BBND » Topics » Operating Expenses

These excerpts taken from the BBND 10-K filed Mar 10, 2009.
Operating Expenses
 
Research and Development.  Research and development expense was $54.0 million for 2008, or 29.2% of net revenues compared to $51.9 million for 2007, or 29.4% of net revenues. The $2.2 million increase was primarily due to an increase in bonus expense and depreciation expense. These increases were slightly offset in part by decreased expenditures following our restructuring plans, which resulted in lower base salaries, travel, facility costs and lab and prototype expenditures. Research and development expense included stock-based compensation of $3.9 million and $3.8 million for 2008 and 2007, respectively.
 
Sales and Marketing.  Sales and marketing expense was $28.9 million for 2008, or 15.6% of net revenues compared to $39.9 million for 2007, or 22.6% of net revenues. The $10.9 million decrease was primarily due to a $5.2 million decrease in compensation expense related to the reduction in headcount, a $1.3 million decrease in overhead expenses, a $1.6 million decrease in travel, and a $1.2 million decrease in marketing related activities, such as trade shows and public relations. In conjunction with the retirement of our CMTS platform products in October 2007, we significantly reduced our headcount, primarily in Europe, of employees that primarily sold and marketed these retired products. Sales and marketing expense included stock-based compensation of $2.6 million and $4.2 million for 2008 and 2007, respectively.
 
General and Administrative.  General and administrative expense was $20.9 million for 2008, or 11.3% of net revenues compared to $16.3 million for 2007, or 9.2% of net revenues. The $4.6 million increase was primarily due to a $1.6 million increase in stock-based compensation, a $1.2 million increase in costs associated with audit activities and Sarbanes-Oxley 404 compliance and a $0.8 million increase in legal fees primarily attributable to litigation-related costs. The remaining $1.0 million increase relates to increased bonus expense, which was earned


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as result of our favorable financial results in 2008, and increased subcontractor expenses. General and administrative expense included stock-based compensation of $3.7 million and $2.1 million for 2008 and 2007, respectively.
 
Restructuring Charges.  On October 29, 2007, the Audit Committee of our Board of Directors authorized a restructuring plan in connection with the retirement of our CMTS platform along with an approximate 15% company-wide reduction in force. This resulted in net charges of $0.7 million and $3.0 million for the years ended December 31, 2008 and 2007, respectively. Severance, comprised primarily of salary, payroll taxes and medical benefits, was approximately $0.3 million and $2.2 million for the years ended December 31, 2008 and 2007, respectively. Our plan also included vacating several leased facilities throughout the world, with lease terms expiring through March 2012 resulting in vacated facility charges, net of sublease income of approximately $0.4 million and $0.7 million for the years ended December 31, 2008 and 2007, respectively. The costs associated with facility lease obligations are expected to be paid over the remaining term of the related obligations, which extends to March 2012.
 
On April 29, 2008, the Audit Committee of our Board of Directors authorized an additional restructuring plan. This resulted in net charges of $1.4 million for the year ended December 31, 2008, including charges of $1.1 million for vacated facility charges and $0.3 million for severance costs. The costs associated with facility lease obligations are expected to be paid over the remaining term of the related obligations, which extends to January 2013.
 
In response to market and economic conditions, in February 2009 we reduced our operating expenses to increase our flexibility, while still attempting to not compromise short-term revenue generating projects or our long-term competitive position. The reduction in force was undertaken to restructure and streamline our operations, provide more flexibility for ongoing operations and reduce operating costs. The restructuring plan was authorized by the Audit Committee of our Board of Directors on February 9, 2009, pursuant to which 45 employees were terminated. We expect to record approximately $1.0 million in charges for severance and related costs and $0.25 million in additional facility costs in connection with this restructuring plan. We expect to redeploy some of the anticipated savings from the restructuring plan to other programs and projects, and expect the net annualized cost savings to be approximately $4.0 million, including $0.3 million of stock-based compensation as follows (in thousands):
 
         
Cost of net revenues
  $ 400  
Research and development
    2,200  
Sales and marketing
    1,000  
General and administrative
    400  
         
Total estimated annualized savings
  $ 4,000  
         
 
Gain on sale of intangible assets.  In October 2008, consistent with our previously announced intent to focus on our Video solutions, we sold certain intangible assets related to our FastFlow provisioning software technology for consideration of $1.8 million in cash and assumption of certain of our customer obligations.
 
