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Industry Segment, Geographic Information and Significant Customers
 9 Months Ended
Sep. 27, 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
 
Nine Months Ended
 
(In thousands)
 
September 27, 2014
 
September 28, 2013
 
September 27, 2014
 
September 28, 2013
Revenue:
 
 
 
 
 
 
 
Home Robots
$
132,013

 
$
111,363

 
$
373,283

 
$
319,590

Defense & Security
10,667

 
10,094

 
21,369

 
33,664

Other
817

 
3,044

 
2,852

 
7,804

Total revenue
143,497

 
124,501

 
397,504

 
361,058

Cost of revenue:

 
 
 

 

Home Robots
65,135

 
58,300

 
186,991

 
162,411

Defense & Security
4,977

 
5,981

 
11,725

 
18,348

Other
5,496

 
6,159

 
17,068

 
18,106

Total cost of revenue
75,608

 
70,440

 
215,784

 
198,865

Gross margin:

 
 
 

 

Home Robots
66,878

 
53,063

 
186,292

 
157,179

Defense & Security
5,690

 
4,113

 
9,644

 
15,316

Other
(4,679
)
 
(3,115
)
 
(14,216
)
 
(10,302
)
Total gross margin
67,889

 
54,061

 
181,720

 
162,193

Research and development
17,343

 
15,212

 
51,522

 
45,617

Selling and marketing
15,844

 
16,317

 
53,911

 
49,323

General and administrative
12,008

 
11,495

 
35,938

 
39,348

Other income (expense), net
(374
)
 
152

 
(469
)
 
(49
)
Income before income taxes
$
22,320

 
$
11,189

 
$
39,880

 
$
27,856


Geographic Information
For the three months ended September 27, 2014 and September 28, 2013, sales to non-U.S. customers accounted for 63.4% and 66.2% of total revenue, respectively, and sales to non-U.S. customers for the nine months ended September 27, 2014 and September 28, 2013 accounted for 64.2% and 61.9% of total revenue, respectively.
Significant Customers
For the three months ended September 27, 2014, the Company generated 17.5% and 14.0%, respectively, of total revenue from two of its international distributors of home robots products. For the three months ended September 28, 2013, the Company generated 18.2% and 17.1%, respectively, of total revenue from two of its international distributors of home robots products, and 10.6% of total revenue from one of its domestic customers of home robots products.
For the nine months ended September 27, 2014, the Company generated 19.1% and 13.2%, respectively, of total revenue from two of its international distributors of home robots products. For the nine months ended September 28, 2013, the Company generated 21.6% and 13.3%, respectively, of total revenue from two of its international distributors of home robots products.