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![Sarcos Guardian XT Robot](https://www.therobotreport.com/wp-content/uploads/2021/11/featured-web-Sarcos-Guardian-XT.jpg)
Sarcos’ Guardian XT was one of many core robotics options inside the Sarcos product line that’s now being deserted for a brand new software-based product technique. | Picture credit score: Sarcos
Sarcos Know-how and Robotics Company has just lately introduced a strategic shift in its enterprise focus, pivoting from robotics to a extra important, near-term alternative introduced by its robotic synthetic intelligence (AI) and machine studying (ML) software program platform.
Laura Peterson, President and CEO of Sarcos, emphasised the essential position of the software program developed by the corporate through the years, stating, “Since I assumed the position of CEO in Might, our management crew has performed an ongoing rigorous, data-driven evaluation and evaluate of our enterprise, market alternatives, merchandise and improvement applications.”
Peterson defined, “We consider that our AI software program platform will allow, for almost all of the economic robots being bought world wide, a dramatic discount in robotic coaching occasions whereas additionally making industrial robots much more agile, which means they will carry out extra duties with better variability just like how people can carry out all kinds of duties.”
The imaginative and prescient for Sarcos’s AI software program platform commenced in 2017 and progressed to its first CYTAR (Cybernetic Coaching for Autonomous Robots) authorities proposal in 2019. Chief Know-how Officer Dr. Denis Garagić joined the corporate in 2020, initiating important design and improvement work. The corporate plans to have interaction current prospects to find out the subsequent steps in every relationship. Nearly all of Sarcos’ authorities contracts are associated to AI software program improvement and are key to the go-forward technique.
In 2022, Sarcos acquired RE2 Robotics, a Pittsburgh-based developer of autonomous and teleoperated cellular robotic techniques, for $100 million. The corporate appeared to double down on this acquisition earlier this 12 months when it introduced numerous adjustments to the corporate that aimed to develop income and leverage strategic alternatives that present the best market traction and meet buyer demand. These adjustments included specializing in robotic techniques for subsea, aviation, and the photo voltaic finish market.
Sarcos has secured AI software program improvement contracts with the U.S. Air Power, offering funding for the platform’s improvement and alternatives for real-world testing. Peterson anticipates bringing a model of the AI software program platform, appropriate with most industrial robots, to market within the first half of 2024, with extra options deliberate for launch by the tip of subsequent 12 months.
![sarcos exoskeleton lineup.](https://www.therobotreport.com/wp-content/uploads/2022/09/sarcos-hq-featured-web.jpeg)
Sarcos was one of many innovators within the robotic exoskeleton market as this historic lineup of merchandise reveals the evolution from era to era. The corporate has a robust historical past of leveraging authorities contracts to fund its improvement. | Credit score: The Robotic Report
To align with this strategic shift, Sarcos has determined to droop commercialization efforts on its subsea, aviation, and photo voltaic robotics {hardware} applications. Peterson famous, “With the necessity to guarantee we now have adequate monetary assets to pursue our software program alternative, we now have made the tough choice to droop for the foreseeable future commercialization efforts on our subsea, aviation and photo voltaic robotics {hardware} applications. We’ll, nonetheless, proceed to deal with these markets by way of our AI/ML software program platform.”
The corporate additionally informed The Robotic Report that by suspending the commercialization efforts on the subsea, aviation, and photo voltaic robotics {hardware} applications for the foreseeable future, they intend to focus on these markets by way of the AI/ML software program platform. Moreover, Sarcos’ robotic techniques shall be used for additional improvement and testing of its AI/ML software program. The corporate believes that this software program platform will allow a dramatic discount in robotic coaching occasions whereas additionally making industrial robots much more agile.
The corporate believes this strategic choice will permit Sarcos to succeed in a broader market extra rapidly by separating its AI and ML software program from its robotic techniques. Peterson believes that “By de-coupling our AI and ML software program from our personal robotic techniques, we consider we will attain a much wider market extra rapidly.”
Shedding 150 workers
The product portfolio shift necessitates a discount in Sarcos’s workforce by roughly 150 workers. Peterson acknowledged the issue of such selections, stating, “Whereas it’s all the time a tough choice to make staffing cuts, particularly one this important, it can be crucial that Sarcos is resourced appropriately and that we’re good stewards of our capital.”
It has been a tumultuous 12 months for Sarcos as this announcement follows a layoff of 75 people from the corporate in July 2023 and the hiring of Peterson in Might 2023 to switch prior CEO Kiva Allgood. Third quarter 2023 web loss was $29.0 million or $1.13 per share, in comparison with a web lack of $22.5 million or $0.89 per share within the third quarter of the prior 12 months. Income is down, as complete income within the third quarter of 2023 was $1.8 million, in comparison with $4.7 million within the third quarter of 2022. In keeping with the most recent monetary report, revenues decreased on a year-over-year foundation on account of fewer product improvement contracts being labored through the present 12 months, offset barely by a rise in product income.
In August, the corporate reported $1.3M in income throughout Q2 2023 in opposition to a lack of $28.7M. The corporate has struggled to attain profitability since going public by way of SPAC in September 2021. Additionally in August, Sarcos additionally introduced it signed an settlement with Blattner Firm to develop its autonomous robotics photo voltaic building system additional. The corporate is abandoning this effort as a part of the restructuring.
![RE2 underwater robot.](https://www.therobotreport.com/wp-content/uploads/2022/03/featured-web-RE2.jpg)
RE2 developed a semi-autonomous and teleoperated underwater ROV as a part of its product portfolio. | Credit score: RE2
Closing Pittsburgh workplace
To additional align with the strategic pivot, Sarcos plans to shut its Pittsburgh workplace (the unique RE2 headquarters) and consolidate operations in Salt Lake Metropolis. Peterson emphasised, “We consider the prioritization of our AI software program platform meets our beforehand introduced aim of pursuing important near-term income tied to acute buyer wants, reduces our capital necessities and associated dangers consistent with accessible assets, and can result in long-term stockholder worth creation.”