Earnings Archives - The Robot Report

iRobot lays off another 105 employees

Steve Crowe — Wed, 06 Nov 2024 18:40:28 +0000

One of the robotics industry’s household brands continues to struggle. iRobot, maker of the popular Roomba robot vacuum, is laying off another 105 employees as part of its restructuring plans. The number of employees being let go represents 16% of iRobot’s global workforce as of September 28, 2024. Since the start of 2024, iRobot has reduced its global workforce by nearly 50%.

There are several reasons iRobot, which has sold more than 50 million robots worldwide, is struggling. One of the main reasons is the failed acquisition from Amazon, which was called off earlier in 2024. Amazon wanted to acquire iRobot for $1.7 billion, but the deal was ultimately called off because regulators said the deal would restrict competition. Amazon paid iRobot $94 million to terminate the deal.

Competition is another major reason for iRobot’s current situation. In the last decade-plus, a host of strong competitors have popped up around the world with robot vacuums that are often cheaper than the Roomba and offer similar performance.

Another reason is the failure to find the next robotics innovation beyond the robot vacuum. iRobot launched the Roomba in 2002, but has since shelved robots for lawn mowing, pool cleaning, gutter cleaning, and more. iRobot released a handheld vacuum in 2021 but already discontinued it. The air purifiers iRobot acquired in the $72 million purchase of Aeris Cleantec AG in 2021 have also been discontinued. iRobot sold off its military division in 2016 for $45 million.

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iRobot Q3 2024 earnings

Gary Cohen, named CEO of iRobot in May 2024, talked about the layoffs during iRobot’s third quarter earnings call today. He said iRobot has reduced operating expenses by $95.2 million in the first 9 months of 2024.

“These moves, while challenging, have fundamentally changed the way we work with our partners to efficiently develop and build our robots,” Cohen said. “Our new operating model is able to deliver a significant increase in new product introductions with less than half the internal resources and approximately one-third the cost.”

He pointed to iRobot’s Q3 Non-GAAP operating expenses of $47.7 million, which is down from $90.1 million in Q3 2023. “For the first three quarters of the year, we have cut our operating losses in half as compared to the year before,” Cohen said. “However, our overall results did not meet the expectations we set in August as persistent market segment and competitive headwinds impacted our sell through performance.”

iRobot’s revenue mix in Q3 2024. | Credit: iRobot

iRobot made $193.4 million in revenue during Q3 2024, up from $186.2 million in Q3 of 2023. During Q2 2024, iRobot’s revenue increased 23% in the U.S., declined 20% in Japan, and declined 11% in EMEA. iRobot said its performance in Japan reflected “continued weakness in the yen against the dollar.”

iRobot said it expects revenue between $175 million to $200 million in Q4 2024 and gross margin in the range of 24% to 27%, up from 18.9% in Q4 2023. Operating loss is expected to be in the range of $31 million to $22 million.

The company now expects total 2024 revenue to be in the range of $685 million to $710 million and gross margin in the range of 25% to 26%. It is targeting full-year operating expenses in the range of $274 million to $276 million or approximately 39% to 40% of revenue. You can view iRobot’s third quarter financial presentation here.

iRobot made a record $1.56 billion in 2021.

Julie Zeiler, iRobot’s chief financial officer, said the company is cautious about the macroeconomic environment. She added that iRobot expects “to return to year-over-year top-line growth for the full-year of 2025 and we believe the second half of 2025 will be stronger than the first half as our product lineup ramps up.”

“As we begin this new chapter in iRobot’s history, one thing is abundantly clear,” Cohen said during the earnings call. “We have a powerful brand that will serve as the foundation for the turnaround of this company. Which should come as no surprise that in my conversations with stakeholders, it is the power of our iconic brand that comes up again and again. That brand power is at the heart of our turnaround strategy, iRobot Elevate.

“In executing iRobot Elevate, we are focused on providing our iconic brand with an improved platform to return to profitable growth. We are making operational and organizational changes and bringing new innovative products to market. While this work is ongoing, we are already realizing benefits and our improved financial performance.”

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North American robot sales decline 8% in first half of 2024

Steve Crowe — Thu, 05 Sep 2024 19:45:34 +0000

Source: A3

Significant declines in the automotive component and semiconductors industries led to another drop in North American robot sales, according to the Association for Advancing Automation (A3). In the second quarter of 2024, 7,123 robots were ordered in North America, which A3 said is a decline of 9.7% compared with Q2 2023.

The total units sold were valued at $489 million, which A3 said is a 6.9% increase compared with the same timeframe last year.

The new report from A3 said 15,705 robots valued at $983 million were ordered by North American companies during the first half of 2024. This marked a 7.9% decline in units and a 6.8% drop in revenue year over year.

A3 previously said robot sales in North America were down 6% in the first quarter of 2024 compared with the same period in 2023. Companies purchased 8,582 robots from January through March for $494 million, A3 said.

In 2023, North American robot orders declined by 30% after two years of record sales.

The industry association said the Q2 performance can be attributed to broader economic and manufacturing sector dynamics. The rise in revenue despite a drop in units ordered suggests a trend toward investing in advanced, higher-value robots.

“This shift may be driven by the need for more sophisticated automation to address labor shortages and increase production efficiency amid economic uncertainties,” stated A3.

Source: A3

Manufacturing slowdown hits robot sales

It’s important to note A3 only collects sales data on traditional industrial robots. It doesn’t collect data about autonomous mobile robots (AMRs) or collaborative robotic arms. The totals are based on numbers submitted by participants and include sales by North American robot suppliers to companies in North America only.

A major reason for the continued decline in unit sales is the slowdown in sectors that are historically strong for robotics, including automotive components and semiconductors, which declined 39% and 40%, respectively. Non-automotive industries continued to turn to robotics as food and consumer goods and life sciences and pharmaceutical sectors grew 86% and 48%, respectively.

