NURO » Topics » Sales and Marketing

This excerpt taken from the NURO 10-Q filed May 15, 2009.

Sales and Marketing

        Our sales and marketing expenses include expenses from the marketing, field sales, sales administration and inside sales departments.

        Sales and marketing expenses decreased $3.0 million, or 54.1%, to $2.5 million for the quarter ended March 31, 2009 from $5.5 million for the same period in 2008. As a percentage of revenues, sales and marketing expenses were 36.9% and 62.9% for the quarters ended March 31, 2009 and 2008, respectively. The decrease in sales and marketing expenses was primarily due to a decrease of $1.9 million in employee compensation and benefit costs primarily attributable to the decrease in commissions, salaries, and bonuses resulting from the reduction of the size of our direct sales force in May 2008, and from a $120,000 accounting error from a prior period that was recorded as a contra expense in the quarter ended March 31, 2009. Cost containment efforts resulted in reductions of $289,000 in travel and entertainment expenses, $196,000 in advertising and promotion, $164,000 in consulting and temporary labor, $131,000 in shipping and freight, and $56,000 in third party commissions. In addition, stock-based compensation expensed declined $51,000 and other expenses declined $195,000.

        We expect sales and marketing expenses to increase on a quarterly basis during the remainder of 2009 as compared to the first quarter of 2009. However, as a significant portion of our sales and marketing expenses is comprised of commissions to our direct sales force, this may vary depending on our revenues for 2009. Additionally, sales and marketing expenses may increase slightly as a result of our realignment of our U.S. sales operations.

These excerpts taken from the NURO 10-K filed Mar 20, 2009.

Sales and Marketing

        Our sales and marketing expenses include expenses from the marketing, field sales, sales administration and inside sales departments.

        Sales and marketing expenses decreased $8.2 million, or 35.9%, to $14.6 million for year ended December 31, 2008 from $22.8 million for the year ended December 31, 2007. As a percentage of revenues, sales and marketing expenses were 47.1% and 52.3% for the years ended December 31, 2008 and 2007, respectively. The decrease in expenses was primarily due to (a) a decrease of $3.5 million in employee compensation and benefit costs primarily attributable to the decrease in commissions, bonuses and salaries resulting from the reduction of the size of our direct sales force in May 2008; (b) a decrease of $3.0 million in third-party sales commissions due to our decision to terminate our relationships with all independent sales agencies and focus our selling efforts exclusively through our direct sales force; (c) a decrease of $450,500 in stock compensation expense; (d) a decrease of $409,300 in consulting services due to less activity involving our reimbursement matters; (e) decreases of $269,800 in recruiting expenses and $266,500 in travel expenses both attributable to the reduction of our direct sales force; (f) a decrease of $243,400 in advertising costs, largely attributable to a 2007 sales promotion; and (g) a decrease of $139,600 in telephone related expenses.

        We expect sales and marketing expenses to remain relatively unchanged during 2009 as compared to the level of expenses for 2008. However, as a significant portion of our sales and marketing expenses is comprised of commissions to our direct sales force, this may vary depending on our revenues for 2009. Additionally, sales and marketing expenses may increase slightly as a result of our realignment of our U.S. sales operations.

Sales and Marketing



        Our sales and marketing expenses include expenses from the marketing, field sales, sales administration and inside sales departments.



        Sales
and marketing expenses decreased $8.2 million, or 35.9%, to $14.6 million for year ended December 31, 2008 from $22.8 million for the year ended
December 31, 2007. As a percentage of revenues, sales and marketing expenses were 47.1% and 52.3% for the years ended December 31, 2008 and 2007, respectively. The decrease in expenses
was primarily due to (a) a decrease of $3.5 million in employee compensation and benefit costs primarily attributable to the decrease in commissions, bonuses and salaries resulting from
the reduction of the size of our direct sales force in May 2008; (b) a decrease of $3.0 million in third-party sales commissions due to our decision to terminate our relationships with
all independent sales agencies and focus our selling efforts exclusively through our
direct sales force; (c) a decrease of $450,500 in stock compensation expense; (d) a decrease of $409,300 in consulting services due to less activity involving our reimbursement matters;
(e) decreases of $269,800 in recruiting expenses and $266,500 in travel expenses both attributable to the reduction of our direct sales force; (f) a decrease of $243,400 in advertising
costs, largely attributable to a 2007 sales promotion; and (g) a decrease of $139,600 in telephone related expenses.




