J.P. Morgan Comments On iRobot's $230 Million Contract

According to J.P. Morgan, iRobot IRBT has been awarded a $230 million IDIQ by NAVSEA to provide MRTS robots, spare parts, repairs, maintenance and training. J.P. Morgan reported that the IDIQ expires in April 2015. “The NAVSEA IDIQ appears to be a replacement of an expiring MTRS program, originally awarded in 2005, then valued at $264mm, for which $122 million of orders were received ($142mm un-utilized). We do not believe this yields any upside to our forecast - much of the IDIQ could go un-utilized again - however it does yield long-term visibility into G&I segment. First take: Mild positive. We rate IRBT Neutral.” iRobot closed yesterday at $31.47.