iRobot 2011 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2011 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 136

  • 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
  • 133
  • 134
  • 135
  • 136

Form 10-K
Research and Development
Fiscal Year Ended
December 31,
2011
January 1,
2011 Dollar Change Percent Change
(In thousands)
Total research and development ........ $36,498 $24,809 $11,689 47.1%
As a percentage of total revenue ....... 7.8% 6.2%
Research and development expenses increased by $11.7 million, or 47.1%, to $36.5 million (7.8% of
revenue) in fiscal 2011. This was driven by increases in our home robots division of $8.8 million, government
and industrial robots division of $1.8 million and other research and development expense of $1.1 million
primarily relating to ongoing development of our common software platform. The increase in other research and
development expense is due to increases in compensation and benefits, consulting and materials associated with
internal research and development projects in both our home robots and government and industrial robots
divisions. The increase in our home robots division is primarily the result of our increased efforts in the areas of
new product development. The increase in our government and industrial robots division is the result of our
increased efforts in product development relating to our FirstLook, PackBot and Warrior programs.
In addition to our research and development activities classified as research and development expense, we
incur research and development expenses under funded development arrangements with governments and
industrial third parties. For fiscal 2011, these expenses amounted to $26.5 million, compared to $27.1 million for
fiscal 2010. In accordance with generally accepted accounting principles, these expenses have been classified as
cost of contract revenue rather than research and development expense. The combined investment in future
technologies, classified as cost of revenue and research and development expense, was $63.0 million for fiscal
2011, compared to $51.9 million for fiscal 2010.
Selling and Marketing
Fiscal Year Ended
December 31,
2011
January 1,
2011 Dollar Change Percent Change
(In thousands)
Total selling and marketing ........... $58,544 $50,535 $8,009 15.8%
As a percentage of total revenue ....... 12.6% 12.6%
Selling and marketing expenses increased by $8.0 million, or 15.8%, to $58.5 million (12.6% of revenue) in
fiscal 2011 from $50.5 million (12.6% of revenue) in fiscal 2010. This was driven by an increase in our home
robots division of $6.4 million primarily attributable to increases in advertising as part of our continued global
marketing and branding efforts, other marketing, compensation, and employee-related expense for fiscal 2011 as
compared to fiscal 2010. Selling and marketing expenses in our government and industrial robots division
increased by $1.2 million attributable to an increase in compensation, trade show, depreciation related to
demonstration robots and travel expenses in fiscal 2011.
In fiscal 2012, we expect to continue to invest in sales and marketing to increase brand awareness.
Accordingly, we anticipate selling and marketing expenses will increase in absolute dollars but remain at the
same level or slightly above fiscal 2011 as a percentage of revenue.
General and Administrative
Fiscal Year Ended
December 31,
2011
January 1,
2011 Dollar Change Percent Change
(In thousands)
General and administrative ........... $43,753 $36,618 $7,135 19.5%
As a percentage of total revenue ....... 9.4% 9.1%
37