3dtv sales for TCl Jan 2013 - Mar 2013 https://multimedia.tcl.com/UserFiles/File/IR/Sales%20volume/2013/1070_Monthly_Shipment_Release_2013%203%20Eng.pdf
Looks like 700K+ 3dtv units sold by tcl. I'm assuming similar numbers for HiSense. But to be extremely conserative, let's just say 1M flat for ALL licensees. With that conservative assumption, for every 100K in licensing revenue, we know sensio has licensed its patents for a multiple of $0.10 per unit. Or, maybe they have signed a fixed contracted amount. I hope its per unit and I hope it's more than $0.25 per unit.
Now compare that 1 time payment with a large consumer tv purchase (in the hundreds, maybe even a couple grand) versus a 30% gross margin paid to sensio with a purchase of a premium movie at 7 bucks, which equals $2.10. Given the licensing fee of $0.25 is more defensive (patent protected) and the movie subscriptions are not, you can see where the bigger cash cow lies.
Again, if a big player (Acquirer) were to look at it, i would think that sensio's patents would likely strengthen the Acq's existing patent portfolio, which could result in the Acq generating higher licensing fees or establishing a new revenue stream as well as providing a revenue stream on movies.
Assume: 1M tv's per quarter and thus 4M sold per year. Each tv owner to buy 6 movies per year which gives an amount of 30% * $5/movie * 6 movies/ yr * 4M = $36M.
36M in revenue in 1 yr (also high margins) is 3X more than SIO current market cap. Oh yeah, the Acq also gets SIO's tax losses which means more money if the Acq's has a positive bottom line.
Also, it took years to build the 3D platform and time is money. So a saavy Acq would be like the company will pay for itself in a couple months in the best case and less than a year in the worst case and I gain valuable patents regardless.
007YG.