Class action lawsuit charges.  On January 27, 2009, the defendants reached an agreement in principle with the lead plaintiff to settle our main purported shareholder class action lawsuit pending in federal court. The agreement provides a full release for all potential claims arising from the securities laws alleged in the initial and consolidated complaints, including claims for alleged violations of the Securities Act of 1933 and the Exchange Act of 1934. The agreement is, however, conditional on several things, including confirmatory discovery and approval of the Court, and includes contributions by our insurers. In accordance with the provisions of Statement of Financial Accounting Standards No. 5, Accounting for Contingencies, we recorded an expense for $1.5 million in our consolidated results of operations for the year ended December 31, 2008, which represented the amount we have agreed to pay.
 
Operating Expenses
 
Research and Development.  Research and development expense was $51.9 million for 2007, or 29.4% of net revenues compared to $37.2 million for the comparable period of 2006, or 21.1% of net revenues. The $14.7 million increase was primarily due to increased compensation costs of $9.3 million attributable to an increase in employee headcount to support new product offerings. To a lesser extent, research and development expense increased as a result of an increase in depreciation expense of $1.3 million and an increase in travel expense of $0.5 million. This increase in compensation expense includes an increase of $2.8 million in stock-based compensation.
 
Sales and Marketing.  Sales and marketing expense was $39.9 million, or 22.6% of net revenues, for 2007 compared to $29.5 million, or 16.7% of net revenues, during 2006. The $10.4 million increase was primarily due to increased compensation costs of $8.1 million from additional employee headcount for which we incurred increased commissions and salaries. In addition, 2007 travel-related cost increased by $1.0 million along with a $0.6 million increase in marketing related activities due to increased employee headcount. This increase in compensation expense includes an increase of $3.5 million in stock-based compensation.
 
General and Administrative.  General and administrative expense was $16.3 million, or 9.2% of net revenues, for 2007 compared to $13.2 million, or 7.5% of net revenues, during 2006. The $3.1 million increase was primarily due to increased compensation costs of $3.7 million attributable to an increase in employee headcount, including additional accounting and finance personnel. To a lesser extent, general and administrative expense increased as a result of an increase of $1.2 million in legal fees related to patent infringement and class action litigation, and a $0.5 million increase in insurance costs attributable to being a public company. These additional 2007 costs were offset by a $1.1 million decrease in spending related to our preparation for becoming a public company, including consulting costs associated with Sarbanes-Oxley compliance and improving our ERP systems. This increase in compensation expense includes an increase of $1.5 million in stock-based compensation.
 
Restructuring Charges.  In October 2007 we restructured our business and decreased company-wide headcount by approximately 15% and retired our CMTS platform. This resulted in a restructuring charge of approximately $3.0 million. Severance payments and related charges of approximately $2.2 million consisted primarily of


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salary, expected payroll taxes, and medical benefits for terminated employees. Lease termination costs of $0.7 million were related to the closure of five offices along with $0.1 million in other expenses.
 
Operating
Expenses



 



Research and Development.  Research and
development expense was $54.0 million for 2008, or 29.2% of
net revenues compared to $51.9 million for 2007, or 29.4%
of net revenues. The $2.2 million increase was primarily
due to an increase in bonus expense and depreciation expense.
These increases were slightly offset in part by decreased
expenditures following our restructuring plans, which resulted
in lower base salaries, travel, facility costs and lab and
prototype expenditures. Research and development expense
included stock-based compensation of $3.9 million and
$3.8 million for 2008 and 2007, respectively.


 



Sales and Marketing.  Sales and marketing
expense was $28.9 million for 2008, or 15.6% of net
revenues compared to $39.9 million for 2007, or 22.6% of
net revenues. The $10.9 million decrease was primarily due
to a $5.2 million decrease in compensation expense related
to the reduction in headcount, a $1.3 million decrease in
overhead expenses, a $1.6 million decrease in travel, and a
$1.2 million decrease in marketing related activities, such
as trade shows and public relations. In conjunction with the
retirement of our CMTS platform products in October 2007, we
significantly reduced our headcount, primarily in Europe, of
employees that primarily sold and marketed these retired
products. Sales and marketing expense included stock-based
compensation of $2.6 million and $4.2 million for 2008
and 2007, respectively.


