iRobot 2012 Annual Report Download - page 56

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We currently offer several Scooba floor washing robots with price points ranging from $279 to $499. Our Scooba 300
robot's innovative cleaning process allows the robot to simultaneously sweep, wash, scrub and dry hard floors, all at the touch
of a button. Unlike a conventional mop that spreads dirty water on the floor, Scooba will apply only fresh water and cleaning
solution to the floor from a clean tank. Scooba will clean dirt and grime, is safe for use on all sealed, hard floor surfaces,
including wood and tile, and is smart enough to avoid carpet. The Scooba 230, introduced in 2011, is sleek, compact and
perfectly sized for hard-to-reach areas like behind bathroom sinks and toilets.
Our Verro Pool Cleaning Robot is used to clean a residential pool and removes debris as small as two microns from the
pool floor, walls and stairs. Verro is brought to market under the iRobot brand through a relationship with Aquatron, Inc.,
which developed the pool cleaning robots. There are two models available.
Our Looj Gutter Cleaning Robot was designed to simplify the difficult and dangerous job of gutter cleaning. The Looj
cleans an entire stretch of gutter, reducing the number of times a ladder must be repositioned and climbed during gutter
cleaning. The Looj also features a detachable handle that doubles as a wireless remote control, providing full control of the
robot while cleaning. The Looj is currently available in North America and will be available in select countries worldwide in
Spring 2013.
Defense and Security Products
In defense and security product markets, we currently offer several ground unmanned vehicles. Our tactical ground
robots include the combat-tested 510 PackBot line of small, unmanned ground robots, the 310 SUGV and XM1216 SUGV
(Small Unmanned Ground Vehicle) multi-purpose ground robots, the 110 FirstLook small, light, throwable robot, and the 710
Warrior multi-purpose robot capable of carrying heavy payloads. The PackBot, SUGV, FirstLook, and Warrior robots comprise
a family of robots using many common platform components and offer our patented flipper technology that enables robots to
easily climb stairs, navigate rubble, and penetrate inaccessible areas. These robots are designed to keep war fighters and public
safety officials out of harm's way and are designed for high-performance, durability and ease of use while performing search,
reconnaissance, mapping, bomb disposal and other dangerous missions. As of December 29, 2012, more than 4,500 robots have
been delivered to military and civil defense forces and research communities worldwide. The robots are currently priced
between approximately $20,000 and $415,000 per unit, depending on configuration and quantities ordered.
We continue to refine the PackBot product line, focusing on enhanced modularity and providing new capabilities to
support a variety of mission scenarios. Our unique Aware 2 software is incorporated into the advanced 510 PackBot chassis
and operator control unit. As a result, PackBot can support multiple configurations and payloads with the same chassis and
operator control unit, providing customers with a single robot capable of performing a variety of missions. We also utilize
Configure-To-Order (CTO) procurement options for our commercial 510 PackBot, allowing customers to tailor the product to
their specific mission needs. The combined benefits of the Aware 2 software and CTO procurement options establish the 510
PackBot as a truly modular multi-mission robotic platform.
The 310 and XM1216 SUGVs are a family of lightweight, backpackable robots well suited to dismounted operations in
Afghanistan. The SUGV has a modular design that accommodates a wide range of optional payloads and sensors, including a
dexterous manipulator, and can easily climb stairs, roll over obstacles and enter inaccessible and dangerous areas.
Contract Research and Development Projects
We are involved in contract development projects with various U.S. governmental agencies and departments. The
durations of these projects range from a few months to several years. These projects are usually funded as either cost-plus, firm
fixed price, or time and materials contracts. In a cost-plus contract, we are allowed to recover our actual costs plus a fixed fee.
The total price of a cost-plus contract is based primarily on allowable costs incurred, but generally is subject to a maximum
contract funding limit. Under a firm fixed price contract, we receive a fixed amount upon satisfying contractually defined
deliverables. On our time and materials contracts, we recover a specific amount per hour worked based on a bill rate schedule,
plus the cost of direct materials, subcontracts, and other non-labor costs, including an agreed-upon mark-up. A time and
materials contract may provide for a not-to-exceed price ceiling, as well as the potential that we will absorb any cost overrun.
Strategic Alliances
Strategic alliances are an important part of our product development and distribution strategies. We rely on strategic
alliances to provide technology, complementary product offerings and increased and quicker access to markets. We seek to
form relationships with organizations that can provide best-in-class technology or market advantages for establishing iRobot
technology in new market segments. For example, in 2011 we signed a joint development and licensing agreement with
InTouch Health, a leading remote presence telemedicine solution provider, to explore potential opportunities for healthcare
applications on iRobot platforms such as the iRobot Ava mobile robotics platform. This alliance has resulted in the
introduction in 2012 of the RP-VITA, the first autonomous navigation remote presence robot to receive U.S. Food and Drug
Administration clearance for use in hospitals. The RP-VITA combines the latest in autonomous navigation and mobility
technologies developed by iRobot with the state-of-the-art telemedicine and electronic health record integration developed by
InTouch Health and we expect will begin shipping in early 2013.