“After the first quarter, members we spoke with were generally optimistic about the rest of the year,” said Alex Shikany, vice president of membership and market intelligence at A3. “While it appears there were still headwinds the industry was experiencing in the second quarter, we continue to hear from companies [that] are optimistic about the second half of the year relative to the first half.”

A3 entered 2024 optimistic that robot sales would rebound after a tough 2023. The industry had back-to-back record sales years in 2021 and 2022, which was the height of the COVID-19 pandemic. But unit sales haven’t bounced back as expected.

Here is a quick look at how a few other robotics applications performed in Q2 2024, according to A3:

Handling operations/machine tending: Orders grew by 4%, while shipments declined by 2%.
Welding and soldering: Orders and shipments declined significantly by 31% and 15%, respectively.
Processing: Experienced growth of 1,233% (over a small order volume in 2023).
Assembling and disassembling: Orders and shipments fell by 28% and 13%, respectively.

Learn about the global robotics industry at RoboBusiness

The decline in North American robotics sales is magnified even further when compared with China, the world’s leading robotics market. This week, China laid out a plan for how it’ll use robotics as an engine for major economic growth.

“China’s rapid development in industrial robot automation is extraordinary,” said the International Federation of Robotics (IFR).

The state of the global robotics industry will be a major topic of discussion at RoboBusiness, which is produced by The Robot Report. The event, which takes place Oct. 16 to 17 in Santa Clara, Calif., will focus heavily on driving robotics innovation.

RoboBusiness will feature more than 70 experts on stage sharing best practices for commercial robotics development. There will be over 70 exhibitors on the showfloor, a Women in Robotics Luncheon, a robotics startup competition, a startup bootcamp, 10+ hours of dedicated networking, and much more.

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Symbotic brings in $424M in Q2 2024

The Robot Report Staff — Tue, 07 May 2024 12:00:03 +0000

Symbotic builds flexible warehouse automation. | Source: Symbotic

Symbotic yesterday announced its financial results for the second quarter of 2024, which ended March 30, 2024. The company brought in $424 million in revenue in the first quarter of the year and suffered a net loss of $41 million. It had an adjusted EBITDA of $22 million for the quarter.

The Wilmington, Mass.-based company brought in more revenue in Q2 2024 than it did in Q1 and in Q2 2023, respectively. Last year, it brought in $267 million in revenue and had a net loss of $55 million, and an adjusted EBITDA loss of $11 million.

“This past quarter we executed well for our customers, made significant progress on our innovation roadmap and delivered solid financial results,” Rick Cohen, Chairman and Chief Executive Officer of Symbotic, said. “We made significant advances in both software and hardware this quarter that will benefit customers, accelerate deployment times and increase our deployment capacity.”

Symbotic’s cash, cash equivalents, and marketable securities on hand increased by $276 million from the prior quarter to $951 million at the end of the second quarter.

“These advancements helped us to accelerate deployment progress during the quarter,” Symbotic Chief Financial Officer Carol Hibbard said. “We started three system deployments and completed three operational systems, while achieving faster revenue growth, higher margins and stronger cash generation than planned for the quarter.”

The company plans to continue growing revenue. For the third quarter of fiscal 2024, Symbotic says it expects revenue of $450 million to $470 million, and adjusted EBITDA of $27 million to $29 million.

Symbotic revenue continues to climb

Symbotic claimed that its “end-to-end, AI-powered robotic and software platform” is “reimagining the supply chain.” The company said it applies high-density storage and machine learning to help retail, wholesale, and food and beverage companies.

The company brought in more revenue in Q2 2024 than it did in Q1 and in Q2 2023, respectively. Last year, it brought in $267 million in revenue and had a net loss of $55 million, and an adjusted EBITDA loss of $11 million.

Symbotic’s cash, cash equivalents, and marketable securities on hand increased by $276 million from the prior quarter to $951 million at the end of the second quarter.

“These advancements helped us to accelerate deployment progress during the quarter,” said Carol Hibbard, chief financial officer at Symbotic. “We started three system deployments and completed three operational systems, while achieving faster revenue growth, higher margins, and stronger cash generation than planned for the quarter.”

The company, which was an RBR50 Robotics Innovation Award winner, plans to continue growing revenue. For the third quarter of fiscal 2024, Symbotic said it expects revenue of $450 million to $470 million, and adjusted EBITDA of $27 million to $29 million.

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Intuitive beats the Street in Q1, increases procedure volume forecast

Jim Hammerand — Fri, 19 Apr 2024 19:46:17 +0000

Intuitive placed eight of its next-generation da Vinci 5 systems in the first quarter of 2024. | Source: Intuitive Surgical

Intuitive Surgical Inc. yesterday posted first-quarter results that exceeded Wall Street’s consensus forecast while increasing its forecast for full-year procedure growth.

The Sunnyvale, Calif.-based surgical robotics leader reported profits of $545 million, or $1.51 per diluted share, for the three months ended March 31, 2024, up 53% from the first quarter of 2023. Total revenue was $1.89 billion for the quarter, up 11% from the same period a year ago.

Intuitive cited growth in the volume of robot-assisted surgical procedures and an increase in its installed base of systems. Global da Vinci procedures grew approximately 16% from the same quarter a year ago. The company, which traded as ISRG, placed 313 da Vinci surgical systems during the quarter, compared with 312 from the prior-year period.

Intuitive’s total installed base climbed to 8,887 systems, up 14% from a year ago. Eight of the systems placed in the first quarter of 2024 were Intuitive’s next-generation da Vinci 5.

