is a critical part of Aixtron's 2019 financial performance given the unusual situation of APEVA. One should read carefully from the 2018 annual report:
"Revenue related to equipment where meeting the product specification requirements has not yet been demonstrated or the customer cannot benefit from the product either on its own or with other resources that are readily available, or where specific rights of return have been negotiated, is recognized only at the point in time when the customer finally accepts the equipment and has control.
Revenue for the sale of equipment which is built for a specific customer and does not have an alternative use is recognized over time based on milestones for the particular contract and the extent to which the company’s performance obligations have been satisfied. Typically, these con- tracts relate either to upgrades to equipment already belonging to the customer, or to customized equipment for a specific customer application."
Paragraph 1 meets the situation of Gen 1 and Gen 2 OVPD I believe, while paragraph 2 describes what Aixtron would like to do when the Samsung custom "order" comes later in the year.
In both cases, it is unclear to me how the "orders" are recognized from the accounting principles. My guess is, it would be recognized at the same time the when the revenue is recognized. That is why Bernd said the potential OVPD order is not quantifiable. This creates an interesting situation that the potential revenues from building this customized yet un-quantifiable Gen 6 or 8.5 OVPD machines can be put into the 2019 revenue guidance, since Aixtron has a good idea how much to cost quarterly on schedule for this "contract", yet I don't know if they can be put into "orders" to meet accounting criteria.
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