Robots are no longer idle figments of imagination but have important applications in business and manufacturing, performing unpleasant and dangerous work. This business is one of the most useful parts of the Appliance & Tool Industry. Small capital stocks, like this one from Burlington, MA, represent excellent growth potential for investors.

The company has just announced business results for the first quarter of 2008. March 31, 2008 marked the completion of 15 unbroken quarters of sales growth for the company. Revenues from robots used in homes grew annually by 55%, while sales to government bodies and industries jumped by over a third compared to the same quarter a year ago.

The management has decided to focus on defense customers in view of the economic slow-down in the United States and other key markets. The company, apart from the civilian range, makes military robots as well. The robots are able to scan battlefields and enemy territory as well as defuse bombs. iRobot has also undertaken development of robotic ground vehicles and futuristic combat control systems for the Pentagon. The company has been funded by the United States for the past five years, and this source of revenue has now grown to more than $60 million.

The stock price was $16.04 on April 30, 2008. This is against a 52-week range of $24.30 and $14.51. Return on Average Equity has been 8.83% on a Trailing Twelve Months Basis. The stability of demand for defense robots, and the long term prospects for robots to clean homes, offices, and public drainage systems, strongly justifies watching this stock.

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