“The core measures of our business remained healthy this quarter, as we reached meaningful milestones across several parts of our business,” said Intuitive CEO Gary Guthart in a release. “We are pleased by feedback from our measured da Vinci 5 launch, as well as the continued adoption of SP and Ion, and we remain focused on delivering the goals we share with our customers, including improving patient outcomes.”

Intuitive also reports increasing accessory sales

Intuitive reported an 18% increase in sales of instruments and accessories to $1.16 billion, driven by the growth of da Vinci procedure volume and a 90% growth in Ion procedure volume.

Adjusted to exclude one-time items, earnings per share (EPS) were $1.50, $0.09 ahead of the Street, where analysts were looking for EPS of $1.41 on sales of $1.87 billion. The company increased its forecast for full-year procedure growth from a 13% to 16% range to 14% to 17%.

“The low end of the range assumes further weakness and bariatric procedures along with challenges in China from increasing provincial robotic competition and delayed tenders impacting capital placements and therefore procedure growth,” said Brian King, head of investor relations at Intuitive, on a call with executives to discuss the results. “We also assume there is no benefit patient backlog in the year.”

“At the high end of the range, we assume bariatrics continues at flat to slightly positive growth rates, and factors in China don’t have a significant impact on our business,” he added. “In addition, we assume any backlog of patients would decline throughout the year.”

Investors reacted positively to the results, with ISRG shares rising 3% to $385 apiece in after-hours trading.

Learn more at DeviceTalks Boston, Robotics Summit

Brian Miller, executive vice president and chief digital officer at Intuitive Surgical, will be keynoting DeviceTalks Boston, which is co-located with the Robotics Summit & Expo. The events takes place on May 1 and 2 at the Boston Convention Center.

Miller’s talk is slated for 4:15 p.m. ET on the first day of the event.

According to WTWH Media, which produces The Robot Report, the Robotics Summit, MassDevice, and DeviceTalks, this will be the largest one yet. The event will include more than 200 exhibitors, various networking opportunities, a Women in Robotics breakfast, a career fair, an engineering theater, a startup showcase, and more! Registration is now open for the event.

Editor’s note: This article was syndicated from The Robot Report sibling site MassDevice.

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Teradyne robotics group earns $375M in 2023

Steve Crowe — Wed, 31 Jan 2024 18:57:22 +0000

Teradyne Inc. said in an earnings call today that its robotics group generated $375 million in revenue in fiscal 2023. The North Reading, Mass.-based company owns Energid (which produces motion-planning software), Mobile Industrial Robots (autonomous mobile robots) and Universal Robots (collaborative robot arms). The group generated $404 million in revenue in 2022.

Universal Robots (UR) generated $304 million in revenue in 2023. While its sales were down 7% year-over-year from the record $326 million generated in 2022, the cobot maker ended the year on a high note.

The fourth quarter of 2023 was UR’s largest revenue quarter ever. This represented 21% growth from Q4 2022 and 47% growth from Q3 2023, which the company attributed to demand for its the UR20 and UR30 cobots.

Here is a breakdown of Universal Robots’ revenue by quarter:

Q1 revenue = $72 million
Q2 revenue = $58 million
Q3 revenue = $71 million
Q4 revenue = $103 million

Overall, Teradyne’s robotics group generated $129 million in revenue in the fourth quarter. UR generated $311 million in revenue in 2021, which was up 41% on 2020 and 23% on pre-pandemic results in 2019.

“2023 was characterized by a difficult economic and business environment for many of our core customers, with global industrial activity slowing in the first half of the year,” stated Kim Povlsen, president of UR. “Nevertheless, we saw growth in our focus accounts and key segments, including palletizing, and in our strategically important OEM channel. We ended the year strong and enter 2024 with a great foundation for further growth.”

The UR30 demonstrates machine tending at iREX. Source: Universal Robots

Bigger cobots yield profits

Universal Robots said 30% of its revenue in the fourth quarter came from the UR20 and UR30. The company said it experienced strong demand for its UR20, especially for palletizing and welding applications.

Unveiled in 2022, the UR20 is the company’s first heavy-duty cobot arm. It has a 1,750 mm (5.7 ft.) reach and 20 kg (44 lb.) payload capacity. And in late 2023, UR had to increase production of the UR20 to meet growing demand from its customer base.

In November 2023, UR launched its second heavy-duty cobot arm, the UR30. Built on the same architecture as the UR20, the UR30 offers more payload capacity in a compact footprint.

With a 30 kg (66.13 lb.) lifting capacity, 1,300 mm (51.2 in.) reach, and weight of 63.5 kg (139.9 lb.), the UR30 can tend larger machines, palletize heavy products, and support high-torque screw driving, said the company.

“We are already shipping UR30s and have ramped up production in the fourth quarter to more than 1,200 units to meet sustained demand for the UR20,” Povlsen added. “Ultimately, though, our success depends on our strength as a platform. It will be our continued software excellence and ease of use, on top of our hardware innovation, that creates value for our partners and end customers.”

During the fiscal 2023 and fourth-quarter earnings call, Teradyne President and CEO Greg Smith noted that UR has a “record backlog” for the UR20 cobot. He also said UR continues to have success growing its channel strategy, adding that it now has more than 50 OEM partners and that its OEM sales grew nearly 10%.

Teradyne said its robotics portfolio has penetrated less than 5% of its market opportunity and that it expects robotics revenue to grow between 10-20% in 2024.

Ujjwal Kumar, president of Teradyne’s robotics group, is delivering a keynote at our Robotics Summit & Expo, which takes place May 1-2 in Boston. The event is designed for robotics developers and will attract 5,000-plus attendees.

Over his 25-plus-year career, Kumar has scaled businesses at major multinationals including General Motors, General Electric, and Honeywell. In his keynote on May 2 from 9:00 to 9:45 a.m. ET, Kumar will share some lessons he has learned and how they can be applied to accelerate the transformation of industry with robotics.

