Avid 2014 Annual Report Download - page 48

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42
Year-Over-Year Change in Research and Development Expenses for the Years Ended December 31, 2014 and 2013
(dollars in thousands)
2014 (Decrease)/Increase
From 2013 2013 (Decrease)/Increase
From 2012
$%$%
Personnel-related $ (5,150) (8.9)% $ (1,279) (2.2)%
Facilities and information technology infrastructure (1,943) (11.1)% (943) (5.1)%
Computer hardware and supplies 1,467 43.8% 371 12.5%
Consulting and outside services 1,049 7.6% (879) (6.0)%
Other expenses (282) (9.3)% (900) (22.8)%
Total research and development expenses decrease $ (4,859) (5.1)% $ (3,630) (3.7)%
2014 Compared to 2013
The decreases in personnel-related expenses and facilities and information technology infrastructure costs for 2014, compared to
2013, reflect lower employee headcount which resulted in lower usage of facilities and information technology overhead. The
increases in computer hardware and supplies expenses and consulting and outside services expenses were primarily the result of
the timing of certain development projects in 2014, compared to 2013, as we develop new products and solutions consistent with
our Avid Everywhere strategic vision.
2013 Compared to 2012
The decrease in personnel-related expenses was primarily due to decreased salary expenses on lower employee headcount largely
resulting from our 2012 restructuring actions, partially offset by higher accruals for incentive-based compensation. The decrease
in facilities and information technology infrastructure costs for 2013, compared to 2012, was primarily due to employee
headcount reductions and facilities closures resulting from our 2012 restructuring actions. The decrease in consulting and outside
services expenses for 2013, compared to 2012, was primarily the result of a reduction in the use of contract employees and
services.
Marketing and Selling Expenses
Marketing and selling expenses consist primarily of employee salaries and benefits for selling, marketing and pre-sales customer
support personnel; commissions; travel expenses; advertising and promotional expenses; web design costs and facilities costs.
Marketing and selling expenses decreased $0.8 million, or 0.6%, during the year ended December 31, 2014, compared to 2013,
primarily due to lower product introduction expenses.
Year-Over-Year Change in Marketing and Selling Expenses for Years Ended December 31, 2014 and 2013
(dollars in thousands)
2014 (Decrease)/Increase
From 2013 2013 (Decrease)/Increase
From 2012
$%$%
Product introduction $ (3,666) (100.2)% $ 181 5.2%
Consulting and outside services 1,213 8.8% (4,113) (22.9)%
Foreign exchange losses (gains) 721 385.4% (509) (73.1)%
Personnel-related 621 0.5% (9,996) (6.9)%
Facilities and information technology infrastructure (271) (1.0)% (3,484) (10.9)%
Tradeshow and other promotional 27 0.3% (2,213) (20.6)%
Other expenses 514 0.9% 543 1.0%
Total marketing and selling expenses decrease $ (841) (0.6)% $ (19,591) (12.8)%