iRobot Corp. (IRBT, Financial) filed Quarterly Report for the period ended 2009-06-27.
iRobot Corp. designs robots that perform dull dirty or dangerous missions in a better way. The company\'s proprietary technology iRobot AWARE Robot Intelligence Systems incorporates advanced concepts in navigation mobility manipulation and artificial intelligence. This proprietary system enables iRobot to build behavior-based robots including its family of consumer and military robots. iRobot Corp. has a market cap of $259.9 million; its shares were traded at around $10.41 with a P/E ratio of 54.7 and P/S ratio of 0.9.
The $1.7 million increase in revenue from our government and industrial division was driven by a $2.2 million increase in recurring contract development revenue generated under research and development contracts and a $2.3 million increase in product life cycle revenue (spare parts and accessories) partially offset by a $2.8 million decrease in government and industrial robots revenue. The $2.2 million increase in recurring contract development revenue generated under research and development contracts was the result of revenue from contracts acquired through our acquisition in September 2008 of Nekton Research, LLC and new contract awards for our PackBot and research programs partially offset by a decrease in revenue in our SUGV program. This decrease in SUGV program revenue was the result of additional funding to accelerate the timeline for building SUGV units that occurred in the three months ended June 28, 2008. The $2.8 million decrease in government and industrial robots revenue was due to an 11.2% decrease in units shipped and a 6.1% decrease in net average selling prices related to product mix primarily attributable to an expansion of our government and industrial product line into lower priced units in the three month period ended June 27, 2009 as compared to the three month period ended June 28, 2008. Total government and industrial robots shipped in the three months ended June 27, 2009 were 151 units compared to 170 units in the three months ended June 28, 2008.
The $1.3 million decrease in revenue from our government and industrial division was driven by a $7.6 million decrease in government and industrial robots revenue partially offset by a $3.6 million increase in product life cycle revenue (spare parts and accessories) and a $2.8 million increase in recurring contract development revenue generated under research and development contracts. The $7.6 million decrease in government and industrial robots revenue was due a 7.7% decrease in units shipped and a 15.9% decrease in net average selling prices related to product mix primarily attributable to an expansion of our government and industrial product line into lower priced units in the six month period ended June 27, 2009 as compared to the six month period ended June 28, 2008. Total government and industrial robots shipped in the six months ended June 27, 2009 were 301 units compared to 326 units in the six months ended June 28, 2008. The $2.8 million increase in recurring contract development revenue generated under research and development contracts was the result of revenue from contracts acquired through our acquisition in September 2008 of Nekton Research, LLC and new contract awards for our PackBot and research programs partially offset by a decrease of revenue in our SUGV program.
In addition to our research and development activities classified as research and development expense, we incur research and development expenses under funded development arrangements with governments and industrial third parties. For the three and six months ended June 27, 2009, these expenses amounted to $7.8 million and $15.1 million compared to $6.4 million and $12.1 million for the three and six months ended June 28, 2008, respectively. In accordance with generally accepted accounting principles, these expenses have been classified as cost of revenue rather than research and development expense. The combined investment in future technologies, classified as cost of revenue and research and development expense, was $11.7 million and $22.6 million for the three and six months ended June 27, 2009, respectively, compared to $11.1 and $20.8 for the three and six months ended June 28, 2008, respectively.
Selling and marketing expenses decreased by $4.5 million, or 33.6%, to $8.9 million (14.6% of revenue) in the three months ended June 27, 2009 from $13.5 million (20.1% of revenue) in the three months ended June 28, 2008. This was driven by a decrease in our home robots division of $4.2 million primarily attributable to a reduction of $3.4 million in television and other marketing expenses for the three month period ended June 27, 2009 as compared to the three-month period ended June 28, 2008 as a result of our strategy to aggressively manage our expenses. The decrease of selling and marketing expenses in our home robots division was also attributable to decreases of $0.4 million in sales commission expenses as a result of lower sales to domestic retailers and $0.4 million in direct fulfillment expenses related to lower direct sales in the three months ended June 27, 2009 as compared to the three
Selling and marketing expenses decreased by $7.0 million, or 28.2%, to $17.9 million (15.1% of revenue) in the six months ended June 27, 2009 from $24.9 million (20.0% of revenue) in the six months ended June 28, 2008. This was driven by a decrease in our home robots division of $7.3 million primarily attributable to a reduction of $5.8 million in television and other marketing expenses for the six month period ended June 27, 2009 as compared to the six months ended June 28, 2008 as a result of our strategy to aggressively manage our expenses. The decrease of selling and marketing expenses in our home robots division was also attributable to decrea
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iRobot Corp. designs robots that perform dull dirty or dangerous missions in a better way. The company\'s proprietary technology iRobot AWARE Robot Intelligence Systems incorporates advanced concepts in navigation mobility manipulation and artificial intelligence. This proprietary system enables iRobot to build behavior-based robots including its family of consumer and military robots. iRobot Corp. has a market cap of $259.9 million; its shares were traded at around $10.41 with a P/E ratio of 54.7 and P/S ratio of 0.9.
