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updated 00:15, Tue November 06, 2007

IRobot Shares Rise After Judge Grants Injunction Against Competitor

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NEW YORK (AP) -- Shares of iRobot Corp. rose Monday morning after a Massachusetts judge granted the company an injunction against a competitor.

JPMorgan analyst Paul Coster said the legal news puts Burlington, Mass.-based iRobot back on track as it competes for a $286 million contract to develop bomb-detection robots for the military.

"This should reinforce iRobot's first-mover advantage in the military robot market," Coster said in a client note.

The competitor, Robotic FX Inc., was founded by a former iRobot employee and had been awarded a contract for 3,000 robots from the U.S. Army. Coster now expects the contract to go to iRobot.

While Robotic FX may appeal the ruling, its founder's behavior was seen as "unusual" and his testimony ruled "not credible" by the court, Coster said.

Shares of iRobot Corp. rose $1.85, or 11 percent, to $18.73 in morning trading.

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