Table:
|  | Year ended March 31, |  |
| --- | --- | --- |
|  | 2018 | 2017 |
| Net revenue: |  |  |
| Products | 26.5% | 30.0% |
| Support, maintenance and subscription services | 54.2 | 49.6 |
| Professional services | 19.3 | 20.4 |
| Total net revenue | 100.0 | 100.0 |
| Cost of goods sold: |  |  |
| Products (inclusive of developed technology amortization) | 20.7 | 22.1 |
| Support, maintenance and subscription services | 13.1 | 13.3 |
| Professional services | 15.6 | 14.6 |
| Total cost of goods sold | 49.4 | 50.0 |
| Gross profit | 50.6 | 50.0 |
| Operating expenses: |  |  |
| Product development | 21.9 | 22.8 |
| Sales and marketing | 14.2 | 16.3 |
| General and administrative | 18.9 | 15.6 |
| Depreciation of fixed assets | 2.1 | 1.9 |
| Amortization of intangibles | 1.5 | 1.1 |
| Restructuring, severance and other charges | 1.4 | 1.2 |
| Legal settlements | 0.1 | 0.1 |
| Operating loss | (9.5)% | (8.9)% |
Paragraphs:
The following table presents the percentage relationship of our Consolidated Statement of Operations line items to our consolidated net revenues for the periods presented:
Net revenue. Total revenue decreased $0.3 million, or 0.2% in fiscal 2018 compared to fiscal 2017. Products revenue decreased $4.6 million or 12.1% while support, maintenance and subscription services revenue increased 5.8 million, or 9.1%, as a result of continued focus on selling hosted perpetual and subscription services which increased 35% year over year. Hosted perpetual and subscription services revenue comprised 16% of total consolidated revenues in 2018 compared to 12% in 2017. Professional services revenue decreased $1.4 million, or 5.5%, primarily as a result of a decrease in proprietary services of $1.5 million offset by an increase in remarketed services of $0.1 million.
Gross profit and gross profit margin. Our total gross profit increased $0.6 million, or 1.0%, in fiscal 2018 and total gross profit margin increased 0.6% to 50.6%. Products gross profit decreased $2.8 million and gross profit margin decreased 4.6% to 21.7% primarily as a result of lower product revenue coupled with higher amortization of developed technology by $2.0 million related to the previously announced general availability of the latest version of our rGuest Buy and rGuest Stay software that were placed into service in the first and second quarters of fiscal 2017, and the second quarter of fiscal 2018.
Support, maintenance and subscription services gross profit increased $6.0 million and gross profit margin increased 260 basis points to 75.8% due to the scalable nature of our infrastructure supporting and hosting customers. Professional services gross profit decreased $2.6 million and gross profit margin decreased 9.0% to 19.2% due to lower professional services revenues on higher cost structure following a recent alignment toward enabling the Company to provide more customer-centric services going forward.
Operating expenses Operating expenses, excluding legal settlements and restructuring, severance and other charges, increased $1.0 million, or 1.4%, in fiscal 2018 compared with fiscal 2017. As a percent of total revenue, operating expenses have increased 0.9% in fiscal 2018 compared with fiscal 2017
Product development. Product development includes all expenses associated with research and development. Product development decreased $1.1 million, or 3.8%, during fiscal 2018 as compared to fiscal 2017. This decrease is primarily driven by our shift from contract labor to internal resources resulting in a decrease in contract labor of $5.9 million and an increase in payroll related expenses of $4.7 million.
Sales and marketing. Sales and marketing decreased $2.7 million, or 13.2%, in fiscal 2018 compared with fiscal 2017. The change is due primarily to a decrease of $2.2 million in incentive commissions related to revision of our commission plan from total contract value to annual contract value coupled with lower sales in fiscal 2018.
Depreciation of fixed assets. Depreciation of fixed assets increased $0.2 million or 9.2% in fiscal 2018 as compared to fiscal 2017.
Amortization of intangibles. Amortization of intangibles increased $0.5 million, or 35.0%, in fiscal 2018 as compared to fiscal 2017 due to our latest version of rGuest Pay being placed into service on March 31, 2017.
Restructuring, severance and other charges. Restructuring, severance, and other charges increased $0.2 million during fiscal 2018 compared to fiscal 2017 related to our ongoing efforts to create more efficient teams across the business, which included certain executive changes during the year.
Our restructuring actions are discussed further in Note 4, Restructuring Charges.
Legal settlements. During fiscal 2018 and 2017, we recorded $0.2 million and $0.1 million, respectively, in legal settlements for employment and other business-related matters.
Question:
What was the increase in gross profit margin?
Answer: $0.6 million, or 1.0%