iRobot Corp. (IRBT, Financial) filed Quarterly Report for the period ended 2009-09-26.
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 $346.2 million; its shares were traded at around $13.84 with a P/E ratio of 98.8 and P/S ratio of 1.1.
The $4.5 million decrease in revenue from our government and industrial division was driven by an $8.2 million decrease in government and industrial robot revenue and a $0.6 million decrease in product life cycle revenue (spare parts and accessories), offset by a $4.3 million increase in recurring contract development revenue generated under research and development contracts. The $8.2 million decrease in government and industrial robots revenue was due to a 50.2% decrease in units shipped, partially offset by a 40.8% increase in net average selling prices in the three month period ended September 26, 2009 as compared to the three month period ended September 27, 2008. This increase in average selling price was due to product mix primarily attributable to a significant number of lower priced FasTac units shipped in the three month period ending September 27, 2008 as compared to the Man Transportable Robot System and PackBot 510 units shipped in the three months ended September 26, 2009. The $4.3 million increase in recurring contract development revenue generated under research and development contracts was primarily attributable to an increase in funding of our SUGV program and new contract awards for our PackBot and research programs. Total government and industrial robots shipped in the three months ended September 26, 2009 were 159 units compared to 319 units in the three months ended September 27, 2008.
The $5.8 million decrease in revenue from our government and industrial division was driven by a $15.8 million decrease in government and industrial robots revenue partially offset by a $2.9 million increase in product life cycle revenue (spare parts and accessories) and a $7.1 million increase in recurring contract development revenue generated under research and development contracts. The $15.8 million decrease in government and industrial robots revenue was due a 28.7% decrease in units shipped partially offset by a 4.2% increase in net average selling prices related to product mix in the nine month period ended September 26, 2009 as compared to the nine month period ended September 27, 2008. Total government and industrial robots shipped in the nine months ended September 26, 2009 were 460 units compared to 645 units in the nine months ended September 27, 2008. The $7.1 million increase in recurring contract development revenue generated under research and development contracts was the result of revenue from new contract awards for our PackBot and research programs and contracts acquired through our September 2008 acquisition of Nekton Research, LLC 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 nine months ended September 26, 2009, these expenses amounted to $8.0 million and $23.1 million compared to $5.1 million and $17.2 million for the three and nine months ended September 27, 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 $11.2 million and $33.8 million for the three and nine months ended September 26, 2009, respectively, compared to $10.1 and $30.8 for the three and nine months ended September 27, 2008, respectively.
Selling and marketing expenses decreased by $1.0 million, or 9.6%, to $9.5 million (12.1% of revenue) in the three months ended September 26, 2009 from $10.5 million (11.4% of revenue) in the three months ended September 27, 2008. This was driven by a decrease in our home robots division of $0.7 million attributable to decreases in sales commission expenses as a result of lower sales to domestic retailers and direct fulfillment expenses related to lower direct sales in the three months ended September 26, 2009 as compared to the three months ended September 27, 2008. Selling and marketing expenses in our government and industrial division decreased by $0.4 million attributable to a decrease in sales commissions expense as a result of lower sales in the three months ended September 26, 2009 as compared to the three months ended September 27, 2008.
Selling and marketing expenses decreased by $8.0 million, or 22.7%, to $27.4 million (13.9% of revenue) in the nine months ended September 26, 2009 from $35.5 million (16.3% of revenue) in the nine months ended September 27, 2008. This was driven by a decrease in our home robots division of $8.0 million primarily attributable to a reduction of $5.8 million in television and other marketing expenses for the nine month period ended September 26, 2009 as compared to the nine months ended September 27, 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 $1.2 million in sal
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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 $346.2 million; its shares were traded at around $13.84 with a P/E ratio of 98.8 and P/S ratio of 1.1.
