8x8 2009 Annual Report Download - page 41

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The decrease in research and development expenses for fiscal 2008 from fiscal 2007 was primarily attributable to a $0.3
million decrease in contractor headcount expenses. In addition, departures by employees that we did not replace in fiscal 2008
reduced total research and development expenses.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
2009 2008 2007
Selling, general and administrative $ 39,680 $ 37,596 $ 35,657 $ 2,084 5.5% $ 1,939 5.4%
Percentage of total revenues 61.4% 61.0% 67.1%
Year Ended March 31, Year-Over-Year Change
2008 to 2009 2007 to 2008
(dollar amounts in thousands)
Selling, general and administrative expenses consist primarily of personnel and related overhead costs for sales, marketing,
customer support, finance, human resources and general management. Such costs also include outsourced customer service call
center operations, sales commissions, as well as trade show, advertising and other marketing and promotional expenses.
The increase in selling, general and administrative expenses for fiscal 2009 from fiscal 2008 was primarily due to a $4.1
million increase in employee and temporary personnel costs, including a $1.5 million increase in SFAS 123(R) stock-based
compensation expense, $0.5 million increase in advertising, public relations and other marketing and promotional expenses, a
$0.2 million increase in travel and meal expenses, a $0.1 million increase in printing expenses, and a $0.1 million increase in
expensed equipment and software. This increase was partially offset by a $1.5 million decrease in sales agent and retailer
commissions, a $0.9 million decrease in sales and use tax expenses as we began to collect and remit taxes in states outside of
California, a $0.3 million decrease in accounting and tax fees, and a $0.2 million decrease in credit card processing fees.
The increase in selling, general and administrative expenses for fiscal 2008 from fiscal 2007 was primarily due to a $2.3
million increase in additional employee and temporary personnel costs and a $1.4 million increase in advertising, public
relations, and other marketing and promotional expenses. This increase was partially offset by a $0.9 million decrease in sales
agent and retailer commissions and a $0.5 million decrease in sales and use tax expenses as we began to collect and remit taxes
in states outside of California.
INTEREST INCOME AND OTHER, NET
2009 2008 2007
Interest income and other, net $ 298 $ 1,606 $ 667 $ (1,308) -81.4% $ 939 140.8%
Percentage of total revenues 0.5% 2.6% 1.3%
Year Ended March 31, Year-Over-Year Change
2008 to 2009 2007 to 2008
(dollar amounts in thousands)
Our interest income and other, net, primarily consists of interest and investment income earned on our cash, cash equivalents
and investment balances. This item consisted of interest income alone in 2009. Other income in fiscal 2008 included $1.2
million from the sale of two patents.
The increase in other income for fiscal 2008 from fiscal 2007 consists primarily of $1.2 million from the sale of two patents
offset by a reduction in interest and investment income earned on our cash, cash equivalents and investment balances of $0.2
million due to lower average cash balances and interest rates.
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