Royalty Income ColourManagement has filed Q3 results with additional colour on the royalty revenue. It appears they recorded ~$2.4mm in defered royalty revenue during the quarter (in other words they received the cash but haven't yet recognized them as sales). Also they disclose for reporting purposes that Royalties will be recorded as revenue rather than other income.
No additional colour on the royalites so we'll have to see if the defered amount is only "partial" recognition with more to come (i.e. an upfront partial payment from either Hemisphere GNSS or Raven). For now $448k of it is expected to be recognized in the upcoming 12 months (so me thinks much more is to come). Remember there are no costs associated with royalty revenue so that flows straight to the bottom line (100% gross margins). For reporting purposes going forward it would be nice to see the company improve segmented disclosure for the key business lines (OEM/VAR, HandsFree, Royalties).