 



General and Administrative.  General and
administrative expense was $20.9 million for 2008, or 11.3%
of net revenues compared to $16.3 million for 2007, or 9.2%
of net revenues. The $4.6 million increase was primarily
due to a $1.6 million increase in stock-based compensation,
a $1.2 million increase in costs associated with audit
activities and Sarbanes-Oxley 404 compliance and a
$0.8 million increase in legal fees primarily attributable
to litigation-related costs. The remaining $1.0 million
increase relates to increased bonus expense, which was earned





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as result of our favorable financial results in 2008, and
increased subcontractor expenses. General and administrative
expense included stock-based compensation of $3.7 million
and $2.1 million for 2008 and 2007, respectively.


 



Restructuring Charges.  On October 29,
2007, the Audit Committee of our Board of Directors authorized a
restructuring plan in connection with the retirement of our CMTS
platform along with an approximate 15% company-wide reduction in
force. This resulted in net charges of $0.7 million and
$3.0 million for the years ended December 31, 2008 and
2007, respectively. Severance, comprised primarily of salary,
payroll taxes and medical benefits, was approximately
$0.3 million and $2.2 million for the years ended
December 31, 2008 and 2007, respectively. Our plan also
included vacating several leased facilities throughout the
world, with lease terms expiring through March 2012 resulting in
vacated facility charges, net of sublease income of
approximately $0.4 million and $0.7 million for the
years ended December 31, 2008 and 2007, respectively. The
costs associated with facility lease obligations are expected to
be paid over the remaining term of the related obligations,
which extends to March 2012.


 



On April 29, 2008, the Audit Committee of our Board of
Directors authorized an additional restructuring plan. This
resulted in net charges of $1.4 million for the year ended
December 31, 2008, including charges of $1.1 million
for vacated facility charges and $0.3 million for severance
costs. The costs associated with facility lease obligations are
expected to be paid over the remaining term of the related
obligations, which extends to January 2013.


 



In response to market and economic conditions, in
February 2009 we reduced our operating expenses to increase
our flexibility, while still attempting to not compromise
short-term revenue generating projects or our long-term
competitive position. The reduction in force was undertaken to
restructure and streamline our operations, provide more
flexibility for ongoing operations and reduce operating costs.
The restructuring plan was authorized by the Audit Committee of
our Board of Directors on February 9, 2009, pursuant to
which 45 employees were terminated. We expect to record
approximately $1.0 million in charges for severance and
related costs and $0.25 million in additional facility
costs in connection with this restructuring plan. We expect to
redeploy some of the anticipated savings from the restructuring
plan to other programs and projects, and expect the net
annualized cost savings to be approximately $4.0 million,
including $0.3 million of stock-based compensation as
follows (in thousands):


 





























































         


Cost of net revenues


 

$

400

 


Research and development


 

 

2,200

 


Sales and marketing


 

 

1,000

 


General and administrative


 

 

400

 

 

 

 

 

 


Total estimated annualized savings


 

$

4,000

 

 

 

 

 

 






 



Gain on sale of intangible assets.  In October
2008, consistent with our previously announced intent to focus
on our Video solutions, we sold certain intangible assets
related to our FastFlow provisioning software technology for
consideration of $1.8 million in cash and assumption of
certain of our customer obligations.


 



Class action lawsuit charges.  On
January 27, 2009, the defendants reached an agreement in
principle with the lead plaintiff to settle our main purported
shareholder class action lawsuit pending in federal court. The
agreement provides a full release for all potential claims
arising from the securities laws alleged in the initial and
consolidated complaints, including claims for alleged violations
of the Securities Act of 1933 and the Exchange Act of 1934. The
agreement is, however, conditional on several things, including
confirmatory discovery and approval of the Court, and includes
contributions by our insurers. In accordance with the provisions
of Statement of Financial Accounting Standards No. 5,
Accounting for Contingencies, we recorded an expense for
$1.5 million in our consolidated results of operations for
the year ended December 31, 2008, which represented the
amount we have agreed to pay.


