RE:RE:RE:RE:RE:RE:RE:RE:DisclosureShareholders, I agree that revenue will surprise strongly on the upside versus analysts estimates of ~$35M. EBITDA will be slightly less strong as a result of transaction costs associated with the ETC acquisition.
I expect the ITS sector to generate solid results between $25M and $28M. I expect Wilan, with Motorola, PSMC and the auto contract, plus regular run-of-business to conservatively produce in the $35M to $40M range. A higher number is probable.
Obviously, the Motorola license is the elephant in the room and all the speculation in the world will not add further clarity; I expect Q3 results to be released on 04-Nov-2021. What we do know is that the market gave the discovery that Motorola and Wilan had settled ~$0.25 (normalized ~$2.60 pre to post normalized of ~$2.85). At 113M shares outstanding, the implied value of the Motorola license is ~$28M. Since the IP license with Motorola probably covers Wilan-owned IP, the only significant deduction to gross margin is contingent legal costs. That would peg gross margin at ~65%. This assumption puts the market's estimate of revenue from the Motorola license at ~$43M CDN (~$35M USD).