MiR also ends 2023 on high note

Mobile Industrial Robots (MiR) generated $71 million in revenue in 2023. This marks an 8% decrease from the $77 million in revenue in 2022. However, MiR also ended 2023 strong by generating $26 million in revenue in the fourth quarter.

Here is a breakdown of MiR’s 2023 revenue by quarter:

Q1 revenue = $17 million
Q2 revenue = $14 million
Q3 revenue = $14 million
Q4 revenue = $26 million

In October 2022, Teradyne merged its autonomous mobile robot (AMR) subsidiaries, MiR and AutoGuide Mobile Robots, into a single company. At the end of September 2022, the integrated AMR supplier officially became known as Mobile Industrial Robots.

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MiR leadership changes

Søren E. Nielsen then stepped down as president of MiR at the beginning of 2023. He had stepped into the role in August 2020, taking over the role from founder Thomas Visti Jensen. Nielsen was previously MiR’s chief technology since January 2018.

On May 1, 2023, MiR named Jean-Pierre Hathout its new president. Hathout replaced interim CEO Walter Vahey, who will remain with the company as an advisor until his planned retirement in 2024.

Hathout came from a role as president of SIT Controls USA. Prior to this, he built a 17-year career at Bosch, including several international management roles. Hathout has a doctoral degree in mechanical engineering from MIT, and he has technological expertise and global leadership skills, including management of operations in the U.S., Germany, the Netherlands, Turkey and China.

MiR celebrated its 10-year anniversary in 2023. It also introduced its MiR Insights cloud software that provides fleet owners with actionable insights to improve performance. MiR also received certifications for 13 safety functions on its MiR600 and MiR1350 AMRs in accordance with the ISO 13849-1 industry standard.

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Symbotic riding wave of logistics automation demand

Brianna Wessling — Thu, 23 Nov 2023 14:00:58 +0000

Symbotic uses AMRs and robotic arms to build mixed-case pallets. | Source: Symbotic

Symbotic, a developer of robotics for supply chain applications, announced the results of its fourth quarter and fiscal year ended Sept. 30, 2023. The Wilmington, Mass.-based company brought in $392 million in revenue in Q4 and $1.18 billion in 2023.

Symbotic’s revenue increased by 60% from Q4 of 2022, when it brought in $244 million. It saw a net loss of $45 million in Q4, down from $53 million it lost in the same quarter last year.

The company reported an adjusted EBITDA of $13 million, up from an adjusted EBITDA loss of $20 million in the same quarter last year.

“We are pleased to report another quarter of strong revenue growth and margins, as we initiated four new system deployments and completed commissioning of two systems,” said Tom Ernst, chief financial officer of Symbotic. “We also accelerated the pace of system deployments.”

“We are excited to be reporting our first quarter of positive adjusted EBITDA, which demonstrates the strong operating leverage of our business,” he added.

Cash, cash equivalents, restricted cash, and marketable securities on hand increased by $35 million from the prior quarter of 2023 to $548 million by the end of the fourth quarter.

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A record year for Symbotic

Symbotic works with Albertson’s, the second-largest supermarket chain in North America after Kroger. It also partners with Target and Walmart, the seventh and largest retailers in the country, respectively. Walmart signed a deal last year to put Symbotic’s system into all 42 of its regional distribution centers over the course of several years.

For the entire fiscal year 2023, Symbotic recorded revenue of $1.18 billion, and a net loss of $208 million. It recorded an adjusted EBITDA loss of $18 million. For the full fiscal year 2022, Symbotic reported revenue of $593.3 million, meaning its 2023 fiscal year revenue jumped 98%.

Since Q4 2022, Symbotic has added seven operational systems and 17 deployments in progress, bringing the company to 12 fully operational systems and 35 systems in the process of deployment.

Symbotic debuted on the NASDAQ in June 2022 under the ticker “SYM” after completing its business combination with SVF Investment Corp. 3, a special-purpose acquisition company (SPAC) sponsored by an affiliate of Softbank Investment Advisors. Shareholders approved the transaction on June 3, 2022. This was the company’s first year as a publicly traded company, and it has seen huge growth throughout the year.

“This has been a year of tremendous growth and progress for Symbotic. Our financial performance is a testament to the hard work and dedication of our talented team,” stated Rick Cohen, chairman and CEO of Symbotic , in a release. “In fiscal 2024, we will continue to invest in driving innovation, strengthening our partnerships, and scaling for growth.”

What does 2024 have in store?

For Q1 2024, Symbotic said it expects revenue of $350 million to $370 million and an adjusted EBITDA of $11 million to $14 million.

This revenue could be boosted by Symbotic’s $7.5 billion new customer contract with GreenBox, its new joint Warehouse-as-a-Service venture with SoftBank. GreenBox will automate supply chain networks globally by operating and making Symbotic’s technology accessible to the warehouse. Starting in fiscal year 2024, GreenBox plans to order Symbotic’s systems over a six-year period.

Symbotic said its software is designed to orchestrate an entire fleet of robots to receive, store and retrieve a virtually limitless number of SKUs. Each robot is equipped with the company’s proprietary end-of-arm tooling and vision systems, which it claimed allows them to output cases, totes and packages at industry-leading speeds.

In addition, Symbotic offers an “end-to-end” system for mixed-case palletizing. It uses autonomous mobile robots (AMRs) called SymBots, as well as robotic arms with advanced vision and sensing capabilities.

