Plantronics 2007 Annual Report Download - page 52

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48 P l a n t r o n i c s
In comparison to fiscal 2006, the increase in fiscal 2007 research, development and engineering expense
is primarily attributable to:
• a full year of expenses in fiscal 2007 compared to only seven and one-half months of expenses in
the prior year;
• increased spending on external design firms and consultants; and
• increased headcount in research and development.
These increases in fiscal 2007 were partially offset by the one-time charge of $0.9 million in fiscal 2006
to write off purchased in-process research and development associated with the Altec acquisition.
Consolidated
Fiscal Year Ended Fiscal Year Ended
($ in thousands)
March 31,
2005 March 31,
2006 Increase
(Decrease) March 31,
2006 March 31,
2007 Increase
(Decrease)
Research, development and engineering $45,216 $62,798 $17,582 38.9% $62,798 $71,895 $9,097 14.5%
% of total consolidated net revenues 8.1% 8.4% 0.3 ppt. 8.4% 9.0% 0.6 ppt.
In comparison to fiscal 2006, the increase in fiscal 2007 research, development and engineering expense
was primarily attributable to costs associated with the expansion of our ACG design centers in Tijuana,
Mexico and Suzhou, China, the impact of the stock-based compensation charges, and AEG expenses
reflecting a full year of expenses compared to only seven and one half months of expenses for the
comparable period one year ago.
In comparison to fiscal 2005, the increase in fiscal 2006 is attributable to expenses associated with the
development of new products, the costs associated with our design centers in Tijuana, Mexico and Suzhou,
China and the additional expenses from AEG.
We expect that our research, development and engineering expenses will increase due to continued
expenditures for wireless office and wireless mobile products, gaming products and the home and home
office products; and increased expenditures related to revitalizing our AEG product line up.
Selling, General and Administrative
Selling, general and administrative expense consists primarily of compensation costs, professional service
fees, litigation costs, marketing costs, bad debt expense and allocation of overhead expenses, including
facilities, human resources and IT costs.