iRobot 2013 Annual Report Download - page 58

10
0DQXIDFWXULQJ
2XUFRUHFRPSHWHQFLHVDUHWKHGHVLJQGHYHORSPHQWDQGPDUNHWLQJRIURERWV2XUPDQXIDFWXULQJVWUDWHJ\LVWRRXWVRXUFH
QRQ-FRUHFRPSHWHQFLHVVXFKDVWKHSURGXFWLRQRIRXUURERWVWRWKLUG-SDUW\HQWLWLHVVNLOOHGLQPDQXIDFWXULQJ%\UHO\LQJRQWKH
RXWVRXUFHGPDQXIDFWXUHRIRXUFRQVXPHUPLOLWDU\DQGUHPRWHSUHVHQFHURERWVZHFDQIRFXVRXUHQJLQHHULQJH[SHUWLVHRQWKH
GHVLJQRIURERWV
0DQXIDFWXULQJDQHZSURGXFWUHTXLUHVDFORVHUHODWLRQVKLSEHWZHHQRXUSURGXFWGHVLJQHUVDQGWKHPDQXIDFWXULQJ
RUJDQL]DWLRQV8VLQJPXOWLSOHHQJLQHHULQJWHFKQLTXHVRXUSURGXFWVDUHLQWURGXFHGWRWKHVHOHFWHGSURGXFWLRQIDFLOLW\DWDQ
HDUO\-GHYHORSPHQWVWDJHDQGWKHIHHGEDFNSURYLGHGE\PDQXIDFWXULQJLVLQFRUSRUDWHGLQWRWKHGHVLJQEHIRUHWRROLQJLVILQDOL]HG
DQGPDVVSURGXFWLRQEHJLQV$VDUHVXOWZHEHOLHYHWKDWZHFDQVLJQLILFDQWO\UHGXFHWKHWLPHUHTXLUHGWRPRYHDSURGXFWIURP
LWVGHVLJQSKDVHWRPDVVSURGXFWLRQGHOLYHULHVZLWKLPSURYHGTXDOLW\DQG\LHOGV
:HRXWVRXUFHWKHPDQXIDFWXULQJRIRXUFRQVXPHUSURGXFWVWRVL[FRQWUDFWPDQXIDFWXUHUVHDFKRIZKLFKPDQXIDFWXUHVDWD
VLQJOHSODQWLQ&KLQD:HRXWVRXUFHWKHPDQXIDFWXULQJRIRXUGHIHQVHDQGVHFXULW\URERWVWRWKUHHFRQWUDFWPDQXIDFWXUHUVDOORI
ZKLFKDUHORFDWHGLQWKH8QLWHG6WDWHV:HRXWVRXUFHRXUUHPRWHSUHVHQFHURERWVWRRQHFRQWUDFWPDQXIDFWXUHUORFDWHGLQWKH
8QLWHG6WDWHV
5HVHDUFKDQG'HYHORSPHQW
:HEHOLHYHWKDWRXUIXWXUHVXFFHVVGHSHQGVXSRQRXUDELOLW\WRFRQWLQXHWRGHYHORSQHZSURGXFWVDQGSURGXFWDFFHVVRULHV
DQGHQKDQFHPHQWVWRDQGDSSOLFDWLRQVIRURXUH[LVWLQJSURGXFWV)RUWKH\HDUVHQGHG'HFHPEHU'HFHPEHU
DQG'HFHPEHU RXUUHVHDUFKDQGGHYHORSPHQWH[SHQVHVZHUHPLOOLRQPLOOLRQDQG PLOOLRQ
UHVSHFWLYHO\:HLQWHQGWRFRQWLQXHRXULQYHVWPHQWLQUHVHDUFKDQGGHYHORSPHQWWRUHVSRQGWRDQGDQWLFLSDWHFXVWRPHUQHHGV
DQGWRHQDEOHXVWRLQWURGXFHQHZSURGXFWVRYHUWKHQH[WIHZ\HDUVWKDWZLOOFRQWLQXHWRDGGUHVVRXUH[LVWLQJDQGDGMDFHQW
PDUNHWVHFWRUV
2XUUHVHDUFKDQGGHYHORSPHQWLVFRQGXFWHGE\WHDPVGHGLFDWHGWRSDUWLFXODUSURMHFWV2XUUHVHDUFKDQGGHYHORSPHQW
HIIRUWVDUHSULPDULO\ORFDWHGDWRXUKHDGTXDUWHUVLQ%HGIRUG0DVVDFKXVHWWVDQGRXURIILFHLQ3DVDGHQD&DOLIRUQLD
&RPSHWLWLRQ
7KHPDUNHWIRUURERWVLVKLJKO\FRPSHWLWLYHUDSLGO\HYROYLQJDQGVXEMHFWWRFKDQJLQJWHFKQRORJLHVVKLIWLQJFXVWRPHU
QHHGVDQGH[SHFWDWLRQVDQGWKHOLNHO\LQFUHDVHGLQWURGXFWLRQRIQHZSURGXFWV:HEHOLHYHWKDWDQXPEHURIHVWDEOLVKHG
FRPSDQLHVKDYHGHYHORSHGRUDUHGHYHORSLQJURERWVWKDWZLOOFRPSHWHGLUHFWO\ZLWKRXUSURGXFWRIIHULQJVDQGPDQ\RIRXU
