iRobot 2012 Annual Report Download - page 116

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
66
on-line store. The Company’s home robots business unit includes mobile robots used in the maintenance of domestic
households.
Defense and Security Robots
The Company’s defense and security robots business unit offers products through a small U.S. government-focused sales
force, while products are sold to a limited number of countries, other than the United States, primarily through international
distributors but also through a small internationally-focused sales team. The Company’s defense and security robots are used
by various U.S. and foreign governments, primarily for reconnaissance and bomb disposal missions.
The table below presents segment information about revenue, cost of revenue, gross margin and income before income
taxes:
Fiscal Year Ended
December 29,
2012 December 31,
2011 January 1,
2011
(In thousands)
Revenue:
Home Robots $ 356,805 $ 278,551 $ 229,348
Defense & Security Robots 79,439 186,949 171,604
Total revenue 436,244 465,500 400,952
Cost of revenue:
Home Robots 180,245 152,723 137,568
Defense & Security Robots 76,283 120,659 117,952
Total cost of revenue 256,528 273,382 255,520
Gross margin:
Home Robots 176,560 125,828 91,780
Defense & Security Robots 3,156 66,290 53,652
Total gross margin 179,716 192,118 145,432
Research and development 37,215 36,498 24,809
Selling and marketing 71,631 58,544 50,535
General and administrative 45,698 43,753 36,618
Other income (expense), net 435 218 504
Income before income taxes $ 25,607 $ 53,541 $ 33,974
As of December 29, 2012, goodwill of $41.0 million and purchased intangible assets, net of $26.1 million recorded in
conjunction with the acquisition of Evolution Robotics, Inc. in October 2012 are directly associated with the home robots
business unit. Goodwill of $7.9 million and purchased intangible assets, net of $2.1 million recorded in conjunction with the
acquisition of Nekton in September 2008, as well as the $2.5 million investment in Advanced Scientific Concepts, Inc., are
directly associated with the defense and security business unit. Other long lived assets are not directly attributable to individual
business segments.
Geographic Information
For the fiscal years ended December 29, 2012, December 31, 2011 and January 1, 2011, sales to non-U.S. customers
accounted for 57.3%, 45.5% and 42.1% of total revenue, respectively.
Significant Customers
For the fiscal years ended December 29, 2012, December 31, 2011 and January 1, 2011, U.S. federal government orders,
contracts and subcontracts accounted for 15.1%, 36.1% and 38.4% of total revenue, respectively. For the fiscal years ended
December 29, 2012, December 31, 2011 and January 1, 2011, the Company generated 4.5%, 9.4% and 17.4%, respectively of
total revenue from The Boeing Company as a subcontractor under U.S. federal government contracts. For the fiscal years ended
December 29, 2012, December 31, 2011 and January 1, 2011 approximately 75.4%, 74.0% and 65.7%, respectively, of our
home robot product revenue resulted from sales to 15 customers. For the fiscal year ended December 29, 2012, the Company
generated an aggregate of 30.6% of its total revenue from its home robots distributor in Japan (Sales on Demand Corporation)
and a network of affiliated European distributors of the Company's home robots.