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Friday, March 26, 2004 4:37:03 AM
And don't forget to mention that the costs of developing LR2 have already been paid (or best to view them as fixed, one-time costs) and those upcoming royalty payments from NEC + any additional licensing contract increases revenue without increasing costs (unlike from pure crusoe/efficion sales). So basically a $1mill royalty payment compared to a $1mill revenue from efficion sales is a far supperior incoming flow of money.
At least until the next great power reduction technology comes out.
Now here we have one of the great advantages of LR2, as the NEC spokesman (CEO?) during the Licensing Web Cast pointed out: LR2 can be beautifully combined with existing and new power reduction technologies. (Which is maybe the reason NEC wanted such a long term stable commitment)
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