 




Operating
Expenses



 



Research and Development.  Research and
development expense was $51.9 million for 2007, or 29.4% of
net revenues compared to $37.2 million for the comparable
period of 2006, or 21.1% of net revenues. The $14.7 million
increase was primarily due to increased compensation costs of
$9.3 million attributable to an increase in employee
headcount to support new product offerings. To a lesser extent,
research and development expense increased as a result of an
increase in depreciation expense of $1.3 million and an
increase in travel expense of $0.5 million. This increase
in compensation expense includes an increase of
$2.8 million in stock-based compensation.


 



Sales and Marketing.  Sales and marketing
expense was $39.9 million, or 22.6% of net revenues, for
2007 compared to $29.5 million, or 16.7% of net revenues,
during 2006. The $10.4 million increase was primarily due
to increased compensation costs of $8.1 million from
additional employee headcount for which we incurred increased
commissions and salaries. In addition, 2007 travel-related cost
increased by $1.0 million along with a $0.6 million
increase in marketing related activities due to increased
employee headcount. This increase in compensation expense
includes an increase of $3.5 million in stock-based
compensation.


 



General and Administrative.  General and
administrative expense was $16.3 million, or 9.2% of net
revenues, for 2007 compared to $13.2 million, or 7.5% of
net revenues, during 2006. The $3.1 million increase was
primarily due to increased compensation costs of
$3.7 million attributable to an increase in employee
headcount, including additional accounting and finance
personnel. To a lesser extent, general and administrative
expense increased as a result of an increase of
$1.2 million in legal fees related to patent infringement
and class action litigation, and a $0.5 million increase in
insurance costs attributable to being a public company. These
additional 2007 costs were offset by a $1.1 million
decrease in spending related to our preparation for becoming a
public company, including consulting costs associated with
Sarbanes-Oxley compliance and improving our ERP systems. This
increase in compensation expense includes an increase of
$1.5 million in stock-based compensation.


 



Restructuring Charges.  In October 2007 we
restructured our business and decreased company-wide headcount
by approximately 15% and retired our CMTS platform. This
resulted in a restructuring charge of approximately
$3.0 million. Severance payments and related charges of
approximately $2.2 million consisted primarily of





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salary, expected payroll taxes, and medical benefits for
terminated employees. Lease termination costs of
$0.7 million were related to the closure of five offices
along with $0.1 million in other expenses.


 




This excerpt taken from the BBND 10-Q filed Nov 12, 2008.

Operating Expenses

Research and Development. Research and development expense was $13.2 million for the three months ended September 30, 2008, or 27.4% of net revenues, compared to $12.9 million for the three months ended September 30, 2007, or 33.4% of net revenues. The increase of $0.3 million was primarily due to an increase in bonus expense, which was slightly offset by lower base salary compensation expense and travel as a result of the reduction in headcount and lower facility costs as a result of our restructuring plans. Research and development expense included stock-based compensation of $1.0 million and $1.1 million for the three months ended September 30, 2008 and 2007, respectively.

Research and development expense was $40.4 million for the nine months ended September 30, 2008, or 30.8% of net revenues, compared to $39.6 million for the nine months ended September 30, 2007, or 27.2% of net revenues. The increase of $0.8 million was primarily due to an increase in bonus expense and depreciation expense. These increases were slightly offset by lower base salary compensation expense and travel as a result of the reduction in headcount, lower facility costs as a result of our restructuring plans and reduced lab and prototype expenditures. Research and development expense included stock-based compensation of $2.9 million and $2.8 million for the nine months ended September 30, 2008 and 2007, respectively.

Sales and Marketing. Sales and marketing expense was $7.1 million for the three months ended September 30, 2008, or 14.6% of net revenues, compared to $9.9 million for the three months ended September 30, 2007, or 25.7% of net revenues. The decrease of $2.9 million was primarily due to a $1.3 million decrease in compensation expense related to the reduction in headcount, a $0.4 million decrease in travel expenses, a $0.5 million decrease in overhead expenses and a $0.2 million decrease in marketing related activities, such as trade shows and public relations. Additionally, stock-based compensation decreased $0.5 million to $0.7 million from $1.1 million for the three months ended September 30, 2008 and 2007, respectively, primarily due to a reduction in headcount.

