iRobot 2008 Annual Report Download - page 59

We have a philosophy to choose supportive channel partners, and we have grown, and intend to continue to
selectively grow our retail network globally and by product line. Certain smaller domestic retail operations are
supported by distributors to whom we sell product directly. The table below represents the breakdown of our home
robots product revenue for the fiscal years ended December 27, 2008 and December 29, 2007.
Channel December 27, 2008 December 29, 2007
Fiscal Year Ended
Domestic ............................................... 44.3% 61.6%
International ............................................ 38.0 15.0
Direct ................................................. 17.7 23.4
Total ................................................ 100.0% 100.0%
Although our retail network is our primary distribution channel for our consumer products, our direct-to-
consumer offerings through our on-line store is our single largest outlet, representing 17.7% and 23.4% of total
home robots division revenue for fiscal 2008 and 2007, respectively. We have established valuable databases and
customer lists that allow us to target directly those consumers most likely to purchase a new robot or upgrade. Our
increased focus on international sales activities has resulted in an increase of $44.2 million in international home
robots revenue for fiscal 2008 as compared to fiscal 2007. We believe we maintain a close connection with our
customers in each of our markets, which provides an enhanced position from which to improve our distribution and
product offerings.
In the United States, we maintain an in-house sales and product management team. Outside ofthe United States
and Canada, we sell our consumer products through distributors and our website supported by our international
sales team. Our consumer distribution strategy is intended to increase our global penetration and presence while
maintaining high quality standards to ensure end-user satisfaction.
Government and Industrial
We sell our government and industrial products directly to end users and indirectly through prime contractors
and distributors. While the majority of government and industrial products have been sold to date to various
operations within the U.S. federal government, we also sell to state and local as well as to international government
organizations. Our military products are sold overseas in compliance with the International Traffic in Arms
Regulations, or ITAR. We have sold our products to the governments of various countries in the past several years,
including the United Kingdom, France, Germany, Sweden, Norway, Israel, Australia, Republic of Korea, Singapore
and others.
Customers for our government products, and research and development contracts for the year ended
December 27, 2008, include:
Robot Product Customers Research and Development Contracts
• U.S. Army • U.S. Army Future Combat Systems (FCS)
Program
• U.S. Marine Corp • U.S. Defense Advanced Research Projects
Agency (DARPA)
• U.S. Army and Marine Corp Robotic Systems
Joint Program Office • U.S. Space and Naval Warfare Systems Command (SPAWAR)
• U.S. Navy EOD Technical Division (Joint
Services Explosive Ordnance Disposal
Procurement Agency)
• U.S. Army Tank-Automotive and Armaments
Command (TACOM)
• U.S. Air Force • Technical Support Working Group (TSWG)
• Domestic Police and First Responders • U.S. Army Armament Research, Development
and Engineering Center (ARDEC)
• Foreign governments, including the United
Kingdom, France, Germany, Sweden, Norway, • National Center for Defense Robotics (NCDR)
Israel, Australia, Republic of Korea, Singapore • Office of Naval Research (ONR)
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Form 10-K