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SEC
10-Q
BIOTELEMETRY, INC. filed this Form 10-Q on 10/31/2018
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Sales and Marketing Expense
 
Nine Months Ended
 
Change
(in thousands, except percentages)
September 30,
2018
 
September 30,
2017
 
$
 
%
Sales and marketing expense
$
32,535

 
$
25,051

 
$
7,484

 
29.9
%
Percentage of revenues
11.0
%
 
12.8
%
 
 
 
 
The increase in sales and marketing expense for the nine months ended September 30, 2018 was due primarily to the $9.8 million full-period impact of the LifeWatch acquisition and $1.3 million due to higher sales meeting costs, partially offset by $4.0 million of additional synergies due to the full-period impact of the integration of LifeWatch.
Bad Debt Expense
 
Nine Months Ended
 
Change
(in thousands, except percentages)
September 30,
2018
 
September 30,
2017
 
$
 
%
Bad debt expense
$
16,911

 
$
8,975

 
$
7,936

 
88.4
%
Percentage of revenues
5.7
%
 
4.6
%
 
 
 
 
The increase in bad debt expense for the nine months ended September 30, 2018 was due to the $5.0 million impact of the LifeWatch acquisition, the organic revenue growth, as well as a $1.1 million specific reserve related to a customer bankruptcy in the Corporate and Other category. Bad debt expense in Research was minimal and is recorded on a specific account basis.
Research and Development Expense
 
Nine Months Ended
 
Change
(in thousands, except percentages)
September 30,
2018
 
September 30,
2017
 
$
 
%
Research and development expense
$
8,451

 
$
8,225

 
$
226

 
2.7
%
Percentage of revenues
2.9
%
 
4.2
%
 
 
 
 
Research and development expense for the nine months ended September 30, 2018 increased due to the $2.5 million full-period impact of the LifeWatch acquisition, offset partially by $1.6 million of synergies realized from the integration of LifeWatch, as well as other cost savings initiatives.
Other Charges
 
Nine Months Ended
 
Change
(in thousands, except percentages)
September 30,
2018
 
September 30,
2017
 
$
 
%
Other charges
$
11,623

 
$
14,542

 
$
(2,919
)
 
(20.1
)%
Percentage of revenues
3.9
%
 
7.5
%
 
 
 
 
Other charges for the nine months ended September 30, 2018 were due to $7.9 million related to the integration of LifeWatch, a $1.8 million reserve for a note receivable with a bankrupt customer, $1.5 million for patent litigation and $0.8 million of other expenses including legal, professional fees and

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