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| ECtel Concludes Participation in Israeli Office of the Chief Scientist ECtel has agreed with the Office of the Chief Scientist of the Israeli Ministry of Industry, Trade and Labor (OCS), to conclude its outstanding balance to the OCS which sponsored research and development grant programs for its FraudView solution. The Company will repay approximately $2.8 million of outstanding grants in four quarterly installments during 2007. The repayment will result in a one-time charge in the fourth quarter of 2006 and the Company expects a positive impact on earnings during 2007 and in the following years. Management based its decision on the reduced economic benefit it can now gain from participating in the program, due to recent increase in revenue as well as internal revenue growth projections from FraudView attributed to the launch of FraudView Release 8. The role of the OCS is to assist in the development of new technologies in Israel, as a mean of fostering the Israeli economy, encouraging technological entrepreneurship, leveraging Israel's science-skilled resources, supporting added value R&D, enhancing the knowledge base of Israeli hi-tech industries and promoting cooperation in R&D both nationally and internationally. Under the Israeli Encouragement of Industrial Research and Development Law, research and development programs that are approved by the OCS are eligible for grants of up to 50% of certain expenditures. In exchange, recipients are required to pay the OCS royalties from the revenues derived from products incorporating know-how developed within the framework of the OCS program, up to an aggregate of 100% of the grant plus interest. write your comments about the article :: © 2007 Networking News :: home page |