iRobot 2008 Annual Report Download - page 79

Business disruptions resulting from international uncertainties could negatively impact our profitability.
We derive, and expect to continue to derive, a portion of our revenue from international sales in various
European markets, Canada, Japan, Korea and Singapore. For the fiscal years ended December 27, 2008 and
December 29, 2007, sales to non-U.S. customers accounted for 23.4% and 13.1% of total revenue, respectively. Our
international revenue and operations are subject to a number of material risks, including, but not limited to:
• difficulties in staffing, managing and supporting operations in multiple countries;
• difficulties in enforcing agreements and collecting receivables through foreign legal systems and other
relevant legal issues;
• fewer legal protections for intellectual property;
• foreign and U.S. taxation issues and international trade barriers;
• difficulties in obtaining any necessary governmental authorizations for the export of our products to certain
foreign jurisdictions;
• potential fluctuations in foreign economies;
• government currency control and restrictions on repatriation of earnings;
• fluctuations in the value of foreign currencies and interest rates;
• general economic and political conditions in the markets in which we operate;
• domestic and international economic or political changes, hostilities and other disruptions in regions where
we currently operate or may operate in the future; and
• different and changing legal and regulatory requirements in the jurisdictions in which we currently operate
or may operate in the future.
Negative developments in any of these areas in one or more countries could result in a reduction in demand for
our products, the cancellation or delay of orders already placed, threats to our intellectual property, difficulty in
collecting receivables, and a higher cost of doing business, any of which could negatively impact our business,
financial condition or results of operations. Moreover, our sales, including sales to customers outside the United
States, are primarily denominated in U.S. dollars, and downward fluctuations in the value of foreign currencies
relative to the U.S. dollar may make our products more expensive than other products, which could harm our
business.
If we are unable to continue to obtain U.S. federal government authorization regarding the export of our
products, or if current or future export laws limit or otherwise restrict our business, we could be prohibited
from shipping our products to certain countries, which would harm our ability to generate revenue.
We must comply with U.S. laws regulating the export of our products. In addition, we are required to obtain a
license from the U.S. federal government to export our PackBot, Warrior and SUGV lines of tactical military robots.
We cannot be sure of our ability to obtain any licenses required to export our products or to receive authorization
from the U.S. federal government for international sales or domestic sales to foreign persons. Moreover, the export
regimes and the governing policies applicable to our business are subject to change. We cannot assure you of the
extent that such export authorizations will be available to us, if at all, in the future. In some cases where we act as a
subcontractor, we rely upon the compliance activities of our prime contractors, and we cannot assure you that they
have taken or will take all measures necessary to comply with applicable export laws. If we or our prime contractor
partners cannot obtain required government approvals under applicable regulations in a timely manner or at all, we
would be delayed or prevented from selling our products in international jurisdictions, which could materially harm
our business, operating results and ability to generate revenue.
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Form 10-K