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Re: arb award (bim)

By: Rakitno in IDCC | Recommend this post (0)
Sat, 24 Aug 13 12:08 AM | 283 view(s)
Boardmark this board | InterDigital Communications
Msg. 46911 of 48237
(This msg. is a reply to 46910 by bim24)

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The disclosure is based upon a customers revenue earned breaking 10% of total quarter or total annual revenue to date.

That audit revenue in your example may have related to RIM or HTC (both per unit) and hence (by default if you will) they were disclosed in the note quoted below. Although neither name was specifically tied to the "audit" mention.

Also technically, $7.2 million (the difference between the $7.9M and prior periods $0.7M) is less than 10% of the $76.5M reported in that quarter. If the entire revenue of $7.2M was from one customer and they had no further revenue in the quarter which would have caused them to exceed the $7.65M threshold ($76.5M x 10%) then according to managements disclosure policy this customer would not be disclosed in the note below.

Customers that accounted for ten percent or more of the $76.5 million of third quarter 2011 total revenue were Samsung Electronics Company, Ltd. ("Samsung") (34 percent), Research in Motion Limited ("RIM") (13 percent) and HTC Corporation ("HTC") (12 percent). 


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The above is a reply to the following message:
Re: arb award (bim)
By: bim24
in IDCC
Fri, 23 Aug 13 11:47 PM
Msg. 46910 of 48237

Rak,

what about audits that yield catch up on past sales?

For instance I recall a big past sales audit that I kept asking IR to disclose who it's from but they never did, even though it was past the 10% threshold... unless that threshold is an annual one (vs quarterly)

here is an example:


Third Quarter 2011 Summary

Revenue in third quarter 2011 totaled $76.5 million, a 17 percent decrease from $91.9 million reported in third quarter 2010. Patent licensing royalties of $75.3 million in third quarter 2011 declined $10.8 million, or 13 percent, from $86.1 million in third quarter 2010. The fixed fee portion of the royalty revenue totaled $33.2 million, a decline of $16.4 million, or 33 percent, over the $49.6 million in third quarter 2010, primarily due to the absence of $14.4 million in royalties from LG Electronics, Inc. ("LG"). Per-unit royalties of $34.2 million in third quarter 2011 declined somewhat from the $35.8 million in third quarter 2010, driven by a decline in royalties associated with customers in Japan offset by growth in customers with exposure to the smartphone market. Past sales of $7.9 million in third quarter 2011 increased from $0.7 million in third quarter 2010 due to an audit resolution with an existing customer in third quarter 2011. Additionally, technology solutions revenue decreased to $1.2 million from $5.8 million in third quarter 2010, primarily due to declines in revenue from agreements that concluded in 2010. In addition, the company continues to defer revenue recognition of disputed royalties pending the outcome of an ongoing arbitration proceeding related to one of the company's technology solutions agreements. As of September 30, 2011, the company has deferred $25.6 million of revenue in connection with this arbitration. Customers that accounted for ten percent or more of the $76.5 million of third quarter 2011 total revenue were Samsung Electronics Company, Ltd. ("Samsung") (34 percent), Research in Motion Limited ("RIM") (13 percent) and HTC Corporation ("HTC") (12 percent).


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