Our research and development expenses were $16.8 million, $13.4 million and $4.5 million for fiscal 2000, 1999,
and 1998, respectively. We intend to maintain the higher level of research and development spending we
experienced in fiscal 2000 as we continue investing in software development and new hardware products.
Research and Development Expenses. Research and development expenses were $16.8 million or 6% of net
sales for fiscal 2000 compared to $13.4 million or 6% of net sales for fiscal 1999. Approximately half of the fiscal
2000 research and development spending was related to software-based products that may be incorporated into
intelligent peripherals or sold separately. We intend to continue to invest in software development and new
hardware products.
As of October 31, 2000, we had 743 full-time team members, including 154 in sales and marketing, 111 in
engineering and research and development, 152 in systems engineering, customer service and technical support,
249 in manufacturing and operations, and 77 in finance, general administration and management.
We rely on OEMs such as Dell Computer, Fujitsu Siemens Computers and IBM and are increasing our focus
on sales to OEMs. Sales to Dell Computer represented 18% of sales in fiscal 2000; sales to all OEMs represented
23% of sales in fiscal 2000
Net sales to customers outside the United States accounted for 40% of net sales in fiscal 1999 and 38% in
fiscal 2000. |
