Thursday’s Headlines: iRobot Plunges Following Patent Infringement Verdict
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1. Shares in the Massachusetts-based iRobot Corp. dropped more than 3% on Wednesday after losing a bid to block its rival, SharkNinja, from selling a competing product. SharkNinja announced that they had successfully fended off iRobot's request for a preliminary injunction related to three patents that would have halted sales of the allegedly infringing vacuum, the Shark IQ Robot. iRobot demanded a halt to sales of the rival product, citing that more than 50% of iRobot sales take place in the final quarter of the year and that an attack on the company at such a time would have devastating effects. Read the full story here.
2. Cloud-computing company Veeva Systems reported Q3 earnings on Wednesday which topped analyst estimates. Third-quarter net income per share was 60 cents, compared to 45 cents one year ago, on top of total revenues of $280.9 million, up from $224.7 million one year ago, an increase of 25 percent year-over-year. Subscription services revenues for the third quarter were $226.8 million, up from $178.2 million one year ago, an increase of 27 percent year-over-year. Despite this, investors didn’t appear satisfied as the company saw its stock fall more than 3% yesterday. Get the full earnings report here.
3. Things have gone from bad to worse for beleaguered Evolent Health, which saw its stock plunge more than 27% on Wednesday. The drop occurred following the news that Passport Health, which the company plans to buy, lost out on a Kentucky Medicaid contract. The loss could put Passport out of business, according to the report, because its main revenue comes from managing health care for Kentucky Medicaid enrollees, a population it was founded to serve in 1997 as a non-profit. For a complete update, read here.