iRobot 2008 Annual Report Download - page 98

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Government and industrial division selling and marketing expenses were up $2.4 million for fiscal 2007 as
compared to fiscal 2006 due primarily to $0.9 million of increased compensation and benefit related expense
resulting from the expansion of our sales team, $0.3 million increased travel costs, $0.5 million in increased sales
commission due to a new commissions program and $0.4 million increase in stock compensation expense.
Overall selling and marketing headcount increased to 36 at December 29, 2007 compared to 31 as of
December 30, 2006, an increase of five employees or 16%.
General and Administrative
December 29,
2007 December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
General and administrative ......... $20,919 $18,703 $2,216 11.8%
As a percentage of total revenue ..... 8.4% 9.9%
General and administrative expenses increased by $2.2 million or 11.8% to $20.9 million (8.4% of revenue) in
fiscal 2007 from $18.7 million (9.9% of revenue) in fiscal 2006. The increase in general and administrative expense
was primarily driven by an increase of $1.1 million in compensation and benefits expenses due toincreased headcount,
and an increase of $1.0 million in stock compensation expense for fiscal 2007 as compared to fiscal 2006.
Overall general and administrative headcount increased to 88 at December 29, 2007 compared to 72 as of
December 30, 2006, an increase of 16 employees or 22%.
Litigation and Related Expenses
December 29,
2007 December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Litigation and related expenses ...... $2,341 — $2,341 N/A
As a percentage of total revenue ..... 1.0%
Litigation and related expenses consist of costs for trade secret misappropriation, breach of contract and patent
infringement litigation relating to lawsuits filed against Robotic FX, Inc. and Jameel Ahed as well as settlement
costs related to ending the litigation.
Other Income, Net
December 29,
2007 December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Other Income, net ................ $3,151 $3,831 $(680) (17.7)%
As a percentage of total revenue ..... 1.3% 2.0%
For fiscal 2007, other income, net amounted to $3.2 million compared to $3.8 million in fiscal 2006. The other
income, net was directly related to interest income resulting from our cash and investments in auction rate securities
and money market accounts.
Income Tax Provision
December 29,
2007 December 30,
2006 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Income tax provision (benefit)....... $(8,558) $304 $(8,862) N/A
As a percentage of total revenue ..... (3.4)% 0.1%
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