InterDigital Inc (IDCC)

[warbil]

Restatement of prior year earnings can only be performed for the correction of an accounting error. This is not considered an accounting error because the revenue cannot be recorded until it is probable that it will be received.

If IDCC gets a fovorable ruling this year from the New York District Court and based on the language within the order, IDCC may finally have enough justification to record the past due revenue amount in 2005. If so, the revenue amounts associated with prior year sales will be treated as a one-time revenue stream in the current year and will be considered current year income. Prior year financials will not be restated.

If IDCC desires, they can indicate on a pro forma basis what prior year operations would have looked like had the revenues been recorded in the years to which they pertain, but it will not be considered a restatement of those financial statements.