iRobot 2007 Annual Report Download - page 81

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The following table sets forth our results of operations as a percentage of revenue for the periods shown:
December 29,
2007
December 30,
2006
December 31,
2005
Fiscal Year Ended
Revenue
Product revenue ............................. 91.3% 88.7% 87.8%
Contract revenue ............................ 8.7 11.3 12.2
Total revenue ........................... 100.0 100.0 100.0
Cost of Revenue
Cost of product revenue ....................... 59.3 54.9 57.7
Cost of contract revenue ...................... 7.5 8.2 8.8
Total cost of revenue ..................... 66.8 63.1 66.5
Gross profit .............................. 33.2 36.9 33.5
Operating Expenses
Research and development ..................... 6.9 9.0 8.2
Selling and marketing ........................ 18.0 18.0 15.3
General and administrative ..................... 8.4 9.9 8.5
Litigation and related expenses.................. 1.0 — —
Total operating expenses ................. 34.3 36.9 32.0
Operating (Loss) Income ........................ (1.1) 0.0 1.5
Other Income (Expense), Net ..................... 1.3 2.0 0.4
Income Before Income Taxes ..................... 0.2 2.0 1.9
Income Tax Expense (Benefit) .................... (3.4) 0.1 0.1
Net Income .................................. 3.6% 1.9% 1.8%
Comparison of Years Ended December 29, 2007 and December 30, 2006
Revenue
December 29,
2007
December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(Dollars in thousands)
Total Revenue................... $249,081 $188,955 $60,126 31.8%
Our revenue increased 31.8% to $249.1 million in fiscal 2007 from $189.0 million in fiscal 2006. Revenue
increased approximately $32.1 million, or 28.5%, in our home robots business and $28.1 million, or 36.7%, in our
government and industrial business.
The $32.1 million increase in revenue from our home robots division was driven by a $28.2 million increase in
robot revenue due to a 23.9% increase in units shipped and a 2.1% increase in average selling prices, along with a
$3.8 million increase in product life cycle revenue (spares and accessories). Total home care robots shipped in fiscal
2007 totalled approximately 899,000 units compared to approximately 725,000 units in fiscal 2006.
The $28.1 million increase in revenue from our government and industrial business was driven by a
$20.0 million increase in military robots revenue due to a 22.3% increase in units shipped and a 20.4% increase
in net average selling prices, and a $7.7 million increase in product life cycle revenue (robot spares, services and
training). Total military robots shipped in fiscal 2007 was 471 units compared to 385 units in fiscal 2006.
47
Form 10-K