Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2014 | Apr. 29, 2014 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'IRBT | ' |
Entity Registrant Name | 'IROBOT CORP | ' |
Entity Central Index Key | '0001159167 | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 29,479,815 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $154,824 | $165,404 |
Short term investments | 30,540 | 21,954 |
Accounts receivable, net of allowance of $67 at March 29, 2014 and December 28, 2013 | 36,540 | 39,348 |
Unbilled revenue | 931 | 856 |
Inventory | 41,390 | 46,107 |
Deferred tax assets | 19,950 | 20,144 |
Other current assets | 10,436 | 6,848 |
Total current assets | 294,611 | 300,661 |
Property and equipment, net | 25,119 | 23,661 |
Deferred tax assets | 10,433 | 10,095 |
Goodwill | 48,751 | 48,751 |
Finite-Lived Intangible Assets, Net | 21,764 | 22,668 |
Other assets | 10,501 | 10,501 |
Total assets | 411,179 | 416,337 |
Current liabilities: | ' | ' |
Accounts payable | 34,221 | 41,344 |
Accrued expenses | 13,563 | 14,880 |
Employee-related Liabilities, Current | 7,744 | 19,606 |
Deferred Revenue, Current | 4,420 | 5,085 |
Total current liabilities | 59,948 | 80,915 |
Long term liabilities | 4,414 | 4,733 |
Commitments and contingencies (Note 6) | ' | ' |
Redeemable convertible preferred stock, 5,000,000 shares authorized and none outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000,000 shares authorized; 29,435,149 and 28,935,253 shares issued and outstanding at March 29, 2014 and December 28, 2013, respectively | 294 | 289 |
Additional paid-in capital | 238,154 | 227,175 |
Retained earnings | 108,358 | 103,078 |
Accumulated other comprehensive income | 11 | 147 |
Total stockholders' equity | 346,817 | 330,689 |
Total liabilities, redeemable convertible preferred stock and stockholders' equity | $411,179 | $416,337 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Net allowances on Accounts receivables | $67 | $67 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 29,435,149 | 28,935,253 |
Common stock, shares outstanding | 29,435,149 | 28,935,253 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Revenue: | ' | ' |
Total revenue | $114,204 | $106,195 |
Cost of revenue: | ' | ' |
Total cost of revenue | 62,494 | 59,668 |
Gross margin | 51,710 | 46,527 |
Operating expenses: | ' | ' |
Research and development | 16,934 | 14,408 |
Selling and marketing | 14,532 | 10,697 |
General and administrative | 12,264 | 12,458 |
Total operating expenses | 43,730 | 37,563 |
Operating income | 7,980 | 8,964 |
Other income (expense), net | -187 | -96 |
Income before income taxes | 7,793 | 8,868 |
Income tax expense | 2,513 | 513 |
Net income | 5,280 | 8,355 |
Net income per share | ' | ' |
Basic, in dollars per share | $0.18 | $0.30 |
Diluted, in dollars per share | $0.18 | $0.29 |
Number of shares used in calculations per share | ' | ' |
Basic, in shares | 29,189 | 27,930 |
Diluted, in shares | 30,033 | 28,558 |
Total stock-based compensation recorded in the three months ended March 30, 2013 and March 31, 2012 included in the above figures breaks down by expense classification as follows: | ' | ' |
Stock based compensation | 3,078 | 2,929 |
Cost of Sales [Member] | ' | ' |
Total stock-based compensation recorded in the three months ended March 30, 2013 and March 31, 2012 included in the above figures breaks down by expense classification as follows: | ' | ' |
Stock based compensation | 169 | 118 |
Research and development | ' | ' |
Total stock-based compensation recorded in the three months ended March 30, 2013 and March 31, 2012 included in the above figures breaks down by expense classification as follows: | ' | ' |
Stock based compensation | 731 | 501 |
Selling and marketing | ' | ' |
Total stock-based compensation recorded in the three months ended March 30, 2013 and March 31, 2012 included in the above figures breaks down by expense classification as follows: | ' | ' |
Stock based compensation | 338 | 366 |
General and administrative | ' | ' |
Total stock-based compensation recorded in the three months ended March 30, 2013 and March 31, 2012 included in the above figures breaks down by expense classification as follows: | ' | ' |
Stock based compensation | $1,840 | $1,944 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Statement of Partners' Capital [Abstract] | ' | ' |
Net income, as reported | $5,280 | $8,355 |
Other comprehensive income (loss), net of tax: | ' | ' |
Unrealized gains/(losses) on investments, net of tax | -136 | 12 |
Total comprehensive income | $5,144 | $8,367 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $5,280 | $8,355 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 3,142 | 3,284 |
Loss on disposal of property and equipment | -10 | 182 |
Stock-based compensation | 3,078 | 2,929 |
Increase (Decrease) in Deferred Income Taxes | 1,912 | -449 |
Tax benefit of excess stock based compensation deductions | -2,231 | -43 |
Non-cash director deferred compensation | 11 | 11 |
Changes in operating assets and liabilities - (use) source | ' | ' |
Accounts receivable | 2,808 | 2,133 |
Unbilled revenue | -75 | -1,056 |
Inventory | 4,080 | 4,805 |
Other assets | -3,588 | -983 |
Accounts payable | -7,924 | -12,711 |
Accrued expenses | -1,399 | 379 |
Accrued compensation | -11,862 | -4,867 |
Deferred revenue and customer advances | -665 | -2,628 |
Long term liabilities | -319 | 815 |
Net cash provided by operating activities | -7,762 | 156 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment | -2,177 | -1,077 |
Payments for (Proceeds from) Other Investing Activities | 0 | 2,000 |
Purchases of investments | -11,211 | -2,547 |
Sales of investments | 2,500 | 1,000 |
Net cash used in investing activities | -10,888 | -4,624 |
Cash flows from financing activities: | ' | ' |
Proceeds from stock option exercises | 6,957 | 1,744 |
Income tax withholding payment associated with restricted stock vesting | -1,118 | -513 |
Tax benefit of excess stock-based compensation deductions | 2,231 | 43 |
Net cash provided by financing activities | 8,070 | 1,274 |
Net decrease in cash and cash equivalents | -10,580 | -3,194 |
Cash and cash equivalents, at beginning of period | 165,404 | 126,770 |
Cash and cash equivalents, at end of period | 154,824 | 123,576 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 3,284 | 1,510 |
Noncash investing activity, transfer of inventory to property and equipment | 637 | 0 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $1,373 | $0 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 29, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
1. Description of Business | |
iRobot Corporation (“iRobot” or the “Company”) develops robotics and artificial intelligence technologies and applies these technologies in producing and marketing robots. The majority of the Company’s revenue is generated from product sales and, to a lesser extent, government and commercial research and development contracts. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||||||
Mar. 29, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||
2. Summary of Significant Accounting Policies | ||||||||||||
Basis of Presentation | ||||||||||||
The accompanying consolidated financial statements include those of iRobot and its subsidiaries, after elimination of all intercompany accounts and transactions. In addition, certain prior year amounts have been reclassified to conform with the current year presentation. iRobot has prepared the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. | ||||||||||||
The accompanying unaudited financial data as of March 29, 2014 and for the three months ended March 29, 2014 and March 30, 2013 has been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the fiscal year ended December 28, 2013, filed with the SEC on February 18, 2014. | ||||||||||||
In the opinion of management, all adjustments necessary to state fairly its statement of financial position as of March 29, 2014 and results of operations and cash flows for the periods ended March 29, 2014 and March 30, 2013 have been made. The results of operations and cash flows for any interim period are not necessarily indicative of the operating results and cash flows for the full fiscal year or any future periods. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates these estimates and judgments, including those related to revenue recognition, sales returns, bad debts, warranty claims, inventory reserves, valuation of investments, valuation of goodwill and intangible assets, assumptions used in valuing stock-based compensation instruments and income taxes. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from the Company’s estimates. | ||||||||||||
Fiscal Year-End | ||||||||||||
