iRobot 2010 Annual Report Download - page 86

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revenue rather than research and development expense. The combined investment in future technologies, classified
as cost of revenue and research and development expense, was $45.5 million for fiscal 2009, compared to
$41.5 million for fiscal 2008.
Selling and Marketing
January 2,
2010
December 27,
2008 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Total selling and marketing ........... $40,902 $46,866 $(5,964) (12.7)%
As a percentage of total revenue ....... 13.7% 15.2%
Selling and marketing expenses decreased by $6.0 million, or 12.7%, to $40.9 million (13.7% of revenue) in
fiscal 2009 from $46.9 million (15.2% of revenue) in fiscal 2008. This was driven by a decrease in our home robots
division of $6.3 million primarily attributable to a reduction of $4.5 million in television and other marketing
expenses for fiscal 2009 as compared to fiscal 2008 as a result of our strategy to aggressively manage our expenses.
The decrease of selling and marketing expenses in our home robots division was also attributable to decreases of
$1.2 million in sales commission expenses as a result of lower sales to domestic retailers and $0.6 million in direct
fulfillment expenses related to lower direct sales in fiscal 2009 as compared to fiscal 2008.
General and Administrative
January 2,
2010
December 27,
2008 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
General and administrative ........... $30,110 $28,840 $1,270 4.4%
As a percentage of total revenue ....... 10.1% 9.4%
General and administrative expenses increased by $1.3 million, or 4.4%, to $30.1 million (10.1% of revenue)
in fiscal 2009 from $28.8 million (9.4% of revenue) in fiscal 2008. The increase in general and administrative
expenses was primarily driven by increases of $2.7 million in incentive compensation and stock-based compen-
sation partially offset by a decreases of $1.0 million in bad debt expense and $0.4 million in compensation and other
general and administrative expenses in fiscal 2009 as compared to fiscal 2008.
Other Income (Expense), Net
January 2,
2010
December 27,
2008 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Other Income (expense), net ........ $(81) $926 $(1,007) Not Meaningful
As a percentage of total revenue ..... 0.0% 0.3%
Other income (expense), net amounted to $(0.1) million in fiscal 2009 compared to $0.9 million in fiscal 2008.
Other income (expense), net for fiscal 2009 was directly related to foreign currency exchange losses resulting from
foreign currency exchange rate fluctuations. Other income (expense), net for fiscal 2008 was directly related to
interest income resulting from investments in auction rate securities and money market accounts. All of our auction
rate securities investments have been settled and our current money market investments earn significantly reduced
interest rates as compared to fiscal 2008.
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