| |||||||||
These excerpts taken from the ISO 8-K filed Jan 9, 2008. Revenue
recognition
The
Company recognizes revenue for contract product development arrangements when
certain performance milestones are achieved, as determined by the
buyer.
Certain
of the Company’s customer arrangements encompass multiple deliverables.
Accounting for these arrangements is in accordance with Emerging Issues Task
Force (“EITF”) No. 00-21,“Accounting for Revenue Arrangements
with Multiple Deliverables” (“EITF 00-21”). If the deliverables meet the
criteria in EITF 00-21, the deliverables are separated into separate units
of
accounting, and revenue is allocated to the deliverables based on their relative
fair values. The criteria specified in EITF 00-21 are that the delivered item
has value to the customer on a stand-alone basis, there is objective and
reliable evidence of the fair value of the undelivered item, and if the
arrangement includes a general right of return relative to the delivered item,
delivery or performance of the undelivered item is considered probable and
substantially in the control of the vendor. Applicable revenue recognition
criteria is considered separately for each separate unit of
accounting.
Management
applies judgment to ensure appropriate application of EITF 00-21, including
value allocation among multiple deliverables, determination of whether
undelivered elements are essential to the functionality of delivered elements
and timing of revenue recognition, among others. For those arrangements where
the deliverables do not qualify as a separate unit of accounting, revenue from
all deliverables is treated as one accounting unit and recognized over the
term
of the arrangement.
Revenue
recognition
The
Company recognizes revenue for contract product development arrangements
when
certain performance milestones are achieved, as determined by the
buyer.
Certain
of the Company’s customer arrangements encompass multiple deliverables.
Accounting for these arrangements is in accordance with Emerging Issues
Task
Force (“EITF”) No. 00-21,“Accounting for Revenue
Arrangements
with Multiple Deliverables” (“EITF 00-21”). If the deliverables meet the
criteria in EITF 00-21, the deliverables are separated into separate units
of
accounting, and revenue is allocated to the deliverables based on their
relative
fair values. The criteria specified in EITF 00-21 are that the delivered
item
has value to the customer on a stand-alone basis, there is objective and
reliable evidence of the fair value of the undelivered item, and if the
arrangement includes a general right of return relative to the delivered
item,
delivery or performance of the undelivered item is considered probable
and
substantially in the control of the vendor. Applicable revenue recognition
criteria is considered separately for each separate unit of
accounting.
Management
applies judgment to ensure appropriate application of EITF 00-21, including
value allocation among multiple deliverables, determination of whether
undelivered elements are essential to the functionality of delivered elements
and timing of revenue recognition, among others. For those arrangements
where
the deliverables do not qualify as a separate unit of accounting, revenue
from
all deliverables is treated as one accounting unit and recognized over
the term
of the arrangement.
This excerpt taken from the ISO 10-K filed Mar 31, 2006. Revenue Recognition Revenues from product sales are generally recognized at the time of shipment and are recorded net of estimated returns and allowances. Revenues from services are generally recognized upon substantial completion of the service and acceptance by the customer. The Company has, under certain conditions, granted customers the right to return product during a specified period of time after shipment. In these situations, the Company establishes a liability for estimated returns and allowances at the time of shipment and makes the appropriate adjustment in revenue recognized for accounting purposes. During 2005, no revenue was recognized on products that included a right to return or otherwise required customer acceptance after December 31, 2005. The Company has established a program which, in certain situations, allows customers or prospective customers to field test the Company’s products for a specified period of time. Revenues from field test arrangements are recognized upon customer acceptance of the products.
-25-
Table of ContentsThis excerpt taken from the ISO 10-K filed May 4, 2005. Revenue Recognition
Revenues from product sales are generally recognized at the time of shipment and are recorded net of estimated returns and allowances. Revenues from services are generally recognized upon substantial completion of the service and acceptance by the customer. The Company has, under certain conditions, granted customers the right to return product during a specified period of time after shipment. In these situations, the Company establishes a liability for estimated returns and allowances at the time of shipment and makes the appropriate adjustment in revenue recognized for accounting purposes. During 2004, no revenue was recognized on products that included a right to return or otherwise required customer acceptance after December 31, 2004. The Company has established a program which, in certain situations, allows customers or prospective customers to field test the Company’s products for a specified period of time. Revenues from field test arrangements are recognized upon customer acceptance of the products.
The Company warrants its products against defects in materials and workmanship typically for a 1-2 year period from the date of shipment, though these terms may be negotiated on a case by case basis. A provision for estimated future costs related to warranty expenses is recorded when revenues are recognized. At December 31, 2004 and 2003, respectively, the Company accrued $34,000 and $100,000 for warranty costs. This warranty reserve is based on the cost to replace a percentage of products in the field at a given point, adjusted by actual experience. Returns and allowances were not significant in any period reported, and form a data point in establishing the reserve. Should this warranty reserve estimate be deemed insufficient, by new information, experience, or otherwise, an increase to warranty expense would be required.
This excerpt taken from the ISO 10-K filed Mar 31, 2005. Revenue Recognition
Revenues from product sales are generally recognized at the time of shipment and are recorded net of estimated returns and allowances. Revenues from services are generally recognized upon substantial completion of the service and acceptance by the customer. The Company has, under certain conditions, granted customers the right to return product during a specified period of time after shipment. In these situations, the Company establishes a liability for estimated returns and allowances at the time of shipment and makes the appropriate adjustment in revenue recognized for accounting purposes. During 2004, no revenue was recognized on products that included a right to return or otherwise required customer acceptance after December 31, 2004. The Company has established a program which, in certain situations, allows customers or prospective customers to field test the Company’s products for a specified period of time. Revenues from field test arrangements are recognized upon customer acceptance of the products.
The Company warrants its products against defects in materials and workmanship typically for a 1-2 year period from the date of shipment, though these terms may be negotiated on a case by case basis. A provision for estimated future costs related to warranty expenses is recorded when revenues are recognized. At December 31, 2004 and 2003, respectively, the Company accrued $34,000 and $100,000 for warranty costs. This warranty reserve is based on the cost to replace a percentage of products in the field at a given point, adjusted by actual experience. Returns and allowances were not significant in any period reported, and form a data point in establishing the reserve. Should this warranty reserve estimate be deemed insufficient, by new information, experience, or otherwise, an increase to warranty expense would be required.
| EXCERPTS ON THIS PAGE:
RELATED TOPICS for ISO: |
