Quarterhill Inc T.QTRH

Board credibility - Why no Jan 10 preannouncement of Q4 ?

[shareholders1]

The share price moved to about 2.60 in week of October preannouncement. They knew the approx Q3 numbers only 8 days after the Q. Fast forward to Q4. Licensing revenue came in at about 450K, Yes, K, And to add more hurt, the gross margin was almost negative 5M, Yes, M.Yes Negative.

They would have had rough idea of how bad the Q4 top line would be by say Jan 10, So why not pre-announce Q4 once they knew?

I will go further - with revenue at about 450k, they likely knew by Dec 15 that licensing revenues were not going to break 500k. Yet the board and management let it go until March 11. That is nearly 3 months and a very long time to sit on an egg.

There is a crediblity issue here. It is not a small matter. It should be a very big concern.

[shareholders1]

Adding to my last post (copied below) , director Skippen cashed in 60,045 RSUs at $2.56 on January 1, 2021. Two others cashed in about 3,000 RSUs each on same day at  same $2.56. (Leaving aside how it is even possible to exercise on a statutory holiday, these 3 appear to have wanted to cash RSUs, but for tax reasons wanted their income to be in 2021, not 2020. This is only a possible detail.)

[ChiChi3]

Shareholders1, I think the RSU's being cashed are usually an automatic thing that occurs once they vest (at least they are in my conpany).  I don't think you can look at them as options that can be exercised at any time.  So they wouldn't have been using inside info in this case. My concern with Q4 was why did they announce that signing that had a value of less than $500,000

[shareholders1]

Very good point on the PR re the Q4 signing. If correct, that adds very significantly to concern re BOD credibility. I do not agree  with you re RSUs having to be cashed as soon as they vest, That would defeat the long term strategy in tying compensation to performance of the corporation.

[Justhalffull]

Why would it defeat the purpose.  I issue you 12,000 RSU's, vesting at 2000 every 6 months for 3 years.  The current share price is $10.  On the first vesting date, the share price is $8.00.  You have $16,000 is taxable income.  On the second vesting date, the stock is worth $12,  You have $24,000 in taxable income.  etc, etc.   That is how RSU'

[shareholders1]

Chi chi - Q4 Announcement Oct 1 was Intel. I do not see another Q4 PR re Wilan

[shareholders1]

 I see it now - Nov 30. So Intel was Oct 1 and the 2nd one was Nov 30. In both cases, mgmt would have decribed the signings and the $ to the BoD before the press releases were approved. There were no other press releases in Q4 re Wilan, So, it seems the BoD should have known the Q4 lic revenue would be well be low average. (I calculate just under 20m per Q for the lat 4 yrs (should go back

[cabbieJBJ]

Shareholders, release 30-Nov-20 (I've added emphsis): OTTAWA, ON, Nov. 30, 2020 /PRNewswire/ - Wi-LAN Inc. ("WiLAN"), a Quarterhill Inc. ("Quarterhill") company (TSX: QTRH) (OTCQX: QTRHF), today announced that an unnamed handset manufacturer, ranked in the top 20 in sales in the USA, has signed a multi-year license to WiLAN's wireless LTE patent

[WinnerCircle948]

Believe some of the Deferred Revenue totalling more than $7M related to this signing. W

[cabbieJBJ]

Chi, I have a perspective on the license to the unidentified wireless handset company.  There have traditionally been a small amount of running royalties and that is what the <$500M represents.  Since there was no lump sum in Q4, I've concluded that the 11/30/20 announcement is a running royalty license, with revenues recognized as reported.  The first revenue then should be

[ChiChi3]

That seems like a possibility Cabbie, thanks.  I hope you're right but it would be odd for no lump sum payment for past infringing.  Also, I guess the interpretation of the 'new' accounting rules are that if the future payments are not contractually set in dollars, they don't have to be declared as income up front?  In other words, the running royalties are

[cabbieJBJ]

That's my interpretation as well Chi.