iRobot 2011 Annual Report Download - page 82

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Form 10-K
The following table sets forth our results of operations as a percentage of revenue for the periods shown:
Fiscal Year Ended
December 31,
2011
January 1,
2011
January 2,
2010
Revenue
Product revenue ................................... 91.6% 89.9% 87.8%
Contract revenue .................................. 8.4 10.1 12.2
Total revenue ................................. 100.0 100.0 100.0
Cost of Revenue
Cost of product revenue ............................ 53.0 57.0 59.2
Cost of contract revenue ............................ 5.7 6.7 10.3
Total cost of revenue ........................... 58.7 63.7 69.5
Gross margin ................................... 41.3 36.3 30.5
Operating Expenses
Research and development .......................... 7.8 6.2 4.9
Selling and marketing .............................. 12.6 12.6 13.7
General and administrative .......................... 9.4 9.1 10.1
Total operating expenses ........................ 29.8 27.9 28.7
Operating Income ................................... 11.5 8.4 1.8
Other Income (Expense), Net .......................... 0.0 0.1 0.0
Income Before Income Taxes .......................... 11.5 8.5 1.8
Income Tax Expense ................................. 2.9 2.1 0.7
Net Income ........................................ 8.6% 6.4% 1.1%
Comparison of Years Ended December 31, 2011 and January 1, 2011
Revenue
Fiscal Year Ended
December 31,
2011
January 1,
2011 Dollar Change Percent Change
(In thousands)
Total Revenue ..................... $465,500 $400,952 $64,548 16.1%
Our revenue increased 16.1% to $465.5 million in fiscal 2011 from $401.0 million in fiscal 2010. Revenue
increased approximately $49.2 million, or 21.5%, in our home robots division and $15.3 million, or 8.9%, in our
government and industrial division.
The $49.2 million increase in revenue from our home robots division was driven by an 8.0% increase in
units shipped and a 13.2% increase in net average selling price. In fiscal 2011, international home robots revenue
increased $44.3 million and domestic home robots revenue increased $4.9 million. Total home robots shipped in
fiscal 2011 were 1,371,000 units compared to 1,269,000 units in fiscal 2010. The increase in home robots
division revenue and units shipped was primarily attributable to international sales increasing 29.3% due to
increased demand in our European and Asian markets, particularly Japan. The increase in demand was driven by
demand for our new Roomba 700 series robot, an increase in marketing programs by us and our international
distributors and continued efforts to increase international retail outlets for our home robots products across
various countries. Domestic retail sales of our home robot products increased 7.9% and domestic direct sales
through our website increased 2.3% in fiscal 2011 as compared to fiscal 2010. The increase in domestic retail
35