iRobot 2012 Annual Report Download - page 82

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32
Research and Development
Fiscal Year Ended
December 29,
2012
December 31,
2011 Dollar Change Percent Change
(In thousands)
Total research and development $ 37,215
$ 36,498
$ 717 2.0 %
As a percentage of total revenue 8.5 % 7.8 %
Research and development expenses increased $0.7 million, or 2.0%, to $37.2 million (8.5% of revenue) in fiscal 2012
from $36.5 million (7.8% of revenue) in fiscal 2011. The increase in research and development expenses is primarily due to
increases in compensation, contractor, consultants and material associated with internal research and development projects in
our home robots business unit partially offset by reduced compensation, contractor, consultants and material expense in our
defense and security business unit. The increase in our home robots business unit is primarily the result of increased efforts in
the areas of product development, including our efforts associated with the RP-VITA (Remote Presence Virtual + Independent
Telemedicine Assistant) product that was jointly developed with, and is sold by, InTouch Technologies, Inc.
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
2012, these expenses amounted to $16.8 million, compared to $26.5 million for fiscal 2011. These expenses have been
classified as cost of revenue rather than research and development expense. The combined investment in future technologies,
classified as cost of revenue and research and development expense, was $54.0 million for fiscal 2012, compared to $63.0
million for fiscal 2011.
Selling and Marketing
Fiscal Year Ended
December 29,
2012
December 31,
2011 Dollar Change Percent Change
(In thousands)
Total selling and marketing $ 71,631
$ 58,544
$ 13,087 22.4 %
As a percentage of total revenue 16.4 % 12.6 %
Selling and marketing expenses increased by $13.1 million, or 22.4%, to $71.6 million (16.4% of revenue) in fiscal 2012
from $58.5 million (12.6% of revenue) in fiscal 2011. This was driven by an increase in our home robots business unit of $14.0
million primarily attributable to our recent multi-media advertising campaign focused on our domestic market for home robot
products, including $3.3 million of selling and marketing expenses in the three-month period ended Decmeber 29, 2012 related
to our newly acquired Mint floor sweeping robot, and increases in advertising as part of our continued global marketing and
branding efforts, partially offset by a decrease of $0.9 million related to fewer corporate and defense and security business unit
marketing activities for fiscal 2012 as compared to fiscal 2011.
General and Administrative
Fiscal Year Ended
December 29,
2012
December 31,
2011 Dollar Change Percent Change
(In thousands)
General and administrative $ 45,698
$ 43,753
$ 1,945 4.4 %
As a percentage of total revenue 10.5 % 9.4 %
General and administrative expenses increased by $1.9 million, or 4.4%, to $45.7 million (10.5% of revenue) in fiscal
2012 from $43.8 million (9.4% of revenue) in fiscal 2011. This increase is primarily attributable to increases in stock-based
compensation expense, legal expense primarily attributable to our international expansion and intellectual property prosecution
and enforcement, depreciation, compensation and employee benefits expense, partially offset by a decrease in incentive
compensation expense in fiscal 2012 as compared to fiscal 2011.