iRobot 2007 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2007 iRobot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Overall selling and marketing headcount increased to 31 at December 30, 2006 compared to 24 as of
December 31, 2005, an increase of 7 employees or 29% growth.
General and Administrative
December 30,
2006
December 31,
2005 Dollar Change Percent Change
Fiscal Year Ended
(Dollars in thousands)
General and administrative ......... $18,703 $12,072 $6,631 54.9%
As a percentage of total revenue ..... 9.9% 8.5%
General and administrative expenses increased by $6.6 million or 54.9% to $18.7 million (9.9% of revenue) in
fiscal 2006 from $12.1 million (8.5% of revenue) in fiscal 2005. The increase in general and administrative expense
was primarily driven by an increase of $2.7 million in compensation, benefits, occupancy, depreciation and other
people related expenses due to increased headcount over the comparable period and $0.4 million related to increases
in software maintenance and general liability insurance. Also included in the $6.6 million increase was $2.2 million
relating to costs incurred on professional accounting, legal and other costs associated with being a public company,
including costs associated with Section 404 of the Sarbanes-Oxley, all of which were not required in 2005 as we
were a private company for the majority of the year. SFAS No. 123(R) stock-based compensation costs totaling
$0.8 million were recorded, a factor that did not exist in the comparable period.
Overall general and administrative headcount increased to 72 at December 30, 2006 compared to 61 as of
December 31, 2005, an increase of 11 employees or 18% growth.
Other Income (Expense), Net
December 30,
2006
December 31,
2005 Dollar Change Percent Change
Fiscal Year Ended
(Dollars in thousands)
Other Income (expense), net ........ $3,831 $676 $3,155 466.7%
As a percentage of total revenue ..... 2.0% 0.4%
For fiscal 2006, other income (expense), net amounted to $3.8 million compared to $0.7 million in fiscal 2005.
The other income (expense), net was directly related to $4.0 million of interest income resulting from the
investment of net proceeds from our initial public offering that occurred in November, 2005.
Income Tax Provision
December 30,
2006
December 31,
2005 Dollar Change Percent Change
Fiscal Year Ended
(Dollars in thousands)
Income tax provision ............. $304 $176 $128 72.7%
As a percentage of total revenue ..... 0.1% 0.1%
The provision for income taxes for fiscal 2006 consists of $0.2 million of federal alternative minimum taxes
and $0.1 million of state taxes compared to $0.2 million of federal alternative minimum taxes in fiscal 2005.
Liquidity and Capital Resources
At December 29, 2007 our principal sources of liquidity were cash and cash equivalents totaling $26.7 million,
short-term investments of $16.6 million and accounts receivable of $47.7 million. Prior to our initial public offering
in November 2005, we funded our growth primarily with proceeds from the issuance of convertible preferred stock
for aggregate net cash proceeds of $37.5 million, occasional borrowings under a working capital line of credit and
cash generated from operations. In the initial public offering, we raised $70.4 million net of underwriting and
professional fees associated with this offering.
53
Form 10-K