InterDigital Inc (IDCC)

[olddog967]

dduta: The delay may be attributed to how to handle Huawei now that a payment has been made. Below are a couple of related comments from the 1st qtr CC.

From the opening presentations:

Our first-quarter results did not include any revenue from Huawei as we had continued to defer revenue recognition from our related patent license agreement. I still mentioned Huawei has recently agreed to make payments of outstanding amounts under our patent license agreement. We look forward to the scheduled collection of those first payments and possibly the related revenue recognition as early as second quarter 2016.


From the Q&A


Eric Wold
I just to make sure I understood kind of clarify the comments around Huawei. So you mentioned that they will start making payments you expect in the second quarter and then you’ll figure out I guess if you can recognize revenue on that. What’s kind of the determination of whether or not the payments can be recognized as revenue or not and then is this, are these payments based on the arbitration panels figure that they gave out in terms of what the numbers should be or that they saw something else?

Rich Brezski
Yeah Eric, it’s Rich. So, the reason we deferred payment up until now is we haven’t at this point met all the criteria for revenue recognition, most notably collectability is reasonably assured and the terms are fixed and determinable. So we’ll continue to evaluate that in the second quarter as we look forward to collecting that payment but as Bill mentioned there is also opportunities to continue to work with Huawei to expand beyond what we’ve even agreed to so far.

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We will just have to wait and see what they decide.