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To: slacker711 who wrote (9509)	4/18/2001 1:08:39 PM
From: lkj	Respond to of 10309

Delete, wrong message window.

To: slacker711 who wrote (9509)	4/18/2001 1:25:12 PM
From: lkj	Read Replies (1) \| Respond to of 10309

Hi Slacker, I don't know how WRS books royalty, but this is what it used to do with Intel for I2O royalty. Intel is a WRS VAR. For every I2O processor it sold, IxWorks royalty was included in the price. Before, at the end of every quarter, Intel would tell WRS how many I/O chips it sold, which tell WRS how much money it can collect. WRS's quarter is different from everyone else's. It lags everyone by about one month. Instead of recognizing I2O royalty in the quarter that hadn't closed, WRS chose to recognize it the following quarter, which closes 4 months after Intel's report. Some time around one or two year ago, WRS decided to change its accounting method, so that I2O royalty could be recognized in the quater that Intel gives the report. This is just how WRS dealt with I2O royalty from the accounting standpoint. It shows that there are some flexibilities. I would think that the royalty recognition from telecom companies were a lot more flexible. Khan