Sales and marketing expense was $21.9 million for the nine months ended September 30, 2008, or 16.7% of net revenues, compared to $31.3 million for the nine months ended September 30, 2007, or 21.5% of net revenues. The decrease of $9.4 million was primarily due to a $4.0 million decrease in compensation expense related to the reduction in headcount, a $1.7 million decrease in overhead expenses, a $1.4 million decrease in travel expenses, and a $0.9 million decrease in marketing related activities, such as trade shows and public relations. Additionally, stock-based compensation decreased $1.4 million to $1.9 million from $3.3 million for the nine months ended September 30, 2008 and 2007, respectively, primarily due to a reduction in headcount.

General and Administrative. General and administrative expense was $5.4 million for the three months ended September 30, 2008, or 11.3% of net revenues, compared to $3.7 million for the three months ended September 30, 2007, or 9.5% of net revenues. This increase of $1.7 million was due to a $0.5 million increase in audit and Sarbanes-Oxley 404 compliance work and a $0.6 million increase in stock-based compensation. The remaining $0.5 million increase relates to an increase in travel, bonus expense and other facility expenses. General and administrative expense included stock-based compensation of $1.0 million and $0.5 million for the three months ended September 30, 2008 and 2007, respectively.

General and administrative expense was $15.6 million for the nine months ended September 30, 2008, or 11.9% of net revenues, compared to $11.3 million for the nine months ended September 30, 2007, or 7.7% of net revenues. This increase of $4.3 million was primarily due to a $1.4 million increase in stock-based compensation, a $1.3 million increase in legal fees primarily attributable to litigation related costs and general legal matters, and a $1.1 million increase in costs associated with audit activities and Sarbanes-Oxley 404 compliance. The remaining $0.6 million increase relates to an increase in bonus expense and subcontractor expenses, which was slightly offset by lower base salary compensation expense and travel due to the reduction in headcount and lower facility costs as a result of our restructuring plans. General and administrative expense included stock-based compensation of $2.6 million and $1.2 million for the nine months ended September 30, 2008 and 2007, respectively.

 

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This excerpt taken from the BBND 10-Q filed Aug 14, 2008.

Operating Expenses

Research and Development. Research and development expense was $12.8 million for the three months ended June 30, 2008, or 29.8% of net revenues, compared to $13.7 million in the three months ended June 30, 2007, or 25.1% of net revenues. The decrease of $0.9 million was primarily due to lower compensation expense and travel related to a reduction in headcount, which was slightly offset by an increase in contractor expense. Also, facility costs were lower for the three months ended June 30, 2008 as a result of our restructuring actions. Research and development expense includes stock-based compensation of $0.6 million and $1.1 million for the three months ended June 30, 2008 and 2007, respectively. The decline in stock-based compensation of $0.5 million was primarily due to a reversal of a portion of previously recorded stock-based compensation expense related to an adjustment of our estimated forfeitures for restricted stock units (RSUs) granted in May 2007.

Research and development expense was $27.2 million for the six months ended June 30, 2008, or 32.8% of net revenues, compared to $26.8 million in the six months ended June 30, 2007, or 24.9% of net revenues. The increase of $0.4 million was related to an increase in bonus expense, increased depreciation expense and higher allocated facility expenses. These were slightly offset by lower base salary compensation expense, lower travel as a result of the reduction in headcount and reduced lab and prototype expenditures. Research and development expense included stock-based compensation of $1.9 million and $1.7 million for the six months ended June 30, 2008 and 2007, respectively.

Sales and Marketing. Sales and marketing expense was $7.0 million for the three months ended June 30, 2008, or 16.3% of net revenues, compared to $11.1 million in the three months ended June 30, 2007, or 20.4% of net revenues. The decrease of $4.1 million was primarily due to a $2.0 million decrease in compensation expense related to the reduction in headcount, a $0.7 million decrease in travel expenses, a $0.5 million decrease in overhead expenses and a $0.4 million decrease in marketing related activities, such as trade shows and public relations. Additionally, stock-based compensation decreased $0.5 million primarily due to a reduction in headcount. Sales and marketing expense included stock-based compensation of $0.5 million and $1.0 million for the three months ended June 30, 2008 and 2007, respectively.

