TiVo 2008 Annual Report Download - page 54

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Table of Contents
Our research and development expenses consist primarily of employee salaries, related expenses, and consulting expenses. The increase of $3.3 million
in the fiscal year ended January 31, 2009 as compared to the fiscal year ended January 31, 2008 was largely related to lower utilization of our engineering
staff on development projects generating technology revenues resulting in lower allocations of research and development expense to cost of technology
revenues. As a result of the November 2008 reduction in force, we expect annual savings of $1.7 million in headcount related research and development
expenses in the fiscal year ending January 31, 2010.
The increase in research and development expenses in the fiscal year ended January 31, 2008 from the fiscal year ended January 31, 2007 was largely
due to an increase of $6.0 million in headcount related costs associated with an increase in engineering headcount and an increase of $1.5 million in stock-
based compensation expenses.
Sales and marketing expenses.
Fiscal Year Ended January 31,
2009 2008 2007
(In thousands, except percentages)
Sales and marketing expenses $ 24,944 $ 23,987 $ 22,520
Change from same prior year period 4% 7% 21%
Percentage of net revenues 10% 9% 9%
Sales and marketing expenses consist primarily of employee salaries and related expenses. The increase in sales and marketing expenses of $1.0 million
in the fiscal year ended January 31, 2008 as compared to the fiscal year ended January 31, 2007 was largely related to increased headcount related costs
associated with the advertising and audience research measurement sales department. As a result of the November 2008 reduction in force, we expect annual
savings of $1.6 million in headcount related sales and marketing expenses in the fiscal year ending January 31, 2010.
Sales and marketing, subscription acquisition costs.
Fiscal Year Ended January 31,
2009 2008 2007
(In thousands, except percentages)
Sales and marketing, subscription acquisition costs $ 6,038 $ 31,050 $ 20,767
Change from same prior year period -81% 50% 11%
Percentage of net revenues 2% 11% 8%
Sales and marketing, subscription acquisition costs include advertising expenses and promotion related expenses directly related to our efforts to
acquire new subscriptions to the TiVo service. The decrease from the fiscal year ended January 31, 2008 to January 31, 2009 in sales and marketing,
subscription acquisition costs, is primarily due to our focus on reducing subscription acquisition costs and significantly reduced advertising spending,
specifically in the television media.
The increase from the fiscal year ended January 31, 2007 to January 31, 2008 in sales and marketing, subscription acquisition costs, was primarily due
to our fiscal year 2008 television advertising and online marketing campaign during the first three fiscal quarters of the year.
General and administrative expenses.
Fiscal Year Ended January 31,
2009 2008 2007
(In thousands, except percentages)
General and administrative $ 42,931 $ 42,954 $ 45,824
Change from same prior year period 0% -6% 19%
Percentage of net revenues 17% 16% 18%
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