iRobot 2010 Annual Report Download - page 119

Download and view the complete annual report

Please find page 119 of the 2010 iRobot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Company’s on-line store. The Company’s home robots division includes mobile robots used in the maintenance of
domestic households.
Government and Industrial
The Company’s government and industrial division offers products through a small U.S. government-focused
sales force, while products are sold to a limited number of countries, other than the United States, through
international distribution. The Company’s government and industrial robots are used by various U.S. and foreign
governments, primarily for reconnaissance and bomb disposal missions.
The table below presents segment information about revenue, cost of revenue, gross margin and income before
income taxes:
January 1,
2011
January 2,
2010
December 27,
2008
Fiscal Year Ended
(In thousands)
Revenue:
Home Robots .................................. $229,348 $165,860 $173,602
Government & Industrial .......................... 171,604 132,757 134,019
Total revenue ................................ 400,952 298,617 307,621
Cost of revenue:
Home Robots .................................. 137,568 112,429 123,833
Government & Industrial .......................... 117,952 94,992 90,317
Total cost of revenue ........................... 255,520 207,421 214,150
Gross margin:
Home Robots .................................. 91,780 53,431 49,769
Government & Industrial .......................... 53,652 37,765 43,702
Total gross margin............................. 145,432 91,196 93,471
Research and development ......................... 24,809 14,747 17,566
Selling and marketing ............................. 50,535 40,902 46,866
General and administrative ........................ 36,618 30,110 28,840
Litigation and related expenses...................... — — —
Other income (expense), net ........................ 504 (81) 926
Income before income taxes ........................ $ 33,974 $ 5,356 $ 1,125
As of January 1, 2011, goodwill of $7.9 million and purchased intangible assets, net of $3.4 million recorded in
conjunction with the acquisition of Nekton in September 2008, as well as the $2.5 million investment in Advanced
Scientific Concepts, Inc., are directly associated with the government and industrial division. Other long lived assets
are not directly attributable to individual business segments.
Geographic Information
For the fiscal years ended January 1, 2011, January 2, 2010 and December 27, 2008, sales to non-U.S. cus-
tomers accounted for 41.1%, 33.3% and 23.4% of total revenue, respectively.
Significant Customers
For the fiscal years ended January 1, 2011, January 2, 2010 and December 27, 2008, U.S. federal government
orders, contracts and subcontracts accounted for 38.4%, 36.9% and 40.3% of total revenue, respectively. For the
fiscal year ended January 1, 2011, we generated 17.4% of total revenue from The Boeing Company as a
subcontractor under U.S. federal government contracts. For the fiscal years ended January 1, 2011, January 2,
73
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Form 10-K