iRobot 2010 Annual Report Download - page 120

Download and view the complete annual report

Please find page 120 of the 2010 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

2010 and December 27, 2008 approximately 65.7% 56.0% and 56.3%, respectively, of our home robot product
revenue resulted from sales to 15 customers.
16. Quarterly Information (Unaudited)
March 28,
2009
June 27,
2009
September 26,
2009
January 2,
2010
April 3,
2010
July 3,
2010
October 2,
2010
January 1,
2011
Fiscal Quarter Ended
(In thousands, except per share amounts)
Revenue ............ $56,936 $61,340 $78,619 $101,722 $94,930 $97,804 $94,223 $113,995
Gross margin ........ 16,206 16,409 24,195 34,386 32,717 33,970 33,257 45,488
Net income (loss) ..... (1,787) (2,609) 2,594 5,132 6,168 5,314 7,032 7,000
Diluted earnings
(loss) per share ..... $ (0.07) $ (0.10) $ 0.10 $ 0.20 $ 0.24 $ 0.20 $ 0.27 $ 0.26
17. Subsequent Events
On January 4, 2011, the Company entered into a revolving letter of credit facility with Bank of America, N.A.
The credit facility will be available to fund letters of credit on behalf of the Company up to an aggregate outstanding
amount of $5 million. The Company may terminate or from time to time permanently reduce the amount of the
credit facility.
The Company shall pay the lender a fee on outstanding letters of credit issued under the credit facility equal to
2% per annum of the daily maximum amount available to be drawn under the outstanding letters of credit. In
addition, the Company shall pay the lender a fee equal to 0.25% per annum of the actual daily amount by which the
credit facility exceeds the aggregate undrawn amount of all outstanding letters of credit under the credit facility plus
the aggregate of all unreimbursed drawings under all letters of credit under the credit facility. The maturity date for
letters of credit issued under the credit facility shall be no later than seven days prior to June 5, 2012.
The credit facility contains customary terms and conditions for credit facilities of this type, including
restrictions on the Company’s ability to incur or guaranty additional indebtedness, create liens, enter into
transactions with affiliates, make loans or investments, sell assets, pay dividends or make distributions on, or
repurchase, its stock, and consolidate or merge with other entities. In addition, the Company is required to meet
certain financial covenants customary with this type of agreement, including maintaining a minimum specified
tangible net worth, a minimum specified adjusted EBITDA and a minimum specified ratio of EBIT to interest
expense.
The credit facility also contains customary events of default, including for payment defaults, breaches of
representations, breaches of affirmative or negative covenants, cross defaults to other material indebtedness,
bankruptcy, and failure to discharge certain judgments. If a default occurs and is not cured within any applicable
cure period or is not waived, the lender may accelerate the obligations of the Company under the credit facility.
74
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)