|
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
77-0259 335
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
ý
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
|
|
|
|
Emerging growth company
|
¨
|
|
|
|
|
|
|
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
IRBT
|
The NASDAQ Stock Market LLC
|
|
|
|
|
|
|
Page
|
PART I: FINANCIAL INFORMATION
|
|
|
|
Item 1. Financial Statements (unaudited)
|
|
|
|
|
|
|
March 30,
2019 |
|
December 29,
2018 |
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
173,094
|
|
|
$
|
130,373
|
|
Short term investments
|
27,363
|
|
|
31,605
|
|
||
Accounts receivable, net
|
54,496
|
|
|
162,166
|
|
||
Inventory
|
181,128
|
|
|
164,633
|
|
||
Other current assets
|
30,526
|
|
|
25,660
|
|
||
Total current assets
|
466,607
|
|
|
514,437
|
|
||
Property and equipment, net
|
66,616
|
|
|
57,026
|
|
||
Operating lease right-of-use assets
|
51,418
|
|
|
—
|
|
||
Deferred tax assets
|
32,921
|
|
|
36,979
|
|
||
Goodwill
|
117,546
|
|
|
118,896
|
|
||
Intangible assets, net
|
20,689
|
|
|
24,273
|
|
||
Other assets
|
23,305
|
|
|
15,350
|
|
||
Total assets
|
$
|
779,102
|
|
|
$
|
766,961
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
84,690
|
|
|
$
|
136,742
|
|
Accrued expenses
|
54,869
|
|
|
71,259
|
|
||
Deferred revenue and customer advances
|
5,267
|
|
|
5,756
|
|
||
Total current liabilities
|
144,826
|
|
|
213,757
|
|
||
Operating lease liabilities
|
59,805
|
|
|
—
|
|
||
Deferred tax liabilities
|
3,296
|
|
|
4,005
|
|
||
Other long-term liabilities
|
8,552
|
|
|
13,877
|
|
||
Total long-term liabilities
|
71,653
|
|
|
17,882
|
|
||
Total liabilities
|
216,479
|
|
|
231,639
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|
||
Preferred stock, 5,000 shares authorized and none outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value, 100,000 shares authorized; 28,038 and 27,788 shares issued and outstanding, respectively
|
280
|
|
|
278
|
|
||
Additional paid-in capital
|
175,000
|
|
|
172,771
|
|
||
Retained earnings
|
389,541
|
|
|
367,021
|
|
||
Accumulated other comprehensive loss
|
(2,198
|
)
|
|
(4,748
|
)
|
||
Total stockholders’ equity
|
562,623
|
|
|
535,322
|
|
||
Total liabilities and stockholders’ equity
|
$
|
779,102
|
|
|
$
|
766,961
|
|
|
Three Months Ended
|
||||||
|
March 30, 2019
|
|
March 31, 2018
|
||||
Revenue
|
$
|
237,661
|
|
|
$
|
217,068
|
|
Cost of revenue:
|
|
|
|
||||
Cost of product revenue
|
115,038
|
|
|
96,501
|
|
||
Amortization of acquired intangible assets
|
3,077
|
|
|
4,782
|
|
||
Total cost of revenue
|
118,115
|
|
|
101,283
|
|
||
Gross profit
|
119,546
|
|
|
115,785
|
|
||
Operating expenses:
|
|
|
|
||||
Research and development
|
35,269
|
|
|
32,945
|
|
||
Selling and marketing
|
38,836
|
|
|
31,329
|
|
||
General and administrative
|
22,907
|
|
|
25,833
|
|
||
Amortization of acquired intangible assets
|
271
|
|
|
273
|
|
||
Total operating expenses
|
97,283
|
|
|
90,380
|
|
||
Operating income
|
22,263
|
|
|
25,405
|
|
||
Other income, net
|
1,280
|
|
|
519
|
|
||
Income before income taxes
|
23,543
|
|
|
25,924
|
|
||
Income tax expense
|
1,023
|
|
|
