j70k: As stated below from the 8-K announcement covering FY2005 results, the $285 million being received from LG is being amortized over approximately five years. This comes out to a little over $14 million per quarter, which should be the amount that analysts are using in their quarterly revenue computations. The timing of the cash receipts has no direc relationship to how revenues are recorded.
First Quarter 2006 Outlook
Rich Fagan, Chief Financial Officer commented, "In first quarter 2006, we expect to report revenue of $50 million to $52 million. This revenue amount includes slightly more than $11 million related to the recently announced patent license agreement with LG (for which we are recognizing revenue associated with $285 million in total expected payments on a straight-line amortization over the approximately five-year term of the agreement) as well as increases in sales from some of our other licensees.
Analysts estimates of revenues by quarter for 2007 have me baffled.Which quarter are we supposed to recognize LG and for how much? I was under the impression that we were to receive $95 mil the first quarter 07 and 08 to fulfill the remaining balance from the $285 mil license,but I think I remember something about accounting for $57 mil per year over the 5 year agreement.Can anyone verify this and then explain where these analysts account for the LG revenues.tia
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