The Nokia 2G payment for 2003..will be recorded as recurring revenue..and if IDCC is consistent as they were with treating Ericsson 2002 revenue..Nokia 2002 PAST INFRINGEMENT will also be recorded as recurring revenue.
RICH FAGAN, CFO, INTERDIGITAL COMMUNICATIONS CORP.: Good morning. Thank, everyone. We were pleased to get off with a good start to the year with a solid first quarter. Our cash position remains strong as we ended the quarter with about $95 million. This position was further strengthened early in the second quarter, after the receipt of approximately $25 million of scheduled payments from Ericsson and Sony Ericsson. Now, let's briefly review first quarter results. We reported revenues of $37.3 million and net income of $26.7 million or 45 cents per share. That compares with revenue of $20.9 million and break-even results in first quarter 2002. If you remove amounts associated with past infringement and litigation settlements in the first quarter of 2003 and 2002, our revenues grew in this year's first quarter by 31% over last year's first quarter, and we reduced our loss by $3.1 million during the period. In first quarter 2003, we recognized an ago aggregate total $30.8 million of before taxes associated with total expected payments of $34.3 million from Ericsson and Sony Ericsson net of insurance reimbursement obligation of $3.4 million related to the Ericsson litigation. $20.3million of this total related to past infringement from Sony Ericsson and was recorded as royalty revenue consistent with our accounting policy based upon Sony Ericsson not being a party to the litigation with Ericsson. The remaining $14 million of the $34.3 million resulted to the March 2003 settlement of our long standing litigation with Ericsson was recorded as other income net of the $3.4 million insurance reimbursement obligation.
This presentation of Ericsson's obligation is consistent with the SEC's position on recording proceeds from litigation settlements. We had previously indicated in our 10-K that both the $20.3 million and the $14 million would be recorded as other income. However, after further review, we concluded that classifying the amounts in revenue and other income respectively was appropriate. Our recurring royalty revenues were up 53% in first quarter 2003, as compared to first quarter 2002, due in large part to the addition of Ericsson and Sony Ericsson to the base of key contributors that included N.E.C. and Sharp.
AI
Market Data 
Markets 
