That was my point.

How to handle a settlement:

In September 2001, MOSAID sued Samsung for infringement of seven MOSAID patents. Today MOSAID announced that it has signed an agreement with Samsung, which settles this litigation and grants Samsung a license to the MOSAID patent portfolio. Under the terms of settlement, Samsung will receive a five year license to the entire MOSAID patent portfolio. Samsung will also receive a license to four MOSAID patent families filed prior to 2000 for the lives of the patents. Payments for the license will be spread over the five year term of the license. Under the terms of the agreement financial details are to be kept confidential.

With respect to financial guidance, the Samsung agreement impacts the Company's expected results for its third quarter and the fiscal year. Driven principally by the incremental revenues from Samsung, the Company now forecasts revenues in Q3 fiscal 2005 of $16.5 to 17 million versus its previous guidance of $4 to 4.5 million. For the fiscal year, revenues are expected to be $44.5 to 45 million versus previous guidance of $30 to 32 million. Earnings are now expected to be $33.5 to 34 million for Q3 fiscal 2005 versus previous guidance of a loss of $5 to 6 million. However, this earnings forecast is impacted by the recognition of the Company's remaining income tax asset, which is more likely than not to be utilized. Without this adjustment, earnings for Q3 would be $5 to 5.5 million. For the fiscal year, earnings of $34.5 to 35 million are now forecast, versus previous guidance of a loss of $6 to7 million.

http://www.us.design-reuse.com/news/9487/mosaid-settles-samsung-patent-litigation.html

Be well