iRobot 2005 Annual Report Download - page 11

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Government and Industrial Products
Our current government and industrial product offerings extend from our PackBot line of small,
unmanned ground robots to the prototype R-Gator full-scale, autonomous vehicle. Our government and
industrial robots are designed for high-performance, durability and ease of use. Our PackBot family of robots
are based on a common platform and are currently priced from approximately $50,000 to $115,000 per unit.
iRobot PackBot Scout. PackBot Scout is a portable, tactical, mobile robot designed for military
operations in urban terrain and other 21st century battle missions. This lightweight, rugged robot can be hand-
carried and deployed by a single soldier. Already deployed in Afghanistan and Iraq, PackBot Scout is designed
to search dangerous or inaccessible areas, providing soldiers with a safe first look so they know what to expect
and how to respond. Less than 20 centimeters high and only 18 kilograms fully loaded, PackBot Scout offers
five open payload bays for maximum upgrade potential. Rated at more than 400g's, the PackBot Scout is our
most rugged PackBot configuration.
iRobot PackBot Explorer. PackBot Explorer is designed for performing real-time targeting and battle
damage assessment in dangerous or inaccessible areas or other urban warfare scenarios. PackBot Explorer can
enter the danger zone before responders are exposed to risk and function as the incident commander's remote
information gatherer. PackBot Explorer can help assess the situation, ensure the appropriate response, and
reduce risk.
iRobot PackBot EOD. PackBot EOD is a rugged, lightweight robot designed to conduct explosive
ordnance disposal, hazardous materials, search-and-surveillance and other vital law enforcement tasks for
bomb squads, SWAT teams, military units and other authorities. PackBot EOD can handle a full range of
improvised explosive devices and conventional ordnance disposal challenges. Our PackBot EOD robot's
lightweight and rugged OmniReach Manipulator System can extend up to six feet to safely disrupt improvised
explosive devices, military ordnance, land mines and other incendiary devices.
R-Gator: Autonomous Unmanned Ground Vehicle. The R-Gator prototype is built on the well-
established rugged Deere & Company M-Gator military utility vehicle platform and enhanced with iRobot
robotic controls, navigation and obstacle avoidance systems. The R-Gator is designed to serve numerous
important roles, acting as unmanned scout, ""point man,'' perimeter guard, as well as pack/ammunition/supply
carrier for soldiers. In conjunction with Deere & Company, we expect to produce a limited number of R-Gator
prototypes in 2006, some of which will be used for evaluation by a number of potential government customers.
The net proceeds of R-Gator sales will be shared between us and Deere & Company, subject to recoupment of
each party's respective contribution to the project. While early editions of these units will be targeted
exclusively for military use, there are many potential industrial applications for the technology derived from
the R-Gator program, including potential applications in agriculture, perimeter patrol, above-ground pipeline
security and logistics.
Contract Research and Development Projects
We are involved in several 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 arrangements 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 on a cost-plus contract is based primarily on
allowable costs incurred, but generally is subject to a maximum contract funding limit. 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.
Government funding is provided to further the development of robot technologies to solve various in-field
challenges and with the expectation that if the projects result in the development of technically viable
prototypes, then the government will purchase multiple production units for future use in the field. The
government funding that we receive allows iRobot to accelerate the development of multiple technologies.
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