Highlight of Business Operations:
The $9.3 million decrease in revenue from our home robots division for the three months ended September 26, 2009 was driven by an 18.6% decrease in units shipped, as compared to the three months ended September 27, 2008. Total home robots shipped in the three months ended September 26, 2009 were approximately 289,000 units compared to approximately 355,000 units in the three months ended September 27, 2008. The decrease in home robot division revenue and units shipped was primarily attributable to decreased domestic demand for our home robot products in our retail channel resulting from lower levels of consumer spending. The decrease in domestic retail was partially offset by increased international sales of our home robot products resulting from our increased efforts to expand our global presence. In the three months ended September 26, 2009, home robot revenue from domestic retailers decreased $15.8 million and direct to consumers sales through our on-line store decreased $1.3 million, partially offset by an increase of $7.8 million in international home robots revenue as compared to the three months ended September 27, 2008.The $4.5 million decrease in revenue from our government and industrial division was driven by an $8.2 million decrease in government and industrial robot revenue and a $0.6 million decrease in product life cycle revenue (spare parts and accessories), offset by a $4.3 million increase in recurring contract development revenue generated under research and development contracts. The $8.2 million decrease in government and industrial robots revenue was due to a 50.2% decrease in units shipped, partially offset by a 40.8% increase in net average selling prices in the three month period ended September 26, 2009 as compared to the three month period ended September 27, 2008. This increase in average selling price was due to product mix primarily attributable to a significant number of lower priced FasTac units shipped in the three month period ending September 27, 2008 as compared to the Man Transportable Robot System and PackBot 510 units shipped in the three months ended September 26, 2009. The $4.3 million increase in recurring contract development revenue generated under research and development contracts was primarily attributable to an increase in funding of our SUGV program and new contract awards for our PackBot and research programs. Total government and industrial robots shipped in the three months ended September 26, 2009 were 159 units compared to 319 units in the three months ended September 27, 2008.
The $5.8 million decrease in revenue from our government and industrial division was driven by a $15.8 million decrease in government and industrial robots revenue partially offset by a $2.9 million increase in product life cycle revenue (spare parts and accessories) and a $7.1 million increase in recurring contract development revenue generated under research and development contracts. The $15.8 million decrease in government and industrial robots revenue was due a 28.7% decrease in units shipped partially offset by a 4.2% increase in net average selling prices related to product mix in the nine month period ended September 26, 2009 as compared to the nine month period ended September 27, 2008. Total government and industrial robots shipped in the nine months ended September 26, 2009 were 460 units compared to 645 units in the nine months ended September 27, 2008. The $7.1 million increase in recurring contract development revenue generated under research and development contracts was the result of revenue from new contract awards for our PackBot and research programs and contracts acquired through our September 2008 acquisition of Nekton Research, LLC 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 nine months ended September 26, 2009, these expenses amounted to $8.0 million and $23.1 million compared to $5.1 million and $17.2 million for the three and nine months ended September 27, 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 $11.2 million and $33.8 million for the three and nine months ended September 26, 2009, respectively, compared to $10.1 and $30.8 for the three and nine months ended September 27, 2008, respectively.
Selling and marketing expenses decreased by $1.0 million, or 9.6%, to $9.5 million (12.1% of revenue) in the three months ended September 26, 2009 from $10.5 million (11.4% of revenue) in the three months ended September 27, 2008. This was driven by a decrease in our home robots division of $0.7 million attributable to decreases in sales commission expenses as a result of lower sales to domestic retailers and direct fulfillment expenses related to lower direct sales in the three months ended September 26, 2009 as compared to the three months ended September 27, 2008. Selling and marketing expenses in our government and industrial division decreased by $0.4 million attributable to a decrease in sales commissions expense as a result of lower sales in the three months ended September 26, 2009 as compared to the three months ended September 27, 2008.
Selling and marketing expenses decreased by $8.0 million, or 22.7%, to $27.4 million (13.9% of revenue) in the nine months ended September 26, 2009 from $35.5 million (16.3% of revenue) in the nine months ended September 27, 2008. This was driven by a decrease in our home robots division of $8.0 million primarily attributable to a reduction of $5.8 million in television and other marketing expenses for the nine month period ended September 26, 2009 as compared to the nine months ended September 27, 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 $1.2 million in sal
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