The Company operates and reports using a 52-53 week fiscal year ending on the Saturday closest to December 31. Accordingly, the Company’s fiscal quarters end on the Saturday that falls closest to the last day of the third month of each quarter. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company derives its revenue from product sales and, to a lesser extent, government and commercial research and development contracts. The Company sells products directly to customers and indirectly through resellers and distributors. The Company recognizes revenue from sales of robots under the terms of the customer agreement upon transfer of title and risk of loss to the customer, net of estimated returns, provided that collection is determined to be reasonably assured and no significant obligations remain. Sales to domestic resellers of home robots are typically subject to agreements allowing for limited rights of return, rebates and price protection. Accordingly, the Company reduces revenue for its estimates of liabilities for these rights of return at the time the related sale is recorded. The Company makes an estimate of sales returns for products sold by domestic resellers directly based on historical returns experience and other relevant data. The Company’s international distributor agreements do not currently allow for product returns and, as a result, no reserve for returns is established for this group of customers. The Company has aggregated and analyzed historical returns from domestic resellers and end users which form the basis of its estimate of future sales returns by resellers or end users. When a right of return exists, the provision for these estimated returns is recorded as a reduction of revenue at the time that the related revenue is recorded. If actual returns differ significantly from its estimates, such differences could have a material impact on the Company’s results of operations for the period in which the returns become known. The estimates for returns are adjusted periodically based upon historical rates of returns. The estimates and reserve for rebates and price protection are based on specific programs, expected usage and historical experience. Actual results could differ from these estimates. | ||||||||||||
Under cost-plus-fixed-fee (“CPFF”) type contracts, the Company recognizes revenue based on costs incurred plus a pro rata portion of the total fixed fee. Costs incurred include labor and material that are directly associated with individual CPFF contracts plus indirect overhead and general and administrative type costs based upon billing rates submitted by the Company to the Defense Contract Management Agency (“DCMA”). Annually, the Company submits final indirect billing rates to DCMA based upon actual costs incurred throughout the year. In the situation where the Company’s final actual billing rates are greater than the estimated rates currently in effect, the Company records a cumulative revenue adjustment in the period in which the rate differential is collected from the customer. These final billing rates are subject to audit by the Defense Contract Audit Agency (“DCAA”), which can occur several years after the final billing rates are submitted and may result in material adjustments to revenue recognized based on estimated final billing rates. As of March 29, 2014, fiscal year 2007 is under audit by DCAA, and fiscal years 2008 through 2013 are open for audit by DCAA. In the situation where the Company’s anticipated actual billing rates will be lower than the provisional rates currently in effect, the Company records a cumulative revenue adjustment in the period in which the rate differential is identified. Revenue on firm fixed price (“FFP”) contracts is recognized using the percentage-of-completion method. For government product FFP contracts, revenue is recognized as the product is shipped or in accordance with the contract terms. Costs and estimated gross margins on contracts are recorded as revenue as work is performed based on the percentage that incurred costs compare to estimated total costs utilizing the most recent estimates of costs and funding. Changes in job performance, job conditions, and estimated profitability, including those arising from final contract settlements and government audits, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Since many contracts extend over a long period of time, revisions in cost and funding estimates during the progress of work have the effect of adjusting earnings applicable to past performance in the current period. When the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the current period. Revenue earned in excess of billings, if any, is recorded as unbilled revenue. Billings in excess of revenue earned, if any, are recorded as deferred revenue. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company accounts for stock-based compensation through recognition of the fair value of the stock-based compensation as a charge against earnings. Stock-based compensation cost for stock options is estimated at the grant date based on each option's fair value as calculated by the Black-Scholes option-pricing model. Stock-based compensation cost for restricted stock awards, time-based restricted stock units and performance-based restricted stock units is measured based on the closing fair market value of the Company's common stock on the date of grant. For performance-based restricted stock units, the compensation costs will be subsequently adjusted for assumptions of achievement during the period in which the assumption of achievement changes, as applicable. The Company recognizes stock-based compensation as expense ratably on a straight-line basis over the requisite service period, net of estimated forfeitures. | ||||||||||||
Net Income Per Share | ||||||||||||
The following table presents the calculation of both basic and diluted net income per share: | ||||||||||||
Three Months Ended | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
29-Mar-14 | 30-Mar-13 | |||||||||||
Net income | $ | 5,280 | $ | 8,355 | ||||||||
Weighted-average shares outstanding | 29,189 | 27,930 | ||||||||||
Dilutive effect of employee stock options and restricted shares | 844 | 628 | ||||||||||
Diluted weighted-average shares outstanding | 30,033 | 28,558 | ||||||||||
Basic income per share | $ | 0.18 | $ | 0.3 | ||||||||
Diluted income per share | $ | 0.18 | $ | 0.29 | ||||||||
Restricted stock units and stock options representing approximately 0.1 million and 1.1 million shares of common stock for the three month periods ended March 29, 2014 and March 30, 2013, respectively, were excluded from the computation of diluted earnings per share for these periods because their effect would have been antidilutive. | ||||||||||||
Income Taxes | ||||||||||||
The Company is subject to taxation in the United States and various states and foreign jurisdictions. Though the statute of limitations is closed for fiscal years prior to 2010, the Internal Revenue Service ("IRS") has completed and closed its examination for all fiscal years prior to 2011. The statute of limitations for examinations by state tax authorities is closed for fiscal years prior to 2009. The Company's tax returns are currently under examination by certain states for the years 2009, 2010 and 2011. Federal carryforward attributes that were generated prior to fiscal year 2011, and state carryforward attributes that were generated prior to fiscal year 2009 may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a period for which the statute of limitations is still open. | ||||||||||||
Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||||||||||
The Company monitors the realization of its deferred tax assets based on changes in facts and circumstances, for example recurring periods of income for tax purposes following historical periods of cumulative losses or changes in tax laws or regulations. The Company's income tax provisions and its assessment of the ability to realize its deferred tax assets involve significant judgments and estimates. | ||||||||||||
The Company recorded a tax provision of $2.5 million and $0.5 million for the three month periods ended March 29, 2014 and March 30, 2013, respectively. The $2.5 million provision for the three month period ended March 29, 2014 resulted in an effective income tax rate of 32.2%. The $0.5 million provision for the three month period ended March 30, 2013 resulted in an effective income tax rate of 5.8%. The increase in the effective income tax rate from 5.8% for the three month period ended March 30, 2013 to 32.2% for the three month period ended March 29, 2014 was primarily due to legislation that was enacted in January 2013 that included the extension of the federal research and development tax credits. The legislation retroactively reinstated research and development tax credits for 2012 and extended them through December 31, 2013. As a result, the Company recorded a discrete benefit related to 2012 during the three month period ended March 30, 2013. In addition, the federal research and development tax credits expired at the end of 2013 and have not been enacted for 2014. Therefore, the effective income tax rate of 32.2% for the three month period ended March 29, 2014 does not include any benefit for the federal research and development tax credits. | ||||||||||||
