iRobot 2007 Annual Report Download - page 117

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15. Industry Segment, Geographic Information and Significant Customers
The Company operates in two reportable segments, the consumer business and government and industrial
business. The nature of products and types of customers for the two segments vary significantly. As such, the
segments are managed separately.
Home Robots
The Company’s consumer business offers products through a network of retail businesses throughout the
U.S. and to certain countries through international distributors. The Company’s consumer segment includes mobile
robots used in the maintenance of domestic households sold primarily to retail outlets.
Government and Industrial
The Company’s government and industrial division offers products through a small U.S. government-focused
sales force, while products are sold to a limited number of countries other than the United States through
international distribution. The Company’s government and industrial products are robots used by various U.S. and
foreign governments, primarily for reconnaissance and bomb disposal missions.
The table below presents segment information about revenue, cost of revenue, gross profit and income (loss)
before income taxes:
December 29,
2007
December 30,
2006
December, 31
2005
Fiscal Year Ended
(In thousands)
Revenue:
Home Robots ............................... $144,483 $112,430 $ 93,955
Government & Industrial ...................... 104,598 76,525 47,945
Other ..................................... — — 68
Total revenue ............................. 249,081 188,955 141,968
Cost of revenue:
Home Robots ............................... 97,878 68,066 58,025
Government & Industrial ...................... 68,616 51,189 36,279
Other ..................................... — (35) 85
Total cost of revenue ....................... 166,494 119,220 94,389
Gross profit (loss):
Home Robots ............................... 46,605 44,364 35,930
Government & Industrial ...................... 35,982 25,336 11,666
Other ..................................... — 35 (17)
Total gross profit .......................... 82,587 69,735 47,579
Research and development
Other ..................................... 17,082 17,025 11,601
Selling and marketing
Other ..................................... 44,894 33,969 21,796
General and administrative
Other ..................................... 20,919 18,703 12,072
Litigation and related expenses
Other ..................................... 2,341 — —
Other income (expense), net
Other ..................................... 3,151 3,831 676
Income (loss) before income taxes
Other ..................................... $ 502 $ 3,869 $ 2,786
83
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Form 10-K