:
Battle Bots at iRobot
By Rick Aristotle Munarriz (TMFBreakerRick)
May 11, 2006
We may think of iRobot (Nasdaq: IRBT) as the consumer robotics pioneer behind the Roomba automated vacuum cleaners and Scooba hard-floor scrubbers, but the company's also got a militant streak to it.
More than 300 of the company's PackBot robots have been globally deployed by the U.S. military. We may never be able to determine how many soldiers come back home safe and sound because of PackBot's life-saving tasks like detecting and safely detonating roadside bombs, but we would all probably agree that even if it's just one life, it would be plenty.
The company's battlefront eminence became apparent yesterday when the company appointed retired military general Paul Kern to its board of directors. Kern served as Commanding General of the Army Materiel Command until his retirement two years ago.
This isn't just a token gesture. iRobot executives consist mostly of brainy engineers. Having a proven wartime veteran on its side can only help the company grow its military contract business that finds it jockeying for position against much larger, seasoned contractors like Lockheed Martin (NYSE: LMT), Raytheon (NYSE: RTN), and Northrop Grumman (NYSE: NOC).
Even though iRobot is unlikely to ever create robotic aircraft or guided missile systems to compete with the big boys, the company is working on larger military robots. You and I would get hammered if the iRobot crew took us on for a Battle Bots match. Now it will be able to tap into the tactically proficient brain of a notable general who rose up the ranks while spending more than 40 years in the U.S. Army.
Kern's appointment comes just days after the company posted better-than-expected March quarter results, with revenue soaring 123% higher on a smaller deficit than the market was expecting.
It's the company's speedy growth and buoyant relevance that made it a natural recommendation to Rule Breakers newsletter subscribers five months ago. The shares haven't been as rewarding as the story -- for now -- but this is a long-term pick with some more exciting fiscal deployments to go before it's ready to retire.
Feel like a Rule Breaker now, do you? Check out David Gardner's growth stock newsletter as part of a free 30-day trial subscription to see if cool stocks like iRobot belong in your portfolio.
Longtime Fool contributor Rick Munarriz is a fan of iRobot, but he does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. |
