iRobot 2008 Annual Report Download - page 92

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The following table sets forth our results of operations as a percentage of revenue for the periods shown:
December 27,
2008 December 29,
2007 December 30,
2006
Fiscal Year Ended
Revenue
Product revenue ............................. 91.4% 91.3% 88.7%
Contract revenue ............................ 8.6 8.7 11.3
Total revenue ........................... 100.0 100.0 100.0
Cost of Revenue
Cost of product revenue ....................... 61.8 59.3 54.9
Cost of contract revenue ...................... 7.8 7.5 8.2
Total cost of revenue ..................... 69.6 66.8 63.1
Gross margin ............................. 30.4 33.2 36.9
Operating Expenses
Research and development ..................... 5.7 6.9 9.0
Selling and marketing ........................ 15.2 18.0 18.0
General and administrative ..................... 9.4 8.4 9.9
Litigation and related expenses.................. — 1.0 —
Total operating expenses ................. 30.3 34.3 36.9
Operating (Loss) Income ........................ 0.1 (1.1) 0.0
Other Income (Expense), Net..................... 0.3 1.3 2.0
Income Before Income Taxes..................... 0.4 0.2 2.0
Income Tax Expense (Benefit) .................... 0.1 (3.4) 0.1
Net Income .................................. 0.3% 3.6% 1.9%
Comparison of Years Ended December 27, 2008 and December 29, 2007
Revenue
December 27,
2008 December 29,
2007 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Total Revenue................... $307,621 $249,081 $58,540 23.5%
Our revenue increased 23.5% to $307.6 million in fiscal 2008 from $249.1 million in fiscal 2007. Revenue
increased approximately $29.1 million, or 20.2%, in our home robots division and $29.4 million, or 28.1%, in our
government and industrial division.
The $29.1 million increase in revenue from our home robots division was driven by a $25.3 million increase in
home robot revenue due to a 17.4% increase in units shipped and a 1.4% increase in average selling prices, along
with a $5.6 million increase in product life cycle revenue (spare parts and accessories). Total home care robots
shipped in fiscal 2008 totaled approximately 1,054,000 units compared to approximately 898,000 units in fiscal
2007. The increase in home robot division revenue and units shipped was primarily attributable to increased
international demand for our home robot products resulting from our increased efforts to expand our global
presence. In fiscal 2008 home robots shipped internationally increased 162% as compared to fiscal 2007.
International home robots revenue increased $44.2 million in fiscal 2008 as compared to fiscal 2007. This was
offset by decreases in revenue from domestic retailers of $12.0 million and direct to consumer revenue of
$3.1 million in fiscal 2008 as compared to fiscal 2007.
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