iRobot 2011 Annual Report Download - page 121

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Home Robots
The Company’s home robots division offers products to consumers through a network of retail businesses
throughout the United States, to various countries through international distributors and retailers, and through the
Company’s on-line store. The Company’s home robots division includes mobile robots used in the maintenance
of domestic households.
Government and Industrial Robots
The Company’s government and industrial robots 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,
primarily through international distributors but also through a small internationally-focused sales team. 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:
Fiscal Year Ended
December 31,
2011
January 1,
2011
January 2,
2010
(In thousands)
Revenue:
Home Robots .................................... $278,551 $229,348 $165,860
Government & Industrial Robots ..................... 186,949 171,604 132,757
Total revenue .................................. 465,500 400,952 298,617
Cost of revenue:
Home Robots .................................... 152,723 137,568 112,429
Government & Industrial Robots ..................... 120,659 117,952 94,992
Total cost of revenue ............................ 273,382 255,520 207,421
Gross margin:
Home Robots .................................... 125,828 91,780 53,431
Government & Industrial Robots ..................... 66,290 53,652 37,765
Total gross margin .............................. 192,118 145,432 91,196
Research and development .......................... 36,498 24,809 14,747
Selling and marketing .............................. 58,544 50,535 40,902
General and administrative .......................... 43,753 36,618 30,110
Other income (expense), net ......................... 218 504 (81)
Income before income taxes .......................... $ 53,541 $ 33,974 $ 5,356
As of December 31, 2011, goodwill of $7.9 million and purchased intangible assets, net of $2.5 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.
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