TiVo 2011 Annual Report Download - page 56

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Table of Contents
consulting costs due to increased research and development spending as we believe that it is critical to remaining competitive and being a leader in advanced
television solutions beyond the DVR to include whole home and multi-screen solutions. In the fiscal year ending January 31, 2013, we currently expect our
research and development expense to be consistent with fiscal year 2012 in the aggregate; however, we do expect our research and development expenditures
to begin to decrease in the second half of fiscal year 2013 as compared to the same prior year periods.
The increase in research and development expenses of $18.6 million for the fiscal year ended January 31, 2011 was largely related to increased
headcount and headcount related costs of $27.8 million and increased IT spending of $3.9 million. These increased costs were offset by increased allocations
to deferred costs of technology revenues of $14.6 million for utilization of our engineering staff on development projects generating technology revenues.
Sales and marketing expenses.
Fiscal Year Ended January 31,
2012 2011 2010
(In thousands, except percentages)
Sales and marketing expenses $ 26,388 $ 27,587 $ 23,270
Change from same prior year period (4)% 19% (7)%
Percentage of net revenues 11 % 13% 10 %
Sales and marketing expenses consist primarily of employee salaries, consulting and related expenses. Sales and marketing expenses for the fiscal year
ended January 31, 2012 remained relatively flat as compared to the same prior year period.
The increase for the fiscal year ended January 31, 2011 of $4.3 million, as compared to the same prior year period were primarily related to increased
headcount related costs of $1.5 million and increased non-cash stock-based compensation expense of $1.1 million. Additionally, in the fiscal year ended
January 31, 2011, we incurred approximately $1.0 million in increased channel support and other related expenses associated with the launch of our Premiere
boxes.
Sales and marketing, subscription acquisition costs.
Fiscal Year Ended January 31,
2012 2011 2010
(In thousands, except percentages)
Sales and marketing, subscription acquisition costs $ 7,392 $ 8,169 $ 5,048
Change from same prior year period (10)% 62% (16)%
Percentage of net revenues 3 % 4% 2 %
Sales and marketing, subscription acquisition costs include advertising expenses and promotional expenses directly related to our efforts to acquire new
TiVo-Owned subscriptions to the TiVo service. The decrease for the fiscal year ended January 31, 2012 as compared to the same prior year period was largely
related to decrease in advertising related expenses.
The sales and marketing subscription acquisition spending for the fiscal year ended January 31, 2011, as compared to the same prior year period was
largely related to the launch of the TiVo Premiere and TiVo Premiere XL boxes in the retail channel.
General and administrative expenses.
Fiscal Year Ended January 31,
2012 2011 2010
(In thousands, except percentages)
General and administrative $ 96,502 $ 59,487 $ 44,801
Change from same prior year period 62% 33% 4%
Percentage of net revenues 41% 27% 19%
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