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Sarcos pivots from robotics to AI software development

Mike Oitzman — Wed, 15 Nov 2023 20:06:07 +0000

Sarcos’ Guardian XT was one of the core robots within the Sarcos product line that’s now being abandoned for a new software-based product strategy. | Image credit: Sarcos

Sarcos Technology and Robotics Corporation has recently announced a strategic shift in its business focus, pivoting from robotics to a more significant, near-term opportunity presented by its robotic artificial intelligence (AI) and machine learning (ML) software platform.

Laura Peterson, president and CEO of Sarcos, emphasized the crucial role of the software developed by the company over the years. “Since I assumed the role of CEO in May, our leadership team has conducted an ongoing rigorous, data-driven analysis and review of our business, market opportunities, products and development programs.”

“We believe that our AI software platform will enable, for the majority of the industrial robots being sold around the world, a dramatic reduction in robotic training times while also making industrial robots far more agile, meaning they can perform more tasks with greater variability similar to how humans can perform a wide variety of tasks.”

The vision for Sarcos’s AI software platform commenced in 2017 and progressed to its first CYTAR (Cybernetic Training for Autonomous Robots) government proposal in 2019. Chief technology officer Dr. Denis Garagić joined the company in 2020, initiating significant design and development work. The company plans to engage existing customers to determine the next steps in each relationship. The majority of Sarcos’ government contracts are related to AI software development and are key to the go-forward strategy.

In 2022, Sarcos acquired RE2 Robotics, a Pittsburgh-based developer of autonomous and teleoperated mobile robotic systems, for $100 million. The company seemed to double down on this acquisition earlier this year when it announced a number of changes to the company that aimed to grow revenue and leverage strategic opportunities that show the greatest market traction and meet customer demand. These changes included focusing on robotic systems for subsea, aviation, and the solar end market.

Sarcos has secured AI software development contracts with the U.S. Air Force, providing funding for the platform’s development and opportunities for real-world testing. Peterson anticipates bringing a version of the AI software platform, compatible with most industrial robots, to market in the first half of 2024, with additional features planned for release by the end of next year.

Sarcos was one of the innovators in the robotic exoskeleton market as this historical lineup of products shows the evolution from generation to generation. The company has a strong history of leveraging government contracts to fund its development. | Credit: The Robot Report

To align with this strategic shift, Sarcos is suspending commercialization efforts on its subsea, aviation, and solar robotics hardware programs. “With the need to ensure we have sufficient financial resources to pursue our software opportunity, we have made the difficult decision to suspend for the foreseeable future commercialization efforts on our subsea, aviation and solar robotics hardware programs,” Peterson noted.

The company told The Robot Report that by suspending the commercialization efforts on the subsea, aviation, and solar robotics hardware programs for the foreseeable future, it intends to target these markets through the AI/ML software platform. Furthermore, Sarcos’ robots will be used for further development and testing of its AI/ML software. The company said that this software platform will enable a dramatic reduction in robotic training times while also making industrial robots far more agile.

Sarcos said this strategic decision will allow it to reach a broader market more quickly by separating its AI and ML software from its robotic systems. “By de-coupling our AI and ML software from our own robotic systems, we believe we can reach a much broader market more quickly,” Peterson said.

Laying off 150 employees

The product portfolio shift necessitates a reduction in Sarcos’s workforce by approximately 150 employees. Peterson acknowledged the difficulty of such decisions, stating, “While it is always a difficult decision to make staffing cuts, especially one this significant, it is important that Sarcos is resourced appropriately and that we are good stewards of our capital.”

It has been a tumultuous year for Sarcos as this announcement follows a layoff of 75 individuals from the company in July 2023 and the hiring of Peterson in May 2023 to replace prior CEO Kiva Allgood. Third quarter 2023 net loss was $29.0 million or $1.13 per share, compared to a net loss of $22.5 million or $0.89 per share in the third quarter of the prior year. Revenue is down, as total revenue in the third quarter of 2023 was $1.8 million, compared to $4.7 million in the third quarter of 2022. According to the latest financial report, revenues decreased on a year-over-year basis due to fewer product development contracts being worked during the current year, offset slightly by an increase in product revenue.

In August, the company reported $1.3M in revenue during Q2 2023 against a loss of $28.7M. The company has struggled to achieve profitability since going public via SPAC in September 2021. Also in August, Sarcos also announced it signed an agreement with Blattner Company to develop its autonomous robotics solar construction system further. The company is abandoning this effort as part of the restructuring.

RE2 developed a semi-autonomous and teleoperated underwater ROV as part of its product portfolio. | Credit: RE2

Closing Pittsburgh office

To further align with the strategic pivot, Sarcos plans to close its Pittsburgh office (the original RE2 headquarters) and consolidate operations in Salt Lake City. Peterson emphasized, “We believe the prioritization of our AI software platform meets our previously announced goal of pursuing significant near-term revenue tied to acute customer needs, reduces our capital requirements and related risks in line with available resources, and will lead to long-term stockholder value creation.”

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Robotics part of mid-year success for IDS Imaging

Steve Crowe — Wed, 16 Aug 2023 16:44:39 +0000

IDS Imaging Development Systems, a leading industrial camera manufacturer, far exceeded industry expectations in the first half of 2023. Instead of the 13% increase in turnover forecast by the VDMA for the machine vision industry, the company generated over 40 million euros, which corresponds to a 49% increase in turnover compared to the same period last year.

“Our order books are well filled and are being worked through at record levels after the pandemic-related bottlenecks,” said IDS managing director Alexander Lewinsky. “We have learned from the supply chain challenges of the past years, optimized production as well as adjusted our supply chains. This makes us a reliable partner for our customers. This is being rewarded by the market, with incoming orders currently 10% higher than planned.”

Robotics partly responsible for success

IDS said the success is based primarily on three pillars. “Firstly, we are observing a 3D segment that continues to grow strongly,” said IDS managing partner Jan Hartmann. “We are seeing a significant increase in demand for high-performance, low-cost models for large-volume applications.”

