Engineering and development expenses for fiscal 2013 compared to fiscal 2012
increased by approximately
Selling and Marketing. Selling and marketing expenses consist primarily of salaries, commissions, and related expenses for personnel engaged in the marketing and sales of our products, as well as samples, trade shows, product literature, promotional support costs, and other advertising related costs. Expenses for fiscal 2013 and fiscal 2012 were as follows (dollars in thousands):
Selling and Marketing Percentage of Percentage of Increase/ Percentage 2013 Net Revenues 2012 Net Revenues (Decrease) Points Change
$66,23514% $59,99012% $6,2452% Selling and marketing expenses for fiscal 2013 increased approximately $6.2 million, or 10%, compared to fiscal 2012. Approximately $3.6 millionof share-based compensation expense was included in selling and marketing costs for both fiscal 2013 and fiscal 2012. Selling and marketing headcount increased to 227 at the end of fiscal 2013 from 150 at the end of fiscal 2012 primarily due to the Endaceacquisition on February 26, 2013. The increase in headcount resulted in a net increase of approximately $5.5 millionin salary and related expenses compared to fiscal 2012, of which approximately $3.8 millionand 74 headcount were associated with our acquisition of Endace. Also included in the increase in salary and related expenses was $0.6 millionof severance costs. Further, selling and marketing expenses increased due to increases of approximately $1.3 millionin performance-based compensation, approximately $0.7 millionin travel expenses, approximately $0.6 millionin depreciation expense and approximately $0.4 millionin outside services. The net increase in selling and marketing expenses was partially offset by a decrease in advertising costs of approximately $3.5 million.