SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : WDC/Sandisk Corporation
WDC 181.54+1.1%Dec 26 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mike Winn who wrote (1010)10/18/1997 11:35:00 PM
From: ED PLOPA   of 60323
 
Mike:

I've been a CPA for over 20 years so I should be able to speak as an expert on deferred revenue, so here it is:

Sometimes licensing agreements involve front end licensing fees and follow on royalties. Suppose Sumsung, or someone, paid front end fees for a five year licensing contract. The money that SNDK would have received would have an offsetting entry; either revenue or a liability (deferred). Since the licensing agreement is 5 years, I would opine that the revenue from the fee would have to accreted, taking into income, over that period.

Based on the above premise, the 35M of so in deferred revenue most probably will not entirely be recognized as income the next quarter or the next year for that matter.

Respectfully submitted,

Ed Plopa
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext