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These excerpts taken from the IPAS 10-K filed Mar 17, 2008. Network
Operations
Network
operations expenses consist of compensation and benefits for our network
engineering, customer support, network access quality and information technology
personnel, outside consultants, transaction center fees, depreciation of our
network equipment, costs of mobile data cards and certain allocated overhead
costs.
The
increase in network operations expenses from 2006 to 2007 in absolute dollars
was due primarily to $962,000 in additional compensation and benefits expense,
$485,000 related to additional consulting expense, $440,000 related to
additional maintenance and support and $439,000 related to additional
co-location and network services. We expect that our network
operations expenses will increase slightly in absolute dollars and to the extent
that revenues increase, will remain relatively constant as a percentage of
revenues.
The
increase in network operations expenses from 2005 to 2006 in absolute dollars
was due primarily to $5.6 million in additional compensation and benefits
expense related to increased headcount from the acquisition of GoRemote Internet
Communications, Inc., $1.0 million related to the adoption of SFAS 123(R), $1.2
million in mobile data card subsidy costs, $433,000 to write-down obsolete
mobile data cards and $1.4 million for external consulting and contractor
support.
Network Operations Network operations expenses consist of compensation and benefits for our network engineering, customer support, network access quality and information technology personnel, outside consultants, transaction center fees, depreciation of our network equipment, costs of mobile data cards and certain allocated overhead costs.
The increase in network operations expenses from 2006 to 2007 in absolute dollars was due primarily to $962,000 in additional compensation and benefits expense, $485,000 related to additional consulting expense, $440,000 related to additional maintenance and support and $439,000 related to additional co-location and network services. We expect that our network operations expenses will increase slightly in absolute dollars and to the extent that revenues increase, will remain relatively constant as a percentage of revenues. The increase in network operations expenses from 2005 to 2006 in absolute dollars was due primarily to $5.6 million in additional compensation and benefits expense related to increased headcount from the acquisition of GoRemote Internet Communications, Inc., $1.0 million related to the adoption of SFAS 123(R), $1.2 million in mobile data card subsidy costs, $433,000 to write-down obsolete mobile data cards and $1.4 million for external consulting and contractor support. | EXCERPTS ON THIS PAGE:
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