The Company anticipates the settlement of state tax examinations may be finalized within the next twelve months and could result in a decrease in its unrecognized gross tax benefits of up to $0.7 million. | ||||||||||||
In September 2013, the U.S. Department of the Treasury and the IRS issued final regulations addressing the acquisition, production and improvement of tangible property, and also proposed regulations addressing the disposition of property. These regulations replace previously issued temporary regulations and are effective for tax years beginning January 1, 2014, with optional adoption permitted in 2013. The Company has analyzed the impact of these new regulations and they did not have a material impact on the Company's consolidated financial statements. | ||||||||||||
Fair Value Measurements | ||||||||||||
The authoritative guidance for fair value establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||
Financial Assets | ||||||||||||
The Company’s financial assets measured at fair value on a recurring basis at March 29, 2014, were as follows: | ||||||||||||
Fair Value Measurements as of | ||||||||||||
29-Mar-14 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(In thousands) | ||||||||||||
Description | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | 95,258 | $ | — | $ | — | ||||||
Corporate and government bonds | — | 30,540 | — | |||||||||
Total assets measured at fair value | $ | 95,258 | $ | 30,540 | $ | — | ||||||
The Company’s financial assets measured at fair value on a recurring basis at December 28, 2013, were as follows: | ||||||||||||
Fair Value Measurements as of | ||||||||||||
28-Dec-13 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(In thousands) | ||||||||||||
Description | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | 101,441 | $ | — | $ | — | ||||||
Corporate and government bonds | — | 21,954 | — | |||||||||
Total assets measured at fair value | $ | 101,441 | $ | 21,954 | $ | — | ||||||
In each table above, the bond investments are valued based on observable market values as of the Company’s reporting date and are included in Level 2. The bond investments are recorded at fair value and marked-to-market at the end of each reporting period. The realized and unrealized gains and losses are included in comprehensive income for that period. The fair value of the Company’s bond investment is included in short term investments in its consolidated balance sheet. | ||||||||||||
Goodwill | ||||||||||||
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. The Company evaluates goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) annually or more frequently if the Company believes indicators of impairment exist. In accordance with the guidance, the Company is permitted to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a two-step goodwill impairment test is performed. | ||||||||||||
The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. The Company completes the annual impairment evaluation during the fourth quarter of each year. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new guidance clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when certain situations exist at the reporting date. This new guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The impact of this amendment on the Company’s consolidated financial statements was not material. | ||||||||||||
In February 2013, the FASB issued guidance requiring disclosure of amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This guidance was effective prospectively for the Company for annual and interim periods beginning January 1, 2013. The impact of these amendments on the Company’s consolidated financial statements was not material. | ||||||||||||
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. |
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
3. Inventory | ||||||||
Inventory consists of the following: | ||||||||
29-Mar-14 | 28-Dec-13 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 8,692 | $ | 8,520 | ||||
Work in process | — | — | ||||||
Finished goods | 32,698 | 37,587 | ||||||
$ | 41,390 | $ | 46,107 | |||||
Stock_Option_Plans
Stock Option Plans | 3 Months Ended |
Mar. 29, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Option Plans | ' |
4. Stock Option Plans | |
The Company has options outstanding under three stock incentive plans: the 2004 Stock Option and Incentive Plan (the “2004 Plan”), the 2005 Stock Option and Incentive Plan (the "2005 Plan") and the Evolution Robotics, Inc. 2007 Stock Plan (the "2007 Plan" and together with the 2004 Plan and the 2005 Plan, the “Plans”). All options that remained outstanding under the 1994 Stock Option Plan as of December 28, 2013 were exercised during the three month period ended March 29, 2014. The 2005 Plan is the only one of the three plans under which new awards may currently be granted. Under the 2005 Plan, which became effective October 10, 2005, 1,583,682 shares were initially reserved for issuance in the form of incentive stock options, non-qualified stock options, stock appreciation rights, deferred stock awards and restricted stock awards. Additionally, the 2005 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning in 2007, by 4.5% of the outstanding number of shares of common stock on the immediately preceding December 31. Stock options returned to the Plans, with the exception of those issued under the 2007 Plan, as a result of their expiration, cancellation or termination are automatically made available for issuance under the 2005 Plan. Eligibility for incentive stock options is limited to those individuals whose employment status would qualify them for the tax treatment associated with incentive stock options in accordance with the Internal Revenue Code of 1986, as amended. As of March 29, 2014, there were 5,031,694 shares available for future grant under the 2005 Plan. | |
Options granted under the Plans are subject to terms and conditions as determined by the compensation committee of the board of directors, including vesting periods. Options granted under the Plans are exercisable in full at any time subsequent to vesting, generally vest over periods from zero to five years, and expire seven or ten years from the date of grant or, if earlier, 60 or 90 days from employee termination. The exercise price of incentive stock options is equal to the closing price on the NASDAQ Global Market on the date of grant. The exercise price of nonstatutory options may be set at a price other than the fair market value of the common stock. |
Accrued_Expenses
Accrued Expenses | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ' | |||||||
Accrued Expenses | ' | |||||||
5. Accrued Expenses | ||||||||
Accrued expenses consist of the following: | ||||||||
29-Mar-14 | 28-Dec-13 | |||||||
(In thousands) | ||||||||
Accrued warranty | $ | 6,358 | $ | 6,497 | ||||
Accrued sales tax | 759 | 831 | ||||||
Accrued rent | 720 | 726 | ||||||
Accrued direct fulfillment costs | 670 | 1,362 | ||||||
Accrued accounting fees | 323 | 181 | ||||||
Accrued contractors | 298 | 509 | ||||||
Accrued sales commissions | 247 | 539 | ||||||
Accrued other | 4,188 | 4,235 | ||||||
$ | 13,563 | $ | 14,880 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
6. Commitments and Contingencies | ||||||||
Lease Obligations | ||||||||
Rental expense under operating leases for the three months ended March 29, 2014 and March 30, 2013 were $1.1 million and $1.0 million, respectively. Future minimum rental payments under operating leases were as follows as of March 29, 2014: | ||||||||
Operating | ||||||||
Leases | ||||||||
(In thousands) | ||||||||
Remainder of 2014 | $ | 2,556 | ||||||
2015 | 3,363 | |||||||
2016 | 2,662 | |||||||
2017 | 2,383 | |||||||
2018 | 2,383 | |||||||
Thereafter | 3,177 | |||||||
Total minimum lease payments | $ | 16,524 | ||||||
Outstanding Purchase Orders | ||||||||
At March 29, 2014, the Company had outstanding purchase orders aggregating approximately $106 million. The purchase orders, the majority of which are with contract manufacturers for the purchase of inventory in the normal course of business, are for manufacturing and non-manufacturing related goods and services, and are generally cancelable without penalty. In circumstances where we determine that we have financial exposure associated with any of these commitments, we record a liability in the period in which that exposure is identified. | ||||||||
