iRobot 2010 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 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

The following table sets forth our results of operations as a percentage of revenue for the periods shown:
January 1,
2011
January 2,
2010
December 27,
2008
Fiscal Year Ended
Revenue
Product revenue................................. 89.9% 87.8% 91.4%
Contract revenue . . . ............................. 10.1 12.2 8.6
Total revenue . . ............................. 100.0 100.0 100.0
Cost of Revenue
Cost of product revenue........................... 57.0 59.2 61.8
Cost of contract revenue .......................... 6.7 10.3 7.8
Total cost of revenue ......................... 63.7 69.5 69.6
Gross margin ................................. 36.3 30.5 30.4
Operating Expenses
Research and development ......................... 6.2 4.9 5.7
Selling and marketing ............................ 12.6 13.7 15.2
General and administrative......................... 9.1 10.1 9.4
Total operating expenses ...................... 27.9 28.7 30.3
Operating Income ................................. 8.4 1.8 0.1
Other Income (Expense), Net ........................ 0.1 0.0 0.3
Income Before Income Taxes ........................ 8.5 1.8 0.4
Income Tax Expense . . ............................. 2.1 0.7 0.1
Net Income ...................................... 6.4% 1.1% 0.3%
Comparison of Years Ended January 1, 2011 and January 2, 2010
Revenue
January 1,
2011
January 2,
2010 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Total Revenue ...................... $400,952 $298,617 $102,335 34.3%
Our revenue increased 34.3% to $401.0 million in fiscal 2010 from $298.6 million in fiscal 2009. Revenue
increased approximately $63.5 million, or 38.3%, in our home robots division and $38.8 million, or 29.3%, in our
government and industrial division.
The $63.5 million increase in revenue from our home robots division was driven by a 28.4% increase in units
shipped and a 9.7% increase in net average selling price. Total home robots shipped in fiscal 2010 were
1,269,000 units compared to 988,000 units in fiscal 2009. The increase in home robot division revenue and units
shipped was primarily attributable to increased international sales of our home robot products resulting from our
efforts to increase our global presence. In fiscal 2010, international home robot revenue increased $62.3 million,
domestic home robot revenue from our retail channel increased $3.4 million, and domestic home robot revenue
from our direct channel decreased $2.2 million as compared to fiscal 2009. Home robot division revenue from
international sales, which consist of products having a higher average selling price than products sold to domestic
customers, was 66.0% of total home robot division revenue in fiscal 2010 as compared to 53.8% in fiscal 2009.
The $38.8 million increase in revenue from our government and industrial division was driven by a
$20.2 million increase in government and industrial robot revenue, a $14.5 million increase in product life cycle
revenue (spare parts and accessories), and a $4.1 million increase in recurring contract development revenue
35
Form 10-K