iRobot 2014 Annual Report Download - page 97

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December 27,
2014 December 28, 2013 December 29, 2012 December 31 2011 January 1, 2011
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents $ 185,957 $ 165,404 126,770 166,308 108,383
Short term investments 36,166 21,954 12,430 17,811 13,928
Total assets 493,213 416,337 354,313 332,213 254,331
Total liabilities 102,777 85,648 78,496 89,255 79,424
Total stockholders’ equity 390,436 330,689 275,817 242,958 174,907
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The information contained in this section has been derived from our consolidated financial statements and should be read
together with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, or the Exchange Act, and are
subject to the “safe harbor” created by those sections. In particular, statements contained in this Annual Report on Form 10-K
that are not historical facts, including, but not limited to statements concerning new product sales, product development and
offerings, Roomba, Scooba, Looj, Braava and Mirra products, PackBot tactical military robots, the Small Unmanned Ground
Vehicle, FirstLook, Ava, our home robots, defense and security robots and remote presence robots business units, our
competition, our strategy, our market position, market acceptance of our products, seasonal factors, revenue recognition, our
profits, growth of our revenues, product life cycle revenue, composition of our revenues, our cost of revenues, units shipped,
average selling prices, funding of our defense and security robot development programs, operating expenses, selling and
marketing expenses, general and administrative expenses, research and development expenses, and compensation costs, our
projected income tax rate, our credit and letter of credit facilities, our valuations of investments, valuation and composition of
our stock-based awards, and liquidity, constitute forward-looking statements and are made under these safe harbor provisions.
Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,”
“may,” “will,” “should,” “could,” “seek,” “intends,” “plans,” “estimates,” “anticipates,” or other comparable terms.
Forward-looking statements involve inherent risks and uncertainties, which could cause actual results to differ materially from
those in the forward-looking statements. We urge you to consider the risks and uncertainties discussed in greater detail under
the heading “Risk Factors” in evaluating our forward-looking statements. We have no plans to update our forward-looking
statements to reflect events or circumstances after the date of this report. We caution readers not to place undue reliance upon
any such forward-looking statements, which speak only as of the date made.
Overview
iRobot designs and builds robots that empower people to do more. For nearly 25 years, we have developed proprietary
technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence to build industry-
leading robots. Our home care robots perform time-consuming domestic chores while our defense and security robots perform
tasks such as battlefield reconnaissance and bomb disposal, and multi-purpose tasks for law enforcement agencies and first
responders, as well as certain commercial users. Our remote presence robots expand the reach of medical care by connecting
physicians with patients from anywhere in the world and also provide autonomous telepresence capabilities enabling remote
workers to more personally collaborate throughout the workplace. We sell our robots through a variety of distribution channels,
including chain stores and other national retailers, through our on-line store, through value-added distributors and resellers, and
to the U.S. military and other government agencies worldwide.
As of December 27, 2014, we had 572 full-time employees. We have developed expertise in the disciplines necessary to
build durable, high-performance and cost-effective robots through the close integration of software, electronics and hardware.
Our core technologies serve as reusable building blocks that we adapt and expand to develop next generation and new products,
reducing the time, cost and risk of product development. Our significant expertise in robot design and engineering, combined
with our management team’s experience in consumer, military and enterprise markets, positions us to capitalize on the expected
growth in the market for robot-based products.
Although we have successfully launched consumer and defense and security products, our continued success depends
upon our ability to respond to a number of future challenges. We believe the most significant of these challenges include
increasing competition in the markets for both our consumer and defense and security products, and our ability to successfully
develop and introduce products and product enhancements into both new and existing markets.
Form 10-K