John Thomas | VP, IR and Corporate Communications |
Arthur Higgins | President and Chief Executive Officer |
August Moretti | Chief Financial Officer and Senior Vice President |
Daniel Busby | RBC capital market |
Irina Koffler | Mizuho Securities |
Ken Trbovich | Janney Montgomery Scott |
Call starts abruptly… GAAP commercialization agreement revenue of approximately $31 million per quarter through December 2021. This will be somewhat less than the cash we receive which will be $33.75 million per quarter. The difference is largely due to the frontloading of the GAAP commercialization agreement revenue associated with the value of the inventory we transferred. On a non-GAAP basis we are adjusting for the non-cash portion of the value assigned to the inventory and are reporting $31.3 million of non-GAAP commercialization agreement revenue for Q1 2018. In future periods we expect to recognize approximately $34.5 million of non-GAAP commercialization agreement revenue per quarter until 2021.