IDS also sees growth potential in the 2D segment. Cameras with high data rates as well as faster and larger sensors are increasingly in demand, and the new low-cost series also contribute significantly to incoming orders. One of the top topics in the industry in terms of process optimization and thus cost reduction is artificial intelligence (AI). “Digitalization and AI, paired with image processing, are key components for automation and robotics, which are advancing in huge dimensions.”

Hartmann explained the third pillar of the company’s success. “Image processing in combination with AI opens up new fields of application that we urgently need in order to meet global challenges such as a shortage of skilled workers or global warming. Resource-saving applications will inevitably become more and more important. Vision systems can make a decisive contribution here.”

In view of the current gloom in the market, the South German camera manufacturer expects a slowdown in the second half of the year and anticipates overall growth of between 15-20% year-on-year by the end of 2023.

IDS Imaging will be showcasing in booth 316 its cameras for robotics applications at RoboBusiness 2023 (Oct. 18-19 in Santa Clara, Calif.) the leading event for commercial robotics development. There will be 60-plus speakers, 100-plus exhibitors and demos on the expo floor, 10-plus hours of dedicated networking opportunities, the Pitchfire Robotics Startup Competition and more. You can check out the current list of speakers, to which more will be added.

RoboBusiness will be co-located with the Field Robotics Engineering Forum, an event focused on how to successfully develop robots that operate in wide-ranging, outdoor, dynamic environments. Also co-located with RoboBusiness is DeviceTalks West, the premier industry event for medical technology professionals, currently in its ninth year.

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Sarcos brings in $1.3M, loses $28.7M during Q2 2023

Brianna Wessling — Mon, 14 Aug 2023 19:27:42 +0000

Sarcos Technology and Robotics Corporation, which designs, develops, and manufactures a range of robotic systems which include solar, subsea, and aviation robots, has announced its Q2 2023, which ended on June 30, earnings. The company brought in $1.3 million in revenue and had a net loss of $28.7 million during the quarter.

During Q2, Sarcos formed a new Advanced Technologies software business division to drive emerging AI Software-as-a-Service (SaaS) revenue opportunities. This division is bolstered by the company’s expanded contract with the Air Force Research Laboratory (AFRL) for continued development of AI-driven technologies.

Sarcos also announced it signed an agreement with Blattner Company to develop its autonomous robotics solar construction system further. The companies plan to evaluate and further refine the system’s technology, functionality, and safety through a series of field trials over the next several years.

The company has had losses along with its wins recently. In May, Sarcos replaced its previous president and CEO, Kiva Allgood, with its new interim president and CEO Laura Peterson. A month later, in June, Sarcos announced it would put into effect a reverse stock split of its issued common stock at a ratio of 1-for-6. The stock split, which became effective at the beginning of July, was intended to increase the price per share of Sarcos’ common stock to allow it to stay in compliance with the $1.00 minimum bid price requirement for listing on the Nasdaq.

In July, Sarcos announced a number of changes to the company that aims to grow revenue and leverage strategic opportunities that show the greatest market traction and meet customer demand.

These changes included focusing on robotic systems for subsea, aviation, and the solar end market, despite its beginnings making robotic exoskeletons, optimizing its manufacturing facilities by consolidating its Pittsburgh manufacturing facility into its Salt Lake City location, and laying off a fourth of its employees. Sarcos expects the new structure to decrease its monthly average cash usage from around $6.5 million to just $3 million by Q1 of 2024.

In connection with the restructuring announcement, the company incurred charges of $5.1 million in Q2 of 2023, including $4.4 million due to the write-down of inventory and $0.7 million related to the impairment of certain fixed assets.

Next quarter, Sarcos expects its revenue will range between $1.1 and $1.4 million. It also expects additional restructuring expenses related to reducing headcount to total around $6.0 million.

In March 2022, Sarcos acquired RE2 Robotics, a Pittsburgh-based developer of autonomous and teleoperated mobile robotic systems, for $100 million. This acquisition allows Sarcos to better target sectors like aviation, construction, medical, and subsea.

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Symbotic brings in $312M in Q3

Brianna Wessling — Thu, 03 Aug 2023 22:06:24 +0000

Symbotic, a developer of AI-enabled robotics technology, has brought in $312 million in revenue in Q3 of 2023, which ended June 24, 2023. The company also reported a net loss of $39 million during Q3.

This is a sharp increase in revenue from the same quarter last year, when Symbotic brought in $176 million, and a slight increase in losses from the $33 million in net losses the company recorded in the same quarter last year.

“We are pleased to report another quarter of strong revenue growth and record operating margin, as we initiated six new system deployments and completed commissioning of one system,” Symbotic Chief Financial Officer, Tom Ernst, said. “During the quarter, we maintained our focus on scaling for growth and investing in innovation, while still achieving strong operating leverage. Additionally, a new systems sales contract with GreenBox increases our contracted backlog to approximately $23 billion, addressing the needs of customers who want leading automation on an outsourced basis.”

In Q4, Symbotic expects to bring in between $290 and $310 million in revenue. This revenue will likely continue to grow in 2024 due to Symbotic’s $7.5 billion new customer contract with GreenBox, its new joint Warehouse-as-a-Service venture with SoftBank.

GreenBox will automate supply chain networks globally by operating and making Symbotics’ advanced AI and automation technology accessible to the warehouse. Starting in fiscal year 2024, GreenBox will order Symbotic’s systems over a six-year period.

“Our GreenBox joint venture advances our strategic vision by adding over $500 billion to Symbotic’s annual total addressable market,” Symbotic Chairman and Chief Executive Officer, Rick Cohen, said. “As confidence in our ability to scale platform deliveries has grown, we feel now is the right time to realize the vision we have had for many years to add warehouse-as-a-service capability. We believe SoftBank is the best partner with which to launch the GreenBox joint venture because of our shared vision and expertise in scaling operations, and SoftBank’s global reach.”

