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Re: arb award (bim)

By: bim24 in IDCC | Recommend this post (0)
Fri, 23 Aug 13 11:02 PM | 259 view(s)
Boardmark this board | InterDigital Communications 		Msg. 46906 of 48237
(This msg. is a reply to 46905 by sonic22)
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Rak and Sonic,

first of all, the arb win was a great thing... don't get me wrong... and I am not trying to downplay it as it will mean revs/earnings moving forward.

I am well aware of the deferred revs that we have accumulated...

but what was not clear (to me) is that IDCC said we got the rates we wanted.... but did they get the devices and numbers sold they wanted?

Let's say the arb panel came back and said, ok we agree that the contract stated X rate for Y devices...but it didn't include everything this tech. customer sold? Let's say they came back and said you get $40 million. It is still a win and can still be at the rates specified, just didn't include a certain class of devices.

I asked IR (Twice) a very simple question: did we win the entire 52.6 million and they wouldn't answer me, instead kept quoting the PR. To be honest, those replies kinda piss me off when they do that.

Obviously, We will find out when this plays out.... but that is why we are trying to read tea leaves.


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The above is a reply to the following message:
Re: arb award (bim)
By: sonic22 in IDCC
Fri, 23 Aug 13 10:53 PM 		Msg. 46905 of 48237

Bim,

Deferred revenue is listed as a liability on the financials under GAAP. The customer paid but IDCC did not recognize this as revenue due to the arbitration. The acctg entry is debit cash/credit Deferred revenue. IDCC's cash increased but they didn't recognize the reveneue yet. I am positive this money will be counted as revenue come the Q3 earnings report. They are checking with PWC to see how to handle the recognition in terms of a one time revenue increase(due to the prior quarters) and also depending on the timing of the award in regards to current qtr revenue vs past revenue.


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