Patriot Scientific

Patriot Scientific Reports Profitable Quarter; Q3 FY '08 Net Income $6.3 Million or $0.02 Basic and Diluted Earnings Per Share.

While I appreciate your uncharacteristic optimism, IMO the likelihood of some unexpected licensing revenues being reported in the 1st qtr is extremely slim. The good news was the settlement! The future!

Consider the fact that Leckrone was engaged in disputes with some five/six different parties, with MMP licensing being at issue in every case (I believe, in some fashion). Failure to license (or refusing to license) was his primary leverage in any settlement negotiations in which he was engaged.

A breach? He was already accused of that, so to him, at that point, it was probably a non-issue. The penalty wouldn't change - it only takes one valid significant breach with each party to void the contracts, a second breach adds nothing.

Perhaps acknowledgment of this sheds some light on the magnitude of accomplishing a settlement where our "basic needs" are covered (intense oversight, participation in the license approval process, and provisions to avoid license commingling with stipulations for those occasions when commingling cannot reasonably be avoided - all centering on one thing - removing as possible any opportunity for Leckrone to screw us in the future).

I don't expect any surprises come Monday. But I expect happy surprises in the future.

FWIW,

SGE

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SGE1
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