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A combination of salaries, and other costs associated with the 1997 acquisition of Research Analysis Corporation and marketing expenses for the Company's TACTRAC product, offset by reductions in professional and facilities relocation expenses, accounted for most of the dollar increase in overhead expenses.
The loss for fiscal 1998 is primarily attributable to an increase in selling, general and administrative expenses due primarily to a combination of: professional fees incurred by TACTech in its lawsuit seeking injunctive relief against a competitor and a former employee, which was settled during the fiscal year; the cost of programming consultants incurred in connection with the enhancement of search engine technology; and certain management incentive bonuses paid to officers of the former Research Analysis Corporation for achieving revenue targets established in connection with its acquisition by the Company.
These increases are primarily due to TACTech's acquisition of Research Analysis Corporation ("RAC") in September 1997, and an approximate 9% increase (for the recently ended quarter) and a 15% increase (for the recently ended nine month period) in the TACTech subscription base, in each case, as well as increases in subscription prices.