R&D expense and SG&A are pulled right out of sales. If you spend a little less, it falls to the pre-tax bottom line. C-Cube spent 22% of sales on R&D. If it were 15%, C-Cube would have earned a dime per share more last Q........................................
freeedgar.com
Research and Development Expenses
In the third quarter of 1998, research and development expenses were
$18.9 million, or 22% of net revenues, compared with $16.8 million, or 21%
of net revenues in the third quarter of 1997. The increase in research and
development expenses primarily represents additional employee-related costs
associated with increases in product engineering staff, reflecting the
Company's continuing efforts to provide industry leading digital video
solutions at the chip and systems levels.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased to $15.2 million,
or 18% of net revenues, in the third quarter of 1998, compared to
$13.6 million, or 17% of net revenues, for the same quarter last year. The
increase was primarily due to increased headcount and related expenses.
Other Income (Expense)
Other income, net of other expense, was $1.6 million for the third
quarter of 1998, an increase from the net other expense amount of $33,000
for the third quarter of 1997. The improvement over the prior year quarter
is primarily due to higher interest income earned on higher average cash
and investment balances and lower interest expense on lower average
outstanding debt balances. |
