[1] Revenue

License and maintenance revenues can be broken down by business segment as follows:

	Crossvision		ETS		Other		Total
€ thousands	2006	2005	2006	2005	2006	2005	2006	2005
Licensing	43,398	30,272	121,706	96,026	638	5,331	165,742	131,629
Maintenance	25,393	22,852	160,281	156,123	1,604	2,453	187,278	181,428
Product sales	68,791	53,124	281,987	252,149	2,242	7,784	353,020	313,057

Revenues from Professional Services

Professional service revenues include sales of €14,765 thousand, recognized in accordance with the percentage- of-completion method. The individual revenue and expense components of this item can be broken down as follows:

€ thousands	2006	2005
Expenses recognized in 2006	13,615	14,625
Costs accumulated over the term of a (multi-year) project and not yet invoiced	9,604	21,801
Advance payments received	1,871	1,357
Recognized profits	1,150	690
Revenue recognized under the POC method in 2006	14,765	15,315

[2] Cost of sales

Cost of sales amounted to €149,512 thousand (2005: €143,501 thousand) and primarily consists of personnel expenses incurred by the customer support and Professional Services businesses as well as purchased services in the service business.

[3] Research and development expenses

The research and development expenses of €44,858 thousand (2005: €43,193 thousand) mainly contain personnel expenses for product development and related IT expenses.

[4] Selling expenses

Selling expenses amounted to €127,246 thousand (2005: €109,093 thousand). In addition to personnel expenses relating to the sales division, these costs mainly include marketing expenses. The significant increase over the previous year is primarily the result of the strategic expansion of marketing activities.

[5] General and administrative expenses

General and administrative expenses amounted to €52,337 thousand (2005: €48,334 thousand). They include administrative expenses which are attributable neither to cost of sales nor to sales activities.

[6] Other operating income

Other operating income includes the following items:

€ thousands	2006	2005
Foreign exchange gains	16,253	5,653
Rental income	1,515	2,659
Income from the reversal of provisions	286	3,370
Other income	2,236	1,795
	20,290	13,477

[7] Other operating expenses

Other operating expenses consist of the following items:

€ thousands	2006	2005
Foreign exchange losses	7,589	5,740
Restructuring expenses	5,740	0
Receivables write-offs	3,752	0
Legal costs	0	1,371
Other expenses	1,006	3,873
	18,087	10,984

Restructuring costs and receivables write-offs are generally shown under functional costs. Only particularly high individual amounts are reclassified as other operating expenses.

[8] Net interest income

Due to the continued rise in net liquidity in 2006 and higher market interest rates, net interest income increased to €7,339 thousand as of the reporting date.

Net interest income consists of:

€ thousands	2006	2005
Interest income	11,799	8,929
Interest expense	- 4,460	- 4,193
	7,339	4,736

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