InterDigital Inc (IDCC)

[Learning2vest]

Wanted to be sure that I understood IDCC's new revenue reporting procedure. If I'm reading the following notice from IDCC correctly(?), today's "2nd qtr" revenue guidance is based on the licensed products that were sold in 1st qtr 2005 and that have been reported to IDCC sometime in this "2nd" qtr.

If that is correct, then Rich already has the royalty reports stacked on his desk and he has been able to add them up before providing today's "guidance". Not much room for downside error with that procedure.

Here is the notice with my highlight on the change;


InterDigital Announces Per-Unit Royalty Reporting Transition and Positive Tax Adjustment;

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Oct. 25, 2004--

Company to Host Conference Call at 11:00 a.m. EDT on
October 26, 2004

InterDigital Communications Corporation (Nasdaq:IDCC), today announced that
commencing in third quarter 2004, it will recognize revenue associated with
per-unit royalties in the quarter it receives royalty reports from its
licensees rather than in the quarter in which its licensees' underlying
sales occur. As a result, the Company expects to report royalty revenue for
third quarter 2004 in the range of $7.0 to $7.5 million, consisting mainly
of amortization related to paid-up royalties.