MIME 2017 Annual Report

47 General and administrative expenses General and administrative expenses increased $8.1 million in the year ended March 31, 2017 compared to the year ended March 31, 2016, which was primarily attributable to increases in personnel-related costs of $4.3 million, professional services costs of $2.9 million and information technology and facilities costs of $0.3 million. General and administrative expenses for the year ended March 31, 2017 as compared to the year ended March 31, 2016 were positively impacted by approximately $1.0 million primarily as a result of the strengthening of the U.S. dollar against the British pound. Personnel-related costs increased primarily as a result of salaries and benefits associated with increased headcount. Professional service costs increased primarily due to accounting, consulting and legal services associated with operating as a public company. In addition, we incurred $0.6 million of expenses related to the October 2016 secondary offering and $0.7 million in transaction costs related to the iSheriff transaction. Other income (expense) Year ended March 31, Period-to-period change 2017 2016 Amount % Change (dollars in thousands) Other income (expense): $ 510 $ 74 $ 436 589% Interest expense (268) (690) 422 (61)% Foreign exchange income 6,892 811 6,081 750% Total other income (expense), net $ 7,134 $ 195 $ 6,939 nm nm—not meaningful Other income (expense) increased $6.9 million in the year ended March 31, 2017 compared to the year ended March 31, 2016, which was primarily attributable to a $6.1 million increase in foreign exchange income associated with the re-measurement of short- term intercompany balances as well as working capital balances denominated in currencies other than the functional currency of our operating units. The increase in foreign exchange income is a result of the British pound weakening compared to the foreign currencies in which we operate to a greater extent in fiscal 2017 as compared to fiscal 2016. The increase in interest income is primarily due to higher weighted-average cash and investment balances after our initial public offering, or IPO. The decrease in interest expense is primarily due to a decrease in weighted-average debt balances. Provision for income taxes Year ended March 31, Period-to-period change 2017 2016 Amount % Change (dollars in thousands) Provision for income taxes $ 2,202 $ 865 $ 1,337 155% Provision for income taxes increased $1.3 million in the year ended March 31, 2017 compared to the year ended March 31, 2016. The provision for income taxes in each period was primarily attributable to taxes related to our South African entity and the increase in the provision for income taxes from the prior period was primarily due to increased net pre-tax income in that entity.