8x8 2014 Annual Report Download - page 43

GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses consist primarily of personnel and related overhead costs for finance, human resources and general
management.
The increase in general and administrative expenses for fiscal 2014 from fiscal 2013 was primarily due to a $4.8 million increase in payroll and
related expenses including a one-time charge of approximately $0.1 million in severance pay and $1.1 million in stock-based compensation
related to the resignation of the Company's president in October 2013, a $0.6 million increase in legal expenses, a $0.6 million increase in
facility lease and maintenance expenses, a $0.2 million increase in temporary personnel, consulting and outside service expenses, a $0.2 million
increase in sales and use tax expense, a $0.2 million increase in property and franchise tax expenses, and a $0.2 million increase in accounting
and tax expenses.
The increase in general and administrative expenses for fiscal 2013 from fiscal 2012 was primarily due to a $1.0 million increase in payroll and
related expenses, a $0.9 million increase in temporary personnel, consulting and outside service expenses, a $0.2 million increase in sales and
use tax expense, a $0.2 million increase in recruiting expense and a $0.3 million increase in other general and administrative expenses.
GAIN ON PATENT SALE
In June 2012, we entered into a patent purchase agreement for the sale of a family of United States patents. We recognized a gain of slightly less
than $12.0 million, net of transaction costs, in the first fiscal quarter of 2013 and approximately $1.0 million in the fourth fiscal quarter of 2013
due to the third party purchaser entering into a license agreement with its customer. The gain on patent sale has been recorded as a reduction of
operating expenses in the consolidated statements of income.
INTEREST INCOME (LOSS) AND OTHER, NET
This item primarily consisted of gain on settlement of escrow claim, capital gains distribution and interest income in fiscal 2014 and capital gains
distribution and interest income in fiscal 2013. Our interest income (loss) and other, n consists of an impairment charge to write down the
strategic investment in Stonyfish, Inc. and interest and investment income earned on our cash, cash equivalents and investment balances in fiscal
2012.
The increase in other income (loss) and other, net for fiscal 2014 from fiscal 2013 consists primarily of an increase in gain on settlement of
escrow claim, interest income earned on investments and capital gain distributions due on mutual funds.
The increase in other income (loss) and other, net for fiscal 2013 from fiscal 2012 consists primarily of an increase in capital gain distributions
due on mutual funds and interest income earned.
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Years Ended March 31,
Year
-
over
-
Year Change
2014
2013
2012
2013 to 2014
2012 to 2013
(dollar amounts in thousands)
General and administrative
$
15,368
$
8,558
$
5,973
$
6,810
79.6%
$
2,585
43.3%
Percentage of total revenue
12.0%
8.2%
7.2%
Years Ended March 31, Year-over-Year Change
2014
2013
2012
2013 to 2014
2012 to 2013
(dollar amounts in thousands)
Gain on patent sale
$
-
$
(12,965)
$
-
$
12,965
N/A
$
(12,965)
N/A
Percentage of total revenue
0.0%
-
12.5%
0.0%
Years Ended March 31,
Year
-
over
-
Year Change
2014 2013 2012 2013 to 2014 2012 to 2013
(dollar amounts in thousands)
Interest income (loss) and other, net
$
742
$
105
$
(305)
$
637
606.7%
$
410
-
134.4%
Percentage of total revenue
0.6%
0.1%
-
0.4%