FRPSHWLWRUVKDYHVLJQLILFDQWO\PRUHILQDQFLDODQGRWKHUUHVRXUFHVWKDQZHSRVVHVV
2XUFRPSHWLWRUVLQFOXGHGHYHORSHUVRIURERWIORRUFOHDQLQJSURGXFWVGHYHORSHUVRIVPDOOXQPDQQHGJURXQGYHKLFOHVDQG
GHYHORSHUVRIPRELOHURERWLFSODWIRUPVDQGWHOHSUHVHQFHV\VWHPV
:KLOHZHEHOLHYHPDQ\RIRXUFXVWRPHUVSXUFKDVHRXU5RRPEDIORRUYDFXXPLQJURERWV%UDDYDIORRUFOHDQLQJDQG
6FRREDIORRUZDVKLQJURERWVDVDVXSSOHPHQWWRUDWKHUWKDQDUHSODFHPHQWIRUWKHLUWUDGLWLRQDOYDFXXPFOHDQHUVDQGZHWIORRU
FOHDQLQJPHWKRGVZHGRFRPSHWHLQVRPHFDVHVZLWKSURYLGHUVRIWUDGLWLRQDOFOHDQLQJSURGXFWV
:HEHOLHYHWKDWWKHSULQFLSDOFRPSHWLWLYHIDFWRUVLQWKHPDUNHWIRUURERWVLQFOXGHSURGXFWIHDWXUHVSHUIRUPDQFHIRUWKH
LQWHQGHGPLVVLRQFRVWRISXUFKDVHWRWDOFRVWRIV\VWHPRSHUDWLRQLQFOXGLQJPDLQWHQDQFHDQGVXSSRUWHDVHRIXVHLQWHJUDWLRQ
ZLWKH[LVWLQJHTXLSPHQWTXDOLW\UHOLDELOLW\FXVWRPHUVXSSRUWEUDQGDQGUHSXWDWLRQ
2XUDELOLW\WRUHPDLQFRPSHWLWLYHZLOOGHSHQGWRDJUHDWH[WHQWXSRQRXURQJRLQJSHUIRUPDQFHLQWKHDUHDVRISURGXFW
GHYHORSPHQWDQGFXVWRPHUVXSSRUW:HFDQQRWSURYLGHDVVXUDQFHWKDWRXUSURGXFWVZLOOFRQWLQXHWRFRPSHWHIDYRUDEO\RUWKDW
ZHZLOOEHVXFFHVVIXOLQWKHIDFHRILQFUHDVLQJFRPSHWLWLRQIURPQHZSURGXFWVDQGHQKDQFHPHQWVLQWURGXFHGE\H[LVWLQJ
FRPSHWLWRUVRUQHZFRPSDQLHVHQWHULQJWKHPDUNHWVLQZKLFKZHSURYLGHSURGXFWV
,QWHOOHFWXDO3URSHUW\
:HEHOLHYHWKDWRXUFRQWLQXHGVXFFHVVGHSHQGVLQODUJHSDUWRQRXUSURSULHWDU\WHFKQRORJ\WKHLQWHOOHFWXDOVNLOOVRIRXU
HPSOR\HHVDQGWKHDELOLW\RIRXUHPSOR\HHVWRFRQWLQXHWRLQQRYDWH:HUHO\RQDFRPELQDWLRQRISDWHQWFRS\ULJKWWUDGHPDUN
DQGWUDGHVHFUHWODZVDVZHOODVFRQILGHQWLDOLW\DJUHHPHQWVWRHVWDEOLVKDQGSURWHFWRXUSURSULHWDU\ULJKWV
$VRI'HFHPEHU ZHKHOG86 SDWHQWVIRUHLJQSDWHQWVDGGLWLRQDOGHVLJQUHJLVWUDWLRQVDQGPRUHWKDQ
SDWHQWDSSOLFDWLRQVSHQGLQJZRUOGZLGH2XU86 SDWHQWVZLOOEHJLQWRH[SLUHLQ:HZLOOFRQWLQXHWRILOHDQG
SURVHFXWHSDWHQWRUGHVLJQUHJLVWUDWLRQDVDSSOLFDEOHDSSOLFDWLRQVZKHQDQGZKHUHDSSURSULDWHWRDWWHPSWWRSURWHFWRXUULJKWV
LQRXUSURSULHWDU\WHFKQRORJLHV:HDOVRHQFRXUDJHRXUHPSOR\HHVWRFRQWLQXHWRLQYHQWDQGGHYHORSQHZWHFKQRORJLHVVRDVWR
PDLQWDLQRXUFRPSHWLWLYHQHVVLQWKHPDUNHWSODFH,WLVSRVVLEOHWKDWRXUFXUUHQWSDWHQWVRUSDWHQWVZKLFKZHPD\ODWHUDFTXLUH
PD\EHVXFFHVVIXOO\FKDOOHQJHGRULQYDOLGDWHGLQZKROHRULQSDUW,WLVDOVRSRVVLEOHWKDWZHPD\QRWREWDLQLVVXHGSDWHQWVIRU
RXUSHQGLQJSDWHQWDSSOLFDWLRQVRURWKHULQYHQWLRQVZHVHHNWRSURWHFW,QWKDWUHJDUGZHVRPHWLPHVSHUPLWFHUWDLQLQWHOOHFWXDO