Dumb money i looking at the decline in sales as if the company is hurting, but this was all predicted based on lower military contracts. Whats more important is what they said in the conference call. Home robot sales are strong and this side of the business is more important than military contracts because growth is not dependent on government entities and their shifty spending behavior.
Read close and take advantage before the Christmas rally. The negative is out of the way now.
Domestic revenue growth of 8% coupled with international growth of 19% fueled a 16% year-over-year increase in Home Robot revenue in Q3. Shipments of floorcare robots increased 27%, while revenue grew at a lower 16%, due to the positive impact of a large return rate adjustment in Q3 of last year. The broadened availability of Braava overseas and strong demand in Japan for our premium Roomba 700 robots drove international Home Robot revenue growth.
Last quarter I mentioned that we began running our advertising campaign, “iRobot Do You?” to limited degree in select European markets to test its effectiveness, and we are starting to see positive results. Overall revenue for EMEA was down slightly for the quarter compared with Q3 2012. However, during recent discussions I’ve had with numbers of distributors, they reported improving demand in Germany, the U.K., Spain, Israel, Russia, and we are optimistic about the region’s turnaround and continued contribution to 2014 growth.
The dip this AM is due to Dumb Money that cant figure out that this sector is just getting started. Robotics is the future of nearly everything and iRobot has 200+ patents.
Roombas have yet to begin penetrating homes, offices, schools, etc worldwide. They are selling so well in Asia right now because Asians are meticulous when it comes to the cleanliness of their floors. The rest of the world is starting to catch on.
The Military business has been declining which is masking the growth of Consumer side of the business. If we get more military contracts this will explode, cause they will have both side working for them. They cannot predict/forecast these contracts, but they can come at any time.