iRobot 2015 Annual Report Download - page 111

28
January 2,
2016
December 27,
2014
December 28,
2013
December 29,
2012
December 31,
2011
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents $ 179,915 $ 185,957 $ 165,404 $ 126,770 $166,308
Short term investments 33,124 36,166 21,954 12,430 17,811
Total assets 521,743 493,213 416,337 354,313 332,213
Total liabilities 104,332 102,777 85,648 78,496 89,255
Total stockholders’ equity 417,411 390,436 330,689 275,817 242,958
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, Kobra, 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 25 years, we have developed proprietary
technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence to build industry-
leading robots. Our home 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. 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.
During 2015, we took several steps to become more focused on our well-established home robots business unit to
capitalize on the substantial opportunities available to us within consumer markets. First, we entered into an Asset Purchase
Agreement on February 2, 2016 with iRobot Defense Holdings, Inc., a recently-formed portfolio company of Arlington Capital
Partners, which provides for the sale of our defense and security business unit. The purchase price is up to $45.0 million, of
which $30.0 million will be paid at the closing of the transaction, subject to adjustments for working capital and indebtedness
as set forth in the purchase agreement, and up to an additional $15.0 million of which may be paid based on 2016 revenue of
the defense and security business unit. The transaction is expected to close during the first quarter of 2016. Second, we
Form 10-K