Guarantees and Indemnification Obligations | ||||||||
The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses incurred by the indemnified party, generally the Company’s customers, in connection with any patent, copyright, trade secret or other proprietary right infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of March 29, 2014 and December 28, 2013, respectively. | ||||||||
Warranty | ||||||||
The Company provides warranties on most products and has established a reserve for warranty based on identified or estimated warranty costs. The reserve is included as part of accrued expenses (Note 5) in the accompanying balance sheets. | ||||||||
Activity related to the warranty accrual was as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
(In thousands) | ||||||||
Balance at beginning of period | $ | 6,497 | $ | 6,057 | ||||
Provision | 1,133 | 404 | ||||||
Warranty usage(1) | (1,272 | ) | (440 | ) | ||||
Balance at end of period | $ | 6,358 | $ | 6,021 | ||||
-1 | Warranty usage includes costs incurred for warranty obligations. | |||||||
Sales Taxes | ||||||||
The Company collects and remits sales tax in jurisdictions in which it has a physical presence or it believes nexus exists, which therefore obligates the Company to collect and remit sales tax. The Company continually evaluates whether it has established nexus in new jurisdictions with respect to sales tax. The Company has recorded a liability for potential exposure in several states where there is uncertainty about the point in time at which the Company established a sufficient business connection to create nexus. The Company continues to analyze possible sales tax exposure, but does not currently believe that any individual claim or aggregate claims that might arise will ultimately have a material effect on its consolidated results of operations, financial position or cash flows. |
Industry_Segment_Geographic_In
Industry Segment, Geographic Information and Significant Customers | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Industry Segment, Geographic Information and Significant Customers | ' | |||||||
. Industry Segment, Geographic Information and Significant Customers | ||||||||
The Company operates in two reportable segments, the home robots business unit and the defense and security robots business unit. The nature of products and types of customers for the two segments vary significantly. As such, the segments are managed separately. | ||||||||
Home Robots | ||||||||
The Company’s home robots business unit offers products to consumers through a network of retail businesses throughout the United States, to various countries through international distributors and retailers, and through the Company’s on-line store. The Company’s home robots business unit includes mobile robots used in the maintenance of households. | ||||||||
Defense and Security | ||||||||
The Company’s defense and security robots business unit offers products to the U.S. Department of Defense through a small U.S. government-focused sales force and distributors, and to other North American and international entities through small domestic and international sales teams, as well as through North American and international distributors. The Company’s defense and security robots are used to increase warfighters', law enforcement, security forces and first responders' safety and productivity. | ||||||||
Other | ||||||||
The Company’s other revenue and cost of revenue result from other smaller business units that do not meet the criteria of a reportable segment, as well as certain operational costs included in cost of revenue. | ||||||||
The table below presents segment information about revenue, cost of revenue, gross margin and income before income taxes: | ||||||||
Three Months Ended | ||||||||
(In thousands) | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Revenue: | ||||||||
Home Robots | $ | 108,035 | $ | 92,699 | ||||
Defense & Security | 5,602 | 11,100 | ||||||
Other | 567 | 2,396 | ||||||
Total revenue | 114,204 | 106,195 | ||||||
Cost of revenue: | ||||||||
Home Robots | 53,595 | 48,025 | ||||||
Defense & Security | 3,518 | 5,825 | ||||||
Other | 5,381 | 5,818 | ||||||
Total cost of revenue | 62,494 | 59,668 | ||||||
Gross margin: | ||||||||
Home Robots | 54,440 | 44,674 | ||||||
Defense & Security | 2,084 | 5,275 | ||||||
Other | (4,814 | ) | (3,422 | ) | ||||
Total gross margin | 51,710 | 46,527 | ||||||
Research and development | 16,934 | 14,408 | ||||||
Selling and marketing | 14,532 | 10,697 | ||||||
General and administrative | 12,264 | 12,458 | ||||||
Other income (expense), net | (187 | ) | (96 | ) | ||||
Income before income taxes | $ | 7,793 | $ | 8,868 | ||||
Geographic Information | ||||||||
For the three months ended March 29, 2014 and March 30, 2013, sales to non-U.S. customers accounted for 60.8% and 59.6% of total revenue, respectively. | ||||||||
Significant Customers | ||||||||
For the three months ended March 29, 2014, the Company generated 20.0% and 13.1%, respectively, of total revenue from two of its international distributors of home robots products. For the three months ended March 30, 2013, the Company generated 21.9% and 10.2%, respectively, of total revenue from two of its international distributors of home robots products. |
Goodwill_Other_Intangible_Asse
Goodwill, Other Intangible Assets and Other Assets | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | |||||||||||||||||||||||||||||||
Other Assets | ||||||||||||||||||||||||||||||||
Other assets at March 29, 2014 and December 28, 2013 consisted of the following: | ||||||||||||||||||||||||||||||||
March 29, | December 28, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Investment in Advanced Scientific Concepts, Inc. | $ | 2,500 | $ | 2,500 | ||||||||||||||||||||||||||||
Investment in InTouch Technologies, Inc. | 8,001 | 8,001 | ||||||||||||||||||||||||||||||
$ | 10,501 | $ | 10,501 | |||||||||||||||||||||||||||||
These investments are accounted for utilizing the cost method of accounting. The Company regularly monitors the investments to determine if facts and circumstances have changed in a manner that would require a change in accounting methodology. Additionally, the Company periodically evaluates whether or not an investment has been impaired by considering such factors as economic environment, market conditions, operational performance and other specific factors relating to the business underlying the investment. If any such impairment is identified, a reduction in the carrying value of the investment would be recorded at that time. | ||||||||||||||||||||||||||||||||
Schedule of Cost Method Investments [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Other assets at March 29, 2014 and December 28, 2013 consisted of the following: | ||||||||||||||||||||||||||||||||
March 29, | December 28, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Investment in Advanced Scientific Concepts, Inc. | $ | 2,500 | $ | 2,500 | ||||||||||||||||||||||||||||
Investment in InTouch Technologies, Inc. | 8,001 | 8,001 | ||||||||||||||||||||||||||||||
$ | 10,501 | $ | 10,501 | |||||||||||||||||||||||||||||
Goodwill, Other Intangible Assets and Other Assets | ' | |||||||||||||||||||||||||||||||
. Goodwill, Other Intangible Assets and Other Assets | ||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||
The carrying amount of the Company's goodwill at March 29, 2014 is $48.8 million, of which $41.1 million resulted from the acquisition of Evolution Robotics, Inc. in October 2012 and was assigned to the home robots reporting unit. $7.7 million resulted from the acquisition of Nekton Research, LLC completed in September 2008 and was assigned to the defense and security reporting unit. In conjunction with the Company's reorganization completed as of the beginning of the fiscal year 2013, the defense and security reporting unit was divided into two reporting units: the defense and security reporting unit and the research reporting unit. As a result, the goodwill of $7.9 million was reassigned utilizing a relative fair value allocation approach. $7.7 million and $0.2 million were reassigned to the defense and security and research reporting units, respectively. | ||||||||||||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||||||||||
Other intangible assets include the value assigned to completed technology, research contracts, and a trade name. The estimated useful lives for all of these intangible assets are two to ten years. The intangible assets are being amortized on a straight-line basis, which is consistent with the pattern that the economic benefits of the intangible assets are expected to be utilized. | ||||||||||||||||||||||||||||||||
