Sales & Marketing Expenses:
For the Quarter:
“Sales and marketing expense increased $63 million or 22%, reflecting an increase in marketing and advertising campaigns and an increase in headcount-related expenses associated with product marketing and the retail account sales force.”
For the Fiscal Year:
“Sales and marketing expenses increased $93 million or 8%, primarily reflecting increased headcount-related expenses and increased bad debt expense.”
Again, I would argue this is somewhat unexpected. The increase in the Q4 of the year represents 200% over the increase for the past Q3. 200% increases are generally quite unpredictable.
Using the same calculations as R&D, the allocated additional “expense” for marketing should have been about $10(*) million only.
This is a difference of $53(*) million ($63 million less $10(*) million) from the projected profit.
So now, the profit projection is a LOSS $76(*) million.
