The guidance reflects payments made by Amkor Technologies, Inc. (Amkor) to the company in February 2009 as per the terms of the International Chamber of Commerce’s International Court of Arbitration one-time award to the company for Amkor’s material breach of its license agreement.
The $64.1 million will be reflected in two income statement categories. First, $60.6 million for royalties owed for the time period March 2, 2002 through December 1, 2008, will be recognized as Micro-Electronics Royalty and License Fees. Second, the remaining $3.5 million for interest owed will be recorded as Other Income.
The company is raising its first quarter 2009 Micro-electronics Royalty and License Fees, which are now anticipated to range between $106.6 million and $108.6 million. As previously stated, the Royalty and License Fees guidance includes fees received from Motorola to extend its option agreement with the company that allows Motorola to enter into a pre-negotiated license agreement with the company and settle all outstanding litigation between the companies. The option runs through mid-April 2009.
As a result of the recently granted stay in the company’s U.S. International Trade Commission Investigation No. 337-TA-649 (Subcon ITC action), the company now anticipates its first quarter 2009 litigation expenses to be moderately less than the fourth quarter of 2008.
The company reiterated its guidance on its other first quarter 2009 items, which remain unchanged:
Imaging & Optics Revenue, in total, is anticipated to range between $8 million and $10 million.
Imaging & Optics Royalty and License Revenue will range between $5 million and $6 million.
Imaging & Optics Products and Services Revenue will range between $3 million and $4 million.
Stock-based compensation is projected to be about $6.7 million.
Amortization charges are anticipated to be about $2.9 million.
First quarter cash taxes are anticipated to be about $3.4 million. The receipt of the Amkor payments will impact the company’s cash taxes starting in the second quarter 2009.
