iRobot 2005 Annual Report Download - page 40

robots are shipped to retail stores). As a result of this conversion, our revenue and gross profit in the first
quarter of 2004 included $5.7 million and $2.5 million, respectively, from robots shipped prior to 2004.
(2) In 2001, we did not separately break out selling and marketing expenses from general and administrative
expenses.
December 31,
2005 2004 2003 2002 2001
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 76,064 $ 19,441 $ 4,620 $ 3,014 $ 7,179
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 124,935 45,137 27,827 8,705 10,580
Total liabilitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37,379 31,921 25,624 12,049 3,182
Total redeemable convertible preferred stock ÏÏ Ì 37,506 27,562 14,639 14,639
Total stockholders' equity (deficit)ÏÏÏÏÏÏÏÏÏÏÏ 87,556 (24,290) (25,359) (17,983) (7,241)
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The information contained in this section has been derived from our consolidated financial statements
and should be read together with our consolidated financial statements and related notes included elsewhere in
this Annual Report. This Annual Report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange act of
1934, as amended, and are subject to the ""safe harbor'' created by those sections. Some of the forward-looking
statements can be identified by the use of forward-looking terms such as ""believes,'' ""expects,'' ""may,'' ""will,''
""should,'' ""seek,'' ""intends,'' ""plans,'' ""estimates,'' ""anticipates,'' or other comparable terms. Forward-looking
statements involve inherent risks and uncertainties. A number of important factors could cause actual results
to differ materially from those in the forward-looking statements. We urge you to consider the risks and
uncertainties discussed in greater detail under the heading ""Risk Factors'' in evaluating our forward-looking
statements. We have no plans to update our forward-looking statements to reflect events or circumstances
after the date of this report. We caution readers not to place undue reliance upon any such forward-looking
statements, which speak only as of the date made.
Overview
iRobot provides robots that enable people to complete complex tasks in a better way. Founded in 1990 by
roboticists who performed research at the Massachusetts Institute of Technology, we have developed
proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial
intelligence to build industry-leading robots. Our Roomba floor vacuuming robot and Scooba floor washing
robot perform time-consuming domestic chores, and our PackBot tactical military robots perform battlefield
reconnaissance and bomb disposal. In addition, we are developing the Small Unmanned Ground Vehicle
reconnaissance robot for the U.S. Army's FCS program and, in conjunction with Deere & Company, the
R-Gator unmanned ground vehicle. We sell our robots to consumers through a variety of distribution
channels, including chain stores and other national retailers, and our on-line store, and to the U.S. military and
other government agencies worldwide.
As of December 31, 2005, we had 276 full-time employees, of whom over 100 are engineers specializing
in the design of robots. We have developed expertise in all the disciplines necessary to build durable, high-
performance and cost-effective robots through the close integration of software, electronics and hardware. Our
core technologies serve as reusable building blocks that we adapt and expand to develop next generation and
new products, reducing the time, cost and risk of product development. Our significant expertise in robot
design and engineering, combined with our management team's experience in military and consumer markets,
positions us to capitalize on the expected growth in the market for robots.
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