Intangible assets at March 29, 2014 and December 28, 2013 consisted of the following: | ||||||||||||||||||||||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||||||||||||||||||||
Cost | Accumulated | Impairment Loss | Net | Cost | Accumulated | Impairment Loss | Net | |||||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Completed technology | $ | 30,600 | $ | 7,098 | $ | 1,788 | $ | 21,714 | $ | 30,600 | $ | 6,202 | 1,788 | $ | 22,610 | |||||||||||||||||
Research contracts | 100 | 100 | — | — | 100 | 100 | — | — | ||||||||||||||||||||||||
Tradename | 800 | 750 | — | 50 | 800 | 742 | — | 58 | ||||||||||||||||||||||||
Total | $ | 31,500 | $ | 7,948 | $ | 1,788 | $ | 21,764 | $ | 31,500 | $ | 7,044 | $ | 1,788 | $ | 22,668 | ||||||||||||||||
Amortization expense related to acquired intangible assets was $0.9 million and $1.0 million for the three months ended March 29, 2014 and March 30, 2013, respectively. The estimated future amortization expense is expected to be as follows: | ||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Remainder of 2014 | $ | 2,618 | ||||||||||||||||||||||||||||||
2015 | 3,482 | |||||||||||||||||||||||||||||||
2016 | 3,457 | |||||||||||||||||||||||||||||||
2017 | 3,457 | |||||||||||||||||||||||||||||||
2018 | 3,457 | |||||||||||||||||||||||||||||||
Thereafter | 5,293 | |||||||||||||||||||||||||||||||
Total | $ | 21,764 | ||||||||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||||||
Mar. 29, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Fair Value Measurement, Policy [Policy Text Block] | ' | |||||||||||
Fair Value Measurements | ||||||||||||
The authoritative guidance for fair value establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||
Financial Assets | ||||||||||||
The Company’s financial assets measured at fair value on a recurring basis at March 29, 2014, were as follows: | ||||||||||||
Fair Value Measurements as of | ||||||||||||
29-Mar-14 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(In thousands) | ||||||||||||
Description | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | 95,258 | $ | — | $ | — | ||||||
Corporate and government bonds | — | 30,540 | — | |||||||||
Total assets measured at fair value | $ | 95,258 | $ | 30,540 | $ | — | ||||||
The Company’s financial assets measured at fair value on a recurring basis at December 28, 2013, were as follows: | ||||||||||||
Fair Value Measurements as of | ||||||||||||
28-Dec-13 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(In thousands) | ||||||||||||
Description | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | 101,441 | $ | — | $ | — | ||||||
Corporate and government bonds | — | 21,954 | — | |||||||||
Total assets measured at fair value | $ | 101,441 | $ | 21,954 | $ | — | ||||||
In each table above, the bond investments are valued based on observable market values as of the Company’s reporting date and are included in Level 2. The bond investments are recorded at fair value and marked-to-market at the end of each reporting period. The realized and unrealized gains and losses are included in comprehensive income for that period. The fair value of the Company’s bond investment is included in short term investments in its consolidated balance sheet. | ||||||||||||
Basis of Presentation | ' | |||||||||||
Basis of Presentation | ||||||||||||
The accompanying consolidated financial statements include those of iRobot and its subsidiaries, after elimination of all intercompany accounts and transactions. In addition, certain prior year amounts have been reclassified to conform with the current year presentation. iRobot has prepared the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. | ||||||||||||
The accompanying unaudited financial data as of March 29, 2014 and for the three months ended March 29, 2014 and March 30, 2013 has been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the fiscal year ended December 28, 2013, filed with the SEC on February 18, 2014. | ||||||||||||
In the opinion of management, all adjustments necessary to state fairly its statement of financial position as of March 29, 2014 and results of operations and cash flows for the periods ended March 29, 2014 and March 30, 2013 have been made. The results of operations and cash flows for any interim period are not necessarily indicative of the operating results and cash flows for the full fiscal year or any future periods. | ||||||||||||
Use of Estimates | ' | |||||||||||
Use of Estimates | ||||||||||||
The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates these estimates and judgments, including those related to revenue recognition, sales returns, bad debts, warranty claims, inventory reserves, valuation of investments, valuation of goodwill and intangible assets, assumptions used in valuing stock-based compensation instruments and income taxes. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from the Company’s estimates. | ||||||||||||
Fiscal Year-End | ' | |||||||||||
Fiscal Year-End | ||||||||||||
The Company operates and reports using a 52-53 week fiscal year ending on the Saturday closest to December 31. Accordingly, the Company’s fiscal quarters end on the Saturday that falls closest to the last day of the third month of each quarter. | ||||||||||||
Revenue Recognition | ' | |||||||||||
Revenue Recognition | ||||||||||||
The Company derives its revenue from product sales and, to a lesser extent, government and commercial research and development contracts. The Company sells products directly to customers and indirectly through resellers and distributors. The Company recognizes revenue from sales of robots under the terms of the customer agreement upon transfer of title and risk of loss to the customer, net of estimated returns, provided that collection is determined to be reasonably assured and no significant obligations remain. Sales to domestic resellers of home robots are typically subject to agreements allowing for limited rights of return, rebates and price protection. Accordingly, the Company reduces revenue for its estimates of liabilities for these rights of return at the time the related sale is recorded. The Company makes an estimate of sales returns for products sold by domestic resellers directly based on historical returns experience and other relevant data. The Company’s international distributor agreements do not currently allow for product returns and, as a result, no reserve for returns is established for this group of customers. The Company has aggregated and analyzed historical returns from domestic resellers and end users which form the basis of its estimate of future sales returns by resellers or end users. When a right of return exists, the provision for these estimated returns is recorded as a reduction of revenue at the time that the related revenue is recorded. If actual returns differ significantly from its estimates, such differences could have a material impact on the Company’s results of operations for the period in which the returns become known. The estimates for returns are adjusted periodically based upon historical rates of returns. The estimates and reserve for rebates and price protection are based on specific programs, expected usage and historical experience. Actual results could differ from these estimates. | ||||||||||||
Under cost-plus-fixed-fee (“CPFF”) type contracts, the Company recognizes revenue based on costs incurred plus a pro rata portion of the total fixed fee. Costs incurred include labor and material that are directly associated with individual CPFF contracts plus indirect overhead and general and administrative type costs based upon billing rates submitted by the Company to the Defense Contract Management Agency (“DCMA”). Annually, the Company submits final indirect billing rates to DCMA based upon actual costs incurred throughout the year. In the situation where the Company’s final actual billing rates are greater than the estimated rates currently in effect, the Company records a cumulative revenue adjustment in the period in which the rate differential is collected from the customer. These final billing rates are subject to audit by the Defense Contract Audit Agency (“DCAA”), which can occur several years after the final billing rates are submitted and may result in material adjustments to revenue recognized based on estimated final billing rates. As of March 29, 2014, fiscal year 2007 is under audit by DCAA, and fiscal years 2008 through 2013 are open for audit by DCAA. In the situation where the Company’s anticipated actual billing rates will be lower than the provisional rates currently in effect, the Company records a cumulative revenue adjustment in the period in which the rate differential is identified. Revenue on firm fixed price (“FFP”) contracts is recognized using the percentage-of-completion method. For government product FFP contracts, revenue is recognized as the product is shipped or in accordance with the contract terms. Costs and estimated gross margins on contracts are recorded as revenue as work is performed based on the percentage that incurred costs compare to estimated total costs utilizing the most recent estimates of costs and funding. Changes in job performance, job conditions, and estimated profitability, including those arising from final contract settlements and government audits, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Since many contracts extend over a long period of time, revisions in cost and funding estimates during the progress of work have the effect of adjusting earnings applicable to past performance in the current period. When the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the current period. Revenue earned in excess of billings, if any, is recorded as unbilled revenue. Billings in excess of revenue earned, if any, are recorded as deferred revenue. | ||||||||||||
