iRobot 2012 Annual Report Download - page 74

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December 29,
2012
December 31,
2011
January 1,
2011
January 2,
2010
December 27,
2008
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents $ 126,770
$ 166,308 $ 108,383 $ 71,856 $ 40,852
Short term investments 12,430
17,811 13,928 4,959 —
Total assets 356,796
332,213 254,331 199,584 163,678
Total liabilities 80,979
89,255 79,424 66,390 44,002
Total stockholders’ equity 275,817
242,958 174,907 133,194 119,676
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The information contained in this section has been derived from our consolidated financial statements and should be
read together with our consolidated financial statements and related notes included elsewhere in this Annual Report on
Form 10-K. This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, or the Exchange
Act, and are subject to the “safe harbor” created by those sections. In particular, statements contained in this Annual Report
on Form 10-K that are not historical facts, including, but not limited to statements concerning new product sales, product
development and offerings, Roomba, Scooba, Looj, Mint and Verro products, PackBot tactical military robots, the Small
Unmanned Ground Vehicle, Ava, our home robots and defense and security robots business units, our competition, our
strategy, our market position, market acceptance of our products, seasonal factors, revenue recognition, our profits, growth of
our revenues, product life cycle revenue, composition of our revenues, our cost of revenues, units shipped, average selling
prices, funding of our defense and security robot development programs, operating expenses, selling and marketing expenses,
general and administrative expenses, research and development expenses, and compensation costs, our projected income tax
rate, our credit and letter of credit facilities, our valuations of investments, valuation and composition of our stock-based
awards, and liquidity, constitute forward-looking statements and are made under these safe harbor provisions. Some of the
forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,”
“will,” “should,” “could,” “seek,” “intends,” “plans,” “estimates,” “anticipates,” or other comparable terms. Forward-
looking statements involve inherent risks and uncertainties, which could cause actual results to differ materially from those in
the forward-looking statements. We urge you to consider the risks and uncertainties discussed in greater detail under the
heading “Risk Factors” in evaluating our forward-looking statements. We have no plans to update our forward-looking
statements to reflect events or circumstances after the date of this report. We caution readers not to place undue reliance upon
any such forward-looking statements, which speak only as of the date made.
Overview
iRobot designs and builds robots that make a difference. For over 20 years, we have developed proprietary technology
incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence to build industry-leading
robots. Our Roomba floor vacuuming robot, Scooba floor washing robot and Mint floor sweeping robot perform time-
consuming domestic chores in the home, while our Looj gutter cleaning robot and Verro pool cleaning robot perform tasks
outside the home. Our PackBot and Small Unmanned Ground Vehicle (SUGV) tactical ground military robots perform
battlefield reconnaissance and bomb disposal. We sell our robots to consumers through a variety of distribution channels,
including chain stores and other national retailers, and through our on-line store, and to the U.S. military and other government
agencies worldwide. We maintain certifications for AS9100 for certain programs within our defense and security business unit.
As of December 29, 2012, we had 534 full-time employees. We have developed expertise in the disciplines necessary to
build durable, high-performance and cost-effective robots through the close integration of software, electronics and hardware.
Our core technologies serve as reusable building blocks that we adapt and expand to develop next generation and new products,
reducing the time, cost and risk of product development. Our significant expertise in robot design and engineering, combined
with our management team’s experience in defense and consumer markets, positions us to capitalize on the expected growth in
the market for robots.
Although we have successfully launched consumer and defense and security products, our continued success depends
upon our ability to respond to a number of future challenges. We believe the most significant of these challenges include
increasing competition in the markets for both our consumer and defense and security products, our ability to obtain U.S.
federal government funding for research and development programs, and our ability to successfully develop and introduce
products and product enhancements.