        We
expect sales and marketing expenses to remain relatively unchanged during 2009 as compared to the level of expenses for 2008. However, as a significant portion of our sales and
marketing expenses is comprised of commissions to our direct sales force, this may vary depending on our revenues for 2009. Additionally, sales and marketing expenses may increase slightly as a result
of our realignment of our U.S. sales operations.



Sales and Marketing

        Our sales and marketing expenses include expenses from the marketing, field sales, sales administration and reimbursement departments.

56


Table of Contents

        Sales and marketing expenses increased $0.8 million, or 3.7%, to $22.8 million for year ended December 31, 2007 from $22.0 million for the year ended December 31, 2006. As a percentage of revenues, sales and marketing expenses were 52.2% and 39.8% for the years ended December 31, 2007 and 2006, respectively. The increase in expenses was primarily due to (a) an increase of $1.3 million in employee compensation and benefit costs attributable to the expansion of our sales force; (b) an increase of $511,100 in consulting services, primarily to assist us with the reimbursement challenges we are facing; (c) an increase of $245,400 in stock-based compensation expense; and (d) an increase of $335,400 in advertising and promotional expenses. These amounts were partially offset by a decrease in third-party sales commissions of $2.0 million, primarily due to our decision to terminate our relationships with all independent sales agencies and focus our selling efforts exclusively through our direct sales force and also due to decreased revenues.

Sales and Marketing



        Our sales and marketing expenses include expenses from the marketing, field sales, sales administration and reimbursement departments.



56









HREF="#bg47601a_main_toc">Table of Contents



        Sales
and marketing expenses increased $0.8 million, or 3.7%, to $22.8 million for year ended December 31, 2007 from $22.0 million for the year ended
December 31, 2006. As a percentage of revenues, sales and marketing expenses were 52.2% and 39.8% for the years ended December 31, 2007 and 2006, respectively. The increase in expenses
was primarily due to (a) an increase of $1.3 million in employee compensation and benefit costs attributable to the expansion of our sales force; (b) an increase of $511,100 in
consulting services, primarily to assist us with the reimbursement challenges we are facing; (c) an increase of $245,400 in stock-based compensation expense; and (d) an increase of
$335,400 in advertising and promotional expenses. These amounts were partially offset by a decrease in third-party sales commissions of $2.0 million, primarily due to our decision to terminate
our relationships with all independent sales agencies and focus our selling efforts exclusively through our direct sales force and also due to decreased revenues.



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

Sales and Marketing

        Sales and marketing expenses decreased $5.7 million, or 31.6%, to $12.3 million for the nine months ended September 30, 2008 from $18.0 million for the same period in 2007. As a percentage of revenues, sales and marketing expenses were 49.6% and 52.3% for the nine months ended September 30, 2008 and 2007, respectively. The decrease in expenses was primarily due to (a) a decrease of $2.6 million in third-party sales commissions due to our decision to terminate our relationships with all independent sales agencies and focus our selling efforts exclusively through our direct sales force; (b) a decrease of $1.8 million in employee compensation and benefit costs primarily attributable to the decrease in commissions, bonuses and salaries resulting from the reduction of the size of our direct sales force in May 2008; (c) a decrease of $321,000 in consulting services due to less activity involving our reimbursement matters; (d) decreases of $271,000 in recruiting expenses and $94,700 in travel expenses both attributable to the reduction of our direct sales force; (e) a decrease of $268,500 in stock compensation expense; (f) a decrease of $199,100 in advertising costs, largely attributable to a 2007 sales promotion; and (g) a decrease of $109,500 in telephone related expenses.