Symbotic’s software is able to orchestrate an entire fleet of robots to receive, store and retrieve a virtually limitless number of SKUs, according to the company. Each robot is equipped with the company’s proprietary end-of-arm tooling and vision systems, which allow them to output cases, totes and packages at industry-leading speeds.

Last year, the company went public via a SPAC deal with SVF Investment Corp 3. SVF Investment Corp. 3 is a special purpose acquisition company (SPAC) sponsored by an affiliate of Softbank Investment Advisors.

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Symbotic ends Q2 with $266.9M in revenue

Brianna Wessling — Tue, 02 May 2023 18:57:00 +0000

Symbotic brought in $266.9 million in revenue in Q2 of 2023, with a net loss of $55.4 million and an adjusted EBITDA loss of $11.2 million.

The company saw an increase in revenue and expenses from the same quarter last year. In Q2 2022, it brought in $96.3 million in revenue and had a net loss of $29.9 million. This brings Symbotic’s revenue growth to 177% year-over-year.

“Revenue growth accelerated, and operating leverage improved during the second quarter, as we completed one system and initiated seven new system deployments,” Symbotic Chief Financial Officer, Tom Ernst, said. “During the quarter, we continued to scale for growth and invest in innovation. Our transition to outsourcing led to an $8.4 million severance and restructuring charge as we ceased manufacturing activities in Montreal and curtailed manufacturing capacity in Wilmington, Massachusetts.”

Symbotic’s cash, cash equivalents, restricted cash and marketable securities on hand have also increased by $17.1 million since Q1 of 2023 to $464.6 million at the end of Q2.

“Our second quarter results reflect continued execution to our growth plan. During the quarter we advanced our transition to outsourcing partnerships to successfully complete installations of our current system at multiple customer sites and achieved a three-fold increase of deployments in progress since last year,” Symbotic Chairman and Chief Executive Officer Rick Cohen said. “Our ability to scale at this pace, while continuing to innovate, positions us to be the leader in transforming the supply chain.”

In Q3, Symbotic expects to bring in between $245 and $265 million in revenue. Symbotic’s system includes a fleet of fully autonomous robots that receive, store and retrieve products in distribution centers. It utilizes hundreds of autonomous mobile robots called “Symbots”.

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Silicon Valley Bank collapses and FDIC takes over

Mike Oitzman — Fri, 10 Mar 2023 23:36:03 +0000

Breaking news today regarding the failure and collapse of Silicon Valley Bank, one of the oldest banks in Silicon Valley to be used by generations of technology startups. Steve Crowe and Mike Oitzman discuss the situation and the likely fallout and impact to robotics companies and the venture capital industry that supports them.

Also on the show today we (unrelatedly) interview Rylan Hamilton, cofounder and CEO of 6 River Systems. Mike had the opportunity to sit down with Rylan and talk about Rylan’s start in robotics with Kiva Systems and how he concepted and built 6 River Systems into a leading AMR manufacturer that’s now a major part of the Shopify family.

It’s a great interview about the importance of putting the customer first and starting with a problem, rather than a solution.

Links from today’s show:

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Symbotic brings in $206.3M in first public quarter

The Robot Report Staff — Tue, 31 Jan 2023 00:53:17 +0000

Symbotic Inc., a developer of A.I.-enabled robotics technology for the supply chain, announced financial results for its first fiscal quarter that ended December 24, 2022.

Symbotic posted revenue of $206.3 million, a net loss of $68.0 million and an adjusted EBITDA loss of $16.3 million for the first quarter of fiscal year 2023. In the same quarter of fiscal year 2022, Symbotic had revenue of $77.1 million, a net loss of $23.1 million and an adjusted EBITDA loss of $21.3 million.

“Symbotic achieved triple-digit revenue growth and added to our base of outsourcing partners during the first quarter. We are optimistic about our outlook and are poised for continued strong growth. Demand for our solutions continues to grow and our backlog increased to $12.0 billion in the quarter,” Symbotic Chairman and Chief Executive Officer Rick Cohen said.

“In addition to our 168% annual revenue growth, gross margin improved and operating expenses, excluding stock-based compensation, declined sequentially,” Symbotic Chief Financial Officer Tom Ernst, said. “We initiated a record six system deployments during the first quarter as we continue to rapidly scale operations and deliver for our customers. Cash, cash equivalents and marketable securities on hand increased by $94.1 million from the prior quarter to $447.5 million, leaving us well capitalized to execute our growth strategy.”

Symbotic made its debut on the NASDAQ in June under ticker symbol “SYM” after completing its business combination with SVF Investment Corp. 3, a special purpose acquisition company (SPAC) sponsored by an affiliate of Softbank Investment Advisors. The combination was approved at a meeting of SVFC shareholders on June 3, 2022.

Symbotic’s system includes a fleet of fully autonomous robots that receive, store and retrieve products in distribution centers. It utilizes hundreds of autonomous mobile robots called “Symbots”.

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Teradyne’s robotics group brings in $404M in 2022

Brianna Wessling — Mon, 30 Jan 2023 20:20:20 +0000

Universal Robots reported its highest annual revenue to date in 2022. | Source: Universal Robots

Teradyne announced it brought in $3.15 billion in revenue in FY 2022. This marks the company’s second-biggest year in history, following 2021. Its Industrial Automation Group, which includes Universal Robots (UR), Mobile Industrial Robots (MiR), and Energid, brought in $404 million.

This is a $28 million increase from the $376 million it brought in during 2021. In 2022, UR brought in $326 million, while MiR brought in $77 million.

