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iRobot Equips US Navy Technology with $7.9M in Deals

Premier robot manufacturing company iRobot CorporationIRBT recently announced that its Defense & Security unit has secured two indefinite delivery/indefinite quantity ("IDIQ") contracts from the Naval Surface Warfare Center, Indian Head Explosive Ordnance Disposal Technology Division. While combined initial value of the two orders is $7.9 million, their joint ceiling worth is estimated at $96 million.

The first multiple-year IDIQ deal has a total ceiling worth of $46.7 million. As per its terms, iRobot will offer upgrading, spare parts and support services for Man Transportable Robotic System ("MTRS") MK1 robots. With an isolated order value of $7.5 million, the contract is anticipated to be accomplished by Sep 2016.

The second contract, with a ceiling worth of $49.1 million, requires iRobot to manufacture new MTRS MK1 robots, consumables and approved accessories, depot level repair parts and certain other accessories to support improvement in engineering and configuration management. Also expected to be delivered by Sep 2016, the second deal has a lone order value of $374000.

iRobot designs and manufactures robots for both domestic and commercial application. The company's household mobile robots such as Roomba and Scooba can perform specialized functions like scrubbing floors and vacuum cleaning. Also, the company's military robots have helped increase efficiency of the U.S. defense system.

The company owns a high market share, supported by its non-imitable and highly differentiated product portfolio. We believe the new contracts would not only help strengthen the U.S. Navy's robotic technological expertise but also augment iRobot's brand status in the global robotics industry.

Stocks to Consider

iRobot currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Global Brass and Copper Holdings, Inc. BRSS , ACCO Brands Corp. ACCO and Cintas Corp. CTAS . While Global Brass, Copper Holdings and ACCO Brands sport a Zacks Rank #1 (Strong Buy), Cintas carries a Zacks Rank #2 (Buy).

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IROBOT CORP (IRBT): Free Stock Analysis Report

CINTAS CORP (CTAS): Free Stock Analysis Report

ACCO BRANDS CP (ACCO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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