Sales and marketing expense was $14.9 million for the six months ended June 30, 2008, or 17.9% of net revenues, compared to $21.4 million in the six months ended June 30, 2007, or 20.0% of net revenues. The decrease of $6.5 million was primarily due to a $3.2 million decrease in compensation expense related to the reduction in headcount, a $1.0 million decrease in travel expenses, a $0.7 million decrease in marketing related activities, such as trade shows and public relations and a $0.6 million decrease in overhead expenses. Additionally, stock-based compensation decreased $1.0 million primarily due to a reduction in headcount. Sales and marketing expense included stock-based compensation of $1.2 million and $2.2 million for the six months ended June 30, 2008 and 2007, respectively.

General and Administrative. General and administrative expense was $5.4 million for the three months ended June 30, 2008, or 12.4% of net revenues, compared to $4.1 million in the three months ended June 30, 2007, or 7.5% of net revenues. This increase of $1.3 million was due to $0.6 million increase in legal fees attributable to a lawsuit we filed against Imagine Communications, Inc. alleging patent infringement and legal expenses associated with the securities class action litigation. Additionally, there was a $0.4 million increase in audit and Sarbanes-Oxley 404 compliance work and a $0.4 million increase in stock-based compensation, which was partially offset by a net decrease in salary, travel, facilities and subcontractors of $0.1 million primarily related to a reduction in headcount. General and administrative expense included stock-based compensation of $0.8 million and $0.4 million for the three months ended June 30, 2008 and 2007, respectively.

General and administrative expense was $10.2 million for the six months ended June 30, 2008, or 12.4% of net revenues, compared to $7.6 million in the six months ended June 30, 2007, or 7.1% of net revenues. This increase of $2.6 million was primarily due to a $1.2 million increase in legal fees attributable to a lawsuit filed against Imagine Communications, Inc. alleging patent infringement and legal expenses associated with the securities class action litigation. Additionally, there was a $0.9 million increase in stock-based compensation and a $0.6 million increase in audit and Sarbanes-Oxley 404 compliance work, which was partially offset by a net decrease in salary, travel, facilities and subcontractors of $0.1 million primarily related to a reduction in headcount. General and administrative expense included stock-based compensation of $1.6 million and $0.7 million for the six months ended June 30, 2008 and 2007, respectively.

 

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Restructuring charges. Restructuring charges were $1.2 million for the three months ended June 30, 2008, or 2.7% of net revenues, and were $1.5 million for the six months ended June 30, 2008, or 1.8% of net revenues, compared to none for the same periods in 2007. The $1.5 million restructuring charges were for lease termination charges of $0.9 million and severance and related expenses of $0.6 million due to a reduction in headcount.

This excerpt taken from the BBND 10-Q filed May 15, 2008.

Operating Expenses

Research and Development. Research and development expense was $14.4 million for the three months ended March 31, 2008, or 36.1% of net revenues, compared to $13.1 million in the three months ended March 31, 2007, or 24.7% of net revenues. The increase was primarily due to a $1.2 million increase in compensation costs related to stock compensation and bonus expense and, to a lesser extent, an increase in allocated facility expense and depreciation. Research and development expense includes stock-based compensation of $1.3 million and $0.7 million for the three months ended March 31, 2008 and 2007, respectively.

Sales and Marketing. Sales and marketing expense was $7.9 million for the three months ended March 31, 2008, or 19.7% of net revenues, compared to $10.3 million in the three months ended March 31, 2007, or 19.5% of net revenues. The decrease of $2.4 million was primarily due to a $1.7 million decrease in compensation expenses associated with a reduction in employee headcount and, to a lesser extent, by a $0.3 million decrease in travel expenses and a $0.3 million decrease in marketing related activities, such as trade-shows and other public relations activities. Sales and marketing expense includes stock-based compensation of $0.7 million and $1.2 million for the three months ended March 31, 2008 and 2007, respectively.

