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Cipher reports third quarter fiscal 2007 results
Date:11/7/2007

teria are met. The

applicable revenue recognition approach is then applied to each unit.

Otherwise, the applicable revenue recognition criteria are applied to

combined elements as a single unit of accounting.

Product sales - revenue from product sales contracts is recognized

when the product is shipped to the Company's customers, at which time

ownership is transferred.

Licensing revenues - for up-front licensing payments, revenue is

deferred and recognized on a straight line basis during the estimated

term over which the Company maintains substantive contractual

obligations. Milestone payments are recognized as revenue when the

underlying condition is met, the milestone is not a condition to

future deliverables and collectibility is reasonably assured.

Otherwise, milestone payments are recognized as revenue over the

remaining term of the underlying agreement or the term over which the

Company maintains substantive contractual obligations. Royalty

revenue is recognized in the period in which the Company earns the

royalty. Amounts received in advance of recognition as revenue are

included in deferred revenue. Revenue from licensing and distribution

agreements is presented on a net basis.

2 Changes in accounting policies

Effective January 1, 2007 the Company adopted the CICA Handbook

Section 1530, "Comprehensive income" and CICA Handbook section 3855,

"Financial instruments - recognition and measurement".

Comprehensive income

Comprehensive income introduces a new requirement to present, among

other things, certain unrealized gains and losses outside of net

income or loss. Section 1530 defines comprehensive income as a change

in net assets arising from transactions and other events and

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SOURCE Cipher Pharmaceuticals Inc.
Copyright©2007 PR Newswire.
All rights reserved

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