XML 67 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Related Parties
9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
Related Parties
14. Related Parties:
In June 2000, the Company entered into a stock purchase agreement with Enel pursuant to which Enel purchased 3.0 million newly issued shares of its common stock for $130.7 million. The closing of this stock purchase occurred on September 11, 2000. At the closing, Enel had agreed that it would not, except under limited circumstances, sell or otherwise transfer any of those shares for a specified time period. That time period expired September 11, 2003. To the Company’s knowledge, Enel has disposed none of its 3.0 million shares. Under the terms of the stock purchase agreement, Enel has the right to nominate one member of the Company’s board of directors. A representative of Enel served on the board until March 14, 2012; no Enel representative is presently on the board.
At the time the Company entered into the stock purchase agreement with Enel, it also entered into a research and development agreement with an affiliate of Enel (the “R&D Agreement”). Under the terms of the R&D Agreement, the Company cooperated with Enel to integrate its LONWORKS technology into Enel’s remote metering management project in Italy, the Contatore Elettronico. The Company completed the sale of its components and products for the deployment phase of the Contatore Elettronico project during 2005. During 2006, the Company supplied Enel and its designated manufacturers with limited spare parts for the Contatore Elettronico system. In October 2006, the Company entered into a new development and supply agreement and a software enhancement agreement with Enel. Under the development and supply agreement, Enel and its contract manufacturers purchase additional electronic components and finished goods from the Company.
For the three months ended September 30, 2014 and 2013, the Company recognized revenue from products and services sold to Enel and its designated manufacturers of approximately $683,000 and $499,000, respectively. For the nine months ended September 30, 2014 and 2013, the Company recognized revenue from products and services sold to Enel and its designated manufacturers of approximately $2.5 million and $4.2 million, respectively. Please refer to Note 5 for information related to discontinued operations.
As of September 30, 2014 and December 31, 2013, none and $1.6 million, respectively, of the Company’s total accounts receivable balance related to amounts owed by Enel and its designated manufacturers.