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Selling, Generaland Administrative (“SG&A”) expense as a percentage of revenue decreased fromthe prior sequential quarter by approximately 1% adam lambert fiyero . The increase year-over-yearreflects a $1 Adam Lambert tickets .1 million charge related to a prepaid license fee for futuretechnology that is no longer deemed relevant and a full quarter of amortizationof non-product specific intangibles related to the acquisition of the PGIC TGD.Research and Development (“R&D”) expenses increased just slightly by 4% to $4.8million compared to the prior year period adam garcia . R&D expense increased 8% from theprior sequential quarter but remained flat as a percentage of total revenue aadam lambert . Fiscal Year 2008Full year operating expenses totaled $112.0 million which included the $22.1million impairment charge adaam lambert . Excluding the goodwill impairment charge, operatingexpenses increased by 13% to approximately $89.8 million compared to $79.3million in fiscal 2007. The overall increase in operating expense relates mostlyto an increase in SG&A expense. This increase in SG&A expense is reflective ofan 18% increase in personnel costs due to staffing the Company`s recentlyestablished corporate division, adding to the sales and service staff in theAmericas and Asia profit centers to support growth of the Company`s newerproducts and expanding into new territories, including South Africa, and a fullyear of amortization of non-product specific intangibles related to theacquisition of the PGIC TGD.
Additionally, SG&A expense increased as a result ofa $1.0 million severance charge in the first quarter, an increase ofapproximately $2 Adam Lambert tickets .0 million at the Company`s foreign subsidiaries due to theweakening of the U.S adam lambert bio . dollar, and a write-off of prepaid licensing costs of $1.1million associated with future technology that is no longer deemed relevant.Corporate legal expense decreased by approximately 3% from fiscal 2007 to $5.7million primarily due to lower legal expenses incurred for pending cases amdam lambert . SG&Aexpenses were slightly offset by a $0.7 million gain on the sale of theCompany`s fractional ownership in a NetJets corporate airplane adamm lambert . R&D expense grew7% in the year primarily due to the newly created Corporate Products Group andthe foreign currency impact of the Company`s R&D operations in Austria andAustralia adam lambers .
Other ExpenseFourth Quarter 2008Other expense includes interest income predominately from the Company`s investedcash and capital lease portfolio, interest expense on the senior secured creditfacility (which includes the term loan and revolving credit facility) andconvertible notes as well as gains or losses on foreign currency . Other expensefor the fourth quarter totaled a gain of $2.7 million adan lambert . Other expense decreasedfrom the prior sequential quarter by $6.1 million as a direct result of netforeign currency gains and a decrease in interest expense related to theCompany`s convertible notes and senior secured credit facility lambert . Fiscal Year 2008Other expense totaled $3 Adam Lambert tickets .6 million and decreased $6.4 million, or 64%, in fiscal2008 as compared to fiscal 2007 . Again, this decrease was the direct result of$2.7 million in net foreign currency gains and a decrease in interest expenserelated to the Company`s convertible notes and senior secured credit facility.
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