Continued discipline by companies in keeping costs under control, particularly research and development expenses, is helping the bottom line.
There have been concerns on Wall Street that research and development expenses are no longer justifiable with current success rates.
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Cut development expenses to zero, switch to dated but cheap technology, under-depreciate, change pension fund assumptions, bleed non-executive salaries and defer benefits etc.
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In cost-plus the government covers development expenses and certain unpleasant surprises but limits the contractor to a small markup (typically 6% to 9%).
But the high prices of many patent-protected drugs generate the revenues needed to underwrite the massive research and development expenses that the inventors of brand-name drugs incur.
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The company attributes the red ink to expenses associated with the cost of listing on the American Stock Exchange and complying with the Sarbanes-Oxley Act, as well as development expenses in Kazakhstan.
The company said in its earnings release that it had lower than expected sales and that its investments in improving client experience and accelerating product development and higher than expected software development expenses pressured its bottom line.
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Although we have sales in our model for Zaltrap, our model assigns no value to this asset as REGN will have to start repaying 50% of Zaltrap development expenses in all cancers as soon as this business becomes profitable.
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It also wants an expanded Earned Income Tax Credit, an expanded saver's credit and a permanent exclusion from capital gains taxes on small business investment. (Does anyone think green energy tax credits will vanish anytime soon?) One ghost that keeps returning: the research credit, first introduced in 1981, which allows companies to write off a portion of their research and development expenses.
Wall Street would probably like Read to bring down research and development and other expenses even more quickly, thereby boosting earnings.
If they can no longer deduct certain expenses like research and development, it will cut into their personal incomes.
Cowperthwaite was similarly opposed to five-year development plans, noting that revenues to offset expenses were not predictable.
Earnings, however, decreased 37% because of higher selling, general and administrative expenses and a near doubling of research and development costs.
Operating income is revenues less player costs, selling, general and marketing expenses, stadium operations, coaches and player development costs and travel.
The advent of modern research-and-development tools, such as 3D printers, has also helped to lower expenses, he adds.
So were recent Obama proposals to make the research and development tax credit permanent, and to accelerate business' ability to write off expenses.
Most of Dell's expenses are made up of selling, general and administrative costs rather than research and development.
It paid 100% of the expansion expenses to double capacity in exchange for a 40% participation of only the new development and production.
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In a separate development police have also confirmed that they have received a complaint about work minister Tony McNulty's expenses claims.
The bulk of development work on F1 cars is done during the year before they are introduced, so the major expenses of the 2012 campaign are shown on the teams' financial statements for 2011.
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