Trend: Not correct. My post was about NRE fees, not product revenues as was your post. The 2 paragraph that follow the one you posted addresses these NRE fees which are recognized when the services are delivered to the customer. e.Digital often books part of the NRE fees and defers the rest, meaning that the some of the work is complete.
It's clear from the 10Q that the design work on the Eclipse was not complete as of 9/30/03 since all of the NRE fees are still deferred.
NRE contract revenues on short-term projects or service revenue is recognized
once the services or product has been delivered, the fee is fixed and
determinable, collection of the resulting receivable is probable and there are
no resulting obligations. If all of the service or product has been delivered
and there is one element that is perfunctory to the services or product that has
not been delivered, revenue will be recognized evenly over the remaining term of
the undelivered element. Certain NRE costs are capitalized and are expensed in
accordance with the matching principles when the related revenue is recognized.
In prior years, research and development contract revenue on long-term projects
is recognized on the percentage of completion method if reasonable estimate of
the costs and revenues can be determined for each of the milestones; otherwise,
the revenues are recognized when the product or services have been delivered.
Funds received in advance of meeting the criteria for revenue recognition are
deferred and are recorded as revenue as they are earned. If the costs we incur
on a contract are expected to exceed the anticipated revenue we will record the
loss in the period in which the facts that give rise to the revision becomes
known.
News 
Market Data 
Discover 
AI