5,523
|
|
||
Net income
|
$
|
22,520
|
|
|
$
|
20,401
|
|
Net income per share:
|
|
|
|
||||
Basic
|
$
|
0.81
|
|
|
$
|
0.73
|
|
Diluted
|
$
|
0.78
|
|
|
$
|
0.71
|
|
Number of shares used in per share calculations:
|
|
|
|
||||
Basic
|
27,863
|
|
|
27,988
|
|
||
Diluted
|
28,763
|
|
|
28,923
|
|
|
Three Months Ended
|
||||||
|
March 30, 2019
|
|
March 31, 2018
|
||||
Net income
|
$
|
22,520
|
|
|
$
|
20,401
|
|
Other comprehensive income (loss):
|
|
|
|
||||
Net foreign currency translation adjustments
|
(2,470
|
)
|
|
5,338
|
|
||
Net unrealized gains (losses) on cash flow hedges, net of tax
|
4,801
|
|
|
(1,851
|
)
|
||
Net (gains) losses on cash flow hedge reclassified into earnings, net of tax
|
106
|
|
|
590
|
|
||
Net unrealized gains (losses) on marketable securities, net of tax
|
113
|
|
|
(172
|
)
|
||
Total comprehensive income
|
$
|
25,070
|
|
|
$
|
24,306
|
|
|
Common Stock
|
|
Additional
Paid-In Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Stockholders’
Equity |
|||||||||||||
|
Shares
|
|
Value
|
|
||||||||||||||||||
Balance at December 29, 2018
|
27,788
|
|
|
$
|
278
|
|
|
$
|
172,771
|
|
|
$
|
367,021
|
|
|
$
|
(4,748
|
)
|
|
$
|
535,322
|
|
Issuance of common stock under employee stock plans
|
77
|
|
|
1
|
|
|
2,562
|
|
|
|
|
|
|
2,563
|
|
|||||||
Vesting of restricted stock units
|
231
|
|
|
2
|
|
|
(2
|
)
|
|
|
|
|
|
—
|
|
|||||||
Stock-based compensation
|
|
|
|
|
|
|
6,864
|
|
|
|
|
|
|
6,864
|
|
|||||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting
|
(58
|
)
|
|
(1
|
)
|
|
(7,211
|
)
|
|
|
|
|
|
(7,212
|
)
|
|||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
2,550
|
|
|
2,550
|
|
||||||
Directors' deferred compensation
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
16
|
|
||||||
Net income
|
|
|
|
|
|
|
|
|
|
22,520
|
|
|
|
|
22,520
|
|
||||||
Balance at March 30, 2019
|
28,038
|
|
|
$
|
280
|
|
|
$
|
175,000
|
|
|
$
|
389,541
|
|
|
$
|
(2,198
|
)
|
|
$
|
562,623
|
|
|
Common Stock
|
|
Additional
Paid-In Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Stockholders’
Equity |
|||||||||||||
|
Shares
|
|
Value
|
|
||||||||||||||||||
Balance at December 30, 2017
|
27,945
|
|
|
$
|
279
|
|
|
$
|
190,067
|
|
|
$
|
277,989
|
|
|
$
|
1,992
|
|
|
$
|
470,327
|
|
Issuance of common stock under employee stock plans
|
11
|
|
|
—
|
|
|
399
|
|
|
|
|
|
|
399
|
|
|||||||
Vesting of restricted stock units
|
197
|
|
|
2
|
|
|
(2
|
)
|
|
|
|
|
|
—
|
|
|||||||
Stock-based compensation
|
|
|
|
|
5,946
|
|
|
|
|
|
|
5,946
|
|
|||||||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting
|
(50
|
)
|
|
(1
|
)
|
|
(3,475
|
)
|
|
|
|
|
|
(3,476
|
)
|
|||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
3,905
|
|
|
3,905
|
|
|||||||||
Directors' deferred compensation
|
|
|
|
|
16
|
|
|
|
|
|
|
16
|
|
|||||||||
Share repurchases
|
(30
|
)
|
|
—
|
|
|
(1,930
|
)
|
|
|
|
|
|
(1,930
|
)
|
|||||||
Cumulative effect of a change in accounting principle related to adoption of ASC 606
|
|
|
|
|
|
|
1,040
|
|
|
|
|
1,040
|
|
|||||||||
Net income
|
|
|
|
|
|
|
20,401
|
|
|
|
|
20,401
|
|
|||||||||
Balance at March 31, 2018
|
28,073
|
|
|
$
