iRobot 2009 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2009 iRobot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Overview of Results of Operations
The following table sets forth our results of operations for the periods shown:
January 2,
2010
December 27,
2008
December 29,
2007
Fiscal Year Ended
(In thousands)
Revenue
Product revenue............................... $262,199 $281,187 $227,457
Contract revenue .............................. 36,418 26,434 21,624
Total revenue ............................. 298,617 307,621 249,081
Cost of Revenue
Cost of product revenue(1) ...................... 176,631 190,250 147,689
Cost of contract revenue(1) ...................... 30,790 23,900 18,805
Total cost of revenue ....................... 207,421 214,150 166,494
Gross margin ............................... 91,196 93,471 82,587
Operating Expenses
Research and development(1) .................... 14,747 17,566 17,082
Selling and marketing(1) ........................ 40,902 46,866 44,894
General and administrative(1) .................... 30,110 28,840 20,919
Litigation and related expenses(2) ................. — — 2,341
Total operating expenses .................... 85,759 93,272 85,236
Operating (Loss) Income .......................... 5,437 199 (2,649)
Other Income (Expense), Net ...................... (81) 926 3,151
Income Before Income Taxes ...................... 5,356 1,125 502
Income Tax Expense (Benefit) ...................... 2,026 369 (8,558)
Net Income .................................... $ 3,330 $ 756 $ 9,060
(1) Stock-based compensation recorded in 2009, 2008 and 2007 breaks down by expense classification as follows.
January 2,
2010
December 27,
2008
December 29,
2007
Fiscal Year Ended
(In thousands)
Cost of product revenue........................... $1,127 $ 753 $ 692
Cost of contract revenue .......................... 575 462 386
Research and development......................... 351 359 377
Selling and marketing ............................ 1,410 1,055 1,074
General and administrative ........................ 4,099 3,310 2,182
(2) Consists of costs for litigation relating to lawsuits filed against Robotic FX, Inc. and Jameel Ahed, as well as
settlement costs related to ending the litigation. See Note 11 to the Consolidated Financial Statements included
elsewhere in this Annual Report on Form 10-K for a more detailed discussion of this litigation and related
settlement.
44