iRobot's Braava Debuts in North America - Analyst Blog
23 Août 2013 - 11:05PM
Zacks
iRobot Corporation (IRBT) announced the debut
of its Braava Floor Mopping Robot in North America close on the
heels of its successful introduction in the European market in the
second quarter. Shares of this leader in delivering robotic
technology-based solutions jumped 4% following the news as the
product is expected to augment revenues.
The robot with dimensions of 3 inches height and width of 8.5
inches is convenient to use. At the push of a button, Braava will
mop the floor and when it is done, the robot will return to where
it started. It has been designed to systematically and efficiently
mop (dry or damp) the entire floor in just one pass. This scores
above the iRobot’s Roomba vacuum cleaning robot and Scooba floor
washing robot, which require several passes to clean the floor.
iRobot will rollout two models under this series -- Braava 320 and
Braava 380t. Both are designed to sweep and mop floors. Braava 380t
is a costlier model due to its advanced features such as upgraded
navigation, fast charging battery, a quick clean mode, a turbo
charging mode and a furniture guard included on the bumper, and
pause/resume functionality.
iRobot also makes robots used by military services and
law-enforcement agencies. iRobot’s bomb-disposal robots is pitted
against British rival, QinetiQ, Turkey's biggest defense
contractor, Aselsan. Separately, Northrop Grumman
Corp. (NOC) officially launched its CUTLASS unmanned
ground vehicle, and plans to expand it internationally.
This might be a heavy blow to iRobot. Furthermore, a cut in
defense spending will also affect iRobot’s revenues. However, given
that cut in U.S defense spending will reduce demand for its
military robots, iRobot has been prioritizing its home robots.
Since the launch of the company’s award winning flagship Roomba
Vacuum Cleaning Robot in 2002, iRobot has achieved the milestone of
selling more than 10 million home robots globally. In 2012, iRobot
strengthened its home robot business by scooping up Evolution
Robotics, which manufactured the Mint cleaning robot for $74
million.
Mint was the major competitor to its Scooba robot and the
acquisition put iRobot in a strong position in the market for home
cleaning robots. Braava is a revamped version of Evolution
Robotics' Mint floor sweeping robots.
iRobot had launched Braava in the second quarter in Europe, which
provided a boost to the region’s results compared to the first
quarter. Domestic revenue growth of 26% along with international
growth of 18% led to a 20% year-over-year increase in Home Robot
revenues in the second quarter. The launch of Braava overseas and
broadened availability of the Roomba 600 and 700 robots to
retailers combined to increase Home Robot revenues.
The launch of Braava in the U.S along with further growth from
adoption of the company’s core products are expected to lead to
domestic revenue growth. Revenues are also expected to be strong in
the overseas market driven by strong demand in Japan, continued
Roomba sales in China and expanded distribution of Braava in EMEA.
Given the successful domestic home robot business, iRobot expects
the overall home robot market to grow 25% to 30% in 2013.
Robotic floor cleaners have proved to be one of the fastest growing
consumer products in the past few years and iRobot is in a position
to capitalize on the demand. Braava will undoubtedly provide a
revenue boost for iRobot in the domestic market, which generated
around one-third of the company's home robot revenues last
quarter.
This will also provide a competitive edge to other manufacturers
such as Philips (PHG), Samsung Electronics
Co. Ltd. (SSNLF) ASUSTeK Computer, Inc. and Micro-Star
International, who are introducing new generation of vacuum robots
with smart mapping capabilities.
iRobot holds a Zacks Rank #2 (Buy).
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