|
280
|
|
|
$
|
191,021
|
|
|
$
|
299,430
|
|
|
$
|
5,897
|
|
|
$
|
496,628
|
|
|
Three Months Ended
|
||||||
|
March 30,
2019 |
|
March 31,
2018 |
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
22,520
|
|
|
$
|
20,401
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
8,724
|
|
|
8,716
|
|
||
Stock-based compensation
|
6,864
|
|
|
5,946
|
|
||
Deferred income taxes, net
|
1,739
|
|
|
(3,061
|
)
|
||
Other
|
1,542
|
|
|
1,514
|
|
||
Changes in operating assets and liabilities — (use) source
|
|
|
|
||||
Accounts receivable
|
106,561
|
|
|
73,642
|
|
||
Inventory
|
(16,863
|
)
|
|
(4,223
|
)
|
||
Prepaid and other current assets
|
(2,913
|
)
|
|
(6,114
|
)
|
||
Accounts payable
|
(52,744
|
)
|
|
(46,461
|
)
|
||
Accrued expenses and other liabilities
|
(22,727
|
)
|
|
(20,570
|
)
|
||
Net cash provided by operating activities
|
52,703
|
|
|
29,790
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Additions of property and equipment
|
(6,004
|
)
|
|
(8,717
|
)
|
||
Change in other assets
|
(1,977
|
)
|
|
379
|
|
||
Purchases of investments
|
—
|
|
|
(6,438
|
)
|
||
Sales and maturities of investments
|
2,380
|
|
|
3,500
|
|
||
Net cash used in investing activities
|
(5,601
|
)
|
|
(11,276
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from employee stock plans
|
2,563
|
|
|
399
|
|
||
Income tax withholding payment associated with restricted stock vesting
|
(7,212
|
)
|
|
(3,478
|
)
|
||
Net cash used in financing activities
|
(4,649
|
)
|
|
(3,079
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
268
|
|
|
431
|
|
||
Net increase in cash and cash equivalents
|
42,721
|
|
|
15,866
|
|
||
Cash and cash equivalents, at beginning of period
|
130,373
|
|
|
128,635
|
|
||
Cash and cash equivalents, at end of period
|
$
|
173,094
|
|
|
$
|
144,501
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for income taxes
|
$
|
718
|
|
|
$
|
4,660
|
|
Non-cash investing and financing activities:
|
|
|
|
||||
Additions of property and equipment included in accounts payable
|
$
|
3,029
|
|
|
$
|
3,003
|
|
|
Three Months Ended
|
||||||
|
March 30, 2019
|
|
March 31, 2018
|
||||
Net income
|
$
|
22,520
|
|
|
$
|
20,401
|
|
Weighted-average common shares outstanding
|
27,863
|
|
|
27,988
|
|
||
Dilutive effect of employee stock awards
|
900
|
|
|
935
|
|
||
Diluted weighted-average common shares outstanding
|
28,763
|
|
|
28,923
|
|
||
Basic income per share
|
$
|
0.81
|
|
|
$
|
0.73
|
|
Diluted income per share
|
$
|
0.78
|
|
|
$
|
0.71
|
|
|
Three Months Ended
|
||||||
|
March 30, 2019
|
|
March 31, 2018
|
||||
United States
|
$
|
114,065
|
|
|
$
|
106,862
|
|
EMEA
|
74,569
|
|
|
69,587
|
|
||
Other
|
49,027
|
|
|
40,619
|
|
||
Total revenue
|
$
|
237,661
|
|
|
$
|
217,068
|
|
|
March 30, 2019
|
|
December 29, 2018
|
||||
Accounts receivable, net
|
$
|
54,496
|
|
|
$
|
162,166
|
|
Contract liabilities
|
5,267
|
|
|
5,756
|
|
|
Three Months Ended
|
||
|
March 30, 2019
|
||
Operating lease cost
|
$
|
1,973
|
|
Variable lease cost
|
825
|
|
|
Total lease cost
|
$
|
2,798
|
|
|
Three Months Ended
|
||
|
March 30, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
