iRobot 2008 Annual Report Download - page 58

example a suspicious vehicle, and then automatically engaging a UGV to navigate to the designated target to
provide precise location and ground-based tracking.
We are engaged in a number of other research programs funded by the Defense Advanced Research Projects
Agency (DARPA), the U.S. Army Research, Development & Engineering Center (ARDEC), the Office of Naval
Research (ONR), TARDEC, and several other U.S. governmental agencies.
Strategic Alliances
Strategic alliances are an important part of our product development and distribution strategies. We rely on
strategic alliances to provide technology, complementary product offerings and increased and quicker access to
markets. We seek to form relationships with those entities that can provide best-in-class technology or comple-
mentary market advantages for establishing iRobot technology in new market segments.
Among the strategic alliances we have established with commercial entities are the following:
The Boeing Company. We have entered into a strategic business agreement with The Boeing Company
to develop and market a commercial version of the SUGV that is being developed under the Army’s FCS
program. This collaboration will accelerate product development, though extensive use of COTS components,
to produce a commercial version of the SUGV robots several years earlier than previously planned for use by
our U.S. military, domestic and international customers. In addition to cooperative development, we will be
working jointly with The Boeing Company, leveraging its extensive, domestic and international marketing
network, to market the new commercial SUGV product.
Advanced Scientific Concepts, Inc. In 2007, we entered into agreement with Advanced Scientific
Concepts, Inc. for exclusive rights to use its LADAR technology for unmanned ground vehicles in exchange
for future commitments to purchase units. LADAR technology is a next-generation solid state sensor that
marks an important advancement for navigation and mapping applications for all autonomous vehicles.
LADAR sensors have no moving parts and can be compact, light and rugged, making them highly suitable for
military and industrial uses. We will assist Advanced Scientific Concepts, Inc. in designing versions of its
LADAR technology for use on our military robots. We expect to demonstrate the technology to key customers
starting in early 2009, with delivery of a product expected by mid-2009.
TASER International, Inc. We entered into a strategic business agreement with Taser International Inc.
in 2007 to develop new robots that can remotely engage, incapacitate and control dangerous suspects with
integrated TASER electronic control devices. In December 2008, iRobot and Taser successfully demonstrated
a multi-shot Taser system on a PackBot 510 platform.
Our strategy of working closely with third parties extends to the design of our products. By offering extensible
platforms designed to carry payloads, we have designed and manufactured our products to leverage the work of
those individuals and organizations that offer specialized technological expertise. The PackBot, the Roomba and
the Scooba robots are designed with open interfaces that allow third-party designers to add sensors or other
functionality to our robots.
Sales and Distribution Channels
We sell our products through distinct sales channels to the consumer and government and industrial markets.
Home Robots
We sell our consumer products through a network of national retailers. In 2008, this network consisted of more
than 30 retailers, representing over 7,000 stores in the United States, each of which sold some combination of these
products. Internationally, our products are sold in over 40 countries, primarily through a network of in-country
distributors who resell to retail stores in their respective countries. We also offer our products domestically and
internationally through the on-line store on our website.
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