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  "documentTitle": "iRobot Corp (IRBT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Management",
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  "presentationDate": "2014-05-20 00:00:00",
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  "notes": "The slide uses a red flag icon to signal a warning about accounting practices.",
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      "text": "If we are correct that IRBT is experiencing inventory problems and market share losses, the problems would most likely appear through gross margin contraction. Coincidentally, we observe that IRBT has made several expense reclassifications to boost its gross margin by shifting COGS to operating expense. IRBT has never explicitly listed all of the adjustments, but we believe reclassifications of stock-comp have occurred. We will also demonstrate how aggressive warranty reversals have artificially boosted gross margins.",
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      "text": "Coincidentally, we observe that IRBT has made several expense reclassifications to boost its gross margin by shifting COGS to operating expense.",
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      "text": "Gross Profit Margin: 43.9%",
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      "text": "In FY 2012, the Company initiated a reorganization that resulted in, among other things, the centralization of all of the Company's engineering and operations activities...",
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      "text": "Source: IRBT Financial Filings 1) April 2013 Reclassification, 8K filing... 2) Feb 2014: 2013 10K Annual Report...",
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      "text": "Financial table showing Total Revenues, Gross Profit, Reclassified GP, and GP Margin Enhancement for 2009-2012.",
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      "text": "Fuzzy Accounting: Frequent Reclassifications Boosting Gross Profit Margins",
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