2,020
|
|
Right-of-use assets obtained in exchange for lease obligations:
|
|
||
Operating leases
|
$
|
52,767
|
|
|
Operating leases
|
||
Remainder of 2019
|
$
|
5,633
|
|
2020
|
8,557
|
|
|
2021
|
8,265
|
|
|
2022
|
7,594
|
|
|
2023
|
7,148
|
|
|
Thereafter
|
41,277
|
|
|
Total minimum lease payments
|
$
|
78,474
|
|
Less: imputed interest
|
13,148
|
|
|
Present value of future minimum lease payments
|
$
|
65,326
|
|
Less: current portion of operating lease liabilities (Note 7)
|
5,521
|
|
|
Long-term lease liabilities
|
$
|
59,805
|
|
|
March 30, 2019
|
|
December 29, 2018
|
||||
Raw materials
|
$
|
2,910
|
|
|
$
|
2,992
|
|
Finished goods
|
178,218
|
|
|
161,641
|
|
||
|
$
|
181,128
|
|
|
$
|
164,633
|
|
Balance as of December 29, 2018
|
$
|
118,896
|
|
Effect of foreign currency translation
|
(1,350
|
)
|
|
Balance as of March 30, 2019
|
$
|
117,546
|
|
|
March 30, 2019
|
|
December 29, 2018
|
||||||||||||||||||||
|
Cost
|
|
Accumulated
Amortization
|
|
Net
|
|
Cost
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Completed technology
|
$
|
26,900
|
|
|
$
|
22,471
|
|
|
$
|
4,429
|
|
|
$
|
26,900
|
|
|
$
|
21,607
|
|
|
$
|
5,293
|
|
Tradename
|
100
|
|
|
100
|
|
|
—
|
|
|
100
|
|
|
100
|
|
|
—
|
|
||||||
Customer relationships
|
11,037
|
|
|
1,464
|
|
|
9,573
|
|
|
11,291
|
|
|
1,365
|
|
|
9,926
|
|
||||||
Reacquired distribution rights
|
32,000
|
|
|
25,443
|
|
|
6,557
|
|
|
32,499
|
|
|
23,598
|
|
|
8,901
|
|
||||||
Non-competition agreements
|
258
|
|
|
128
|
|
|
130
|
|
|
263
|
|
|
110
|
|
|
153
|
|
||||||
Total
|
$
|
70,295
|
|
|
$
|
49,606
|
|
|
$
|
20,689
|
|
|
$
|
71,053
|
|
|
$
|
46,780
|
|
|
$
|
24,273
|
|
|
Cost of Revenue
|
|
Operating Expenses
|
|
Total
|
||||||
Remainder of 2019
|
$
|
8,511
|
|
|
$
|
874
|
|
|
$
|
9,385
|
|
2020
|
900
|
|
|
998
|
|
|
1,898
|
|
|||
2021
|
900
|
|
|
777
|
|
|
1,677
|
|
|||
2022
|
675
|
|
|
777
|
|
|
1,452
|
|
|||
2023
|
—
|
|
|
777
|
|
|
777
|
|
|||
Thereafter
|
—
|
|
|
5,500
|
|
|
5,500
|
|
|||
Total
|
$
|
10,986
|
|
|
$
|
9,703
|
|
|
$
|
20,689
|
|
|
March 30, 2019
|
|
December 29, 2018
|
||||
Accrued other compensation
|
$
|
14,549
|
|
|
$
|
10,518
|
|
Accrued warranty
|
11,628
|
|
|
11,964
|
|
||
Accrued bonus
|
5,522
|
|
|
21,226
|
|
||
Current portion of operating lease liabilities
|
5,521
|
|
|
—
|
|
||
Accrued direct fulfillment costs
|
4,595
|
|
|
5,372
|
|
||
Accrued sales and other indirect taxes payable
|
2,631
|
|
|
11,397
|
|
||
Accrued income taxes
|
2,531
|
|
|
1,936
|
|
||
Accrued accounting fees
|
2,449
|
|
|
2,052
|
|
||
Accrued other
|
5,443
|
|
|
6,794
|
|
||
|
$
|
54,869
|
|
|
$
|
71,259
|
|
|
|
|
Three Months Ended
|
||||||
|
Classification
|
|
March 30, 2019
|
|
March 31, 2018
|
||||
Gain (loss) recognized in income
|
Other income, net
|
|
$
|
433
|
|
|
$
|
(1,169
|
)
|
|
|
Gain (loss) recognized in OCI on Derivative (1)
|
||||||
|
|
Three Months Ended
|
||||||
|
|
March 30, 2019
|
|
March 31, 2018
|
||||
Foreign currency forward contracts
|
|
$
|
6,404
|
|
|
$
|
(2,714
|
)
|
(1)
|
The amount represents the change in fair value of derivative contracts due to changes in spot rates.