General and Administrative. General and administrative expense was $4.8 million for the three months ended March 31, 2008, or 12.1 % of net revenues, compared to $3.5 million in the three months ended March 31, 2007, or 6.7% of net revenues. The $1.3 million increase was primarily due to a $0.6 million increase in legal fees related to a lawsuit filed against Imagine Communications, Inc. alleging patent infringement, and legal expenses associated with the securities class action litigation, along with a $0.2 million increase in Sarbanes-Oxley and other costs associated with being a public company. Additionally, we created the office of the Chief Operating Officer, which contributed to increased general and administrative expense in the three months ended March 31, 2008. General and administrative expense includes stock-based compensation of $0.8 million and $0.3 million for the three months ended March 31, 2008 and 2007, respectively.

        Restructuring Expenses. Restructuring expenses were $0.3 million during the three months ended March 31, 2008, or 0.8% of net revenues, compared to none for the three months ended March 31, 2007. On April 29, 2008, the Audit Committee of the Board of Directors authorized a restructuring plan pursuant to which charges of $1.2 million are expected to be incurred, including charges of approximately $0.4 million for severance costs and $0.8 million for lease termination costs.

 

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This excerpt taken from the BBND 10-Q filed Nov 14, 2007.

Operating Expenses

Research and Development. Research and development expense was $12.9 million for the three months ended September 30, 2007, or 33.4% of net revenues, compared to $9.3 million in the three months ended September 30, 2006, or 21.6% of net revenues. Research and development expense includes stock-based compensation of $1.1 million and $0.2 million for the three months ended September 30, 2007 and 2006, respectively. In the nine months ended September 30,

 

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2007, research and development expense was $39.6 million, or 27.2% of net revenues, compared to $26.6 million, or 23.4% when compared to the same period a year ago. Research and development expense includes stock-based compensation of $2.8 million and $0.5 million in the nine months ended September 30, 2007 and 2006, respectively. The three and nine month increases were primarily due to increases in compensation costs of $2.1 million and $8.5 million, respectively, due to increases in employee headcount and, to a lesser extent, to increases in infrastructure costs, including facilities, information technology systems, travel and entertainment and depreciation.

Sales and Marketing. Sales and marketing expense was $9.9 million for the three months ended September 30, 2007, or 25.7% of net revenues, compared to $7.0 million in the three months ended September 30, 2006, or 16.4% of net revenues. The increase of $2.8 million was due primarily to increased compensation expenses as a result of increased headcount. In the nine months ended September 30, 2007, sales and marketing expense increased to $31.3 million, or 21.5% of net revenues, from $21.0 million, or 18.5% of net revenues, in the nine months ended September 30, 2006. The increase of $10.3 million was due primarily to increased compensation and commission expenses and, to a lesser extent, by travel expenses and marketing related activities, such as tradeshows and other public relations forums. Sales and marketing expense includes stock-based compensation of $1.1 million and $0.1 million for the three months ended September 30, 2007 and 2006, respectively, and $3.3 million and $0.3 million in the nine month period ended September 30, 2007 and 2006, respectively.

General and Administrative. General and administrative expense was $3.7 million for the three months ended September 30, 2007, or 9.5 % of net revenues, compared to $2.9 million for the three months ended September 30, 2006, or 6.8% of net revenues. General and administrative expense includes stock-based compensation of $0.5 million and $0.1 million for the three months ended September 30, 2007 and 2006, respectively. In the nine months ended September 30, 2007 general and administrative expense was $11.3 million, or 7.7% of net revenues, compared to $8.0 million for the nine months ended September 30, 2006, or 7.0% of net revenues. General and administrative expense includes stock-based compensation of $1.2 million and $0.3 million for the nine months ended September 30, 2007 and 2006, respectively. The three and nine month increases were primarily due to compensation expenses as a result of increased headcount and to a lesser extent increased infrastructure costs. Legal fees related to a lawsuit filed against Imagine Communications, Inc. alleging patent infringement also contributed to the increase in the three and nine month periods ended September 30, 2007 compared to the year ago periods.

This excerpt taken from the BBND 10-Q filed Aug 10, 2007.