Accounting for Share-Based Payments | ' | |||||||||||
Stock-Based Compensation | ||||||||||||
The Company accounts for stock-based compensation through recognition of the fair value of the stock-based compensation as a charge against earnings. Stock-based compensation cost for stock options is estimated at the grant date based on each option's fair value as calculated by the Black-Scholes option-pricing model. Stock-based compensation cost for restricted stock awards, time-based restricted stock units and performance-based restricted stock units is measured based on the closing fair market value of the Company's common stock on the date of grant. For performance-based restricted stock units, the compensation costs will be subsequently adjusted for assumptions of achievement during the period in which the assumption of achievement changes, as applicable. The Company recognizes stock-based compensation as expense ratably on a straight-line basis over the requisite service period, net of estimated forfeitures. | ||||||||||||
Net Income Per Share | ' | |||||||||||
Net Income Per Share | ||||||||||||
The following table presents the calculation of both basic and diluted net income per share: | ||||||||||||
Three Months Ended | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
29-Mar-14 | 30-Mar-13 | |||||||||||
Net income | $ | 5,280 | $ | 8,355 | ||||||||
Weighted-average shares outstanding | 29,189 | 27,930 | ||||||||||
Dilutive effect of employee stock options and restricted shares | 844 | 628 | ||||||||||
Diluted weighted-average shares outstanding | 30,033 | 28,558 | ||||||||||
Basic income per share | $ | 0.18 | $ | 0.3 | ||||||||
Diluted income per share | $ | 0.18 | $ | 0.29 | ||||||||
Restricted stock units and stock options representing approximately 0.1 million and 1.1 million shares of common stock for the three month periods ended March 29, 2014 and March 30, 2013, respectively, were excluded from the computation of diluted earnings per share for these periods because their effect would have been antidilutive. | ||||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The Company is subject to taxation in the United States and various states and foreign jurisdictions. Though the statute of limitations is closed for fiscal years prior to 2010, the Internal Revenue Service ("IRS") has completed and closed its examination for all fiscal years prior to 2011. The statute of limitations for examinations by state tax authorities is closed for fiscal years prior to 2009. The Company's tax returns are currently under examination by certain states for the years 2009, 2010 and 2011. Federal carryforward attributes that were generated prior to fiscal year 2011, and state carryforward attributes that were generated prior to fiscal year 2009 may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a period for which the statute of limitations is still open. | ||||||||||||
Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||||||||||
The Company monitors the realization of its deferred tax assets based on changes in facts and circumstances, for example recurring periods of income for tax purposes following historical periods of cumulative losses or changes in tax laws or regulations. The Company's income tax provisions and its assessment of the ability to realize its deferred tax assets involve significant judgments and estimates. | ||||||||||||
The Company recorded a tax provision of $2.5 million and $0.5 million for the three month periods ended March 29, 2014 and March 30, 2013, respectively. The $2.5 million provision for the three month period ended March 29, 2014 resulted in an effective income tax rate of 32.2%. The $0.5 million provision for the three month period ended March 30, 2013 resulted in an effective income tax rate of 5.8%. The increase in the effective income tax rate from 5.8% for the three month period ended March 30, 2013 to 32.2% for the three month period ended March 29, 2014 was primarily due to legislation that was enacted in January 2013 that included the extension of the federal research and development tax credits. The legislation retroactively reinstated research and development tax credits for 2012 and extended them through December 31, 2013. As a result, the Company recorded a discrete benefit related to 2012 during the three month period ended March 30, 2013. In addition, the federal research and development tax credits expired at the end of 2013 and have not been enacted for 2014. Therefore, the effective income tax rate of 32.2% for the three month period ended March 29, 2014 does not include any benefit for the federal research and development tax credits. | ||||||||||||
The Company anticipates the settlement of state tax examinations may be finalized within the next twelve months and could result in a decrease in its unrecognized gross tax benefits of up to $0.7 million. | ||||||||||||
In September 2013, the U.S. Department of the Treasury and the IRS issued final regulations addressing the acquisition, production and improvement of tangible property, and also proposed regulations addressing the disposition of property. These regulations replace previously issued temporary regulations and are effective for tax years beginning January 1, 2014, with optional adoption permitted in 2013. The Company has analyzed the impact of these new regulations and they did not have a material impact on the Company's consolidated financial statements. | ||||||||||||
Goodwill | ' | |||||||||||
Goodwill | ||||||||||||
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. The Company evaluates goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) annually or more frequently if the Company believes indicators of impairment exist. In accordance with the guidance, the Company is permitted to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a two-step goodwill impairment test is performed. | ||||||||||||
The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. The Company completes the annual impairment evaluation during the fourth quarter of each year. | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
Recent Accounting Pronouncements | ||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new guidance clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when certain situations exist at the reporting date. This new guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The impact of this amendment on the Company’s consolidated financial statements was not material. | ||||||||||||
In February 2013, the FASB issued guidance requiring disclosure of amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This guidance was effective prospectively for the Company for annual and interim periods beginning January 1, 2013. The impact of these amendments on the Company’s consolidated financial statements was not material. | ||||||||||||
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||||||
Mar. 29, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Basic and Diluted Net Income Per Share | ' | |||||||||||
The following table presents the calculation of both basic and diluted net income per share: | ||||||||||||
Three Months Ended | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
29-Mar-14 | 30-Mar-13 | |||||||||||
Net income | $ | 5,280 | $ | 8,355 | ||||||||
Weighted-average shares outstanding | 29,189 | 27,930 | ||||||||||
Dilutive effect of employee stock options and restricted shares | 844 | 628 | ||||||||||
Diluted weighted-average shares outstanding | 30,033 | 28,558 | ||||||||||
Basic income per share | $ | 0.18 | $ | 0.3 | ||||||||
Diluted income per share | $ | 0.18 | $ | 0.29 | ||||||||
Fair Value Assets Measured on Recurring Basis | ' | |||||||||||
