iRobot 2008 Annual Report Download - page 96

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Comparison of Years Ended December 29, 2007 and December 30, 2006
Revenue
December 29,
2007 December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Total Revenue................... $249,081 $188,955 $60,126 31.8%
Our revenue increased 31.8% to $249.1 million in fiscal 2007 from $189.0 million in fiscal 2006. Revenue
increased approximately $32.1 million, or 28.5%, in our home robots division and $28.1 million, or 36.7%, in our
government and industrial division.
The $32.1 million increase in revenue from our home robots division was driven by a $28.2 million increase in
robot revenue due to a 23.9% increase in units shipped and a 2.1% increase in average selling prices, along with a
$3.8 million increase in product life cycle revenue (spare parts and accessories). Total home care robots shipped in
fiscal 2007 totaled approximately 899,000 units compared to approximately 725,000 units in fiscal 2006. The
increase in units shipped was driven by the introduction of our Roomba 500 series during 2007.
The $28.1 million increase in revenue from our government and industrial division was driven by a
$20.0 million increase in military robots revenue due to a 22.3% increase in units shipped and a 20.4% increase
in net average selling prices, and a $7.7 million increase in product life cycle revenue (robot spare parts, services and
training). Total military robots shipped in fiscal 2007 was 471 units compared to 385 units in fiscal 2006.
Recurring contract development revenue generated under research and development contracts increased
$0.3 million in our government and industrial division. Our increased contract revenuewas the result of incremental
funding on existing contracts and new contract awards during fiscal 2007 offset by reduced revenue on completed
prior year contracts.
Cost of Revenue
December 29,
2007 December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Total cost of revenue.............. $166,494 $119,220 $47,274 39.7%
As a percentage of total revenue ..... 66.8% 63.1%
Total cost of revenue increased to $166.5 million in fiscal 2007, compared to $119.2 million in fiscal 2006. The
increase is primarily due to a 23.9% increase in the unit sales of our home care robots, and a 22.3% increase in the
unit sales of our military robots in fiscal 2007 as compared to fiscal 2006.
The home robots division cost of revenue increased as a percent of revenue by 7.2 percentage points in fiscal
2007 as compared to fiscal 2006. This increase was primarily attributable to a 15.4% increase in average unit costs
driven primarily by the mix of higher cost products and increased battery costs due to the increased cost of nickel.
The government and industrial robots division cost of revenue decreased as a percent of revenue by
1.3 percentage points for fiscal 2007 as compared to fiscal 2006. This decrease was due to the above-mentioned
increase in average selling prices and higher margins on increased product life cycle revenue, partially offset by a
3.1% increase in the average unit cost of products sold.
Gross Margin
December 29,
2007 December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Total gross margin ............... $82,587 $69,735 $12,852 18.4%
As a percentage of total revenue ..... 33.2% 36.9%
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