“We delivered better than expected results in the fourth quarter on higher revenue and gross margins and lower expenses than planned,” Teradyne CEO Mark Jagiela said in a release. “Increased shipments of our Eagle products serving the automotive and industrial chip markets combined with stronger demand for UR cobots in the quarter drove the improved results.”

UR brought in $85 million in revenue in Q4 2022, slightly down from the $97 million it brought in during Q4 of 2021, but still resulting in a record-high year for the company for the second year in a row. UR saw a 5% increase in annual revenue from 2021 and a 12% growth on a constant currency basis.

“We are proud to have continued to grow our business despite facing a difficult macroeconomic environment in 2022,” Kim Andreasen, UR’s chief financial officer, said in a release. “We focused on those things we are able to control, and we overcame supply chain challenges to report our highest annual revenue to date.”

Teradyne expects its Industrial Automation Group to continue to grow strongly in 2023. In 2022, the company began growth initiatives, including a channel transformation at UR, to gain traction. These growth initiatives also included supplementing its traditional distributor network with focused OEM channels.

The Industrial Automation Group will also likely see growth because of its recent product releases, like the higher-payload UR20, which expands its service market. The UR20 will ramp up production in 2023, particularly in the second half of the year.

“We invested last year in building world-class expertise in welding, palletizing and machine tending,” Kim Povlsen, UR’s president, said in a release. “We have also been working with our ecosystem partners to make automation easier for our customers than ever before. 2022 has been an important year for the company overall. We started construction on new headquarters, reached our 1000 employee milestone and launched a ground-breaking new cobot.”

MiR merged with AutoGuide Mobile Robots, another Teradyne subsidiary at the end of Q3 2022, with the integrated company officially being called Mobile Industrial Robots.

Prior to the merger, MiR offered a range of AMRs capable of carrying payloads and pallets up to 3,000 lb. (1350 kg). By combining with AutoGuide, the portfolio will expand to include high-payload AMR tuggers and forklifts operating on the MiRFleet software.

Teradyne expects the Industrial Automation Group to grow more than 20% in 2023, with much of that growth coming in the second half of the year.

The company’s market penetration for collaborative robots, including autonomous mobile robots (AMRs), is under 5%, leaving Teradyne with a lot of room for long-term growth. Teradyne is expecting its Industrial Automation Group to eventually make up 20% of the company’s entire sales.

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LiDAR maker Quanergy files Chapter 11 bankruptcy

Steve Crowe — Thu, 15 Dec 2022 20:17:23 +0000

Quanergy’s M1 Edge 2D LiDAR. | Credit: Quanergy

After going public 10 months ago via a SPAC with China’s CITIC Capital, at an implied $1.4 billion equity value, LiDAR maker Quanergy has filed for Chapter 11 bankruptcy. Quanergy is now looking for a buyer under section 363 of the Bankruptcy Code.

Quanergy said it expects to continue operations during the Chapter 11 process and seeks to complete an expedited sale process with Bankruptcy Court approval. To help fund and protect its operations, Quanergy intends to use available cash on hand along with normal operating cash flows to fund post-petition operations and costs in the ordinary course.

Quanergy also said CEO Kevin Kennedy will retire effective December 31, 2022.

“It has been my honor to serve as CEO at Quanergy for the past 2.5 years,” said Kevin Kennedy, Chief Executive Officer of Quanergy. “During this time, the company shifted our technology focus towards security and industrial applications which enabled the company to grow revenue by serving customer needs in a new marketplace.”

The company will transition its executive leadership to a newly appointed chief restructuring officer and president, Lawrence Perkins.

“Quanergy has made considerable efforts to address ongoing financial challenges stemming from volatile capital market conditions,” said Perkins. “Despite these challenges, the Company has seen improving demand in the security, smart spaces, and industrial markets, and improvements in supply chain conditions. We are confident that Quanergy’s efforts have positioned the company for a value-maximizing transaction during the Chapter 11 sale process. During the process, we will continue to prioritize the needs of our customers and I am thankful to the entire Quanergy team for their continued efforts and contributions to the business.”

For Q3 2022, which ended on September 30, Quanergy reported revenue of $2.3 million, which is said at the time was near the top end of its guidance range and up 104% year-over-year. It reported a third-quarter GAAP net loss of $17.7 million, compared to $19 million in the third quarter of 2021, and a third-quarter adjusted EBITDA loss of $12.3 million compared to $6.1 million in the third quarter of 2021.

Revenue for its 2021 fiscal year was $3.9 million, which was up 30% year-over-year from $3 million in 2020. Quanergy said 1,065 LiDAR sensors shipped in the full year.

Tough times for LiDAR makers?

Quanergy isn’t the only LiDAR developer to be struggling financially. Last month, German LiDAR developer Ibeo Automotive Systems GmbH filed for insolvency because it could not secure further growth financing. MicroVision, a developer of MEMS-based solid-state automotive LiDAR and advanced driver-assistance systems (ADAS) solutions, swooped in to acquire certain assets of Ibeo for $15.8 million.

AEye reported revenue of $768,000 in its fiscal third quarter of 2022 with a GAAP loss of $23.6 million. Non-GAAP losses totaled $17 million in the quarter. AEye ended Q3 with $112.2 million in cash, cash equivalents and marketable securities.

Ouster and Velodyne, two prominent LiDAR companies, recently announced they’re merging in an all-stock transaction. The agreement was signed on November 4, 2022, and is expected to be completed in the first half of 2023.

Last year, Kyle Vogt, co-founder and CEO of autonomous driving company Cruise, said the LiDAR industry would consolidate. The issue, according to Vogt, is the projected revenue comes from “entirely overlapping potential customers, with very little discount applied to future projections.”

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