iRobot 2007 Annual Report Download - page 72

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(1) Beginning in the first quarter of 2004, we converted from recognizing revenue from U.S. consumer product
sales on a “sell-through” basis (when retail stores sold our robots) to a “sell-in” basis (when our robots are
shipped to retail stores). As a result of this conversion, our revenue and gross profit in the first quarter of 2004
included $5.7 million and $2.5 million, respectively, from robots shipped prior to 2004.
(2) Consists of costs for litigation relating to lawsuits filed against Robotic FX, Inc. and Jameel Ahed, as well as
settlement costs related to ending the litigation. See Item 3 — Legal Proceedings included elsewhere in this
Annual Report on Form 10-K for a more detailed discussion of this litigation.
December 29,
2007
December 30,
2006
December 31,
2005
December 31,
2004
December 31,
2003
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents ........ $ 26,735 $ 5,583 $ 76,064 $ 19,441 $ 4,620
Short term investments .......... 16,550 64,800 — — —
Total assets................... 169,092 135,308 124,935 45,137 27,827
Total liabilities ................ 58,865 40,389 37,379 31,921 25,624
Total redeemable convertible
preferred stock .............. — — — 37,506 27,562
Total stockholders’ equity
(deficit) ................... 110,227 94,919 87,556 (24,290) (25,359)
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, 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, Verro and ConnectR
products, PackBot tactical military robots, our home robot and government and industrial robot divisions,
competition and strategy and our market position, market acceptance of our products, seasonal factors, revenue
recognition, profits, growth of revenues, composition of revenues, cost of revenues, operating expenses, sales,
marketing and support expenses, general and administrative expenses, research and development expenses,
compensation costs, our ability to attract and retain qualified personnel, credit facility and equipment facility,
valuations of investments, valuation and composition of stock-based awards, SFAS No. 123(R), 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 that 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 provides robots that enable people to complete complex tasks in a better way. Founded in 1990 by
roboticists who performed research at the Massachusetts Institute of Technology, 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 and Scooba floor washing robot perform time-
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