TiVo 2013 Annual Report Download - page 55

Table of Contents
Our research and development expenses consist primarily of employee salaries, related expenses, and consulting expenses related to
our development of new technologies and products, such as whole home DVR and non-DVR technologies and new features and
functionality as well as investments in creating an integrated software code base across our product lines to increase the efficiency of our
product development efforts in the future. During the fiscal year ended January 31, 2014, research and development expenses decreased by
$8.2 million, as compared to the same prior year period. This decrease in research and development spending as compared to the same
prior year period was largely related to a reduction in research and development headcount and headcount related costs as we completed
several large projects across both our retail and MSO product lines.
During the fiscal year ended January 31, 2013, research and development expenses increased by $4.7 million, as compared to the
same prior year period. This increase in research and development spending largely related to the changing mix between engineering effort
on internal projects versus projects relating to external development that are included in deferred cost of technology revenues versus research
and development, partially offset by overall decreased headcount, headcount related costs and consulting costs.
Sales and marketing expenses.
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Sales and marketing expenses $ 39,003 $ 30,353 $26,388
Change from same prior year period 28%15%(4)%
Percentage of net revenues 10%10%11 %
Sales and marketing expenses consist primarily of employee salaries, consulting and related expenses .Sales and marketing expense
for the fiscal year ended January 31, 2014 increased by $8.7 million as compared to the same prior year period. This increase is largely
related to the additional headcount and sales related activities of which a portion is associated with our audience research sales and to launch
activities related to our new line-up of next generation TiVo Roamio DVRs. Additionally, included in the expenses for the period ended
January 31, 2014 are $1.5 million associated with an intangible asset impairment.
Sales and marketing expense for the fiscal year ended January 31, 2013 increased by $4.0 million as compared to the prior period.
These increases are largely related to the additional headcount and sales related activities associated with our TRA acquisition combined with
increased promotion of our TiVo brand.
Sales and marketing, subscription acquisition costs.
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Sales and marketing, subscription acquisition costs $12,521 $ 8,660 $ 7,392
Change from same prior year period 45%17%(10)%
Percentage of net revenues 3%3%3 %
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. Sales and marketing, subscription acquisition costs for the fiscal year ended
January 31, 2014 increased by $3.9 million as compared to the same prior year periods due to increased advertising spending as we
deployed our new Roamio DVR and introduced the out-of-home streaming feature.
The increase for $1.3 million in sales and marketing subscription acquisition spending for the fiscal year ended January 31, 2013 as
compared to the same prior year period was largely related to increased media spending as we increased the promotion of our products and
services during the holiday season.
General and administrative expenses.
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