Operating Expenses

Research and Development. Research and development expense was $13.7 million for the three months ended June 30, 2007, or 25.1% of net revenues, compared to $9.0 million in the three months ended June 30, 2006, or 23.6% of net revenues. Research and development expense includes stock-based compensation of $1.1 million and $0.2 million for the three months ended June 30, 2007 and 2006, respectively. In the six months ended June 30, 2007, research and development expense was $26.8 million, or 24.9% of net revenues, compared to $17.3 million, or 24.5% when compared to the same period a year ago. Research and development expense includes stock-based compensation of $1.7 million and $0.3 million in

 

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Table of Contents

the six months ended June 30, 2007 and 2006, respectively. The three and six month increases were primarily due to increases in compensation costs of $3.3 million and $6.5 million, respectively, due to increases in employee headcount and, to a lesser extent, to increases in infrastructure costs to support our growth, including facilities, information technology systems, travel and entertainment, and depreciation.

Sales and Marketing. Sales and marketing expense was $11.1 million for the three months ended June 30, 2007, or 20.4% of net revenues compared to $7.2 million, in the three months ended June 30, 2006, or 18.8% of net revenues. The increase of $3.9 million was due primarily to increased compensation expenses as a result of increased headcount in support of our overall growth. To a lesser extent, marketing related activities, such as tradeshows and other public relations forums, have contributed to the increase in sales and marketing expense in the three months ended June 30, 2007 compared to the same period a year ago. In the six months ended June 30, 2007, sales and marketing expense increased to $21.4 million, or 20.0% of net revenues, from $13.9 million, or 19.7% of net revenues in the six months ended June 30, 2006. The increase of $7.5 million was due primarily to increased compensation and commission expenses and to a lesser extent by travel expenses. Sales and marketing expense includes stock-based compensation of $1.0 million and $0.1 million for the three months ended June 30, 2007 and 2006, respectively and $2.2 million and $0.2 million in the six month period ended June 30, 2007 and 2006, respectively.

General and Administrative. General and administrative expense was $4.1 million for the three months ended June 30, 2007, or 7.5% of net revenues compared to $2.6 million, for the three months ended June 30, 2006, or 6.8% of net revenues. General and administrative expense includes stock-based compensation of $0.4 million and $0.1 million for the three months ended June 30, 2007 and 2006, respectively. In the six months ended June 30, 2007 general and administrative expense was $7.6 million, or 7.1% of net revenues compared to $5.1 million, for the six months ended June 30, 2006, or 7.3% of net revenues. General and administrative expense includes stock-based compensation of $0.7 million and $0.2 million for the six months ended June 30, 2007 and 2006, respectively. The three and six month increase was due primarily to an increase in compensation expenses as a result of increases in general and administrative headcount and to a lesser extent due to increased infrastructure costs which support the overall company growth.

This excerpt taken from the BBND 10-Q filed May 9, 2007.

Operating Expenses

Research and Development. Research and development expense was $13.1 million for the three months ended March 31, 2007, or 24.7% of net revenues, compared to $8.3 million in the comparable period of 2006, or

 

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25.6% of net revenues. The $4.8 million increase was primarily due to increases in compensation costs of $3.2 million due to an increase in employee headcount and to a lesser extent due to increases in infrastructure costs to support our growth, including facilities, information technology systems, travel and entertainment, and depreciation. Research and development expense includes stock-based compensation of $0.7 million and $0.1 million for the three months ended March 31, 2007 and 2006, respectively.

Sales and Marketing. Sales and marketing expense was $10.3 million for the three months ended March 31, 2007, or 19.5% of net revenues compared to $6.8 million, in the three months ended March 31, 2006, or 20.8% of net revenues. The increase of $3.6 million was due primarily to increased compensation and commission expenses as a result of increased headcount in support of our overall growth and growth in revenues when compared to the same period a year ago. Sales and marketing expense includes stock-based compensation of $1.2 million and $0.1 million for the three months ended March 31, 2007 and 2006, respectively.

General and Administrative. General and administrative expense was $3.5 million for the three months ended March 31, 2007, or 6.7% of net revenues compared to $2.5 million, for the three months ended March 31, 2006, or 7.7% of net revenue. The $1.0 million increase was due primarily to an increase in compensation expenses as a result of increases in general and administrative headcount and to a lesser extent due to increased subcontractor costs associated with our initial public offering. General and administrative expense includes stock-based compensation of $0.3 million and $0.1 million for the three months ended March 31, 2007 and 2006, respectively.

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