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Message: revenue

I'm not talking about the timing of a payment; I'm talking about the timing of its recognition as revenue.

The recent form 10-Q recites that the company recognized $1.25 million of patent license revenue in the reported quarter. Some say that this means that the one-time licensing fee from Samsung had to have been no more than $1.25 million. But the words do not actually rule out the possibility that $1.25 million does not reflect the full amount of the Samsung settlement. For example, it could represent that $10 million is to be recognized as revenue in eight installments over the course of eight quarters. The amount of patent license revenue that was recognized on the income statement for one fiscal quarter does not necessarily establish the amount of the licensing fee that Samsung paid as part of the settlement.

Maybe the Samsung settlement involved only a payment of $1.25 million (or less). But I can't prove it on the current record.

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