Tucows 2012 Annual Report Download - page 51

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46
SALES AND MARKETING
Year ended December 31,
2011 2010
Sales and marketing $ 7,442,681 $7,217,754
Increase over prior period $ 224,927
Increase - percentage 3%
Percentage of net revenues 8% 9%
Sales and marketing expenses for Fiscal 2011 increased by $0.2 million, or 3%, to $7.4 million as compared to
Fiscal 2010. The increase was primarily due to our direct sales and marketing efforts in 2011 and the acquisition of
EPAG in August 2011. Sales and marketing expenses were also negatively impacted by the approximately 5%
strengthening, on average, in the Canadian dollar relative to the U.S. dollar compared to Fiscal 2010.
TECHNICAL OPERATIONS AND DEVELOPMENT
Year ended December 31,
2011 2010
Technical operations and development $ 4,868,228 $4,577,898
Increase over prior period $ 290,330
Increase - percentage 6%
Percentage of net revenues 5% 5%
Technical operations and development expenses for Fiscal 2011 increased by $0.3 million, or 6%, to
$4.9 million as compared to Fiscal 2010. The year-over-year increase was largely due to increased personnel and related
costs that we incurred to further develop our platform and websites to support and grow our service offerings. Technical
operations and development expenses were also negatively impacted by the approximately 5% strengthening, on
average, in the Canadian dollar relative to the U.S. dollar compared to Fiscal 2010.
GENERAL AND ADMINISTRATIVE
Year ended December 31,
2011 2010
General and administrative $ 6,096,596 $5,123,074
Increase over prior period $ 973,522
Increase - percentage 19%
Percentage of net revenues 6% 6%
General and administrative expenses for Fiscal 2011 increased by $1.0 million, or 19%, to $6.1 million as
compared to Fiscal 2010. The year-over-year increase was primarily due to a $0.5 million increase in professional fees
primarily related to our public company compliance initiatives and additional legal fees incurred in defending ourselves
in domain name disputes to which we are named as a party and a $0.3 million increase in facilities and rent expenses.
General and administrative expenses were also negatively impacted by the approximately 5% strengthening, on average,
in the Canadian dollar relative to the U.S. dollar compared to Fiscal 2010.
DEPRECIATION OF PROPERTY AND EQUIPMENT
Year ended December 31,
2011 2010
Depreciation of property and equipment $ 187,005 $170,844
Increase over prior period $ 16,161
Increase - percentage 9%
Percentage of net revenues 0% 0%
Depreciation costs for Fiscal 2011 remained essentially flat at $0.2 million. In December 2011 we began to
reconfigure our Toronto facility to better support our agile teams.