|
|
|
Gain (loss) recognized in earnings on cash flow hedging instruments
|
||||||||||||||
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||||||
|
|
Revenue
|
|
Cost of revenue
|
|
Revenue
|
|
Cost of revenue
|
||||||||
Consolidated statements of income in which the effects of cash flow hedging instruments are recorded
|
|
$
|
237,661
|
|
|
$
|
118,115
|
|
|
$
|
217,068
|
|
|
$
|
101,283
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gain or (loss) on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts:
|
|
|
|
|
|
|
|
|
||||||||
Amount of gain (loss) reclassified from AOCI into earnings
|
|
$
|
(144
|
)
|
|
$
|
—
|
|
|
$
|
(166
|
)
|
|
$
|
(755
|
)
|
|
Fair Value Measurements as of
March 30, 2019 |
||||||||||
|
Level 1
|
|
Level 2 (1)
|
|
Level 3 (2)
|
||||||
Assets:
|
|
|
|
|
|
||||||
Corporate and government bonds, $27,615 at cost (3)
|
$
|
—
|
|
|
$
|
27,363
|
|
|
$
|
—
|
|
Derivative instruments (Note 8)
|
—
|
|
|
6,311
|
|
|
—
|
|
|||
Total assets measured at fair value
|
$
|
—
|
|
|
$
|
33,674
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
||||||
Derivative instruments (Note 8)
|
$
|
—
|
|
|
$
|
235
|
|
|
$
|
—
|
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
235
|
|
|
$
|
—
|
|
|
Fair Value Measurements as of
December 29, 2018 |
||||||||||
|
Level 1
|
|
Level 2 (1)
|
|
Level 3 (2)
|
||||||
Assets:
|
|
|
|
|
|
||||||
Money market funds
|
$
|
3,730
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Corporate and government bonds, $30,035 at cost
|
—
|
|
|
29,605
|
|
|
—
|
|
|||
Convertible note
|
—
|
|
|
—
|
|
|
2,000
|
|
|||
Derivative instruments (Note 8)
|
—
|
|
|
776
|
|
|
—
|
|
|||
Total assets measured at fair value
|
$
|
3,730
|
|
|
$
|
30,381
|
|
|
$
|
2,000
|
|
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
||||||
Derivative instruments (Note 8)
|
$
|
—
|
|
|
$
|
1,130
|
|
|
$
|
—
|
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
1,130
|
|
|
$
|
—
|
|
(1)
|
Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
(2)
|
Level 3 fair value estimates are based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing and discounted cash flow models. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities.
|
(3)
|
As of
March 30, 2019
, the Company’s investments had maturity dates ranging from May 2019 to March 2021.
|
Balance as of December 29, 2018
|
$
|
2,000
|
|
Conversion of convertible note
|
(2,000
|
)
|
|
Balance as of March 30, 2019
|
$
|
—
|
|
|
Three Months Ended
|
||||||
|
March 30, 2019
|
|
March 31, 2018
|
||||
Balance at beginning of period
|
$
|
11,964
|
|
|
$
|
11,264
|
|
Provision
|
2,652
|
|
|
2,435
|
|
||
Warranty usage
|
(2,988
|
)
|
|
(1,866
|
)
|
||
Balance at end of period
|
$
|
11,628
|
|
|
$
|
11,833
|
|
|
Three Months Ended
|
||||
|
March 30, 2019
|
|
March 31, 2018
|
||
Revenue
|
100.0
|
%
|
|
100.0
|
%
|
Cost of revenue:
|
|
|
|
||
Cost of product revenue
|
48.4
|
|
|
44.5
|
|
Amortization of acquired intangible assets
|
1.3
|
|
|
2.2
|
|
Total cost of revenue
|
49.7
|
|
|
46.7
|
|
Gross profit
|
50.3
|
|
|
53.3
|
|
Operating expenses:
|
|
|
|
||
Research and development
|
14.8
|
|
|
15.2
|
|
Selling and marketing
|
16.4
|
|
|
14.4
|
|
General and administrative
|
9.6
|
|
|
11.9
|
|
Amortization of acquired intangible assets
|
0.1
|
|
|
0.1
|
|
Total operating expenses
|
40.9
|
|
|
41.6
|
|
Operating income
|
9.4
|
|
|
11.7
|
|
Other income, net
|
0.5
|
|
|
0.2
|
|
Income before income taxes
|
9.9
|
|
|
11.9
|
|
Income tax expense
|
0.4
|
|
|
2.5
|
|
Net income
|
9.5
|
%
|
|
9.4
|
%
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