This excerpt taken from the NURO 10-Q filed Aug 8, 2008.

Sales and Marketing

        Sales and marketing expenses decreased $2.4 million, or 19.7%, to $9.6 million for the six months ended June 30, 2008 from $12.0 million for the same period in 2007. As a percentage of revenues, sales and marketing expenses were 54.7% and 51.6% for the six months ended June 30, 2008 and 2007, respectively. The decrease in expenses was primarily due to (a) a decrease of $1.7 million in third-party sales commissions due to our decision to terminate our relationships with all independent sales agencies and focus our selling efforts exclusively through our direct sales force; (b) a decrease of $231,200 in advertising costs, largely attributable to a 2007 sales promotion; (c) decreases of $190,100 in recruiting expenses and $26,800 in travel expenses both attributable to the reduction of our direct sales force; (d) a decrease of $127,200 in consulting services due to less activity involving our reimbursement matters; and (e) a decrease of $103,600 in stock compensation expense.

This excerpt taken from the NURO 10-Q filed May 12, 2008.

Sales and Marketing

        Our sales and marketing expenses include expenses from the marketing, field sales, sales administration and reimbursement departments.

        Sales and marketing expenses decreased $365,700, or 6.1%, to $5.6 million for the three months ended March 31, 2008 from $6.0 million for the same period in 2007. As a percentage of revenues, sales and marketing expenses were 61.7% and 50.8% for the three months ended March 31, 2008 and 2007, respectively. The decrease in expenses was primarily due to a decrease of $909,800 in third-party sales commissions due to our decision to terminate our relationships with all independent sales agencies and focus our selling efforts exclusively through our direct sales force. This amount was offset

26



by an increase of $455,200 in employee compensation and benefit costs primarily attributable to employees retained from EyeTel and amounts accrued during the quarter due to the resignation of our Chief Operating Officer. Also offsetting the decrease in sales and marketing expenses was an increase of $88,100 in consulting services, primarily to assist us with the reimbursement challenges we are facing.

        For the remainder of 2008, we expect sales and marketing expenses to continue to decline as compared to the first quarter of 2008, primarily due to our plan to reduce the size our direct sales force to a total of 34 positions, including 30 regional sales managers and four regional sales directors, from the current level of 54 positions. However, this may vary, depending primarily on our revenues for 2008. We are taking this action to reduce our sales and marketing expenses as a result of the decline in revenues we have experienced and due to our expectation that there will be further declines in revenue over the next several quarters. Our direct sales force will be focused on sales of our nerve conduction systems, including the ADVANCE System and the NC-stat System, on sales of the DigiScope and on account management of our existing customer base.

These excerpts taken from the NURO 10-K filed Mar 14, 2008.

Sales and Marketing

        Sales and marketing expenses increased $7.9 million, or 55.6%, to $22.0 million for year ended December 31, 2006 from $14.2 million for the year ended December 31, 2005. As a percentage of revenues, sales and marketing expenses were 39.8% and 41.3% for the years ended December 31, 2006 and 2005, respectively. The change in expenses is primarily due to an increase of $4.1 million in employee compensation and benefit costs, including sales commissions paid to our regional sales managers. This increase is attributable to the expansion of the sales force and higher revenues in 2006 as compared to 2005. Also contributing to the change in expenses are (a) an increase of $1.6 million in sales commissions paid to our independent regional sales agencies, which is related to our higher revenues in 2006 as well as the addition of a distributor in May 2006; (b) an increase in stock-based compensation expense of $653,300 due to the adoption of the provisions of SFAS No. 123(R); (c) an increase of $400,700 in travel expenses due to the expansion of the sales force; (d) an increase in consulting services of $299,300, primarily to assist us with reimbursement matters; and (e) an increase of $267,500 in costs for new promotional materials.

