|CIMPRESS N.V. filed this Form 10-Q on 11/03/2017|
Consolidated Operating Expenses
The following table summarizes our comparative operating expenses for the periods:
Technology and development expense
Technology and development expense consists primarily of payroll and related expenses for our employees engaged in software and manufacturing engineering, information technology operations and content development, as well as amortization of capitalized software and website development costs, including hosting of our websites, asset depreciation, patent amortization, legal settlements in connection with patent-related claims, and other technology infrastructure-related costs. Depreciation expense for information technology equipment that directly supports the delivery of our digital marketing services products is included in cost of revenue.
The growth in our technology and development expenses of $3.1 million for the three months ended September 30, 2017 as compared to the prior comparative period was primarily due to our fiscal 2017 acquisition of National Pen, which resulted in $3.2 million of additional expense in the current period, without any costs in the prior comparable period. We also recognized increased depreciation expense of $1.0 million, primarily related to past investments in infrastructure-related assets. These increases were partially offset by compensation-related cost savings that resulted from our January 2017 restructuring initiative.
Marketing and selling expense
Marketing and selling expense consists primarily of advertising and promotional costs; payroll and related expenses for our employees engaged in marketing, sales, customer support and public relations activities; direct-mail advertising costs; and third-party payment processing fees. Our Vistaprint and National Pen businesses have higher marketing and selling costs structures, as compared to our Upload and Print businesses.
Our marketing and selling expenses increased by $33.4 million during the three months ended September 30, 2017 as compared to the prior comparative period, primarily due to the addition of National Pen which incurred $23.9 million of marketing and selling expense during the three months ended September 30, 2017 primarily for direct-mail advertising and telesales costs that were not in our prior comparable period. In addition, advertising expense for other businesses increased by $6.2 million, which is primarily a result of additional advertising spend in the Vistaprint business. Other increases included payroll and employee-related costs, inclusive of share-based compensation, as we expanded our marketing and customer service, sales support organization through our recent acquisitions and continued investment in the Vistaprint business customer service resources in order to provide higher value services to our customers.
General and administrative expense
General and administrative expense consists primarily of transaction costs, including third-party