Data, software & services revenue in the quarter was €127 million, 10% higher compared with €116 million in Q1 '16, mainly due to increasing Automotive revenue. Data, software & services accounted for 60% of the revenue in Q1 '17 compared with 53% in Q1 '16. Hardware revenue for the quarter was €86 million, 16% lower compared with €102 million in Q1 '16.

Gross margin

Our gross result increased by 7% to €132 million in the quarter compared with €123 million in Q1 '16. The gross margin for the quarter was 62%, which is five percentage points higher compared with 57% in Q1 '16, reflecting the shift of revenue mix towards higher margin data, software & services revenue.

Operating expenses

Total operating expenses for the quarter were €137 million, €10 million higher compared with €128 million in the same quarter last year. This increase is mainly due to higher R&D and SG&A expenses as well as modestly higher amortisation of technology & databases. The increase in our R&D and SG&A line is mainly caused by higher expenses on the long-term employee incentive plan.

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