Sales and Marketing



        Sales and marketing expenses increased $7.9 million, or 55.6%, to $22.0 million for year ended December 31, 2006 from $14.2 million
for the year ended December 31, 2005. As a percentage of revenues, sales and marketing expenses were 39.8% and 41.3% for the years ended December 31, 2006 and 2005, respectively. The
change in expenses is primarily due to an increase of $4.1 million in employee compensation and benefit costs, including sales commissions paid to our regional sales managers. This increase is
attributable to the expansion of the sales force and higher revenues in 2006 as compared to 2005. Also contributing to the change in expenses are (a) an increase of $1.6 million in sales
commissions paid to our independent regional sales agencies, which is related to our higher revenues in 2006 as well as the addition of a distributor in May 2006; (b) an increase in stock-based
compensation expense of $653,300 due to the adoption of the provisions of SFAS No. 123(R); (c) an increase of $400,700 in travel expenses due to the expansion of the sales force;
(d) an increase in consulting services of $299,300, primarily to assist us with reimbursement matters; and (e) an increase of $267,500 in costs for new promotional materials.



This excerpt taken from the NURO 10-Q filed Nov 8, 2007.

Sales and Marketing

        Sales and marketing expenses increased $1.7 million, or 10.4%, to $18.0 million for the nine months ended September 30, 2007 from $16.3 million for the same period in 2006. As a percentage of revenues, sales and marketing expenses were 52.3% and 39.8% for the nine months ended September 30, 2007 and 2006, respectively. The increase in expenses was primarily due to (a) an increase of $1.2 million in employee compensation and benefit costs attributable to the expansion of our sales force; (b) an increase of $542,100 in consulting services, primarily to assist us with the reimbursement challenges we are facing; (c) an increase of $196,400 in stock-based compensation expense; and (d) an increase of $100,900 in advertising and promotional expenses. These amounts were partially offset by a decrease in third-party sales commissions of $994,900, primarily due to decreased revenues.

This excerpt taken from the NURO 10-Q filed Aug 9, 2007.

Sales and Marketing

Sales and marketing expenses increased $1.3 million, or 12.4%, to $12.0 million for the six months ended June 30, 2007 from $10.7 million for the same period in 2006.  As a percentage of revenues, sales and marketing expenses were 51.6% and 41.4% for the six months ended June 30, 2007 and June 30, 2006, respectively. The increase in expenses was primarily due to (a) an increase of $595,300 in employee compensation and benefit costs attributable to the expansion of our sales force; (b) an increase of $211,000 in advertising and promotional expenses; (c) an increase of $357,200 in consulting services, primarily to assist us with the reimbursement challenges we are facing; and (d) an increase of $109,700 in stock-based compensation expense.  These amounts were partially offset by a decrease in third party sales commissions of $297,100, primarily due to decreased revenues.

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

Sales and Marketing

Our sales and marketing expenses include expenses from the marketing, field sales, sales administration and reimbursement departments.

Sales and marketing expenses increased $707,700, or 13.4%, to $6.0 million for the three months ended March 31, 2007 from $5.3 million for the same period in 2006. As a percentage of revenues, sales and marketing expenses were 50.8% and 44.6% for the three months ended March 31, 2007 and March 31, 2006, respectively. The increase in expenses was primarily due to an increase of $282,500 in employee compensation and benefit costs attributable to the expansion of our sales force, an increase of $168,800 in advertising and promotional materials and an increase of $138,100 in consulting services, primarily to assist us with the reimbursement challenges we are facing.

