In terms of cloud sales, Lopker said in recent earnings webcast that "A majority remain conversion from existing on-premise, customers, who usually cut over at a fast rate" than new ones." Operating expenses rose to $147.5 million last year, up 5.4 percent from slight less than $140 million in 2013. The company noted how cloud sales boost commission and variable compensation, which are recognized in the period in which sales occur without related revenue being recorded at the same time. Asked what competitors the company is seeing, president Pam Lopker noted prospects "might look at Dynamics with one or two looking at NetSuite." The company saw a 13.1-percent increase in license sales to $40.9 million while subscription revenue climbed 45.4 percent to $28.2 million for 2014. "We have continued to bring in cloud subscription growth in our target range of 40 percent to 50 percent," Karl Lopker noted.