The Company’s financial assets measured at fair value on a recurring basis at March 29, 2014, were as follows: | ||||||||||||
Fair Value Measurements as of | ||||||||||||
29-Mar-14 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(In thousands) | ||||||||||||
Description | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | 95,258 | $ | — | $ | — | ||||||
Corporate and government bonds | — | 30,540 | — | |||||||||
Total assets measured at fair value | $ | 95,258 | $ | 30,540 | $ | — | ||||||
The Company’s financial assets measured at fair value on a recurring basis at December 28, 2013, were as follows: | ||||||||||||
Fair Value Measurements as of | ||||||||||||
28-Dec-13 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(In thousands) | ||||||||||||
Description | ||||||||||||
Assets: | ||||||||||||
Money market funds | $ | 101,441 | $ | — | $ | — | ||||||
Corporate and government bonds | — | 21,954 | — | |||||||||
Total assets measured at fair value | $ | 101,441 | $ | 21,954 | $ | — | ||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventory | ' | |||||||
Inventory consists of the following: | ||||||||
29-Mar-14 | 28-Dec-13 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 8,692 | $ | 8,520 | ||||
Work in process | — | — | ||||||
Finished goods | 32,698 | 37,587 | ||||||
$ | 41,390 | $ | 46,107 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ' | |||||||
Components of Accrued Expenses | ' | |||||||
Accrued expenses consist of the following: | ||||||||
29-Mar-14 | 28-Dec-13 | |||||||
(In thousands) | ||||||||
Accrued warranty | $ | 6,358 | $ | 6,497 | ||||
Accrued sales tax | 759 | 831 | ||||||
Accrued rent | 720 | 726 | ||||||
Accrued direct fulfillment costs | 670 | 1,362 | ||||||
Accrued accounting fees | 323 | 181 | ||||||
Accrued contractors | 298 | 509 | ||||||
Accrued sales commissions | 247 | 539 | ||||||
Accrued other | 4,188 | 4,235 | ||||||
$ | 13,563 | $ | 14,880 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Summary of Future Minimum Rental Payments under Operating Leases | ' | |||||||
Future minimum rental payments under operating leases were as follows as of March 29, 2014: | ||||||||
Operating | ||||||||
Leases | ||||||||
(In thousands) | ||||||||
Remainder of 2014 | $ | 2,556 | ||||||
2015 | 3,363 | |||||||
2016 | 2,662 | |||||||
2017 | 2,383 | |||||||
2018 | 2,383 | |||||||
Thereafter | 3,177 | |||||||
Total minimum lease payments | $ | 16,524 | ||||||
Activity Related to the Warranty Accrual | ' | |||||||
Activity related to the warranty accrual was as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
(In thousands) | ||||||||
Balance at beginning of period | $ | 6,497 | $ | 6,057 | ||||
Provision | 1,133 | 404 | ||||||
Warranty usage(1) | (1,272 | ) | (440 | ) | ||||
Balance at end of period | $ | 6,358 | $ | 6,021 | ||||
-1 | Warranty usage includes costs incurred for warranty obligations. |
Industry_Segment_Geographic_In1
Industry Segment, Geographic Information and Significant Customers (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Information about Revenue, Cost of Revenue, Gross Margin and Income before Income Taxes | ' | |||||||
The table below presents segment information about revenue, cost of revenue, gross margin and income before income taxes: | ||||||||
Three Months Ended | ||||||||
(In thousands) | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Revenue: | ||||||||
Home Robots | $ | 108,035 | $ | 92,699 | ||||
Defense & Security | 5,602 | 11,100 | ||||||
Other | 567 | 2,396 | ||||||
Total revenue | 114,204 | 106,195 | ||||||
Cost of revenue: | ||||||||
Home Robots | 53,595 | 48,025 | ||||||
Defense & Security | 3,518 | 5,825 | ||||||
Other | 5,381 | 5,818 | ||||||
Total cost of revenue | 62,494 | 59,668 | ||||||
Gross margin: | ||||||||
Home Robots | 54,440 | 44,674 | ||||||
Defense & Security | 2,084 | 5,275 | ||||||
Other | (4,814 | ) | (3,422 | ) | ||||
Total gross margin | 51,710 | 46,527 | ||||||
Research and development | 16,934 | 14,408 | ||||||
Selling and marketing | 14,532 | 10,697 | ||||||
General and administrative | 12,264 | 12,458 | ||||||
Other income (expense), net | (187 | ) | (96 | ) | ||||
Income before income taxes | $ | 7,793 | $ | 8,868 | ||||
Goodwill_Other_Intangible_Asse1
Goodwill, Other Intangible Assets and Other Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Cost Method Investments [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Other assets at March 29, 2014 and December 28, 2013 consisted of the following: | ||||||||||||||||||||||||||||||||
March 29, | December 28, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Investment in Advanced Scientific Concepts, Inc. | $ | 2,500 | $ | 2,500 | ||||||||||||||||||||||||||||
Investment in InTouch Technologies, Inc. | 8,001 | 8,001 | ||||||||||||||||||||||||||||||
$ | 10,501 | $ | 10,501 | |||||||||||||||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||||||||||
Intangible assets at March 29, 2014 and December 28, 2013 consisted of the following: | ||||||||||||||||||||||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||||||||||||||||||||
Cost | Accumulated | Impairment Loss | Net | Cost | Accumulated | Impairment Loss | Net | |||||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Completed technology | $ | 30,600 | $ | 7,098 | $ | 1,788 | $ | 21,714 | $ | 30,600 | $ | 6,202 | 1,788 | $ | 22,610 | |||||||||||||||||
Research contracts | 100 | 100 | — | — | 100 | 100 | — | — | ||||||||||||||||||||||||
Tradename | 800 | 750 | — | 50 | 800 | 742 | — | 58 | ||||||||||||||||||||||||
Total | $ | 31,500 | $ | 7,948 | $ | 1,788 | $ | 21,764 | $ | 31,500 | $ | 7,044 | $ | 1,788 | $ | 22,668 | ||||||||||||||||
Estimated Future Amortization Expense Related to Current Intangible Assets | ' | |||||||||||||||||||||||||||||||
The estimated future amortization expense is expected to be as follows: | ||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Remainder of 2014 | $ | 2,618 | ||||||||||||||||||||||||||||||
2015 | 3,482 | |||||||||||||||||||||||||||||||
2016 | 3,457 | |||||||||||||||||||||||||||||||
2017 | 3,457 | |||||||||||||||||||||||||||||||
2018 | 3,457 | |||||||||||||||||||||||||||||||
Thereafter | 5,293 | |||||||||||||||||||||||||||||||
Total | $ | 21,764 | ||||||||||||||||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Revision (Details) | 3 Months Ended |
Mar. 29, 2014 | |
Document Period End Date | 29-Mar-14 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ' | ' |
Document Period End Date | 29-Mar-14 | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 | 1,100,000 |
Net income | $5,280 | $8,355 |
Weighted-average shares outstanding | 29,189,000 | 27,930,000 |
Dilutive effect of employee stock options and restricted shares | 844,000 | 628,000 |
Diluted weighted-average shares outstanding | 30,033,000 | 28,558,000 |
Basic income per share | $0.18 | $0.30 |
Diluted income per share | $0.18 | $0.29 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, except Share data in Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | $31,500 | ' | $31,500 |
Finite-Lived Intangible Assets, Net | $21,764 | ' | $22,668 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 | 1.1 | ' |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Tax provision | $2,513,000 | $513,000 |
Effective income tax rate | 32.20% | 5.80% |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $700,000 | ' |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Fair Value Assets Measured on Recurring Basis (Detail) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | $95,258 | $101,441 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 95,258 | 101,441 |
Fair Value, Inputs, Level 1 [Member] | Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 30,540 | 21,954 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 30,540 | 21,954 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Recurring | $0 | $0 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Fair Value Assets Measured on a Nonrecurring Basis (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2008 |
In Thousands, unless otherwise specified | Nekton Research LLC [Member] | ||
Research Reporting Unit [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Goodwill | $48,751 | $48,751 | $200 |
Finite-Lived Intangible Assets, Gross | 31,500 | 31,500 | ' |
Finite-Lived Intangible Assets, Net | $21,764 | $22,668 | ' |
Inventory_Details
Inventory (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Inventory, Raw Materials, Net of Reserves | $8,692 | $8,520 |
Inventory, Work in Process, Net of Reserves | 0 | 0 |
Inventory, Finished Goods, Net of Reserves | 32,698 | 37,587 |
Inventory | $41,390 | $46,107 |
Stock_Option_Plans_Additional_
Stock Option Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
Oct. 10, 2005 | Mar. 29, 2014 | Mar. 07, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Effective date for stock options plan | 10-Oct-05 | ' | ' |