|
|
(In thousands)
|
|
|
|||||||||
Revenue
|
$
|
237,661
|
|
|
$
|
217,068
|
|
|
$
|
20,593
|
|
|
9.5
|
%
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Cost of product revenue
|
$
|
115,038
|
|
|
$
|
96,501
|
|
|
$
|
18,537
|
|
|
19.2
|
%
|
As a percentage of revenue
|
48.4
|
%
|
|
44.5
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Gross profit
|
$
|
119,546
|
|
|
$
|
115,785
|
|
|
$
|
3,761
|
|
|
3.2
|
%
|
Gross margin
|
50.3
|
%
|
|
53.3
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Research and development
|
$
|
35,269
|
|
|
$
|
32,945
|
|
|
$
|
2,324
|
|
|
7.1
|
%
|
As a percentage of revenue
|
14.8
|
%
|
|
15.2
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Selling and marketing
|
$
|
38,836
|
|
|
$
|
31,329
|
|
|
$
|
7,507
|
|
|
24.0
|
%
|
As a percentage of revenue
|
16.4
|
%
|
|
14.4
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change |
|
Percent
Change |
|||||||
|
(In thousands)
|
|||||||||||||
General and administrative
|
$
|
22,907
|
|
|
$
|
25,833
|
|
|
$
|
(2,926
|
)
|
|
(11.3
|
)%
|
As a percentage of revenue
|
9.6
|
%
|
|
11.9
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change |
|
Percent
Change |
|||||||
|
(In thousands)
|
|||||||||||||
Cost of revenue
|
$
|
3,077
|
|
|
$
|
4,782
|
|
|
$
|
(1,705
|
)
|
|
(35.7
|
)%
|
Operating expense
|
271
|
|
|
273
|
|
|
(2
|
)
|
|
(0.7
|
)%
|
|||
Total amortization expense
|
$
|
3,348
|
|
|
$
|
5,055
|
|
|
$
|
(1,707
|
)
|
|
(33.8
|
)%
|
As a percentage of revenue
|
1.4
|
%
|
|
2.3
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change |
|
Percent
Change |
|||||||
|
(In thousands)
|
|||||||||||||
Other income, net
|
$
|
1,280
|
|
|
$
|
519
|
|
|
$
|
761
|
|
|
146.6
|
%
|
As a percentage of revenue
|
0.5
|
%
|
|
0.2
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Income tax expense
|
$
|
1,023
|
|
|
$
|
5,523
|
|
|
$
|
(4,500
|
)
|
|
(81.5
|
)%
|
Effective income tax rate
|
4.3
|
%
|
|
21.3
|
%
|
|
|
|
|
Exhibit
Number
|
|
Description
|
|
|
|
|
Senior Executive Compensation Plan as Amended and Restated
|
|
|
|
|
|
Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934
|
|
|
|
|
|
Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934
|
|
|
|
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
101*
|
|
The following materials from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 30, 2019 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Cash Flows, and (v) related notes to these financial statements
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
|
iROBOT CORPORATION
|
|
|
|
|
Date: May 2, 2019
|
By:
|
/s/ Alison Dean
|
|
|
Alison Dean
|
|
|
Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer)
|
1.
|
Purpose
|
2.
|
Covered Executives
|
3.
|
Administration
|
4.
|
Bonus Determinations
|
5.
|
Timing of Payment & Tax Withholding
|
6.
|
Amendment and Termination
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of iRobot Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 2, 2019
|
/s/ COLIN M. ANGLE
|
|
Colin M. Angle
Chairman of the Board and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of iRobot Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 2, 2019
|
/s/ ALISON DEAN
|
|
Alison Dean
Chief Financial Officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: May 2, 2019
|
/s/ COLIN M. ANGLE
|
|
Colin M. Angle
Chairman of the Board and Chief Executive Officer
|
|
|
Date: May 2, 2019
|
/s/ ALISON DEAN
|
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Alison Dean
Chief Financial Officer
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