iRobot 2010 Annual Report Download - page 84

Other income (expense), net amounted to $0.5 million in fiscal 2010 compared to $(0.1) million in fiscal 2009.
Other income (expense), net, for fiscal 2010 was related to interest income of $0.8 million offset by foreign currency
exchange losses of $0.3 million resulting from foreign currency exchange rate fluctuations. Other income
(expense), net, for fiscal 2009 was directly related to foreign currency exchange losses resulting from foreign
currency exchange rate fluctuations.
Income Tax Provision
January 1,
2011
January 2,
2010 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Income tax provision ............... $8,460 $2,026 $6,434 Not Meaningful
As a percentage of total revenue ....... 2.1% 0.7%
In fiscal 2010, we recorded a $8.5 million tax provision based on an effective income tax rate of 24.9%. The
provision for income taxes for fiscal 2010 consists of $10.2 million of federal taxes, $0.1 million of foreign taxes
and $(1.8) million of state taxes, which includes the $2.3 million associated with the full release of our valuation
allowance relating to state deferred tax assets.
In fiscal 2009, we recorded a $2.0 million tax provision based on an effective income tax rate of 38%. The
provision for income taxes for fiscal 2009 consists of $1.6 million of federal taxes and $0.4 million of state taxes.
Included in the 2009 provision is a $0.2 million provision associated with an out-of-period error correction with
respect to the earnings of our India subsidiary and a $0.3 million one-time benefit from the conversion of incentive
stock options to non-qualified stock options as a result of our stock option exchange program which concluded in
our second fiscal quarter of 2009.
Comparison of Years Ended January 2, 2010 and December 27, 2008
Revenue
January 2,
2010
December 27,
2008 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Total Revenue .................... $298,617 $307,621 $(9,004) (2.9)%
Our revenue decreased 2.9% to $298.6 million in fiscal 2009 from $307.6 million in fiscal 2008. Revenue
decreased approximately $7.7 million, or 4.5%, in our home robots division and $1.3 million, or 0.9%, in our
government and industrial division.
The $7.7 million decrease in revenue from our home robots division was driven by a 6.3% decrease in units
shipped. Total home robots shipped in fiscal 2009 were approximately 988,000 units compared to approximately
1,054,000 units in fiscal 2008. The decrease in home robot division revenue and units shipped was attributable to
decreased domestic demand of our home robot products in both retail and direct channels. The decrease in domestic
and direct revenue was partially offset by increased international sales of our home robot products resulting from
our increased efforts to expand our global presence. In fiscal 2009, home robot revenue from domestic retailers
decreased $25.8 million and direct to consumers sales through our on-line store decreased $5.1 million, as
compared to fiscal 2008. This was partially offset by an increase of 34.2% of home robots units shipped
internationally in fiscal 2009 as compared to fiscal 2008. International home robots revenue increased $23.2 million
in fiscal 2009 as compared to fiscal 2008.
The $1.3 million decrease in revenue from our government and industrial division was driven by a
$15.0 million decrease in government and industrial robots revenue partially offset by a $3.7 million increase
in product life cycle revenue (spare parts and accessories) and a $10.0 million increase in recurring contract
development revenue generated under research and development contracts. The $15.0 million decrease in gov-
ernment and industrial robots revenue was due to a 17.0% decrease in units in fiscal 2009 as compared to fiscal
2008. Total government and industrial robots shipped in fiscal 2009 were 789 units compared to 951 units in fiscal
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