Increase in number of shares reserved and available for issuance in different forms | ' | 4.50% | ' |
Document Period End Date | ' | 29-Mar-14 | ' |
Share Price | ' | ' | $43.35 |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Minimum period for expiration of options in case of employee termination | ' | '60 days | ' |
Maximum period for expiration of options in case of employee termination | ' | '90 days | ' |
Stock Options | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for options | ' | '0 years | ' |
Minimum expiration period for options | ' | '7 years | ' |
Stock Options | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for options | ' | '5 years | ' |
Minimum expiration period for options | ' | '10 years | ' |
Common stock | Executive Officer [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock granted | ' | 33,938 | ' |
Time-based Restricted Stock Unit [Member] | Executive Officer [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock units granted | ' | 59,433 | ' |
Performance-based Restricted Stock Unit [Member] | Executive Officer [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock units granted | ' | 29,717 | ' |
2005 Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares reserved for issuance in different forms | 1,583,682 | ' | ' |
Share based compensation arrangement shares available for grant | ' | 5,031,694 | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 |
Accrued Liabilities, Current [Abstract] | ' | ' |
Document Period End Date | 29-Mar-14 | ' |
Accounts Payable, Current [Abstract] | ' | ' |
Accrued warranty | $6,358 | $6,497 |
Accrued Sales Tax | 759 | 831 |
Accrued rent | 720 | 726 |
Accrued direct fulfillment costs | 670 | 1,362 |
Accrued sales commissions | 247 | 539 |
Accrued accounting fees | 323 | 181 |
Accrued contractors, current | 298 | 509 |
Accrued other | 4,188 | 4,235 |
Accrued expenses | 13,563 | 14,880 |
Employee-related Liabilities, Current | $7,744 | $19,606 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 29, 2014 |
In Millions, unless otherwise specified | |
Outstanding POs [Abstract] | ' |
Contractual Obligation | $106 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Rental Payments under Operating Leases (Detail) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Rental expense under operating leases | $1,100,000 | $1,000,000 |
Disclosure Summary Of Future Minimum Rental Payments Under Operating Leases [Abstract] | ' | ' |
Remainder of 2013 | 2,556,000 | ' |
2014 | 3,363,000 | ' |
2015 | 2,662,000 | ' |
2016 | 2,383,000 | ' |
2017 | 2,383,000 | ' |
Thereafter | 3,177,000 | ' |
Total minimum lease payments | $16,524,000 | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies - Activity Related to Warranty Accrual (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ||
Document Period End Date | 29-Mar-14 | ' | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ||
Balance at beginning of period | $6,497 | $6,057 | ||
Provision | 1,133 | 404 | ||
Warranty usage | -1,272 | [1] | -440 | [1] |
Balance at end of period | $6,358 | $6,021 | ||
[1] | Warranty usage includes costs incurred for warranty obligations. |
Industry_Segment_Geographic_In2
Industry Segment, Geographic Information and Significant Customers - Segment Information about Revenue, Cost of Revenue, Gross Margin and Income before Income Taxes (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Revenue: | ' | ' |
Total revenue | $114,204 | $106,195 |
Cost of revenue: | ' | ' |
Total cost of revenue | 62,494 | 59,668 |
Gross margin: | ' | ' |
Gross margin | 51,710 | 46,527 |
Research and development | 16,934 | 14,408 |
Selling and marketing | 14,532 | 10,697 |
General and administrative | 12,264 | 12,458 |
Other income (expense), net | -187 | -96 |
Income before income taxes | 7,793 | 8,868 |
Home Robots | ' | ' |
Revenue: | ' | ' |
Total revenue | 108,035 | 92,699 |
Cost of revenue: | ' | ' |
Total cost of revenue | 53,595 | 48,025 |
Gross margin: | ' | ' |
Gross margin | 54,440 | 44,674 |
Defense & Security | ' | ' |
Revenue: | ' | ' |
Total revenue | 5,602 | 11,100 |
Cost of revenue: | ' | ' |
Total cost of revenue | 3,518 | 5,825 |
Gross margin: | ' | ' |
Gross margin | 2,084 | 5,275 |
Other | ' | ' |
Revenue: | ' | ' |
Total revenue | 567 | 2,396 |
Cost of revenue: | ' | ' |
Total cost of revenue | 5,381 | 5,818 |
Gross margin: | ' | ' |
Gross margin | ($4,814) | ($3,422) |
Industry_Segment_Geographic_In3
Industry Segment, Geographic Information and Significant Customers - Additional Information (Detail) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Number of operating segments | 2 | ' |
Number of customer generating major revenues | 2 | ' |
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Concentration Risk, Percentage | 60.80% | 59.60% |
Customer Concentration Risk [Member] | International distributors of home robots products | Distributor One | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Concentration Risk, Percentage | 20.00% | 21.90% |
Customer Concentration Risk [Member] | International distributors of home robots products | Distributor Two | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Concentration Risk, Percentage | 13.10% | 10.20% |
Goodwill_Other_Intangible_Asse2
Goodwill, Other Intangible Assets and Other Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||
Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Oct. 02, 2012 | Mar. 29, 2014 | Sep. 30, 2008 | Sep. 30, 2008 | Sep. 30, 2008 | |
Minimum | Maximum | Home Robots | Defense & Security | Defense & Security | Defense and Security Reporting Unit | Research Reporting Unit [Member] | ||||
Evolution Robotics, Inc. (ER) | Nekton Research LLC [Member] | Nekton Research LLC [Member] | Nekton Research LLC [Member] | Nekton Research LLC [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $48,751,000 | ' | $48,751,000 | ' | ' | $41,100,000 | $7,700,000 | ' | $7,700,000 | $200,000 |
Goodwill, Gross | ' | ' | ' | ' | ' | ' | ' | 7,900,000 | ' | ' |
Estimated useful life of intangible assets | ' | ' | ' | '2 years | '10 years | ' | ' | ' | ' | ' |
Amortization of Acquired Intangible Assets | $900,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_Other_Intangible_Asse3
Goodwill, Other Intangible Assets and Other Assets - Other Intangible Assets (Detail) (USD $) | 3 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Document Period End Date | 29-Mar-14 | ' | ' |
Finite-Lived Intangible Assets, Gross | $31,500,000 | ' | $31,500,000 |
Intangible assets accumulated amortization | 7,948,000 | ' | 7,044,000 |
Finite-lived intangible assets, accumulated impairment loss | 1,788,000 | ' | 1,788,000 |
Intangible Assets, Net | 21,764,000 | ' | 22,668,000 |
Amortization of Acquired Intangible Assets | 900,000 | 1,000,000 | ' |
Completed technology | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 30,600,000 | ' | 30,600,000 |
Intangible assets accumulated amortization | 7,098,000 | ' | 6,202,000 |
Finite-lived intangible assets, accumulated impairment loss | 1,788,000 | ' | 1,788,000 |
Intangible Assets, Net | 21,714,000 | ' | 22,610,000 |
Research contracts | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 100,000 | ' | 100,000 |
Intangible assets accumulated amortization | 100,000 | ' | 100,000 |
Finite-lived intangible assets, accumulated impairment loss | 0 | ' | 0 |
Intangible Assets, Net | 0 | ' | 0 |
Trade Names | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 800,000 | ' | 800,000 |
Intangible assets accumulated amortization | 750,000 | ' | 742,000 |
Finite-lived intangible assets, accumulated impairment loss | 0 | ' | 0 |
Intangible Assets, Net | $50,000 | ' | $58,000 |
Goodwill_Other_Intangible_Asse4
Goodwill, Other Intangible Assets and Other Assets - Estimated Future Amortization Expense Related to Current Intangible Assets (Detail) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Disclosure Estimated Future Amortization Expense Related To Current Intangible Assets [Abstract] | ' | ' |
Remainder of 2014 | $2,618 | ' |
2014 | 3,482 | ' |
2015 | 3,457 | ' |
2016 | 3,457 | ' |
2017 | 3,457 | ' |
Thereafter | 5,293 | ' |
Intangible Assets, Net | $21,764 | $22,668 |
Goodwill_Other_Intangible_Asse5
Goodwill, Other Intangible Assets and Other Assets - Other Assets (Details) (USD $) | 3 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 |
Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | ||
Advanced Scientific Concepts, Inc. [Member] | Advanced Scientific Concepts, Inc. [Member] | InTouch Technologies, Inc. [Member] | InTouch Technologies, Inc. [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Document Period End Date | 29-Mar-14 | ' | ' | ' | ' | ' | ' |
Cost Method Investments | ' | $10,501 | $10,501 | $2,500 | $2,500 | $8,001 | $8,001 |