lml:
Charlie, then please do yourself a favor, call TERN & verify it yourself. See what response you get. Then let us know.
Fair enough. Here is an exact transcript of the segment of the call in question:
ANALYST(Brian Wood): One final question, (in the) Sept 10Q you allude to the product agreement with Rodgers cable and state that your products are not meeting the quality and performance specifications of that contract. I believe Rodgers waived those specs to allow you to recognize revenue, but going forward I guess, one, why aren't they meeting specs, and two, can we expect to see this problem in the future?
Ray Fritz(CFO): Ahh, I think the agreement with Rogers calls for the fact that we had agreed to have a DOCSIS product in supply to Rodgers within a certain time frame. And as a result of that we did get an exception to the contract with Rodgers where we have recognized the revenues and things are going great in terms of the implementation there. And that's all that that footnote mentioned.
ANALYST(Brian Wood): I guess without that exception you wouldn't have been able to recognize those revenues?
Ray Fritz(CFO): Well, I guess we would have been able to recognize, but we wanted to make sure that we were still in compliance with the contract with Rogers. And that's why we asked them for an exemption, (an) exception to the contract. |