We have increased our sales force to 55 employees, including 51 regional sales managers, as of March 31, 2007 from 46 employees, including 43 regional sales managers as of March 31, 2006. We plan to sell the DigiScope through the same sales force used to sell the NC-stat System and as a result we do not anticipate the need to expand the sales force to support the sales and marketing efforts for the DigiScope. However, we may incur additional expenses relating to sales commissions and marketing materials in connection with the sale of the DigiScope. For the remainder of 2007, we expect sales and marketing expenses to decline modestly, as compared with the first quarter of 2007; however, this may vary, depending primarily on our revenues for 2007.

14




 

This excerpt taken from the NURO 10-K filed Mar 29, 2007.

Sales and Marketing

Sales and marketing expenses increased $5.7 million, or 66.7%, to $14.2 million for year ended December 31, 2005 from $8.5 million for the year ended December 31, 2004. As a percentage of revenues, sales and marketing expenses were 41.3% and 47.4% for the years ended December 31, 2005 and 2004, respectively. The change in expenses was primarily due to an increase of $3.7 million in employee compensation and benefit costs, including sales commissions paid to our regional sales managers. This increase is due to the expansion of the sales force and higher revenues in 2005 as compared to 2004. Also contributing to the change in expenses was an increase of $1.5 million in sales commissions paid to our independent sales agencies, which were related to our higher revenues in 2005, and increases of $351,400 in travel expenses and $73,300 in recruiting costs due to the expansion of the sales force. The change in expenses was also partially due to an increase of $192,800 in costs for trade shows, advertising and promotional materials as we have increased our presence at tradeshows and developed new promotional materials. These increases were offset in part by a decrease in stock-based compensation expense of $188,700 related to employee stock options.

This excerpt taken from the NURO 10-K filed Mar 16, 2006.

Sales and Marketing

Sales and marketing expenses increased $3.7 million, or 78.0%, to $8.5 million for the year ended December 31, 2004 from $4.8 million for the year ended 2003. As a percentage of revenues, sales and marketing expenses were 47.4% and 52.0% for the years ended December 31, 2004 and December 31, 2003, respectively. The increase in expenses was primarily due to an increase of $1.1 million in sales commissions paid to our independent regional sales agencies and an increase of $792,900 in sales commissions paid to our direct sales force, which were directly related to our higher revenues in 2004, and increases of $741,900, $440,700 and $133,000 in employee compensation and benefit costs, travel expenses and recruiting costs, respectively, which resulted from the addition of seventeen employees in our sales and marketing department. The increase was also partially due to an increase of $189,000 in outside consulting service expense. Sales and marketing expense also increased due to an increase in non-cash stock based compensation of $319,600 in 2004 compared to 2003. These increases were partially offset by a reduction of $113,900 in costs for advertising, promotional materials and trade shows. This reduction was due to the fact that we performed a significant portion of advertising design work in-house during 2004, which resulted in lower costs as compared to the previous year when this design work was contracted to vendors. Also, during 2003 we incurred advertising and promotion costs related to the introduction of our new motor/sensory biosensors.

This excerpt taken from the NURO 10-K filed Mar 23, 2005.

Sales and Marketing

        Sales and marketing expenses increased $1.9 million, or 66.1%, to $4.8 million in 2003 from $2.9 million in 2002. As a percentage of revenues, sales and marketing expenses were 52.0% and 67.9% in 2003 and 2002, respectively. The increase in expenses was primarily due to an increase of $610,600 in sales commissions paid to our regional sales managers and an increase of $469,500 in sales commissions to our independent regional sales agencies, both of which were directly related to our higher revenues in 2003, and an increase of $479,700 in compensation and bonus expense, which resulted from the hiring of two additional employees in our sales and marketing department, including our chief operating officer in July 2002. Because our independent regional sales agencies are compensated exclusively on a commission basis, their compensation is linked directly to our revenues. The compensation of our internal sales force is predominately based upon meeting internal performance goals and, therefore, also linked to our revenues. Also contributing to the increase in sales and marketing expenses was an increase of $149,700 in advertising and product promotion expense and an increase of $127,500 in travel and lodging expense.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki