HTC 2007 Annual Report Download - page 76

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147146
AN OVERVIEW OFTHE COMPANY'S FINANCIAL STATUS
> Prop
e
r
t
y Tr
a
ns
a
c
t
i
on
In the second quarter of 2005, the Company
acquired land and building from VIA Technologies,
Inc. for NT$304,630 thousand.
In the second quarter of 2005, the Company sold
equipment to HTC Europe Co., Ltd. for NT$2
thousand, resulting in a gain of NT$2 thousand.
In the second quarter of 2006, the Company sold
equipment to HTC Europe Co., Ltd. for NT$141
thousand and to High Tech Computer Corp.
(Suzhou) for NT$3,914 thousand, resulting in gains
of NT$81 thousand and NT$2,169 thousand,
respectively.
In 2007, the Company sold equipment to High Tech
Computer Corp. (Suzhou) for NT$5,080 thousand,
resulting in a gain of NT$2,046 thousand.
27. COMMITMENTS AND CONTINGENCIES
As of December 31, 2007, unused letters of credit
amounted to £47 thousand.
28. SIGNI
F
ICANT CONTRACTS
> P
a
t
e
n
t
Agr
ee
m
e
n
t
s
To enhance the quality of its products and
manufacturing technologies, the Company has
patent agreements, as follows:
D
e
s
c
r
i
p
t
i
on
Authorization to use embedded operating system; royalty payment based on agreement.
Authorization to use GSM system software; royalty payment based on agreement.
Authorization to use CDMA technology to manufacture and sell units; royalty payment
based on agreement.
Authorization to use EDGE reference design license and support agreement; royalty
payment based on agreement.
Authorization to use platform patent license agreement; royalty payment based on
agreement.
Authorization to use wireless technology, like GSM; royalty payment based on agreement.
Authorization to use TDMA and CDMA technology; royalty payment based on agreement.
GSM/DCS 1800/1900 Patent License; royalty payment based on agreement.
TDMA, NARROWBAND CDMA, WIDEBAND CDMA or TD/CDMA Standards patent license
or technology; royalty payment based on agreement.
Authorization to use GSM, GPRS or EDGE patent license or technology; royalty payment
based on agreement.
Authorization to use GSM, GPRS or EDGE patent license or technology; royalty payment
based on agreement.
Authorization to use GSM, GPRS, EDGE, CDMA or WCDMA patent license or technology;
royalty payment based on agreement.
Con
t
r
a
c
t
or Con
t
r
a
c
t
T
e
rm
Microsoft January 1, 2007-January 31, 2009
Texas Instruments France January 14, 2000-January 13, 2010
Qualcomm Incorporated December 20, 2000 to the following dates:
(a) If the Company materially breaches any covenant and fails to take
remedial action within 30 days after Qualcomm s issuance of a
written notice, the Company will be prohibited from using
Qualcomm s property or patents.
(b) Any time when the Company is not using any of Qualcomm s
intellectual property, the Company may terminate this agreement
upon 60 days prior written notice to Qualcomm.
Ericsson Mobile Platform AB April 2003-March 2011
Telefonaktiebolaget LM Ericsson December 15, 2003 to the expiry dates of these patents, and no longer
than December 14, 2008
Nokia Corporation January 1, 2003 to the expiry dates of these patents.
InterDigital Technology Corporation. December 31, 2003 to the expiry dates of these patents.
KONINKLIJKE PHILIPS ELECTRONICS N.V.
January 5, 2004 to the expiry dates of these patents
Motorola, Inc. December 23, 2003 to the latest of the following dates:
(a) Expiry dates of patents
(b) Any time when the Company is not using any of Motorola's
intellectual property,
ALCATEL/TCL & Alcatel July 1, 2004-June 30, 2009
Siemens Aktiengesellschaft July 1, 2004 to the expiry dates of these patents.
Lucent Technologies GRL LLC July 1, 2004-June 30, 2009
VI
> S
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a
nd M
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k
e
t
i
ng
Fee
s
2005 2006 2007
% to Total % to Total % to Total
Service Service Service
Related Party Amount Expenses Amount Expenses Amount Expenses
NT$ NT$ NT$ US$(Note 3)
HTC America Inc. $ - - $ 464,321 32 $ 1,336,085 $ 41,199 30
HTC Europe Co., Ltd. - - 302,919 21 1,327,623 40,938 30
HTC Nippon Corporation - - 31,478 2 247,967 7,646 7
HTC Belgium BVBA/SPRL - - - - 232,447 7,168 5
HTC Singapore Pte. Ltd. - - - - 150,017 4,626 3
Communication Global Certification Inc. - - 34,814 2 115,253 3,554 3
HTC (H.K.) Limited - - - - 75,792 2,337 2
HTC (Australia and New Zealand) Pty. Ltd. - - - - 60,314 1,860 1
HTEK 21,983 14 21,685 1 - -
Exedea Inc. - - 15,567 1 - - -
VIA Technologies Inc. 3,600 3 2,400 - 2,400 74 -
$ 25,583 17 $ 873,184 59 $ 3,547,898 $ 109,402 81
> L
ea
s
i
ng - L
e
ss
ee
Operating Expense - Rental Expense
2005 2006 2007
% to Total % to Total % to Total
Rental Rental Rental
Related Party Amount Expenses Amount Expenses Amount Expenses
NT$ NT$ NT$ US$(Note 3)
VIA Technologies Inc. $ 7,663 37 $ - - $ - $ - -
•The Co
m
pany leased offices and parking space owned by VIA Technologies, Inc. at one-year renewable operating lease agree
m
ents,
and the rental pay
m
ent was deter
m
ined at the rates prevailing in the surrounding area.
> Nonop
e
r
a
t
i
ng In
c
om
e
- R
e
n
t
a
l
R
e
v
e
nu
e
2005 2006 2007
% to Total % to Total % to Total
Rental Rental Rental
Related Party Amount Revenue Amount Revenue Amount Revenue
NT$ NT$ NT$ US$(Note 3)
VIA Technologies Inc. $ 339 100 $ - - $ - $ - -
FINANCEI INDEPENDENT AUDITORS' REPORT
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