iRobot 2007 Annual Report Download - page 80

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Overview of Results of Operations
The following table sets forth our results of operations for the periods shown:
December 29,
2007
December 30,
2006
December 31,
2005
Fiscal Year Ended
(In thousands)
Revenue
Product revenue ............................. $227,457 $167,687 $124,616
Contract revenue ............................ 21,624 21,268 17,352
Total revenue ........................... 249,081 188,955 141,968
Cost of Revenue
Cost of product revenue(1) ..................... 147,689 103,651 81,855
Cost of contract revenue(1) .................... 18,805 15,569 12,534
Total cost of revenue ..................... 166,494 119,220 94,389
Gross profit .............................. 82,587 69,735 47,579
Operating Expenses
Research and development(1) ................... 17,082 17,025 11,601
Selling and marketing(1) ...................... 44,894 33,969 21,796
General and administrative(1)................... 20,919 18,703 12,072
Litigation and related expenses(2) ............... 2,341 — —
Total operating expenses ................... 85,236 69,697 45,469
Operating (Loss) Income ........................ (2,649) 38 2,110
Other Income (Expense), Net ..................... 3,151 3,831 676
Income Before Income Taxes ..................... 502 3,869 2,786
Income Tax Expense (Benefit) .................... (8,558) 304 176
Net Income .................................. $ 9,060 $ 3,565 $ 2,610
(1) Stock-based compensation recorded in 2007, 2006 and 2005 breaks down by expense classification as follows.
December 29,
2007
December 30,
2006
December 31,
2005
Fiscal Year Ended
(In thousands)
Cost of product revenue......................... $ 692 $ 326 $ 33
Cost of contract revenue ........................ 386 267 58
Research and development ....................... 377 376 95
Selling and marketing .......................... 1,074 389 32
General and administrative....................... 2,182 1,211 380
(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.
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