iRobot Corp secures US Army contract
Shares of iRobot Corp. (Nasdaq: IRBT) got a boost in pre-market trading after the robot maker said it was awarded a $286 million contract from the U.S. Army Program Executive Office for Simulation, Training and Instrumentation.
Under the terms of the contract, the Army could order up to 3,000 military robots, spare parts, training and repair services over the next five years.
Until now, the company says the Army has deployed robots in limited numbers and only to explosive ordnance device (EOD) specialists. The contract broadens the Army’s deployment of robots on a larger scale to general infantry forces for a variety of missions in addition to EOD.
iRobot said it will immediately will begin delivery of the first 101 robots for urgent deployment. iRobot has delivered more than 1,200 PackBot robots in the past.
Shares of iRobot jumped 17.74%, or $3.05, to $20.24 in pre-market. Shares of iRobot have been trading in the range of $12.76 to $24.30 for the past 52 weeks.