Highlight of Business Operations:
The $7.6 million decrease in revenue from our home robots division for the three months ended June 27, 2009 was driven by a 18.7% decrease in units shipped, as compared to the three months ended June 28, 2008. Total home robots shipped in the three months ended June 27, 2009 were approximately 192,000 units compared to approximately 237,000 units in the three months ended June 28, 2008. The decrease in home robot division revenue and units shipped was attributable to decreased domestic demand for our home robot products in our domestic retail and direct channels. The decrease in domestic retail and direct revenue was partially offset by increased international revenue as a result of higher net average selling prices. In the three months ended June 27, 2009, home robot revenue from domestic retailers decreased $7.2 million and direct to consumers sales through our on-line store decreased $1.9 million, partially offset by an increase of $1.5 million in international home robots revenue as compared to the three months ended June 28, 2008.The $1.7 million increase in revenue from our government and industrial division was driven by a $2.2 million increase in recurring contract development revenue generated under research and development contracts and a $2.3 million increase in product life cycle revenue (spare parts and accessories) partially offset by a $2.8 million decrease in government and industrial robots revenue. The $2.2 million increase in recurring contract development revenue generated under research and development contracts was the result of revenue from contracts acquired through our acquisition in September 2008 of Nekton Research, LLC and new contract awards for our PackBot and research programs partially offset by a decrease in revenue in our SUGV program. This decrease in SUGV program revenue was the result of additional funding to accelerate the timeline for building SUGV units that occurred in the three months ended June 28, 2008. The $2.8 million decrease in government and industrial robots revenue was due to an 11.2% decrease in units shipped and a 6.1% decrease in net average selling prices related to product mix primarily attributable to an expansion of our government and industrial product line into lower priced units in the three month period ended June 27, 2009 as compared to the three month period ended June 28, 2008. Total government and industrial robots shipped in the three months ended June 27, 2009 were 151 units compared to 170 units in the three months ended June 28, 2008.
The $1.3 million decrease in revenue from our government and industrial division was driven by a $7.6 million decrease in government and industrial robots revenue partially offset by a $3.6 million increase in product life cycle revenue (spare parts and accessories) and a $2.8 million increase in recurring contract development revenue generated under research and development contracts. The $7.6 million decrease in government and industrial robots revenue was due a 7.7% decrease in units shipped and a 15.9% decrease in net average selling prices related to product mix primarily attributable to an expansion of our government and industrial product line into lower priced units in the six month period ended June 27, 2009 as compared to the six month period ended June 28, 2008. Total government and industrial robots shipped in the six months ended June 27, 2009 were 301 units compared to 326 units in the six months ended June 28, 2008. The $2.8 million increase in recurring contract development revenue generated under research and development contracts was the result of revenue from contracts acquired through our acquisition in September 2008 of Nekton Research, LLC and new contract awards for our PackBot and research programs partially offset by a decrease of revenue in our SUGV program.
In addition to our research and development activities classified as research and development expense, we incur research and development expenses under funded development arrangements with governments and industrial third parties. For the three and six months ended June 27, 2009, these expenses amounted to $7.8 million and $15.1 million compared to $6.4 million and $12.1 million for the three and six months ended June 28, 2008, respectively. In accordance with generally accepted accounting principles, these expenses have been classified as cost of revenue rather than research and development expense. The combined investment in future technologies, classified as cost of revenue and research and development expense, was $11.7 million and $22.6 million for the three and six months ended June 27, 2009, respectively, compared to $11.1 and $20.8 for the three and six months ended June 28, 2008, respectively.
Selling and marketing expenses decreased by $4.5 million, or 33.6%, to $8.9 million (14.6% of revenue) in the three months ended June 27, 2009 from $13.5 million (20.1% of revenue) in the three months ended June 28, 2008. This was driven by a decrease in our home robots division of $4.2 million primarily attributable to a reduction of $3.4 million in television and other marketing expenses for the three month period ended June 27, 2009 as compared to the three-month period ended June 28, 2008 as a result of our strategy to aggressively manage our expenses. The decrease of selling and marketing expenses in our home robots division was also attributable to decreases of $0.4 million in sales commission expenses as a result of lower sales to domestic retailers and $0.4 million in direct fulfillment expenses related to lower direct sales in the three months ended June 27, 2009 as compared to the three
Selling and marketing expenses decreased by $7.0 million, or 28.2%, to $17.9 million (15.1% of revenue) in the six months ended June 27, 2009 from $24.9 million (20.0% of revenue) in the six months ended June 28, 2008. This was driven by a decrease in our home robots division of $7.3 million primarily attributable to a reduction of $5.8 million in television and other marketing expenses for the six month period ended June 27, 2009 as compared to the six months ended June 28, 2008 as a result of our strategy to aggressively manage our expenses. The decrease of selling and marketing expenses in our home robots division was also attributable to decrea
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