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iRobot Maker Left Sucking Air As Competition With LG & Samsung Heats Up

As the battle to who has the best robotic sucking power and the best cleaning intelligence, is being played out between some big brands an early player in this market Roomba who make the iRobot vacuum cleaner was left sucking air last week as Wall Street went into a tail spin.

As shares crashed the loudest sucking sound last week was that of US Company Roomba whose share crashed 32%. The Company whose iRobot products are sold at Harvey Norman, was seen as struggling compete up against offerings from LG and Samsung who are in a head to head battle for market share in the robot cleaning market.

Shares in the US company tumbled 32 percent, to $59.80, after it forecast weaker-than-expected profits for 2018. 

The company, which pioneered the self-driving vacuum sector, has been battling lower-cost rivals including new arrivals from China.

“Investors have to have a leap of faith that management can work its way out of a narrow product set,” Ben Axler, whose investment firm Spruce Point Capital Management, has been shorting iRobot since June, told The Post.

iRobot reported $326.9 million in revenue in the fourth quarter, marking a 54 percent increase in revenue from the year-ago quarter.

But investors were spooked that the company predicted annual per share profits in the range of only $2.10-$2.35 — well below the $2.70 analysts expected.

“I think we’ve taken aboard feedback that everyone would be quite happy if there were more legs on the stool for revenue driving than just Roomba,” chief executive Colin Angle said on an analyst call.


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